All Forum Posts by: Stephen McKee

In short, no money, no credit...find a buyer. Sell the property to another investor and watch the process. If a quick sales price is $230 then there should be people foaming at the mouth for this condo. I'm not a fan of Condo's either but this seems to pencil. Find 10 deals like this and sell them to investors. If your a new agent and have a 60% split then that should net you 27k in commission. Now you have a down payment for a HM loan. A friend of mine loans at 3.5 points with 12% per year and 15-20% down.

If you can't find the buyers you can flip me the deals and I'll give you 50% gross commission.

Always padding for safety.

"I buy desperate sales but I'm not desperate to buy."

Real estate is not fair and 99% of short sales leave no deficiency. At least that has been my experience in CA. The home owners are not making a profit and need the deal to close in 30 day. FHA is really backed up right now. Find another home unless you are certain the agent has double ended the deal and is in violation of his/her ethical responsibility. Real estate is about relationships. The listing agent may have accepted an offer from an agent with strong close ratio. If you agent does not have that relationship then your offer will be cast aside.

Try going backwards

Estimated sales price
-
Cost to sell (I use 8%)
-
Repairs (contractor estimate)
-
Cost to purchase (I use 2%)
-
6 months interest (based on total out of pocket)
-
How much money you want to make (I use 25-30%)
=
Max offer price.

Almost all contracts have a distressed buyer clause. Look over there contract very carefully for this.

I buy a rental every time I find one that fits my criteria and I can afford it. If there is money to be made but it does not fit my rental criteria I flip it and pay down the principal. Never take profit from your real estate except rent. This will ensure, as Mike always says it, "you don't kill the goose that lays the golden eggs".

You can also buy rentals in highly appreciating markets and sell off half to pay the remaining half off. A combination of both will do you well.

Also to echo above. Drip email is great branding and it works. Do this for 1 year and you'll be amazed at the results.

Never pay for a list again. Go to your local title company and bribe customer service with a $20 starbucks card. I worked in title for years and trust me this works. It takes 30 seconds to produce that list.

Here's how mine looks
Non owner occ
Sent to mail address (not site)
Clear Labels (yes title will print labels for you)
Home criteria (3/2, etc.)

I fold a flyer in 4ths and stuff them in bright colored birthday envelopes. Hand place the stamp and clear label.

I have a 1-2% success rate and have had people call me over a year later and they are still looking at my flyer.

I will accepts financed offers before the 90 days but I require a 5k nonrefundable deposit. It weeds out the non serious buyers while locking up the escrow.

30 Year and treat it like a 15. Then when you need the money for other projects or the unit is vacant you can make the lower payment for a short period.