All Forum Posts by: Account Closed

1. At some point, you should inform him that you are a wholesaler and that you buy properties at a deep discount. If he's an investor, that news will not shock or phase him but at least you are being up front. It is up to him whether or not he's interested in selling his properties at a deep discount and if you can even help him or not.

2. Find out why he's selling, how much he owes (if anything) and how much he's wants for his properties. These will give you an indication of is level of motivation. If he's not motivated, you will have a tough time negotiating a good wholesale price because he doesn't NEED to sell. He just kinda, sorta wants to sell and is calling people to see what his options are.

3. It depends on your strategy. If you're wholesaling, look for a wholesaling contract in the File Place. If you're trying to buy the property on terms of owner financing, look for that specific contract in the File Place. There is no one contract that will cover both strategies

@Larry Turowski Thanks, I figured that would be the case if those were the terms we agreed on.

@Ned Carey I see your point, it doesn't make much difference. If I were to put this one under contract, how would I word the conversation with the end-buyer? Would I tell them that there are $3K in fines (hopefully not more, but we won't know until a title search is done), and that that has been factored in to my asking price so that they know what they're getting?

When wholesaling a house, who is responsible for paying the liens on the property? I am in talks with a seller who wants $9,000 for his house, but says he owes around $3,000 in fines. Is the seller responsible for paying the fines before I can put it under contract, or is it my end-buyer's responsibility to pay the fines off?

And how does this affect how my offer when I put it under contract? Does my offer have to be $12,000 instead ($9K ask + $3K fines) or do I have to factor that into my asking price when I assign the contract? The spread on the deal is marginal as it is, and I'm trying to see if this one is worth pursuing. Obviously, there is more information needed to make an informed decision, but any advice would be appreciated, thanks.

@Account Closed Thank you. I will give her a call back to determine how much she owes and see if there is a deal to be had or if there is a way I can assist with the sale of her home.

Hello,

I have a question about lines of credit on a home. A woman called me off of a Craigslist ad and is interested in selling her home. She owns the home free and clear, but has a line of credit on the house, the amount of which she would not tell me. My question is, is it possible to wholesale her home with the line of credit she has on it?

I'm fairly new to wholesaling, so any advice would be appreciated. Also, if there is any pertinent information that I may have left out needed to answer my question, please let me know.

Thank you in advance.

Hey Jason, glad to hear you decided to make the leap and to start taking action! I think a great way to find a mentor is to start networking. If you aren't already a member, The Richmond REIA Meetup Group, Richmond RING, and THINK Meetup Group are all good places to start networking, as well as Bigger Pockets of course.

Some advice on finding a mentor: know what you bring to the table. You want to be able to clearly convey what value you can provide THEM and their business. If you're fortunate enough to find someone who's willing to divert time from their business and to help build yours (and essentially train their future competition), it has to be worth their while. Your electrical and HVAC experience could be a great resource for an investor, but also be willing to keep an open mind on how you can provide value.

Certainly not claiming to be an expert, this is just based on my own advice on having worked with both good and not-so-good mentors in our local market here in Virginia.

Best of luck to you

Hi Roberto, welcome to the site!

I just received a lead from an out-of-state absentee owner whom I sent a letter to. She has $9000 in fines from code violations, said she doesn't care if she makes any money, she just wants out of the situation.

It was just your basic yellow letter, "Hi, my name is Sonny. I'd like to buy your house at 345 Broad St. Please call!"

I use the same letter for absentee owners too, no custom message. If someone is truly motivated, that's all you really need.

@Manny Cirino Thank you for the reply. I was not aware of the Reconsideration Process and will make note of that for any potential deals I come across for this campaign. Much appreciated!

Howdy,

I was able to obtain a code violations list for a county where I would like to begin marketing to. The violations range from inoperable vehicles to weeds to structural violations. The original list had a little over 5500 properties on it (way too many to market to for my current budget). There's no way to filter the list for specific criteria (SFR, 3 beds/2 baths, etc), so I have been scrubbing the list, excluding commercial properties, bank owned properties, state and church owned properties. By the end, I hope to have a list of 500-1000 absentee owners who have been issued code violations within the last 12 months (will probably end up with 1000+). With that list, I will be launching a 6-12 month direct mail campaign (combination of yellow letters and postcards), with the hopes of wholesaling any deals I come across.

My question is, are there any additional other criteria I should be looking? I would like the list to be as targeted as possible.

If anyone has any experience marketing to absentee owners with code violations, any input would be appreciated.

Thanks for reading.