All Forum Posts by: Phil B.

Here's a quick little mockup I did of colors I think would work.  A little paint would make a huge difference.

if you are willing to do some work to stretch your dollars it's probably possible.  Buy some blank bandit signs and some magnum markers, driving for dollars, hand write and mail your first batch of mailers, etc.  You can save a ton doing a lot of the work yourself if you've got the time and will to do it.

I like glazed pears with caramel kiss trim.....something like that.

I think an almond/bisque/off white with dark beige trim will work.  I used to paint for a living using Benjamin Moore paint.  Richmond Bisque or Navajo White comes to mind.

Hi Nilesh,

Im not quite sure what you are asking but your profit is going to be the difference between what you contracted with the original sell, say, $50,000 in my example, and the end buyer/flipper/landlord, say, $55,000.  The 5 grand difference goes in my pocket via assignment fee.

Hello,

Generally, the formula to determine the maximum price you'll pay as a wholesaler is:

ARV x .7 - cost of repairs - expected profit = max offer price.

Example:

You know the neighborhood and pull comps to determine a house, in perfect move-in condition, is worth $100,000 but after walking through the property you determine it needs $15,000 worth of repairs to bring it to that move-in ready condition. For your effort, you expect to be paid $5,000.

$100,000 x .7 = $70,000 - $15,000 in required repairs = $55,000 - $5,000 profit = $50,000 maximum offer price.

From there you adjust as you see fit.  If you can add some profit you offer $44,000 initially then sell it to a rehabber or landlord or whoever for $55,000.

He in turn uses cash or a hard money loan to fix and flip the house. Hard money lenders will only lend at 65 or 70% of ARV as I understand so in order for your end buyer to fund the deal, he needs to acquire it at 70% of ARV or better or he won't be able to get the financing he needs. This applies to a typical wholesale deal.

Hola from sunny Tampa.  I moved here from Williamsville back in 1999 after graduating UB myself in 94.  I was a bouncer at Mickey Rats for a few years during college - not sure if its even there any more on Main St.  I lived in a crummy house on Minnesota in school then bought my first house in Williamsville then headed South to defrost.

I don't miss the cold but sure do miss the wings.

Welcome!

ok got it.  That's what I thought.  I thought you knew of some kind of magic loophole or something I wasn't aware of.  I get what you were referring to now.  It works like that if the seller just wants to walk away clean if he's got a larger mortgage.  You offer him the mortgage balance, it gets paid off and he walks clean.  Hopefully you have enough market value left for an assignment profit and room to flip to another investor after that.

Now I'm confused.  How is the mortgage only the seller's problem?  Isn't the house locked up by the mortgage and if there is not enough money to pay off the mortgage, the mortgage company has to either foreclose or the seller needs to do a short sale?  You wouldn't be able to flip the property to another investor if there's an unpaid mortgage on the house.  Is that not correct?

I will add that Michael Q at YellowLetters.com stepped in and printed all 3000 for me for free after I screwed up the entire first batch doing it on my own.  If he didn't, it would have cost me a lot more and twice the time.