All Forum Posts by: Timothy Franklin

2Br 1Ba 720 sq. Ft

$77k+ cc 

110k as-is value

140k ARV

This contract was secured for another buyer and partner with buyer exited deal.  If you're interested feel free to message me. 

Thanks

@Luke Tetreault I am new myself and working currently to get to that point, but what I intend to do at your point is to JV on deals or offer PML for high turnover deals (EMD/ Double close). I've been studying for a while and see investing as a cycle, times of high activity (chasing the deal) and times of latency (allowing the deal to mature). By lending money on quick turnover deals and running JV's I should be able to fill some of the latency period with needle moving activity. Just my opinion but I think 2 years is too soon to consider exiting deals (minimal appreciation and less than optimal use of depreciation).

You've proven that you can manage the dealflow you are handling so it makes sense to me that you leverage those skills to help others with their deal flow. You might know someone in your network that is starting out, or who is exiting a latency period that could use your skills. That could be what you need.

 Thank you, I do try to always be professional, transparent, and fair. I don't claim to know everything and that is why I am here. Years of studying real estate deals doesn't equal years of doing real estate and I recognize that. But to be fair, I have spent a great amount of time very recently trying to help another professional 20 years in experience ahead of me bail out of a mistake I NEVER would have made. Noone knows everything, and everyone makes mistakes, but if we aren't always learning, we will always be failing to some extent. That's why I am here.

The way this deal is structured it is roughly $1M below market value given current market trends. There is no assignment associated with the sale, but no, it is not for free. So far the MLS has brought lowball offers trying to skim $100k off just one property and 2 failed offers (buyers could not get approved for conventional financing for their own reasons).

I can't speak for any other wholesalers, but I know I just got a wholesale deal off MLS working with the realtor and was able to offer more than the sellers minimum, while also matching my buyers buy box. The seller accepted the offer with terms of accepting backup offers until January 8th, which I am fine with. If someone beats my price, great, I made sure that the deal worked for everyone as structured. If it goes through, awesome, if not, awesome. I would rather make less on a single transaction and more in volume, than make more on a single transaction and less in volume. The same seller owns another property that my buyer would be more interested in (the reason I reached out to the seller first) but isn't interested in selling it currently. I plan on getting the text message when they are. If there is anything business has taught me is that sometimes you have to put in sweat equity to build a lasting relationship.

@Don Konipol Thank you for your insight. The thread was intended to seek guidance on completing the deal, and even If I disagree with opinions I understand it doesn't make either side more or less valid. I see a disservice being provided in the given example by the real estate agent by not bringing creative strategies on both the sellers and buyers position on this particular deal. Many assumptions were made as to my knowledge, part due to my "rookie status" on the thread and part in that being the first deal being made. 

To clarify, I have been studying real estate for several years, but have been otherwise engaged in operating  other businesses that my wife and I both own, both as CFO and CEO roles. I am not acting in an agents role as I am providing the service to help the owners sell their assets, while enabling the buyer to acquire cashflow positive deals that banks are not providing with current rates. I am not a member in any "gurus" programs nor am I foolish enough to believe that the whole picture is provided by these gurus. I have done extensive research in the risks, how to structure such deals to mitigate those risks as effectively as possible, and legal considerations of each strategy.  I am always fully transparent and the owner in that situation is a long standing business associate that knows my character, experiences and background, strengths and weaknesses included. I say it is the first deal because it was brought to me by the owner before placing any other deals under contract (which I have done in multiple states) legally, and ethically. I only brought this to the forum seeking information that would add value to the disposition of the deal.

Okay @Jay Hinrichs that makes sense to me, I didn't interpret it like that. When I read the bank would accept 91k I understood that to mean that was the 30 day payoff amount on the mortgage. 

@Trevor FinnI would agree with your breakdown, but why overlook a potential to run the 91k subject-to with a targeted 6 month hold for flip or 18 month refinance? Unless the seller has to be immediately out of the mortgage I see sub-to as an excellent cost reduction strategy.

@Jonathan Greene you didn't, that comment was more in reference to other responses on the thread.

@Nicholas L. 2 of the 3 properties are listed on MLS but having trouble moving due to interest rates (cost of capital). I helped the owner structure the seller finance and off-market offer to be closed more easily (more accessible to the buyer) through mixed financing and a lower price. I'd buy the deal myself but have $1.1M tied up.

Thanks @Jonathan Greene

I will look them up, but I don't believe you have to "lowball" a seller to get a deal done. The point of the contract is to provide value to both buyers and sellers and  this deal saves the buyer over $1M in interest and easily $100k in furnishings while getting the seller their full equity and saving buy side/sale side realtor commissions. I would say it's more of a scam to offer a seller <70% on a property that needs $5k in material repairs  and flip it for 125% without stepping foot in the property. I've only ever sent out an offer like that once, and that was to a preforeclosure lead that refused to discuss the property, instead telling me "that's not how real estate works, just make me an offer".