All Forum Posts by: Randy Phillips

The Realtor on this deal called me and wanted to meet. A few hours later at Denny's Restaurant he tells me we have a problem cuz his buyer is not paying his commission. I reminded him that when he first called he says "Don't worry my buyer pays my commission" He tells me, you know why I said that is becuz I knew you wudnt call me back.

I told him I wud see if the seller is willing to pay. I left the restaurant thinking, typical sleazy Realtor. My seller said def not, they wont pay it and chewed me out for asking.

Finally the sleazy realtor said his buyer agreed to pay half of his fee and wanted to know if I wud pay the other half which is $2,000  I reluctantly agreed. I'll still be making $8,000 if this deal goes thru.     So, I shouldn't complain.

After dealing with this realtor I feel like I need to take a shower.

I didn't have any other buyers, my regular buyer didn't want it, after advertising for a few weeks on Craig's List, he was my only option.

A few of my regular buyers are Realtor Brokers, they get their end buyers to pay closing costs.

Let's make some Money.....

Rando

I wud like to meet other investors. I've been dealing with  a handful of buyers that buy everything I throw at them. Unless it's a mediocre deal and a few days on Craig's List will usually get those sold.

It's interesting cuz a few of my buyers are Realtor Brokers that luv to wholesale my wholesale deals. I have a good sized list of buyers but it's always the same guys buying my deals.  I can def see how hooking up with other local investors cud be beneficial to all. I often come across some insane deals.

This Realtor says, "Don't worry, my fees are paid by my Client" This Realtor has increased his offer to 130K, I spoke with seller and explained I got a cash buyer that wants to close quick but were looking at 115K, she was going to talk it over with the husband. So I'm looking at making a minimum of 5K up to 15K,

I would like to connect with other local investors, I'm not sure how to do it on Bigger pockets.

Let's make some money....

I just had some home owners call me from an old bandit sign. They have a big nice older home on 1/3 of an acre, but the house needs some work and it's in an undesirable area in SW of town. The wanted $150,000 but I got them down to 125K Zillow says it cud be worth over 220 K but after advertising it for 140K nobody wanted it.

Until I got a call from a Realtor that has a client that wants it. The Realtor and client went out to look at it & They offered 120K, I explained I had it on contract for 125 so I wud take 130K.

They came back with 128K offer.

Now I shud be happy to make 3 Grand for doing practically nothing, but, I want more, cuz why, why not?

Now my plan it to go back to the seller and re negotiate a lower price. Sellers mentioned they wanted to get this done in a hurry and this cud be enuf motivation when I tell them I got a guy ready to buy now, but were at 110-

120K

This is 3 deals I got now in less than a year from those cheap *** bandit signs. That is some serious profit from a $2 plastic sign.
It's funny cuz seller said I was the second sign she called on, I asked what was the other guy's offer, she tells me 120K.
I never gave a lot of importance to those signs before cuz most the time they get pulled down or sit there for months with no action. But now I'm gearing up to put up the rest of mine, I got 300 sitting in a couple of boxes.

Let's make some Money....

Rando

I just wholesaled the ugliest burnt house on the planet. I didn't put any earnest deposit down. I met seller, I listened to his story of how his house caught on fire and the Red Cross helped him out.   Then he told me all about himself and we found out we had a love for old 60's music like the Turtles.

He wanted 30K for his burnt property

and I told him it was a lot worse than I thought. We ended up agreeing on 18K purchase price. I sold it for $24,000 to a rehabber that purchased one of my junkers last year.

He paid closing costs and I picked up a $6,000 Check from the Title company.

I have several other deals in escrow and just got 2 on contract this week and have one sold already that will pay out $11,500 my partner and I will split that one for $5,750 each. We went halves on a direct mail campaign and got 3 deals out of it and tripled our money, and now we got this one which comes from that mailing about a year later.

Let's make some Money....

Rando 

The first couple of months of this year was really slow, but January and Feb usually are. But OMG this are picking up like crazy. It's like a frenzy out here. I just closed on a junk fire damaged house and I have several deals in escrow, I also have an overpriced house that I added on a crazy amount for my assignment fee and am shocked that one of my buyers wants it. The finder and I will split about 8 Grand each.

If any wholesalers and finders are here in California and other areas, let's get together and clean up.

You find them, I get them sold, we split profits.

Rando

Hi Dolly, I wud suggest buying a 100 bandit signs to start or 200. I get mine preprinted at dirtcheapsigns.com  then use roofing ring shank nails with plastic washers and nail them about 8-9' high on telephone poles around town, I use a step ladder to do mine.

Any area will have distressed sellers and distressed properties needing repairs and updating. You are going to have to learn values of properties. If houses in that area are selling for 400K and you find a fixer for 320K you can probably talk the seller down to 280 and flip it quick for 300K

I have done a bunch of deals virtually. It's really a simple process. I wud run ads in Alaska or Alabama that I buy houses cash, any condition, Once a seller contacts me I look at the house and neighborhood using google maps and Zillow, I may contact a realtor in that area and get their opinion of value. I email the purchase contract to seller, he signs it and sends it back to me,  and I begin advertising the property for sale. Once I find a buyer I email him my assignment of contract, after he signs it, he begins escrow with my purchase contract and my assignment. Title company mails me a check at closing. How easy is that? The hard part is finding the deals.

Let's make some Money.....

Rando

I have helped several newbies do deals, a realtor from Florida contacted me last summer, she had found a 4plex in Alaska. I gave her the contracts and lots of advice, she eventually made $13,000       I didn't get a penny but it felt good to help her. I have a bird dog here that I've dove a half dozen deals with, he also went out on his own and flipped a small multi unit and made $11,000                 We have another deal on contract now that we hope to sell, and we just started another direct mail campaign and we'll split costs and profit 50/50 on that. The last one we did we actually tripled our marketing expenses. I got bogged down doing 95% of the work and this time he has agreed to do 95% of the work.

I recruit bird dogs and I pay them a flat fee of $2,000 I also have other experienced wholesalers contacting me with properties they can't sell. I have the buyers and we split profits on those. Those are some of my favorite types of deals, they just fall in my lap. It's crazy how I can sometimes make $2-8K just by sending an email to my buyers.

Los Angeles is like another planet to me, but I do realize there is incredible opportunity there, hundreds of thousands of older houses and distressed seller potentials.

The houses are way more expensive there than here in Central Calif, and probably a lot more profit potential. I might have to expand in that area.

Any wholesalers working LA?

I had nothing when I started wholesaling, I didn't even have a vehicle. No marketing budget. I got my first few deals by running ads on Craig's List, "I Buy Houses, Any Area, Any condition. I have never put more than $10 for an earnest deposit ever since I lost $200 on a deal gone bad.

Now I spend a lot of money on marketing, direct mail, bandit signs and I even pay girls to walk neighborhoods and hand out my door knob hangers. I luv to recruit bird dogs, my favorite method, they find and bring the deals to me, and I pay them $2,000

I specialize in flipping the worst of the worst, houses that most people say shud be tore down. But I've also started flipping nicer homes, the key to that is finding distressed sellers.

Like I mentioned before, you gotta dig thu a mountain of crap to find the gold and diamonds. It can get seriously frustrating  looking at hundreds of properties.