All Forum Posts by: Darren Nichols

So I came across a property today and did my research and it was foreclosed. I cross referenced the tax info on the county website and the home is owned by an investment company called everbank and they have locations all throughout the country. Turns out they picked the property up at an auction back in February 2013. I looked through the windows and the home has not had work done at all and it looks distressed to me. My question is to you experienced investors is if it is even worth sending them a yellow letter or contacting them in someway or would it seem like something they are just holding onto because their company is worth 17 billion in assets and they can do what they want???

Alright Utahns so tomorrow I have an appt with a seller my very first appt mind you. I am optimistic that I will get the property under contract. Obviously after that happens within a day or two I need to go to a title company to open up escrow. Does anyone recommend a investor friendly title company/escrow officer here in northern utah especially one that knows how to do the assignments and double escrows? Preferably in weber or davis county. Thanks guys

Well Ben there seems to be a bit of motivation she just lost her job and they have another home but she doesn't want her husband paying two mortgages. I do plan on negotiating and honestly after all is said and done if they refuse to budge then I will just have to refer them to a realtor but I will be sure to explain to them that if they want to get money by listing it they are gonna have to do repairs themselves and she already stated to me she doesnt want to do that. I will be sure to remind her of 6% realtor fees as well as closing and other costs. Oh and a side note I spoke with a rehabber in my area that has done some fix and flips very close to this home and he said 15 to 20k would be about right for that type of home of course he also stated that will be dependent upon how good or how bad of condition it is in. Now one last thing I was looking over the sold comps and discovered that the highest sold comp that was a remodel and is beautiful and is a 3br 2 ba just like this one sold at 134,900. Should I lean more towards that value for my ARV instead of 130k???

I think since I haven't done a deal yet I am going to take a much smaller fee because honestly the main thing I want right now is the experience. I want to know what it is like going through the process of doing a deal from the time the seller signs all the way to closing with an end buyer. Thanks for the advice everyone! The worst the seller can say is No and I didn't really lose anything. Failure is the path to success right???

The Seller just said they would like to get 20k out of the property but I am not sure if they need it now or how flexible they are but I will find that out tomorrow. I plan on marketing it as a fix and flip. The neighborhood rent is right around 800 a month. 

Here are the figures of a property I am wanting to wholesale:

ARV: $130k * 70%= $91k- $15k in repairs= $76k- $5k wholesale fee= $71k

Now the 15k in repairs is speculation because I am going to see the property on friday but the seller said it does need some work(its about 1830 sq ft). The problem I am running into is that the seller still owes 61k on the property. The seller stated they would like to get 20k in their pockets if possible. The way I look at it I don't think that is possible and even if I wholesaled it for free they would only make $15k on it. I am just seeing if I am missing something, or if anyone thinks this isn't a good deal to wholesale or if I just need to negotiate with the seller to only getting $10k in their pockets from the property. I also understand that repairs could be more or less and if the repairs are more than 15k I think it would be tough to make this deal happen. Any insight is greatly appreciated!

Thanks

This will be the very last post from me on this topic. I appreciate those that have offered advice that was in no way condescending. I realize that I am new and I also realize many of you HATE bandit signs and that is understandable. I will say that it is not illegal everywhere in the country and I will for sure find out where in my area it is legal and in the areas that it is legal I will still put them out. I have been testing out different marketing strategies and if I get results from bandit signs I will continue to use them where it is legal. I simply put mine out because I have learned that it was a marketing strategy that gets results (which I have gotten 4 calls) and I see them all over the place and I honestly had no idea they were illegal in some areas. I will also be doing yellow letters, craigslist, google ad words, eventually creating a squeeze page etc. I have thick skin my life gets threatened every day and I get into fights with people that want blood, I was merely pointing out that calling somebody a loser for putting out bandit signs is pretty ridiculous when the whole point of bigger pockets is to help out each other and not tear people down. If people are putting out bandit signs and knowing it is illegal in that particular area then that is wrong. I am sure many of you started out at one point where you didn't have a lot of money and had to start somewhere in order to get where you are at today. If I happened to upset, alienate, or offend anyone out there well I guess it is what it is and I can’t change that. I will do what I have to do to be successful within the parameters of the law even if it means putting out ghetto bandit signs.

Thanks for all the replies :)

@Wayne Brooks they aren't illegal. Many successful wholesale investors use them and many cash buyers benefit from them. Of course 14 dollars upsets me as I am new to this business. I work full time in a job that doesnt pay real well considering I get told things and experience things that would make put your tail between your legs and probably wet yourself.

@Scott K the signs were put up next to a business that are by say a walmart but I place them by a stop sign or stop lights. Scott your optimism and kind words are greatly appreciated. I hope that you can take your profound advice and help so many other new investors succeed!! ;)

P.S Don't ever comment on my posts again because I dont play nice when it comes to negativity.

Some that were taken were on private property right by a main street and others weren't. I did have some on private property that didn't get taken. The one issue I have is if a business takes the sign why can't they just call me and say it's not allowed then I could come and pick the signs up. It may not seem like a lot but but losing 9 signs puts me out 14 bucks.