All Forum Posts by: Patrick Daniel

@Wayne Brooks, we are focusing on builders who have 8-12 homes per year, rather that the larger ones, as you have said,  I hear the larger guys are a really tough shell to crack.

@Aaron Poling , thanks for the great insight! From everyone I have talked to, it looks like bringing great land deals to builders is going to be the best foot in the door. Otherwise, it just sounds like any other sales pitch. 

For smaller builders when you mentioned marketing, do you mean marketing their company as a whole or only helping them market their properties they list?

My main carrot so far has been helping those builders expand by finding them buyers faster, but I think the land side will be the big push.

Thanks again!

Hi everyone,

I am looking for some tips and tricks on how to build relationships with home builders to represent them in the sales of the homes that they building.

I have the general fees worked have been working on networking with people that are in the local home-builder association, but is there anything more that I am not thinking of? Most cold dials do not answer phone calls, so I am thinking that I may need to get inventive.

Any advice would be much appreciated! 

Bigger Pockets has a great guide to wholesaling and a wholesaling calculator that you can use to run the numbers. How much profit to take is a personal question. On a 29k home, it is likely you would be lucky with 5-7k if that is the as-is condition. it is a percentages game.

Here is a quick example of how much to pay:

ARV -(minus) Repairs *(times) 0.7

That will get you to the 70% rule that many flippers will want to see. after you get to that number, subtract the fee you want for your work finding the deal, and there it is.

So,

ARV - Repairs x 70% rule = Price you sell for.

The price you sell for minus your assignment fee = What you offer the seller. 

 Hi Erwin,

I should have clarified. I was in Rota, Spain and the homes  purchased and sold were in the US. To be even more accurate. I was stationed in Spain, but was deployed on a ship when the transactions happened. I had to send one set of documents from Greece.

I loved Spain. Would go back and live there in a minute.

I think the best thing you can do before you pull the trigger is to answer a couple of questions, and that will make everything more clear to yourself on if you should do a deal or not. Clarity often takes the fear out of things.

What type of real estate are you interested in investing in?

Where do you want to invest?

What type of return are you wanting?

How long do you want to hold the investment?

How much time do you want to spend on the investment?

Once you answer these few questions, you will be much clearer on your next step forward.

Best of luck!

Likely they will have everything notarized and then the signed forms will be faxed with the official portion being sent via registered priority mail.

I closed on 2 houses from Spain (One purchase and one sale) and that is how I did it. 

The seller could also grant power of attorney to a relative if they live near-by and have them sign in their place if the state allows that.

As far as covering asses is concerned, did they mention what specifically they were worried about?

They haven't really sold you the property until the goes into your name. 

You could just have them lease you the property and have them allow you to sub-lease it, but that does not help with the coverage of liability for them.

Best thing I can think of that would cover both of you is to create a seller financing deal where they sell you the house for the agreed upon price and you make principal and interest payment to them on a 20 or 30 year amortization schedule, but have a balloon payment due to them in 1 or 2 years for the total amount due.

This gets the house in your name, and you can refinance it into an FHA or VA once you can qualify for it, but also covers them, because it is out of their name, and they will be getting the lump sum in a year or so. If you do not pay when the balloon is due, then they can foreclose and they will have the property it back.

As always, not official advice, just options that I would look into if I were in your shoes. 

-Patrick

@Reece Weatherford I currently live and actively invest in Pensacola. The market is very hot and is a seller's market due to low inventory. I would be reluctant to hold onto a property for that long if I were the seller, but since there are a few things you could ask about. Could you do a 1- year lease option with a down-payment that would go towards the purchase price? 

example: They agree to lease you the property now with the option to buy in for 200k in October of next year, in return you give 20k now.

Or is the Seller interested at all in financing the property? They hold the note as the bank and you make your payments to them? This could diminish your downpayment in return for a higher interest rate.

This may not work since I am guessing the reason that you are holding off now is access to capital?

You mentioned that the owner was selling multiple properties, if you are aware of more properties, or if this one doesn't work out for you because of timing, I would love to see if I can help the seller, and of course, I would give you a proper finders fee :) 

-Patrick

Hi Dominique, I often find myself analyzing deals in the middle of the night when I can't sleep, so I know the feeling. To your questions:  

Can it be done? Yes. is it likely? Probably Not. 

Seller financing would require them to be able to have enough to pay off the mortgage that they are delinquent to their mortgage holder, and then accept payments from you on the property. This is almost never the case since a short sale means the bank is willing to accept less for the home than is owed but still willing to write off the debt as paid. 

However, if there is a way that the seller has the cash required, and still wants to finance it to you, it COULD happen. I just do not see how it would.

Short sale prices can be negotiated, but banks tend to be harder to negotiate with when they are taking a loss. It is entirely possible though. 

Either way, if you decide to put in an offer, be prepared for a long process, as the only thing that is short about a short sale is the name.