All Forum Posts by: Ronald H.

Can someone be successful, if they're Ugly, because of dental issues?

My question: Can someone be successful, if they're Ugly, because of dental issues? :(

There are only Two Ways, I can think of to do this. See the Two Below.

1. Be a bird dog, and settle for 1K to 2K per deal.

2. Try to get a Real Estate broker to submit my offers, along with my Good Faith deposits to the seller and then me going to the Investor's to close on it with my profit built into the offer, along with all repairs and holding costs factored in, and I know this is going to be difficult, because I have no track record with any brokerage firm in my area, except a R.E. Club broker, but he will not do them for me, and perhaps may close on them himself, and especially, if I have no signed contract with the seller, or don't do anything fast with the lead.

NOTE: Using a Transactional Funder to fund the sale, and closing costs are how I would plan to fund the first closing between myself, the broker, and the seller with me providing the good faith deposit. I would then go ahead and close the same day (Double Closing) with an already accepted offer from One, to hopefully, four, or five Investor's offers for that same property.

NOTE: Exit strategy would be contingent upon the 3rd parties, satisfactory approval of an inspection of the property, should this be allowed with this seller.

My Concerns: Should I trust the broker, or ask for how the details of each separate transaction will be handled, and require the details be on a contract between me and the agency.

NOTE: I cannot see me getting the broker's attention, and I think most broker's will walk, w/o me having experience or closed deals under my belt.

My skills at finding properties are pretty strong, at least I think. I can find homes, but I wonder if the R.E. Agency will just bring my leads to an experienced Investor, thereby, undermining my efforts.

Personally, I do not have the money. I was thinking because this is not advertised or known of, I would try to get under contract, assign my interest to third party buyer for about 2%. That's what I had in mind. I did not really want to have to buy it and close back to back using a Transsactional Funder.

Property in Medford, MA. Not listed on MLS. No For Sale sign posted out front. City inspector says the Attorney General has gave warning to owner that they will take possession, fix it and offer it to the owner for rehab costs.

Since looking at this property, I realize that this is a Total Rehab. I believe the owner is motivated, but not exactly sure. I heard news that the neighbors are complaining about the house.

Tough property for a first flip. Owner says the inside is gutted out in some areas, although, I have not seen it, yet. Owner said to call him for viewing. All window frames rusty. Ancient windows. Boarded up windows on ground floor.

Needs new windows, roof, holes in the area directly under the roof, I do not know what they call this area.

I want to make some money, although, estimating repairs for this type of rehab is going to be Real Difficult for me.

No grass, needs landscaping. From looking at the house, I estimate tear down or $150,000.00

I downloaded a program call Rehab Valuator Lite to see if I can estimate, but I still don't feel too comfortable when working with a house that needs this much work.

I am afraid, I will sit on this and not get a penny. I could take my chances and bird dog it, but I will only get $1,000.00 or so.

I talked to a Contractor that I know personally and he did say he would come in and give me an estimate. This particular Contractor has a reputation for good work but pricey. Do not know if he works with any Investors.

I told this owner, I would get back to him in 24 to 48 hours and today will be 24 hours.

How should I estimate the major repairs here?

:oops:

Than you all for the feedback. Thanks, Chris, you gave me the idea I was looking for. I will try to estimate the repairs myself. Perhaps my freind could help me. Then I will get an estimate from a couple of Contractors and see how their estimates compare.

Any suggestions or ideas on this are welcome.

Vacant two story home and a seller who MAY be ready to sell.

I have not approached her, because I know her house needs a lot of work and I do not know how to come up with a sensible total for repairs, which means I need a Contractor.

If I bring a Contractor over and he thinks it is a good buy, he could make an offer to the seller and undermine my interests if I do not have a right to buy the house. The Contractor will have more knowledge of Repair Costs than I will.

Without knowing how much to fix this house, I will not be able to make a sensible offer. I could be way out there.

How do I protect my interests in this type if situation?

I am going out and start finding properties to buy and flip and I recognize the importance of forming an LLC to do flips, especially with the banks.

Question: Is anyone, having success buying REOs from the their local Bank as a Sole Proprietorship?

I heard many stories of them frowning on an Individual being listed as a Payee on the HUD in a Transaction and receiving a Large Sum of money.

What are your thoughts on this?

It would be especially helpful if someone from Massachusetts could answer this, but any State will do. I can always research my state's regulations.

I want to buy REOs from the Bank. Use transactional funding for the DP and Closing Costs.

First transaction with the bank would be done at an agreed upon Title Company. Hopefully the bank would allow the title company that the Funder needs to facilitate the transaction more smoothly.

I would close with the Bank and then have another closing the same day or the next day with the third party buyer, who I already have found.

Is anyone now, successfully doing thes types of transactions?

:D

You are reading me right. That IS what I am referring to. Funders requiring purchases under a business entity are the norm. I have found a couple that say they do fund individuals, but I have not verified that they actually will.

I am almost sure that I need to form an LLC, but for certain reasons, it would be less convenient for me to do it now, as a Sole Proprietorship.

Sure, there is less Credibility as a Sole Proprietorship, but if it works, why not?

Just recently I saw, a posting somewhere, where the owner of an LLC, was trying to buy from a bank, and the bank did not want him to buy as an LLC. So he asked his lawyer for advice. His lawyers had him buy as a Registered Agent or something to that effect.

So, yes, it seems as if there is a double standard with Banks. Each one is different.

A few days ago, I researched some recent Deed transfers and other docs from some of my competitors in order to see how they are doing it, and I found one very successful investor in my area who may have been doing it under his own name. I looked to see if he was a real estate broker or agent in my state, but I did not find any information to support that idea.

This particular investor has now formed an LLC and buys at Auctions many times.

Thanks for your feedback!
:D

Simple and straigh forward question but important to me.

Are any of you folks wholesaling as an indivdual?

I heard a few years back, that some lenders are frowning on Individuals being listed as a payee on the HUD statement.

I am going to form an LLC but it would be more convenient for me at this time start business as an individual, get my feet wet and then after the second or third transaction incorporate.

This is important to me. Is anyone doing this and in what state. If someone from Massachusetts could answer this, that would be great because that is where I plan on doing business.

You may may want to look into a LLP or Limited Liability Partnership for this. I am not claiming to be a Pro at this time but the strategy you are talking about sounds as if an LLP should be explored.

This is not intended to be used as legal advice.

Good luck with your venture!

Sorry, Josh. I meant Jon in my previous post. :oops: