All Forum Posts by: Tom Webber

Those are some tight numbers for what the owner still owns on the property. My suggestion would be to "present them with the facts" a list of all the necessary repairs to get it to sell to an end buyer. I would be sure to add a buffer for the foundation repairs because those could be hidden money pits.

If your plan is to flip this to an investor or take it on yourself I would be looking to pick it up cheap like 45-50% of ARV. Remember you make your money on the purchase side of the deal.

The problem is the owner doesn't want to have to pay any negative equity to the bank if you offer under what they owe to the bank. In that case a short sale would be a good route to get a discounted purchase price and to keep the owner happy and in the deal.

Good Luck

Is the property need 30k to get rent ready? If you plan to rent it then do the minimal to get a tenant in at the cash flow you want. 

If you are saying worst case scenario on the flip is 180k then I would find better comps than that and see what it takes in rehab to get a better return. Otherwise those numbers are to tight.

You sound prepared and anxious to start. Every market is different and your target sellers are like no other, so in my opinion you are better off getting a jump on them and having your name and material in their face and minds. More than likely it will take 2-3 months to see any results so I would be anticipating negotiations to sell with you as an exclusive agent towards the end of winter and then primed spotlight when buyers are out looking in the spring.

The biggest and best thing for you to do as a new agent is to fill your pipeline and keep spending time feeding the top of your pipeline with new listings or meetings with sellers and the rest of your time nursing deals that are close to closing so you get paid. 

Time is the number one asset to an agent. Use it wisely. Work the pipeline.

Exactly what @Curt Davis said what is going on with this owner or better yet their lender??? How rediculous that they have not been foreclosed on sooner. 

I would not attempt to short sale this property because it will close so much faster since it has been foreclosed. The bank now controls the asset not the homeowner. 

In a short sale situation you would be working to get the seller to submit a huge packet of financial information to the bank proving their hardship and dealing with an asset manager to accept a reduced sale on the property. Could take 4-8 months. Not fun and you spend a great deal of times using that file to close.

Find out who controls the asset or if their is an agent get in touch with them. Go look at the deal, run your numbers, make and offer and see if you get it. Then wholesale it to your buyers. 

The owners are a waste of time and should have been vacated by now. 

Good luck

knowing the comps is three-fourths the battle. It gives you a starting point and a leg to stand on when it comes to knowing how much you can offer on the property and still leave enough meat on the bone to wholesale it to an investor. 

The other great thing about knowing your comps is it gives you the ability to pinpoint the ARV which allows you to "market" the deal to a buyer by showing them you have a deal worth doing.

Location, location, location

Comps, comps, comps

Disclose, disclose, disclose

Keeping these in the back of your mind when negotiating deals will never fail you.

Good luck

@Brie Schmidt I forgot to mention my answer to your question. I am looking to get into some flips and some wholesale deals should they come about. I have a lot of due diligence to accomplish since this is a new market for me. 

I feel good about not being pressured to sell that wholesale deal right away but I do miss the hunt and the chase of matching up a deal with a buyer. I plan on being much more strategic about my investing instead of going with the herd mentality when I worked at a firm, which was just get properties on the board asap. Looking back at some of them and I don't see how we all thought they were such good deals.

I am still amazed at how active and excited everyone seems to be on this site in helping others and sharing information. I used to get so annoyed when people in the business would hoard their knowledge or expertise as if it was golden and would catapult their success or whatever deal. 

Thank you for all the warm welcomes

@Michael Germinario 

@Brie Schmidt 

@Jonna Weber 

@James Wise 

@Jon Huber 

I have always found that if I am going to be making an offer that is substantially lower than a list price I will call the realtor and talk to them about my "buyer" and their reservations with the property and rehab costs, etc. I will typically try to start a dialogue to get an understanding on the seller's motivations and if there are any other offers on the table. 

You don't want to waste your time or the other realtor's if there is no chance of a consideration to your offer. However like the others have said if you are going to be submitting a bunch of offers I always say "well look, let me shoot it over to you anyways and if this goes highest and best or another offer is accepted, keep me in as a backup." You will be surprised how many backup offers do come back. I can probably account for 8-10 deals that have come back months later in an email: Your offer is accepted!

I can say I have never heard of this before on a "wholesale deal" and would think that if that wholesaler you are dealing with was a "seasoned" wholesaler they would have had in their contract with the seller an assignment clause where they could assign you the contract to purchase. 

I guess if they just want to basically hand over the deal to you and get a "finders fee" then yes you should 1099 them as an independent contractor for their fee, however I believe you don't have to if the fee is under $600. Don't quote me on that and it may vary from state to state so check it out in Illinois. 

Hello BP Forum, I am a novice investor who has a well rounded education and skill set in leasing, property management, appraisals, residential investment, wholesales, short sales, REO's, commercial retail leasing and development.

I have been out of the game for a couple years settling down with my new wife and moving from Chicago to Iowa City area. I am now wanting to get back into the game and to start building a solid retirement for my family. 

I came upon BP.com and was shocked at how much community and information is packed in here. It is absolutely awesome! The podcast is amazing and I am getting totally amped to do some deals again. You know that feeling you get when you get that signed contract and know you are going to close on it? I miss that feeling. I miss getting out there and inspecting new properties and learning about neighborhoods and my market. 

I am also really excited to go out on my own and do this for my family instead of a real estate firm I was working for. It is going to be that much more exciting. 

Now, I just need to continue to pay down some small debts and save up for an investment fund and in the mean time I will be doing boatloads of research and networking in my area. I think when I am ready I will begin with some wholesales and flips in order to pave the way for some buy and holds for that coveted passive income. 

Looking forward to meeting others and to our success!

Tom