All Forum Posts by: Jordan Archer

@Michael Quarles 

Thanks for your input!

When I started this discussion, I wasn't aware that the seller was CONTRACTUALLY obligated to sell through the realtor for a certain time duration.

Thanks @Michael Quarles 

I figured it was business ethics.

Hey BP,

Every script I see for wholesaling asks, "Is your home currently listed with a realtor/agent?"

...and if the answer is yes, then move on.

Why is this? Is it just bad for business?...or are there ACTUAL consequences/restrictions for doing so?

Thanks BP,

Jordan

@J Scott , @Bill Gulley 

That makes sense. I suppose I was going backwards, and I was going to offer them a price based on recently solds, contingent upon necessary repairs. THEN I was going to let them know what the final offer was based on those repairs. I was giving them this initial offer just to see if they were truly motivated before I checked out the house.

I'll make sure the house is visited before giving any offers from now on. Thanks for the coaching : ) 

- Jordan

@Jermaine HILL I totally agree with the follow up. I've been taking as many live as possible, but I still need to return those I can't get to.

@Samantha Lotti , I used absentee owned. However, I want to take advantage of subject-to financing, so I didn't put a cap on equity and I at least made sure my loan-to-value was under 100%. In the mean time, I'll be putting out bandit signs, looking for probates to call, and driving for dollars.

@Jassem A. 

 Yes this is a golf community, so there yearly membership is 30 - 35k. Insane! Thanks for the comment.

Hey BP,

I have a motivated seller on the line that wants me to send him a contract. He originally wanted 109,000 for the house, when it's probably worth about 140,000. 

I told him I would be able to offer him 98,000 for the house minus any repairs that needed to be done.

After looking further in to the house, I found out that MONTHLY HOA/membership costs are about 3,000! On top of that, there's a refundable "equity membership fee" of 68,000 just for living in the area. This is refundable when you move out of the house. Additionally, there is a nonrefundable 7,000 "initiation fee" for moving in to the community as well.

Obviously I wouldn't be able to give this guy 98,000 for the place. I was thinking at best I could give him 25,000 for the place.

I was wondering if this is just a ridiculous deal based on these fees, and if I should just run? Do you think someone would pay like 30,000 cash to move in to the house, and I could make a 5,000 assignment fee? Or is this just too risky?

Thanks BP,

Jordan

Hey BP,

I just sent out a marketing campaign, and my phone is already ringing.

Naturally, I want to make offers on these leeds. How do I make these offers without knowing what will be required for repairs? I'll be able to run comps, but unless I see the house I will not know the Repair Cost.

Should I just make a generic 60% of ARV offer, and if they accept, go check out the property and determine what work needs done?

Or should I be more broad and say something like, "Are you ok with me buying your house at 50% or less of market value?" ... if yes, go see what really needs to be done?

Thanks,

Jordan

Hey BP,

I know market by market you will find different numbers. However, I was wondering if 70% is starting to become too good to be true?

Are regular wholesalers out there starting to see that deals closer to 80% - RC are happening more frequently?

Thanks!

Jordan

Thanks guys. I didn't realize that comps are changing on a 30-to-30 day basis. Wow..