All Forum Posts by: Phil Z.
Phil Z. has started 13 posts and replied 897 times.
Originally posted by @Diana Klauman:
Originally posted by @Phil Z.:
- 50% is probably not going to get a counter. It will get rejected.
- To me a low ball offer is a ridiculously low offer compared to it's true market value. Not compared to it's list price. If your low balling based on the list price, it might still be a true market value offer.
- They are not going to come down $10k at a time while you nudge up $500. Your probably going to look like a giant waist of time, and they are very busy.
- The value 10 years ago is mostly irrelevant, however, it's a concern that you say it now comps $50k higher than the height of the market. Something is not right here.
Thanks for the info Phil Z. I got a counter offer yesterday for $85,000. I am going to search for comps in the more realistic range of $110k-120k. Next offer I'm thinking $55k now, along with justifications (roof,siding, insulation, drywall, appliances, driveway grading, tree removal, mechanicals, deck repair).
Offer $55k, rehab $60k puts us right in the middle at $115k for what reasonable comps would be. Would it make a difference if I said I would finance through Wells Fargo?
- You should not be 'searching for comps' to meet a specific number. You search for comps that are within 1 mile, and similar size, style and good/excellent condition. You make it sound like you can control property values by just using different comps. The market controls the price.
- If your offer plus repair costs equals the ARV .. then your going to lose about $20k.
Originally posted by @Brent Coombs:
@Diana Klauman, my guess is Wells Fargo DON'T want to be its Lender. They likely want it gone, with its FULL value back in their coffers! And by full value, I'm guessing they mean something much closer to $85k than $55k! [Not official REO or Wells Fargo advice].
Based on your last post, why are you still interested if you're up for proper as-is value? Cheers...
- Actually Wells Fargo very much wants to be the lender on their REOs. It's a very big deal for them.
Post: Wholesale Contract Language and Securing your interests
- Real Estate Broker
- Orange, CT
- Posts 951
- Votes 218
- Your deposit should be held by your title company.
- You may not want to be required to notify the seller of the assignment.
- You may not want to record you wholesaling contracts and assignments in the land records. It should be a legal binding contract. One of the benefits of assignments is it is not recorded anywhere.
If you are going to be a Bird-Dog, you will probably need to be utilizing free marketing methods because the per lead fees are usually pretty low. Unless your licensed, in most states you can't earn a commission based on the sale.
I wouldn't bother. It's very unlikely that you will get a big enough equity cut if there are not a lot of repairs required and the agent is probably going to think your a scam artist.
Post: Paying the seller at assignment?
- Real Estate Broker
- Orange, CT
- Posts 951
- Votes 218
Assignment has nothing to do with the seller in most cases. You assign the Purchase Agreement to the new buyer, not the deed.
Post: Assigning Contract or Double Closing?
- Real Estate Broker
- Orange, CT
- Posts 951
- Votes 218
Your Purchase Agreement may have terms in regards to assignments. Such as requiring seller approval, or not requiring seller approval. If assignable, all you need is an assignment agreement between you and the buyer.
Post: Does Wholesaling make sense?
- Real Estate Broker
- Orange, CT
- Posts 951
- Votes 218
- Find Cash Buyers FIRST, then find them deals.
- You need to put a property under contract for less than your Cash Buyers will pay. Your profit is the difference in the form of an assignment fee.
Post: How to practice analyzing deals
- Real Estate Broker
- Orange, CT
- Posts 951
- Votes 218
The only 2 figures you need to analyze are After Repair Value and Repairs.
- After Repair Value you can do from home, and see what it finally sells for 6 months later.
- Repair value you will probably never really know actual costs.
- 50% is probably not going to get a counter. It will get rejected.
- To me a low ball offer is a ridiculously low offer compared to it's true market value. Not compared to it's list price. If your low balling based on the list price, it might still be a true market value offer.
- They are not going to come down $10k at a time while you nudge up $500. Your probably going to look like a giant waist of time, and they are very busy.
- The value 10 years ago is mostly irrelevant, however, it's a concern that you say it now comps $50k higher than the height of the market. Something is not right here.