All Forum Posts by: Kim Handelman

Hi everyone,

well after a week of nothing the sisters are back! They sent my contract to their lawyer and have asked for a few things. One, they want the assignment clause out. Legally I'm fine with that because in CT if it doesn't say you CAN'T assign then you can assign. My question is will they know I assigned it if I go to the closing? how does this work? At some point they or their lawyer is going to want the name that needs to get put on the deed. At that point do I give them the rehabber's info that I assigned the contract to? There's a ton of info on wholesaling out there but nothing I've found that goes this far into the weeds. 

The second thing they've asked for is 5% down - that's a whopping $16,000 that I just don't have. Any ideas on how I can reply to justify not giving them that much cash? I can afford $2,500 but that's it. Thanks in advance for your advice, -kim-

There is tons of great advice here. I too am starting and strapped for cash. I've done some mailings and gotten one really great lead where the people accepted my offer and then didn't show up to sign the contract. Back to square one. I'm a list person (because I LOVE getting to check things off when I've done them). Here's a list you can print as a guide:

1. Go to your closest BP Meetup. The people you will me will be your guides and your sounding boards and who knows maybe future partners! 

2. Open a bank account just for your REI funds. Get automatic deposit from your paycheck to put a small amount in every month and increase as you can.

3. Stop going to Starbucks, Marshall's whatever and if you go out with friends, drink only when the drink is bought for you : )

4. If you have good credit, buy a SFH or duplex with an FHA loan (I think it's 3% down) and house hack (read Brandon's book "No and Low Money down..... to learn how)

5. Listen to the podcasts every week and the new daily podcast right here on BP

6. Find a mentor or an internship. But do your homework. My first interview for a wholesaling internship the guy was drunk - I mean slurring his words and couldn't walk a straight line and it was 10 in the morning! When you find a good one, as mentioned above, bird dog, go to the court house for them get them coffe etc. You'll learn tons!

7. HERE IS THE MOST IMPORTANT ONE. TAKE ALL THOSE "YOU CAN'T DO IT" COMMENTS AND USE THEM AS FUEL! YOU'LL SHOW THEM! Go with the Rich Dad Poor Dad way of thinking - don't say "I can't", say "How can I?"

Eventually when you immerse yourself in this business and hang out with like minded people you will find your way.

Hi Everyone,

So this is a real estate question - not for my business but for my family. My mom needs to retire and she can only retire without a mortgage but doesn't have the money to buy outright. She's been told she can get a reverse mortgage. My sister has the money to buy and carry a mortgage. Does it make sense for my sis to buy the property so that when my mom can no longer live alone, she will have a property worth something or better to get the reverse mortgage and let the bank have it when mom no longer needs it? I know it's not great to bet on appreciation. Can someone at least tell me how I would calculate which is the smartest move from a money standpoint?

Thanks to all of you. I have a call into my lawyer I just want to get this doc signed before the 4 sisters have second thoughts!

Hi All,

My first potential wholesale deal is a condo owned by 4 sisters. My attorney is drawing up a contract tomorrow am and I'm not sure how to get all 4 sisters to sign? Do I fax the one that doesn't live near by and have her sign it with a notary?

@Delon Hall Thanks so much for your advice. I did find an attorney and he's writing up a contract for me. This sale is a bit complicated because there are 4 sisters that inherited the property and one of them does not live close. How do I get all signatures? This may be painfully obvious but I just don't know. Can I fax or email the contract and have her sign with a notary?

Hi all, One of my leads just accepted my offer and I need a purchase and sale agreement. My Lawyer is going to draft one for me and has asked what points I want to include. The following are things I think I need but would sure like some input if I'm missing anything: Subject to funding partner approval (my out clause) Clear title inspection prior to closing of property by buyer or buyers agent Access to property prior to closing to assess repairs and obtain professional advice on resale. Ability to assign contract (I've been told if you don't put anything in the contract about NOT assigning then assignment is allowed) Am I missing anything? Thanks so much!

Thank you @James Lehmann this is exactly the kind of input I need. The homeowner who asked me to give her a price isn't returning my calls - Oy Vay! If she resurfaces I will have a more accurate quote!

@Karin Crompton@Jonathan Makovsky

Thanks so much you two!! The unit flooded because of a broken pipe, it's no where near the water. The condo unit is on the outer circle of two circles of units that surround an old Mansion with a pool that sits atop a hill. I talked to a realtor that knows the area and she said the lower loop may have a slightly lower "Status" but she said all the units are nicely placed and that rarely comes up. She said that the units that are updated high end sell well but may need to sit on the market for a few months right now. She also said that the type of people that want the units with high end updates don't care about the higher HOA fees. Just checked, the exact same unit with pretty new updates is on the market (9 days) for $345K so I'm hoping my numbers are good. UUGH, why does my first live lead have to be a condo!

Hi Everyone,

I asked about this deal last December and didn't get any feedback. The seller evaporated and now she's come back ready to sell. Are my updated numbers right? Do rehabbers shy away from high HOA fees?

Condo, in Madison, CT (an affluent community on the water - not Fairfield County) Complex has good reputation and distant views of Long Island Sound:

UNIT: 2 bed 2 ba 1,836 sq ft. cathedral living rm, 4 season sun room finished, walkout basement, 2 car attached garage. Built in 1996. Kitchen flooded spring 2014 kitchen and was replaced w/ all low end stuff. Middle unit.

HOA Fees: 650 mo. (this is on the higher end of normal for this area).

COMPS:

2 bd 2 ba SOLD 11/21/14 for $180K - 1,160 sq ft smaller and foreclosure bad shape

2 bd 2 ba SOLD 12/10/14 $350K - 1,374 sq ft. smaller but end unit fully updated w/ finished basement

3 bd 3 ba SOLD 10/15/14 $390K - 1,542 Sq Ft fully updated w/finished basement

CONSERVATIVE ARV: $330K could be higher right????

_______________________

REHAB:

KITCHEN$10,000

    Cabinets $6,000

    Granite   $2,500

    Appliances$  1,500

MASTER BATH   $7,000

2ND BATH $2,500 (has good tub/shower unit)

DUMPSTER $1,000

PAINTING   $2,500

CARPET FLOORS $3,500

                  ----------------

TOTAL:            $26,500

15% OVER     -$3,975

                  ----------------

TOTAL           $30,475

____________________

70% ARV $231,000

Rehab                 -$30,475

Wholesale fee   - $10,000

                    -------------------

Max Price          $190,525 

Am I not moving on this because I'm afraid to take action or am I afraid this isn't a good deal? Please help me out!