All Forum Posts by: Account Closed

@Rick H. , That was a good one Rick!  I've also closed deals over the phone and FEDEX with local absentee owners and never met the owner or saw the house personally (other than google street view). I hired someone to inspect and take pics for me.

No not really.. Each case you have to play by ear regardless if they're local or not.  Depends on the rapport you can build, how comfortable they feel with you, how motivated they are and whether or not they are talking to other potential buyers and what they are saying or have said to them, etc. It's a dance, if you will. For the most part, your initial price negotiating is all done on the phone anyways when you're asking for their lowest price. Depending on what they say determines what comes next. Close the deal then or, dance a little more!

Hi Leng.. The term VIP Buyers List implies to me that this is a wholesaler.. That's a term wholesalers use. Here in Phx at least, most craigslist FSBO listings are wholesalers either 1) simply looking for new investors to add to their buyer list or 2) trying to find an investor buyer for a deal they have under contract. That said, asking for POF in their first response is pretty lame. I wouldn't waste my time with even a response.. With respect to trying to find a good FSBO deal on craigslist here is super tough.. Like I said, they are mostly other wholesalers.. and from my experience, few are good deals such that you could make a profit on a co-wholesale deal.

I've mailed to both in-state and out of state owners - and wholesaled properties from both. For the out of state folks, I do the deal over the phone with respect to negotiating and finalizing the deal and such. For those who have email, I have used EchoSign for signing contracts digitally. For more than one owner on title, each has to have separate emails for EchoSign to work.  But most of the time, I've used FEDEX to overnight the contract. When I do that, I include a self addressed and stamped envelope so all they have to do is sign and put the signed copy in self addressed envelope and drop in the mail to return to me. I give them two copies actually.. One for me and one for them to keep. 

@Carlo Palomino , I've never mailed the same list again any closer than 4 weeks apart.. I think waiting 4-8 weeks works good in my experience. Others may see it differently, but I think every 3 weeks to the exact same list is too quick. You could instead mail another list on the 3rd week, and then 3 weeks later mail the first list again.. Or if funds are tight, split your list into two and mail each half every 3 weeks.

@Michael Quarles , why wouldn't you suppress it against the previous one? Also, when you say recycle, do you mean completely throw out the old list and in with the new?

@Stacey Olson you mean like that? 

First you type the @ symbol, then start typing their name. Their BP name will open up at the bottom of the text window. You click their name.. Viola!

Here's a good resource to figure this stuff out:

http://www.biggerpockets.com/rei/biggerpockets-com...

Here are some components to the 30% on a flip. Of course, they vary by situation, but these are close approximate.

6% Realtor costs on the resale after fix

2% closing costs (buy/sell)

5% finance and holding cots

13% net pre-tax profit 

4% fudge factor, misc

---------------

30%

In hot markets like Phoenix, some buyers will take up to 75% less repairs... because it's so competitive.  A cash buyer, of course, may not finance saving him those costs. Some Realtor's will go with 4%.  A property for 50K may require more net pre-tax profit than 13% to be worth the flip. It depends by situation. These are not gospel, but a good rule of thumb. 

From your comps.. I would guess the cash buyers are buying at the low end.. ~$12K. In the MLS, you can see who's buying and paying cash.. They buy at the low end and those are your cash buyers, and you know what they're paying for property in that area (sounds like about $12K). Further, you also can see who the selling agent (SA) was for the cash buyer. I would call the listing agents for the cash buyers and say you noticed they sold a property to a cash buyer near a property you have on the market, would they be interested? I have found buyers that way to wholesale my deals to.

As far as price.. If you take the top end.. $50K x 70% you get $35K. If you subtract out $20K repairs you get $15K. So, your price to the investor needs to be below that, assuming your comps are accurate.. And that's using the *top* end of your comps.. Thus, you should have it under contract for about $10K, if you expect to make money on it and move it. If need be, you could sell at the low end of your comps $12K and still make money.

If you can't move it, and you've talked to 20 buyers.. you're priced too high!

That's my 2 cents..

Welcome Matt! I've been wholesaling here in Phx for a couple years now... and lived here my whole life!  @Paul Timmins gave good advice on good reads. Keep connected to BP and make use of the all the great information and experience here. Let me know if I can be of any help down the road.