All Forum Posts by: Stephen Brown

@Stephen Dillard Sure just PM me with your email address, and I will email it to you

@Matthew Arnold

Great job in getting started on your first deal. 

My primary concern would be are you CERTAIN that the actual CV (Current Value) of the property is $315 - $325K. 

There is perhaps no greater mistake that MOST new investors make then over estimating the ARV (After Repair Value) and/or CV (Current Value) of a property. I would make sure I have actual COMPS not from zillow or another site like that, but actual SOLD COMPS from the MLS, of properties that have a similar year built, similiar square footage, and similar condition of the property you are considering.

We had a property under contract last week for 80K, and the LEAST SOLD COMP in the area was $130K. So I quickly assumed we had a GREAT DEAL. But my associate failed to check the year built...after which I realized all the other SOLD COMPS were built in 2005 or later....and the property we had under contract was built in 1970. So ALL of our COMPS were useless, because the properties were not actually similar. 

When running COMPS you cannot look at properties that have been new built, or freshly rehabbed and compare those to the property you are considering that was not freshly rehabbed or much older etc. 

So IF and that is a HUGE IF the actual CV of the property is 320K I would go for it. But especially if you are going to pay to have the tenant leave early, and the property is going to sit vacant while you list it on the MLS....you better make very certain that you can move that property once under contract.

Either way make sure you have a very clear "escape clause" in the contract that you use in case you cannot move the property for whatever reason, so you will be able to end the contract and walk away safety. 

Because if you pay that tenant to move out early, and now the property is vacant and you are not able to close, that seller may not be too happy, especially if it sits vacant for 2+ months while your HOPING to close. 

But if the REAL CV = 320K GO FOR IT!!!!!!

Then you could know if you really had a DEAL or not...

@Alesha Rayford it's important that know the accurate current value of the property. You cannot depend on internet sites like zillow.com and others to give you the true current value of this property, as they are typically very inaccurate. 

To determine the wholesale value of the property contact local "We Buy Houses" guys in your area. (you can find this with a simple google search in your area) Tell them you want a Ballpark Offer of how much they could buy your property for CASH. Then you would know the wholesale value of your property.

Then I would contact 2-3 local realtors in your area. Let them you are considering selling this property, and how much do they think they could sell it for. Then you would know the true market value of the property. 

Again you cannot depend on internet sites to determine the value of this property. 

@Michael Alston 

Michael I'm in the Navy stationed in Japan as well. I do quite a bit of wholesaling in the states. It is very possible once you have the right team in place. If you have any additional questions let me know. 

@Deshaun Gregory 

I"m in Okinawa Japan, just outside of Kadena AB.....and I do quite a bit of wholesaling in the states. It's very possible, once you have the right team in place....it doesn't really matter where you are physically located...

@Roni Lovaton We use our own contracts that we have created ourselves. Send me a PM and I can email you a copy if you like. We typically wholetail to cash/hard money buyers, so they don't mind....or may want to change some verbiage in the contract....which is always negotiable.

If you are trying to wholetail to conventional buyers that's when things get considerably more complicated and they require official contracts...etc. 

@George Wendt No I do not have real estate license. I use flat-fee MLS listing. I pay an investor friendly realtor I know $100 to list the property...then we take it from there. That way is a lot cheaper than going with the big flat-fee MLS, providers you will find online.

@NA Beauvais @Patrick Jacques @Glenn Bravy 

When your wholesaling you are primarily emailing your list of buyers whenever you have a deal for sale. In doing this you can establish your brand among that community....so they know you provide quality deals when you email something out. 

In doing so you can command a certain authority among that community...i.e. "If your interested in getting my property under contract, a NON REFUNDABLE $5,000 earnest money deposit is required...most of our properties are gone within 24 hours....so you don't have time for any inspections you don't have time for any option periods.....we need $5,000 in the next 24 hours GO!!" And all the investors race to see who locks it up first. You can create that strong sense of urgency, among your community. This is exactly what most of the established wholesalers do.

Once you have established your brand, you can command that level of authority....which pretty much ELIMINATES 95% OF ALL TIRE KICKERS, and you can ultimately move properties very effectively and quickly.

With Wholetailing I am forced to deal with a smorgasbord of tire kickers and of course Realtors who at times seem like their only purpose in life is to waste my time. If I were to list a property on the MLS and say a $5,000 non-refundable earnest money deposit is required to get it under contract....it would seem absurd......no one would call.....it would no doubt sit there on the market for a very long time......unless it was just an AMAZING Deal of a lifetime.

There are or course ways to mitigate the number of tire kickers on the MLS, we ONLY provide a 5 day option period no fee, as well as ensuring the person has proof of funds before we accept the contract. And of course they are required to deposit their earnest money with the Title Company...which of course IS refundable, but even after all that I deal with MUCH more tire kickers wholetailing, than I would wholesaling with an established brand.

So even though I may get more money wholetailing, generally speaking it will take me more time to move the property. And if you have a seller who is demanding a quick close....you may lose that deal trying to wholetail it..... dealing with all the tire kickers you will find on the MLS.

@Brandon G. Double closing is not illegal in Texas. As @Sonny Ngo said you just need to make sure you are working with an investor friendly Title Company. 

I have come across certain Title Companies in Houston who would not do double closings, not that it was illegal, it was just their company policy......or so they claimed.