All Forum Posts by: Account Closed

@Xavier Mc holder It all depends on what your business model and objectives are. If you're looking to be as close to "hands off" as possible, foreclosures are a good choice. 

I like to gamble and like big profits, so I spend most of my time going after hoarder houses and abandoned properties. Lots of risk, but lots of reward! Distressed properties (non-REO) give you way more freedom to negotiate; whereas you're not going to get a lender to budge much on their price.

@James Hong I'm all for the "If your offer doesn't make you a bit uncomfortable, you've offered too much" approach; however, as mentioned above, be able to justify it. If i'm going to tell you your house is only worth a fraction of what you think it is, im going to have a list of repairs, repair estimates, comps, etc in hand to justify my offer. 

Unlike the two "cash buyers" (re: wholesalers) i hung up on/blocked today; whom, sight unseen, called/emailed with nothing more than a "I'll give ya $35k cash for it" .. and nothing else. (ARV $140k, $30k in repairs, offered at $67.5k)

Bottom line: There's a huge difference between making a low offer properly, and throwin' sh!t against the wall just to see what sticks.

Atleast they were honest, and weren't like: "Umm..We have 1 dog and uhh..7 goldfish"

@Trevor S Foster If the comp at $257k is your ARV, you're already in the low $230ks after closing costs and agent commissions when you sell.. throw the cost of a full rehab plus your expected profit in there and.. you get the idea.

ARV * .7 - Repairs.

It's not always the perfect formula, but it'll get you close.

If they're asking for $255k, i'd imagine you're going to be hard pressed to get them to let it go for well under $200k, where you need it to be.

@Dave Ramirez Great app man! I've been looking for a better way to keep track of my crew of bandit sign bandits!

Thank you all! I was pretty damn sure of the answer, but to have an experienced agent throw that bullsh@t out there.. threw me off a bit. A quick call from my lawyer straightened her out

Mike Cumbie I'm a tad pissed off that the agent would present false information in an attempt to leverage me to change the closing date. If he backs out because of that, I'm gonna be supremely pissed off. Worth a call to her Broker?

Am i crazy or is this agent just an idiot..or lying to me.

I had a verbal agreement with a buyer who contacted me directly regarding purchasing a townhouse im selling (Goodbye stupid HOA!!). Tenants are vacating 7/31. He makes a verbal cash offer, immediate close, buying it as is with the tenants in place. Real simple.

Next thing i know he has an agent, and she is hitting me up wanting to use their contracts; fine. Then this morning she asks if they can do a 45 day close so that the tenants can vacate and he can inspect the property after they've done so. Nope. Its priced where it's at because i want it gone, now. I told her the month to month lease would transfer over, and the tenants would sign an estoppel agreement to confirm the lease status and move out date. Here's what she just sent:

"Lloyd,

Here is why:

The tenant has a lease in place with you and does not have a lease with my client. If my client purchases the property before the renter leaves, he cannot legally hold them responsible for any damage (the lease is not with him). What if the tenant doesn't move at the end of the month. It's hard to make them move if you don't have a lease with them. In order for my client to close before they leave, they would have to sign a new lease with him for the 2 weeks that they would be living there under your ownership. "

@Jonathan Sekerak In the future, consider making the sale contingent upon the property being unoccupied at closing. Not all sellers will go for it (they kick out tenants, deal falls apart, they're stuck with an empty rental etc) but it's worth a shot in the negotiations. 

On the flip side, i hope you used the status of the tenants and the condition of the property to leverage a home-run of a deal! Hoarder houses are THE best. If so, whatever they do to it on the way out shouldn't be much of a concern if you already accounted for extensive repairs.

BUT If you're still worried about it, make sure you have extensive documentation of the current condition of the property, then have your attorney write up their notice to vacate and go heavy on the "condition of the premises" clauses; Property will be handed over in its current condition or better .. landlord will seek restitution for damages etc..

Your answer to him should be "Good"

As is "You don't want to show me a property? Good, you're fired."