All Forum Posts by: Michael Lerch

Will Barnard, Thanks, and everyone else that have suggested other alternatives to make it work. I'll have to keep it in mind for next time. I don't think it would work with this deal only because the reason they were selling was to move to Florida to escape the Michigan winter, and they need the money to pay off their current loan (around 58k) and then some for moving and finding a new place to live.

Thanks for the help. I decided I should just drop it and move on to the next deal. Not worth the headache. I referred him to a realtor I work with and he's happy that he'll possibly get more than what I could offer him.

Where did this talk of hard money come from? Sorry if I minced words. I already knew it wouldn't be possible with hard money, which is why I said Private Money from a private lender (I.E. Doctor, Attorney, Dentist, Neighbor, Grandma, person that needs better rates than a bank can give them) where I can negotiate rates and points on a case by case basis.

I got a house under contract for 70k. Just needs paint and cleaning I have budgeted around 2k. Minor bathroom and kitchen updates and appliances around 2.5k.

ARV is $95,000.

Here's the kicker, the seller had it listed for almost a year at $115,000 (way above market) and then at $95,000 for 2 months (Nov 2012 to end of Dec 2012), but still no offers. He said once he had it at $95,000 he got a lot more showings, but no offers. I figure it's close to gold because it's winter months with a slow market and I could pretty much flip this as-is on the MLS at $89,900 for quick sale going into the spring months.

Problem is I would need to do a flat fee MLS listing for $300 or so, and get private money around 12% just to make $8,000 to $10,000. Just thinking out loud. Good luck finding a private lender to lend for a deal at 85% ARV right? lol, but here's hoping. There's money to be made so I'm not walking away from it yet.

Thoughts? Anyone else pull off a deal like this before?

I've heard of the "gurus" and virtual wholesalers using trulia heat maps and trends to find the best areas to wholesale in. The thing is I'm not sure how to interpret the info. What's the criteria I should look for to determine what a good area is for wholesaling?

I think it's mostly green areas to find rentals, and anywhere else is a flip/rehab/lease option. Do you go by the areas that are fast movers and shakers?

If anyone can point me to where I can find more info on this or explain it better I'd appreciate it.

Thanks

I had my eye on this 5bed 2.5 bath that was a foreclosure in my neighborhood. Would have been a great rehab! Hit the 110 day mark and was getting ready to bid and boom! it was gone. next few days I saw it was under HUD now! I checked out HUD and it wasn't listed so I guess they haven't put it up for bidding yet?

I'm new to HUD so do I call and ask when they're planning to list it? I know I got to wait a few weeks since I'm an investor, but there's lots of mold so I don't think a retail buyer will show up. You never know though... I just want first crack at it!

Edward Beard I had a similar experience. I leveled with the realtor and we made it work.

I would work with him because you never know... he might come back to you with pocket deals just for you because he/she knows you'll work with them. My advice is don't go around a realtor... EVER. It's just not worth the 2%. Besides like Ned Carey said it's the seller that pays it.

Will Sifert I was just at that same 3-day training seminar that Fortune Builders does last weekend here in Grand Rapids, MI and I think they do a pretty good job of covering wholesaling, but as a somewhat experienced wholesaler already there were A LOT of gaps they don't explain. They tell you just enough to wet your appetite and make you want to join their mastery program (nothing bad about getting great coaching and training), but based on what you want to know I'd say a lot of your questions will be answered when you attend that 3 day seminar. All the gaps can be explained by doing a little homework of your own here on biggerpockets or elsewhere on the internet.

Awesome! Congrats!

I have a video tour link and pictures listed here on bigger pockets. Check it out!
http://www.biggerpockets.com/properties/13342-renovated-wholesale-deal-grand-rapids-mi

Highlights:
-Recent renovations done to kitchen and bath
-New furnace in 2010
-refinished hardwood floors
-partial finished basement with option to further finish w/ .5 bath.
-new carpet

Rent in this area goes for $800-$900 via rentometer so it'll cash-flow nicely.

Wholesale deal at $38,000 obo

I hear you Daniel. I'm struggling with the same issue as I'm about to get a new website/s. I guess for a rehabber it's not so bad since they buy the before and provide the after. For a wholesaler like myself the only value we add is finding good deals so when they see the before and then after price with doing nothing to it, it's a bit suspect to potential sellers. Overall though I'm not sure it's a problem as the ones who would cry foul about it probably aren't going be the best sellers anyway, but I'll keep websites separate just to be on the safe side.