All Forum Posts by: Craig P.

Sorry meant

Purchase + rehab / net sales price

It is 79pct all in (purchase + ARV/ Net sales price)

Tyson & Gary,

Pick a strategy such as probate, absentee owners, NOD, etc and start there. Buy a good quality lead list and develop a mailer and mail it over and over. Mail the same list 5 times throughout a years time and you will get leads. The key is you must keep mailing it. You can not measure results after just one or two mailers.

If you are marketing to private sellers you will find ones that are truly motivated and will be open to subject to, etc which will allow you to take them down without a ton of money out of your pocket.

Subject to will allow you to close on the property but leave their existing financing in place. You will still go through a normal closing and will need to pay closing costs, & title insurance but it allows you avoid conventional financing/or a HML. You need to make sure you get a POA signed, etc to give you authority to deal with the note holder.

The key however is you need to keep your word, and make sure you make the payments. A seller is putting their trust in you; therefore you need to hold up your end of the bargain and make the mortgage payments. This is key, as there are other investors out there who will not be timely on payments and/or not make them all together.

Once you do a sub to deal, and see it through then ask that seller to be a testimonial. That will help you in the future dealing with other sellers.

If you have questions let me know. I'd be happy to guide you.

Make sure you find a friendly title company that is open to doing "sub 2" deals. They can also guide you on the necessary paperwork you need to get signed on the front end.

Good luck.

Thanks.

I bought this one from a wholesaler...it was a REO deal and he made $3k or so after we doubled closed it. We did a C-B closing first and then B-A.

I used a HML to finance the purchase + $21k of the rehab.

Rehab was basic stuff: kitchen, 2 baths, refinished hardwood floors, new carpet in basement, new doors, lighting, new vinyl windows, exterior & interior paint.

House is about 2400 sq feet. 4 bed/2bath/1 car garage.

Quick and easy one.

Just wanted to share some success...just got a full price offer on one of our rehabs.

My purchase price: $148,900
Rehab: $29,000
Carrying/Origination: $7,945
Real Estate Commissions: $11,445
Total investment: $197,290

Sale Price: $228900
Concessions: $5800
Net offer: $223,100
Estimated Closing costs: $2000

Estimated Net Profit: $23,810

Check it out at:
[url]http://tours.hotshotpros.com/public/vtour/display/48905

We have owned this property 90 days. It went under contract in 43 days.

CP

Hey guys, ..lets hook up at the summit on Friday and then we can discuss.

Vesta
1515 Restaurant.
Cuba Cuba

Justin, I'll be at the summit. Happy to chat with you.

Owner and Encumbrance Report

Your title co should be able to do a O&E report for you, which will show you liens and judgement & mortgage records, & how the property was conveyed, etc. Mine does this free of charge if we end up closing on the property. If not it is roughly $100 bucks. We do this as a quick check if we are concerned about liens, etc, etc while negotiating with a seller.

Once you sign the PA obviously they will then do the normal title search & commitment, etc which will insure clear title.