All Forum Posts by: Sharon Vornholt

If you can close on the property, then I would "wholetale it" it the condition is not too bad. Wholetaling is somewhere between wholesale and retail. I had good luck doing this previously.

I had a house with an ARV of about 120K. It needed kitchen cabinets (which had been removed) and it needed to be updated. The bathroom was original but it was in perfect condition. The hardwood was also in good condition

The hosue needed paint, some trees removed and some landscaping. Most everything except the cabinets and appliances could be done at a later date. They buyers moved into the house after putting the cabinets in.

I paid 50K and wholetailed it for 80K. I made a great profit and they got a great deal also. I sold it the first day I put it out there to my REIA club.

If I am sitting at the closing table and some idiot pulls this, I just pay the money; especially if it is a small amount. I just chalk it up to a pain in the --- fee.

I hate dealing with these types of people.

I posted an article last week on my blog about crafting your offer to include some type of "extra". Take a look at the article below, and let me know what creative "extras" you have put in your offers.

Sealing the Deal

How many times have you made what you consider to be a very fair offer on a house, only to find out later that you lost the deal to another investor? I’ll bet that has happened to just about every real estate investor at one time or another. You may even find out that the other real estate investor offered the same amount of money you did . One thing I know for sure is that they added value in some other way when they made their offer.

I have found over time, that price is not the only thing to consider when making an offer. Many times motivated sellers get even more motivated when you offer to pay closing costs. Other times, they just don’t want to deal with cleaning out the house. If the property happens to be part of an estate, removing the items left in the house after the family has taken what they want can be overwhelming for the person left with this task. By offering to complete this job for them they are often willing to accept a lower price.

So how do you know what “extra†to offer?

The answer is simple. Just ask them!
After you have gotten a feel for the price they are hoping to get, ask the seller this simple question. “If I could wave a magic wand and make this deal perfect for you, what else would I need to do? What other problem could I solve for you?†Then just sit back and wait. Let them tell you what they need. Find out what will make your seller a motivated seller.

Maybe it is closing costs or the cleanout of the property. But then again, maybe it’s something entirely different. Here are just a few of the things I have been asked to do:

-Pay back taxes of $1000.00.
-Pay $350.00 in fines levied on the property by the city inspector.
-Pay to have an old car removed from the property.
-Pay off a lien on the house from the city inspector which was $800.00.
-Pay the attorney fees they had incurred to close the estate and the closing costs which totaled roughly $1300.00.

Did I figure the cost of doing these things in my offer? You bet I did! And I’ll say it again, if you can make their life easier in some way they are often willing to take less money for the house. Give it a try the next time you make an offer.

That's correct Michael. However, you should be able to use transactional funding for short sales.

That's correct Michael. However, you should be able to use transactional funding for short sales.

That's correct Michael. However, you should be able to use transactional funding for short sales.

RUN! She's trouble.

Hi Lily -

Your reputation in this business is everything! You should pay him at least what you agreed upon.

In my area $1000 is considered to be the norm for a referral fee. I am a wholesaler, and pay that much for a lead all the time. What you have to remember, is that you would have no deal to work on without this lead.

Next time just type up a little bill for a $1000 consulting fee and have him agree to the amount and sign it You can pay anyone out of your LLC for services so that isn't a problem.

If he tries to change the terms of your arrangement a second time just say no and cross him off your list.

We have a great REIA club in Ky. I have been very fortunate to find excellent mentors, make good friends with similar interests, and have the opportunity to hear national speakers at our meetings on a fairly regular basis. It also gives me the opportunity to learn first hand from other people's mistakes.

Bigger Pockets is a great resource for many reasons. The fact that it is available 24 -7 could not be more valuable. Being able to network with other investors of all levels of experience provides an opportunity to learn that simply cannot be equaled. Thanks BP.

I think some areas have a bigger problem with Bandit Signs than others. People in my area don't seem to mind the handwritten signs nearly as much as printed ones. You can always use a free Google Voice number on the signs. I personally don't put out more than 35 at a time. It's just too costly and it takes too much time to do that every weekend. I also don't put them in neighborhoods and other places where homeowners will get angry.

I have great success selling houses with the handwritten signs. I have never had a complaint and the signs stay up a long time.

If a "tall man on a ladder" puts up the signs it's harder for the average person to get them down. I have had both the "sign police" and other investors take my signs down.