All Forum Posts by: Michael S.

Thanks guys. I called him and threatened legal action and had my attorney write a letter. After convincing him he had no choice, I offered to re write the contract at 31k and he's playing ball again. I was planning on moving on as you guys suggested but of course gave it one last shot.

I have no default clause or anything in my contract, should I?

Thanks as always guys.

Hey guys, need some help! I put a home under contract on 10/19 for $30k and gave myself until 11/4 to close the deal. On 10/25 the seller said we are no longer selling our home to you, we are sick of you bringing people in to look at it (contract allows for lock box, contractors to come by, etc)

Today, 10/27, I am signing the assignment contract with a cash buyer ready to close by Tuesday for $34k. I cannot get a hold of the seller (or my lock box for that matter). What do I do? I was up front with the investor-buyer about the situation -- should I ask for $1k up front to buy my place in the contract, with the balance at closing (and let him deal with the seller)? Or should I take this to court? I don't see how this can work if the seller really won't talk to us anymore, but I do know that I have a legally binding contract. I have closed with these contracts already so I think they will stand up. Thanks!

First of all I want to thank everyone on this board who is helpful to new investors looking to find their way. I learned a lot on this site about how to wholesale and 2 months later I closed on my first deal. Here's how it went down.

First of all -- I've been a full time real estate agent for less than one year, barely getting by here in Ohio. One week after reading Danny Johnson's blog and many posts on this site as well as other info I found on the internet -- I ordered 100 bandit signs and 2,000 "We Buy Houses" business cards. I put out 10-15 signs every Friday night and passed out business cards here and there (not nearly as much as I should have). The best thing I did to find sellers was calling probates. I started out sending 35 letters to probates in my county but after 2 weeks or so only had a few incoming calls, so I started calling them. I wrote a script and had great success with this. My goal was to set appointments, and I set quite a few (roughly 1 out of 5). I've picked up 4 listings through the probates for my real estate business.

The deal I finally made was a probate who called in from our letter. I set an appointment, assessed repairs and offered him $17,500. He accepted, and I marketed it to our buyers list for $21,000 giving myself 20 days to close. After 15 days or so I realized I had overestimated the value of the property and basically told him that the investors I work with didn't think it was worth the price I was offering. I told him I was going to have to re-negotiate or walk away. Fortunately he was motivated to sell and accepted my offer of $10,800.

Meanwhile, I had been calling investors that I had located through searching the sold properties in the area (cash buyers). Once I had the new contract, I called a few of them and offered it for $12,000. On my 2nd call I got acceptance. That was Monday, we closed today. I didn't have to show to closing, they mailed the check today.

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I'm no expert but will help with what I know!

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I have an out in the offer, so in essence it really is just an option, right?

I am in the process of trying to purchase a piece of commercial land with owner financing, at which point I'm going to try to lease it to a corporation (restaurant chain).
I will be getting a private loan for the 20% down payment. Probably going to be in the neighborhood of a 375k purchase price total (around 75k down).

My question is, how can I determine the average rent to charge the incoming lessee? Can I find out how much neighboring restaurants are paying monthly for the land to have some viable comps?

New information:

Property was listed for a while at $119,900 and did not sell. She currently owes $81k (69k mortgage and 12k loan for add-on), paying about $443 and $125 for each loan, ~$568 total. I think it could rent for $800-$900.

She said we could probably work it out to where I can either buy it for $81k or assume the loan. You guys think the sub2 is the move here and not trying to find a buyer for 90k?

You too Manny, much appreciated.

Thanks, Jerry.

Jerry -- I'm not licensed in Missouri so I think I would be OK to sell retail (assuming I could find a cash buyer). You bring up an interesting point that I will keep in mind when wholesaling in-state. As far as whether or not this would work, I have no idea. You think subject-to would be the best course of action on this one?