All Forum Posts by: Account Closed

I transcribed the VM, should anyone want to record in their own sexy voice or modify.. 

Hello and thank you for calling. You may be calling because you have interest in selling your home. We are not real estate agents. We buy houses in any condition and price range all over town. We buy as is, no repairs required. We pay all of the costs. There are never any comissions, fees or closing costs when you sell your home and we can close on the day of your choice, even if you need your cash today. If you are serious about selling for cash, then leave us your name, cell phone number and property address of the property you're wanting to sell and we will call you back just as soon as possible. Thank you again for calling.

@Erick Pough How did you come up with offering $10K.  Just rough estimating based on your numbers here's what I get.

50K x 70% = 35K (using 70% rule of thumb)

35K - 32K = 3K (less repairs)

3K - 5.5K = -2.5K  (less back taxes)

Thus using the 70% rule, you loose money. Even if you were to use a 75% rule, which in some areas of the country is where investors buy at, you still don't many any money on a wholesale deal and too little on a fix n flip.

@Ricardo S. Right on!

@Michael Quarles What's a 17 cycle?  

@Ricardo S. When you say last 5 yrs, do you mean with-in the last 5 years (ie. <5yrs)? If so, then you've got recent sales in your data which would have a lot of cash buyers. If you were >5yrs, then you should of had some motivated seller calls.. Having said that, you also want equity in the property, which means they've had it for a number of years. So you might want to go >10yr or >15yr in your data pull.

@Ricardo S. An absentee owner list can serve two purposes. To find cash buyers and to find motivated sellers. It depends on the last sale date. Did you set a time period for the last sale date when you pulled your list? If you're looking for cash buyers, you'd use a short time frame in last sale date, like they bought it in the last 6mths - those are investors. If you're looking for motivated sellers from the absentee list, you'll want to be out several years.. to the point they are now tired of land-lording and motivated to sell. Further, from this list for motivated sellers, you would eliminate LLC's and Companies from your list.. You'd want individual absentee owners.

@Michael Quarles I have a comment, and a question for you.

First the comment: If you gave someone $1M, they may in fact actually love you!!  I'm just saying..

Now the question(s): What ways do you find most useful for follow up on non-motivated leads?  Do you simply keep them on your direct mail list and continue to mail to them? Or, do you take them off your direct mail list and save the money spent on sending them direct mail and instead put them in an autoresponder sequence and email to them?

@Cynthia Seitz The seller assumes you're going to close - you need to find a buyer asap to close the deal. The min I have something under contract I start calling my key buyers to get it locked up. Now, if you don't have a buyer yet, or have no interested buyers for that property.. You work your arse off to find one to close that deal - you don't wait 1 min - you owe it to the sellers to close that deal. You usually have something like a 10 day inspection period on a contract. If you don't find a buyer with-in about 5 -7 days, it could be that it's not a good deal at your price in the first place or you did not work hard enough to find a buyer. At that point, prior to end of inspection period, you get with the seller to back out of the deal during your contracted inspection period saying you're funding partner won't fund the deal and you're canceling the contract during your inspection period. You send them a letter of cancellation to formalize it. You might be able to negotiate an extension to the inspection period with them explaining the situation (I've done this before and noted it here http://www.biggerpockets.com/forums/93/topics/138828-stupid-newbie-question-time ) but I would generally not advise it as a rule. 

@Mark Maire A double close is two simultaneous closes. Typically described as A-B and B-C transactions. The A-B is when the original seller "A" sells their property to you the buyer "B". That's one closing. Then on same day you are the seller "B" and you sell the same property to an investor "C". That's the second closing. When I do a double close, the funds from the B-C close (funds from the investor) flow to the A-B close thus funding my deal and I get the difference. This all happens at title co. Since I am actually buying and selling property in a double close, I go to title and sign docs for both closing transactions. In an assignment, you don't buy anything.. you're essentially assigning your contract to the end buyer. There is only one transaction, A-B.  With a double close, you have a purchase and sale agreement between you and the seller.. and another one between you and the investor. Both set of docs go to the title company and you instruct them to double close. In an assignment there is a purchase and sale agreement/contract between you and the seller and an assignment contract between you and the investor/buyer. Both set of docs go to title and you instruct them to close the deal as an assignment.

Here are some interesting reads along the lines of assignments, double closings, and wholesaling in general that you may find interesting/useful:

http://www.biggerpockets.com/forums/93/topics/9825...

http://www.biggerpockets.com/forums/93/topics/7790...

http://www.biggerpockets.com/forums/311/topics/905...

http://www.biggerpockets.com/renewsblog/2012/8/18/...

First, I am not an agent and I wholesale properties. With respect to this thread I have a couple of questions or scenarios of paying someone for a lead and hopping folks in the know can answer..

In each scenario below, neither I nor my informant is a Realtor..

Scenario 1) If I pay someone $1,000 out of my own money, just between the two of us, for being a cool dude and providing me a tip on a vacant house (I pay them after close of course and not out of escrow).. That's illegal in some states?

Scenario 2) If I assign a contract to an investor for a $5,000 assignment fee and I instruct title to pay Joe Blow (the person who gave me the lucky lead/tip) out of my assignment fee (ie. I instruct title that we're splitting the assignment fee such that I get $4K and he gets $1K) that is illegal in some states?