All Forum Posts by: Gwen Williams

I would also call into question the advice you've been receiving from your coach. In addition to that, who is submitting your offers for you? Even if you are submitting through the listing agent (which would be wise), they should be telling you that you are writing up some pretty weak offers. It's hard for me to imagine that an experienced REO broker would let you waste his or her time by writing up offers in that fashion. I don't mean to come across so bluntly so if these are not REO's or shorts, please clarify that for us.

Hi these are indeed REOs, which we are attempting to wholesale. It sounds like our coach may be a quack. I'm really glad I posted this thread, because I was getting really disappointed in our results - I knew something had to be wrong.

Question - we don't have the funds sitting on the bank to support the full cost of a house we're hoping to wholesale. How do we get a legit POF from a bank without the sufficient funds to support?

Apologies if these questions come across as very naive, but as I said, we are JUST starting this process and have a LOT to learn, so I truly appreciate everyone's help.

We were also told we need an exit clause (hence, the partner's approval) and an assignment clause (b/c we are going to assign the property to another investor once we close the wholesale deal). From what I'm reading here, it sounds like that's not the case either? If not, how does one ensure they don't get stuck with a home if the other investor backs out?

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Originally posted by Bryan Balk:

I looked up Coastal-Funding and if anyone googles them there not going to see it as a serious proof of funds. Try to get a proof of funds from a more established Bank rather than an automated proof of funds from a website. $500 EM is very low in my area maybe not in yours. Banks take you more serious when you are willing to put up $5,000. It also always helps a lot to work directly with the agent that is listing the home that you want. I'm not sure about your broker agreements that you may be in but if this is an option I would definitely look into it. Trust me that agent would rather have both sides of the commission than just one and will help you out to get you in that home. We send out about 50 offers a week and maybe lock up 2 homes if were lucky. Of course we are trying to steal the ones we get so our numbers are probably a lot worst than most investors. I wouldn't worry about the 15 offers I would just say make some changes see what works in your areas and keep trying. Good Luck.

Thanks for the advice! How do we ask banks for a Proof of Funds letter? (sorry if that's a dumb question - we are REALLY new to this). We don't have the funds laying in our bank account as it is now. Unless we apply for a home loan, I don't see how an established bank will provide POF to us. Are there any additional ways to get legitimate POF letters?

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Originally posted by Steve Babiak:

Different strokes for different folks = different people and areas have different success rates with offer acceptance.

Some people say they get "all" of their offers accepted (at least I read one post in the BP forums where somebody made a claim along those lines).

Some people say they get 1 in 10 offers accepted, some 1 in 20, some 1 in 40 - so this can be all over the map. Number of your offers at 15 is still too little data to measure. You could get to 1 in 20 by having 38 offers rejected and then numbers 39 and 40 get accepted.

Elements of the MAO (Maximum Acceptable Offer) formula are:

* Some percentage (.6, .65, and .7 get used by various folks) - this is something you pick, but you do this based on how your buyer will buy.

* ARV (After Repair Value) - how you get to this number could vary. Are you using MLS comps, or online valuations? And how well you interpret those numbers ends up playing a factor.

* Repairs needed. Do you get a contractor's estimate? Are you thorough? Are you using your own repair numbers and are they off?

* Your profit that you seek to take.

You will have to evaluate those aspects, plug numbers into your formula, and that's what works for you.

Thanks so much, Steve!. We currently use a 65% formula, but it isn't getting us very far. I'm thinking about increasing it to 70%. We're using MLS comps to determine the ARV. As it stands right now, we're using our own repair numbers, as we don't have a contractor to go on viewings with us, yet (we're new to the area). Lastly, we have not been calculating the profit we seek in to the formula. Our coach we've been working with mentioned that wasn't necessary, as our offer will end up being way too low, but the more I read, the more I see people saying it's vital.

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Originally posted by Jon Holdman:

What sort of properties are making these offers on? What sort of contingencies are in the offers?

Hi Jon - we're making offers on 3+ bedroom homes w/ basements in Oakland County, MI. The only contingencies we have in the offers are that the offer is contingent upon our partner's approval w/in 14 days of seller's acceptance. The other is that we have the right to assign our interest in the deal.

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My husband and I are newbies to the real estate game. We have been putting in offers for numerous homes in hopes to wholesale them, but none of our offers have been accepted. We've put in about 15 offers so far. We have Proof of Funds letters (all from Coastal-Funding), $500 Earnest Money Deposits for each and, of course, the purchase agreements for each. What are we doing wrong. Any tips?

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Hi Everyone! My husband and I are new investors and we are starting our by Wholesaling. We're in the Troy, MI area (about 30-40 min from Detroit). Specifically, we're focusing on Oakland County, MI right now. I'm really excited to meet everyone I can and network around the BiggerPockets site. If you're in Michigan (or even elsewhere), give me a shout! I'd love to connect!

:cool:

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All Forum Posts by: Gwen Williams

Gwen Williams has started 2 posts and replied 6 times.

Post: Having Trouble Getting Offers Accepted

Post: Having Trouble Getting Offers Accepted

Post: Having Trouble Getting Offers Accepted

Post: Having Trouble Getting Offers Accepted

Post: Having Trouble Getting Offers Accepted

Post: New to Real Estate - Wholesaling in Michigan