All Forum Posts by: Kristian Peter

Enrique - I'll send you a message to check on the terms of your private money.

Thanks,
KP

It looks like you're in San Clemente, which is a tough area to get started, with lots of competition.

KP

We always provide our partners with a LOI and POF for properties that we are interested in pursuing. I would recommend getting both those documents from any Buyer that you're considering working with. We are looking for more wholesalers in the southwest US, CA, NV, AZ.

If you come across anything in the southwest, we'll be glad to provide you with documents.

The Costs of Sale are different for every market, but should be easily estimated. For our market in So. Cal, the closings costs for Title and Escrow are approximately 1.5% of the sale price, and then add in the real estate commission...

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We continue to use a 20% Net ROI model, and it has served us well. It's easy to use, and takes into account every factor - although, it does rely on the Wholesaler to do their Due Diligence, and know exactly what the cost of repairs will be in order to make the property FHA ready (ie sell to an end-user).

Basic Equation:
Acquisition Price + Repairs + Cost Of Sale (Escrow, Title, Commissions, etc) = Total Cost of Invesment (TCI)
Sale Price - TCI = Profit
Profit / TCI = ROI

ROI must be at least 20% or a minimum of $25k.

The PennySaver works great for us - cheap, and the sellers that we target, read it! Also, ask Realtors if you can host an Open House in their Listing, and give the Realtor all of the buyer leads, and you take all of the distressed neighbor leads that walk in to find out how they can get out of their house, basically Short Sellers in the neighborhood... Those are 2 ideas that I didn't see... Good luck.

Also, if you come across a great deal that you want to wholesale - we buy and close in 3 days, cash! We're happy to pay large referrals through escrow.

ServiceLink was also used by Freddie to close a majority of their REO transactions - they are slow and cumbersome, link most of the contracted closers for REO, but they do an adequate job, and I'm sure that they will take care of your closing without too many issues.

I've always appreciated the wholesalers that put an entire package together with acquisition price, scope of work, and after repaired value - the more detailed that those items are, the faster everything moves, and everyone gets paid...

There are plenty of deals on the MLS and other platforms, but the bottom line is the ROI.

If you have any deals that have at least 30% margin in CA, please let us know - we just picked up another $25m in funds.

If they are all the same lender / servicer, then you may be able get everything accomplished fairly efficiently. I've never worked on multiple short sales for the same owner, but at least the owner would only have to come up with one set of documentation...

Any chance that they are Wachovia - the easiest bank to deal with for Short Sales...

Is there anything online that enables sellers to input all of their information - upload it? And it can be packaged into a single .pdf and sent to the lender(s).