All Forum Posts by: Jeff Warner

Welcome to BP, way to jump in and start asking questions. First off I am not a short sale expert, so I broke your post down the the part that I CAN answer. There are several short sale experts on this site that can answer the rest for you.

One thing I do know is that your transaction needs to be fully funded, I've never heard of using your C buyer to fund the A to B transaction in a short sale. Your going to need to line up "flash funding", aka "transactional funding". Usually you'll pay 2 points for a company to fund the A to B side of your transaction. The companies that provide funding will give you a POF letter, just do a google search for "Flash Funding" and get that lined up right away.

Jeff

When you say "flex option" are you referring to what is sometimes called a "straight option"?

Jeff

That's a great article and a must read for anyone looking to Wholesale.

Jeff

That's too funny Rich. I'd love to hear your strategy on income taxes.

Jeff

Right now all you have is speculation. You need to spend the money and figure out what the TRUE cost of repairs are as well as get another list of COMPS. Like I said, you should have at least 3, you listed 2. Another thing is, like I said before your MLS comps are showing just that, sales from the MLS. Did you verify the COMPS? You can read a post on the Wholesale forum that I put up titled: VERIFY your comps! The reason for this is because those comps you have may be REO's. Also, if that home that sold for 19k is in need of MAJOR renovation I would use that as a guideline but certainly not to gauge the ARV of your deal...seeing as it needs repair.

Also, for all you know there could have been 10 FSBO sales in the area that the MLS will never show. Walking away from a deal without double checking is like throwing money down the drain. Contact your local title company and get a list of sales for the last 90 days within 1 mile of the property. Don't let them sort the data for you, look at ALL sales and spend the 10min to find the comps on your own.

I can say it enough....DON'T SPECULATE, VERIFY! Speculation will not put money in your pocket and it will not make you a reputable wholesaler.

Jeff

I just noticed this statement above. I would ask a contractor to come out and give you a written estimate. I pay $50.00 for a written estimate but that $ saves me from getting into deals that are NOT deals. I just had a contractor look at a property for me that I thought was a GREAT deal, come to find out the home has NO foundation. His $50 fee saved my @ss and was worth every penny.

Jeff

Well, run the numbers and make your offer. Just make sure it's subject to inspection in case the repairs end up being more then your estimate.

You need to know what your buyers are willing to pay. Make your offer like this:

ARV x .70 - repairs - assignment fee.

Based on the comps you have, the value is 27k, with 10k in repairs there is not much room left in this deal. The thing is, it may be more valuable to a builder or a section 8 landlord then it is to a fix and flip investor.

If it was me I would get a second opinion on the comps, there are FSBO's that the MLS won't show you. Try talking with a title company and asking for ALL sales within a mile of the property in the last 90 days. Once you have ALL sales you can sort through them to get your comps.

You may have a better deal on your hands then you think. Good luck.

Jeff

A couple problems I see with this post are:

1 - What is the asking price?
2 - How much repairs are needed?

You need to answer those questions to be able to analyze the deal. Make your decision based on the numbers, not on speculation. I would also try to get a better number for comps, you need at least 3. Where did you get your comps?

Jeff

I've learned more on Bigger Pockets then all the books, seminars and courses combined. There are a lot of knowledgeable investors on this site that are happy to help.

I too LOVE Bigger Pockets!

Jeff