All Forum Posts by: Ronnie C.

Rehabbing is all I care to do, I wanna be in and out.  Just as you were saying, here in the Mid-TN area, the foreclosures and real deals have dried up. Now you can always find some ghetto house cheap if that's what you are into. However I have always been into the better houses in the desirable areas.

@Ray Eason 

Aside from the commercial possibilities, I have to agree with the others that it doesn't sound like a deal, unless you have the ARV ( After Repaired Value) under valued.

The only way to get REAL and accurate comps is through a Realtor. A Realtor is a important part of your tool box, as well as his/her MLS access. I would try to develop relationships with Realtors that would pull the comps for you. Or you could always offer them $50 for a BPO drive by like they do for the banks. Other than a Realtor, http://www.crsdata.com/main/ would be a great tool but it's not available in your area I don't think. CRS is usually attached to local MLS, and shows you active comps as well as closed comps on the local MLS as there is an icon for each. However you'd have to weed through them as local counties tend to fudge on the sqft numbers often giving you bad comps.

Next question since you are starting out, do you have understanding of the formula for a rehab wholesale as well as knowing rehab cost?

The formula is easy and is as follows:

Say you have a house that the ARV is $100 grand for easy math. From there you'd subtract off 65%-70% off the top for holding cost, etc. Then you'd subtract the rehab cost, then your wholesale fee and this is where a lot of newbie wholesalers shoot themselves in the foot by trying to get $10 grand when a grand or 2 is more of the reasonably going rate.

Best of luck to ya.

Yeah Joe, you are right. In Nashville, go to a REIN meeting (Real Estate Investors Of Nashville) and seems like everyone is trying to be a wholesaler, yet no one has any real deals. 

I only know of one legit wholesaler in the Nashville/Mid-TN area. When I say legit I mean he is in it full time with a staff, advertising campaign, etc and "doing the business" not a up start wanna be. He has yet to bring me a deal. However if I wanted a junker as I call em or low income as you called it then he has some deals from time to time, even some rented rentals being sold fairly reasonable if buy and hold is your thing.

I just have a certain type I like in certain areas, and the wholesale market for em in this area is slim. That's why every house I've ever bought I found on my own.

Yet they look plentyful in other areas, so apparently that's where I'm gonna have to go.

Also, I don't buy junkers or small rental houses. I buy em built from late 60s to present 3bd 2 full bath and with garages most of the time. 

I'm happy to make as much has I can, usually 20% of the retail sales price or a little under it is what I usually average. I think the most I've made on one flip is a little over $30 grand.

@ Juliette Vara

I'm a former Realtor in the Nashville and Mid-TN area. I retired my license yrs ago and started rehabbing.  If you are looking for rehabs I can tell you from experience Nashville/Mid-TN is not the place. I spent 3 months this year chasing deals and did not find one. I've just started looking in south Florida and Phoenix this week and will be going to AZ or Fla in the next few weeks. 

I do however have an agent in this area that I would recommend to anyone, she really worked her fanny off for me this year trying to find deals and shes an REO agent herself. The problem is low inventory in general on the MLS and untrained rehabber wanna b's that have graduated from watching TV shows that are paying 80-90% of value for foreclosures before 1 dime of rehab. Can't make money like that.

Best of luck to ya :)

Joe I don't have that problem, I have cash and proof of funds but Bubzu and these other idiots are in my way

I don't understand how some "so called investors" or let me clarify flippers can make money paying 80-90% of value for the house like someone described earlier, then have repair and realtor and buyers closing cost to pay later on?

I stick with ARV minus 70%, minus repair cost. Even as rentals, I wouldn't pay no more than my formula to have cushion and be able to pull money out at anytime via bank loans if I wanted to.

Back to the topic of Hubzu,, and all these other ignorant auction sites, they need to get out of the way and let us make hand written offers to the banks like the good ol days and it be submitted to the decision maker at that time.

Hubzu is a joke, so is auction.com, home search, can't stand any of them.

@K. Marie Poe

I had CYA forms signed by the seller that he understood there was a due on sale clause and he holds me harmless should the loan be called due or go into default for any reason. He completely disappeared and told me he didn't want to be found with no forwarding contact.

I fought and tried to keep the house, the loan was current. However the guy at the bank was a bean counter with no common sense.

As for the tenant buyers, they had been perfect, never gave me any problems, never late. However they was suppose to be paying bills on time, etc and they got behind on some medical bills which snagged their credit. They were at or pass due time to cash me out so when this started happening with the bank I got them with a lender and he told me it'd b at least a year or better till he could get them financed. I asked them bout this and they agreed. I had stipulations in our agreement which they had breached and forfited their down payment, and monthly credit. I told them to stay as long as they wanted payment free till the bank made them leave.

Have not done any sub too deals since, I'm scared to death of them. I was hit hard by the real estate melt down, I live with my parents and made $28,000 last year. Trying to get a better income as I need to financially take care of them now and they may have to sell the house. My real estate days are over. :(

@Greg Hall yes they foreclosed on a current loan and sat on it playing their usual lender foreclosure games for close to 2 years and sold it for $25 grand less than was owed on it at the time.. I could of had my tenant buyers to the bank and got cashed out by then. I predicted everything that happened to that idiot at the bank and it happened exactly as I said it would. All cause he didn't have common sense.

Best thing I can tell u folks that r doing this is to have CYA forms signed with the seller and tenant buyer that this loan has a due on sale clause and could b called in at anytime if so they hold me/u harmless.