All Forum Posts by: Jeff Warner

What's done is done and once the locks are changed you can't do anything about it. As someone previously mentioned, a lot of those homes are ones that were bought at the peak of the market. Those homes should have been short sale's but went to foreclosure instead.

Like Eddie said, it's human nature to feel sorry for people (i think that's what he said??). Anyway, if it makes you feel bad why not work with a local church group and give back to the community with your profits? That's exactly what i'll be doing in 2010, not because I feel bad but because it makes me feel good to give back.

Profit is NOT a dirty word, it's part of life and what makes the world go around. If you profit, get rich and horde your money then shame on you. If you profit, get rich and help others along the way then where is the harm in that? That's my 2 cents.

Jeff

That's great to hear that your doing so well Justin, Nick is a stand up guy that truly knows his stuff. With endless amounts of info (good and bad) and all the Guru webinars, this is a tough business to stay focused in. Maybe more people will buckle down and learn one subject at a time after reading this post. Keep up the good work.

Jeff

I think your second option is the best in my opinion. I would be worried about being a landlord on an older mobile but that's just me. Personally, I think you've got a great opportunity here Terry. The ability to have a note that cash flows, without being a landlord as well as getting lot rent is like the gift that keeps giving. Good find.

Jeff

Terry,

Are you renting the land and the mobile to your tenant? If you own the land, are there fee's that you pay since it's in a park, or just utilities? Personally I would be a little apprehensive to rent out an older mobile, seems like too many potential problems.

I'm VERY new to mobiles so take this for what it's worth: Have you thought about creating a note for the mobile and leasing the land?

Jeff

First off I want to point out that Real Estate is local. My market could be hot but at that very moment yours could still be falling, you need to dig in a learn your market. Watch the MLS, Craigslist and other sites and get a feel for how long homes sit on the market, study the trends as well as specific neighborhoods. Learn the COMPS to a point where you can get within 10k on any home in your target area without making a phone call or looking online.

Ok, on to your questions. Banks do NOT allow assignments. You will need to use a simultaneous close and in most cases the A to B side of the transaction (A is the bank, B is you) you will have to use transactional funds to close. I say "most" cases because I have heard of some Title companies that allow a "dry" closing where the B (wholesaler) does not bring any money to the table and the A to B side is closed with funds from the C buyer. You'll have to talk with Title companies in your area about that. On the B to C side of the transaction, the best way is to have your buyer pay with cash, either from their bank account or a HML.

LLC's are one option but not the only way. I don't think anyone can answer what the "best" strategy for REO's is because that would depend on your business plan and goals that you set for your future.

Jeff

LeJon,

As I understand it, if you record your option with the county recorder like Will recommended you will have equitable interest in the property and they will NOT be able to go around you. This will "cloud" the title and give you a legal interest in the property. In order to remove the option, I believe you would have to file a quit claim.

By all means, someone can correct me if I'm wrong here.

Jeff

I think that is a good plan. There are people on here that started with REO's but dealing with individual owners is much easier and a great way to get started.

Jeff

Frank,

Read my post above, that is directed toward private parties. I wouldn't exactly call them fsbo's because that would be a home owner that is actively trying to sell their home right now. IMO, The best wholesale deals will come from homes that are NOT currently listed for sale.

Jeff

Assuming your doing a typical Assignment of Contract and not Short Sales or any type of seller carry deals, you can start with a list of Absentee owners for whatever area your targeting.

List source and Mellisa data both have lists that can be ordered with your pre-determined criteria such as year built, square footage, lot size, tax assessed value, etc. This is a numbers game so you'll want to mail 500-1000 letters to get the phone ringing.

Before you order the list I would look into homes sold in the last 6 months and see how many 2br's have sold vs 3br's. In my area and pretty much anywhere where there are lots of families the 3br's sell much faster. I'm not saying to stay away from 2/1's but just know the stats before you put one under contract. A realtor or title company should be able to pull up those stats for you.

Jeff

If I was you I would run their names through the County recorders office or online if you can and see if they've bought anything in the last 6 months. If they have, give them a call, or better yet drive by the houses that they've bought and see if they match the type of deals your sending them.

If they're rehabbing properties and flipping them, check with the county to see what they paid and what they sold for. With that info and a drive by, you should be able to ball park their profit on the deal and see if that fits what your sending them. Maybe your deals are not targeted to their needs or their needs have changed?

Jeff