All Forum Posts by: Account Closed

@Eric Hernandez The consequence is a charge called "mortgage fraud" 

@Cheryl Crockett I simply wouldn't respond to the complaining tenant. I send my tenant's calls straight to voicemail for many reasons, one of which is to screen out non-sense complaints like this. If it's not illegal, and it bothers them that much, they're free to move out. 

Maybe the tenant with the medical condition..could use some weed ;)

@Sadio C. I definitely 2nd what @Account Closed said. I had to "interview" 4 attorneys, before i found one who was familiar with creative real estate transactions. 

Also, I would never let a Sub2 seller stay in the house, ever and ESPECIALLY in cases of foreclosure. Feel free to google "equity skimming". If the husband/wife combined couldn't afford to make the mortgage payment, what makes you think the wife alone would be able to pay that AND the profit you'd expect by renting it out. If you're going to take the property Sub2, it should be on the condition that both parties vacate the property.

@Paul McCormick Jr  I've recently started documenting the condition of the house via an email exchange with the tenants. I'll take photos of the overall condition of the house, and then specific photos of any items the tenants want annotated. I'll then send those photos to the tenants via email with an open/read receipt and require they respond that they accept the house in its present condition. All communications via email are date/time stamped so it leaves very little room for dispute in court.

@Patrick Philip 

Don't have a script. It sounds terrible. It's a simple matter of having a conversation with another human being, and during that conversation being able to elicit information necessary to determine if the property is a deal for you or not.

1. Shut up and listen. Let them talk. If they've responded to your mailer, they're obviously interested in selling. What you need to do is let THEM tell YOU why they want to sell their house, and be ready to offer solutions to their problems.

2. Know your options. Don't get tunnel vision on whether or not the deal meets your "wholesale" criteria. As @Brian Gibbons puts it, be a "transaction engineer". Understand the seller's situation, and understand what options are available to you to make a profit by helping them out. If you limit yourself to wholesaling, i promise you, you'll miss out on deals, and you'll be back at your 9-5 in no time flat.

3.  Know how to negotiate. You mentioned a few key questions in your post. Understand that those questions are asked for two reasons; 1. to elicit necessary information and 2. to psychologically move the seller from a position of strength to position of weakness. 

4. Don't ask the condition of the house. Everyone is going to tell you "Great!". Ask them to tell you everything that's wrong with the house. "Can you tell me about any issues with the house?; foundation, wiring, plumbing etc." Every time they mention something wrong, reiterate how expensive that item is to fix. "Oh man, that would be expensive to fix just to sell the house.."

5. Don't ask "what's the lowest offer you'd accept". No matter how desperate they are, it makes you sound like a used car salesman. Instead try "If we were to get you an all cash offer today, no closing costs, no commissions, and we bought the house 100% as-is with no repairs needed, what would you be happy with/willing to sell for?" 

So much more! Negotiating is a fine art ;) practice makes perfect! 

**Disclaimer - If none of this makes sense, I've had some bourbon tonight and am typing with one eye open**

@Francys Crevier How to tell if an area is gentrifying!? A few great responses above! But follow and find when the city approves mid/higher-end mixed use commercial builds in otherwise undesirable neighborhoods! We have some approved to build in the not so nice neighborhoods in North Nashville..and now its a feeding frenzy to buy up the old houses and lots nearby. 

@Sunny P.  Because cash gives even the newest real estate investor the power and ability to negotiate and get a better deal! You can't walk into your brokerage firm with $100k and say, "I want 1000 shares of XYZ stock that's currently valued at $100 a share, but i only want to pay $60 a share for it" .. they'll laugh you out of the building. But you CAN find distressed homeowners with houses worth $100k, and say, "I'lll give you $60k cash for your house right now and you don't have to fix anything or pay closing costs or commissions"

I thought every house in Detroit was distressed?! lol Research all of the following on here to get started!

• Bandit signs
• Direct mail 
• Drive for dollars

We aaaare FRESH out of deals here Tennessee! No deals..move along....nothing to see here ..and If you could pass that along to the rest of the Californians, that'd be great! lol

@Frank Edmondson @Account Closed Also curious as to why this deal fell apart? Did the seller show up to closing and realize you were trying to profit $30k off of a house you didn't own?

If there was that much profit, why not JUST BUY IT as I assume you led the seller to believe you were doing, and then sell it for however much you want? 

Instead of letting deals like that fall apart by trying to make outrageous "wholesale" fees, use transactional funding / HML / private cash and buy them. I would venture to guess that a quick post on your local REIA facebook page would have found you multiple investors willing to make a quick 10-15% to float the deal.