All Forum Posts by: Adam Clark

Thanks for the feedback I think it depends on the market/seller you are dealing with. Upscale sellers may see a person handing them  a pamphlet as being more professional and informative vs the sellers of the severely distressed properties that are going for 45k and just wanna discuss numbers.

Either way I think building rapport is the key. I have never tried a pamphlet etc... Maybe I'll grab a handful it won't hurt. @Cass R. Smith has a good point measuring the level of professional at the initial contact is important. I think coming off to spiffy and extra professional May be a turn off to your average lower value property owners.

@Jade Davis I just said a pamphlet as an example. But yea they will  def throw it away haha

Wholesale is a different niche in real estate. 

Some people are a position to meet distressed buyers or run down properties looking to get rid of fast. As a agent can you get rid of the property fast to investors? Maybe

As a wholesaler you are looking to benefit the seller and yourself. As a agent and you are representing the seller and there property is worth 100k do you want to tell them to take 65k cash for it? Are you truly representing the seller to the fullest? Are you carrying out your fiduciary duties? Not Really.

Acting as a wholesaler you are not representing an individual. You are providing a quick fix solution to the seller making some money for yourself. CAn the seller get more for there property? Most likely. Do they want to wait 6 months possibly getting the copper ripped out and or run into other issues that come along with a property sitting around like broken water pipes in the winter?

I think it depends on the seller the situation what option is best for them. They can take the quick cash or get an agent and wait it out.

Hello all,

Quick question. Other than a business card what else do you guys give sellers when you first meet them? I am trying to think outside the box and come up with ideas on what I can give a seller when I first meet them to come off more professional and be more informative.

For example maybe a pamphlet with information on it?

Just trying to come up with ideas

THanks in advance

AC

After seeing the official comps I think the value of the property I'm looking at is about 33,34k. 

@Tom S. 

Comps are here : crmls.paragonrels.com/publink/default.aspx?GUID=954515da-c2c2-417c-bc3c-87bd0a73ad74&Report=Yes

Yes I do  have buyers lined up.

The one I'm looking at is a 3 unit. Exterior is perfect interior just needs paint.

2 - 2 bedroom

1- 1 bedroom 

Everywhere I look says it is 4300 sq feet but I don't believe it I was actually in the house already for another reason. So I'm saying 3500-3800 just in case.

@Tom S.  I understand what your saying when it comes to him buying the house for 40k and funneling it to another investor for 40k. Of course it wouldnt fit the profile for a buy and flip. 

The owner said its all paid off.

A lot of investors around here buy for the cash flow especially 3 units in an area that has very low taxes. A 31% is pretty good and you will have made your money back in about 3 years. Even a conservative estimate of 25% is pretty good.

SO the idea for an investor would be to buy this property for cash flow ove not appreciation or flipping. 

What do you think?

Thanks for your advice.

Adam C

Sorry The Comps came in all screwed up here they are below

Sqft       Sold         Price

Three Family  2,724 8/8/2003 $48,000 

Three Family  2,400 12/9/2005 $20,000

 Three Family 1,894 8/26/1998 $55,000

Three Family 2,100 8/29/2006 $82,000

The Building Im looking at 3500 sq feet 2008 for 40,000

Looking to Wholesale 123 Main Street I came in contact with Please see the information below Thanks! Tell me what you think!

3 Unit

1 – 1 Bedroom

2 – 2 Bedrooms

Single Bath in each

Exterior Great Condition

Interior needs minor painting/Cosmetic 

Previous Owner Paid 40k in 2008

Tax assessment – 40k

It is a distressed neighborhood but decent property for that neighborhood. Some vacant Building on the block may bring down the assessed value of the property. Owner wants to sell but I haven’t offered him a price. I say try to lock the deal in for 35k and flip it to someone who is interested in cash flow for 40k. Please see the numbers below. I know there is too many variables in the real estate market to determine what is a good deal or not. But a lot of investors around here invest in these type of properties.

COMPS on the same street

The Building Im looking at is about 3500 Sq Feet Last Sold for 40k 2008

Offer $35,000 Flip for $40,000 – See Below

3 Unit x $600 Per Month = $1800

1 Monrh Vacancy Per Unit $600 x 3 Unit per month= ($1800)

     Annual Gross Rental Income $20,000 Per Year

Property Tax$126 Per Month x 12 - $ 1512

Maintance Cost $400 Per Month for all 3 units12- $4800

Annual Net Operating Expenses       $$6300

Annual NOI

Annual Gross Income – Net Operating Expenses

     $20,000-$6300 = $ 13700in Cash Flow

Return on Investment (ROI)

CashFlow /Investment Basis ($3000 in additional repairs)

      $13700/$4300 = 31% Return

What do you guys think?

Thanks,

Adam C