All Forum Posts by: Chris Piper

Matt, here is an example of what you can send to the seller. This is a template from Cameron Dunlap. He's a big real estate guy. Have his system, and it's pretty awesome. Hopefully this is what you were looking for. It explains everything that you need it to to the seller. There should be no reason to explain anything further to them. Also, are you planning on buying properties from the sellers to wholesale, rehab, or what? The template leaves it open for what you want to do with it, but let's the seller know you are an investor. Good luck.

TEMPLATE

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Hello!

We are a group of real estate investors that purchase distressed or discounted properties in any location, in any condiction, for a fair price.

We want to give you an offer, but need more detais about the property for sale.

You can submit your property information via email by replying to this email, via phone by calling us at {Seller - Phone}, or on our website at {Seller - Website}. Please provide as much information about the property as you can, and we will contact you in 48 hours or less to discuss what we can do for you.

Sincerely,

{Sender - Signature}

{Sender - Name}

Hey Marcus, if you have the money, check out Cameron Dunlap. He has a great online system called iFlip. It's similar to Freedomsoft by Preston Ely, but I think it might be better. It also includes "Fast Cash with Foreclosures." The whole system is about $1,000, but you get guaranteed funding on wholesale back-to-back closes, unlimited POF letters 24/7, "wet funds" to close your 1st closing on the back-to-back closings, cash buyer's list, and much more. I'm using it now, and it is great. Just my 2 cents.

I forgot to mention before Lakeesha, if you have "wet funds", that will open up a lot more options with title companies. Wet funds are actual funds to close on your first closing where you are the buyer. Like @Joe Gore said, title companies are scared you want to use your buyer's funds to fund the closing with the seller you are buying from 1st`. If you do have the wet funds, they should have no problem working you. If not, then it might be a little tricky. Also, keep in mind most banks require you to have wet funds when you buy from them, such as an REO property.

Judging from what some people are saying, it sounds like repair costs are outrageous on the East Coast. Like I said though, adjust as needed. The easiest way to do that would be to get estimates from contractors on your first couple of houses, make a note of what repairs cost approximately how much, then figure out how much per sf. that equals out to. After you get that down, then you can pretty accurately ballpark repairs without going to a property, and feel comfortable making assumptions about the cost of repairs. Of course, you will never be spot on with your estimation, but reasonably close is good enough.

It's good if you already have a license, but I wouldn't waste the time personally. Agents work on commission, which means they do a LOT of the work for you, which frees your time up to actually buy and wholesale properties.

It is helpful regarding access to the MLS, but your agent will get you whatever you need. And if they don't, get another agent. There are tons of them in every city in the country.

I would contact your agent to find out if the property is still available in the MLS. If you don't have an agent, then I would call the agent who has the property listed. If it's a FSBO, then talk directly to the owner. If it's in the MLS as an "active" listing, then it's still for sale. If it's "pending", then it's in the process of being sold if everything works out.

The best way to find absentee property owners is through your county assessors office. Pull the records of the owner, then you have to mail to them. Also, you can do skip traces to find out who owns a property.

As far as cash buyers goes, you can advertise on craigslist, put up bandit signs advertising a standard house for sale for your area, call people who have "For Rent" signs on properties, or call people who have bandit signs or ads stating "We buy houses." When investors/cash buyers call, tell them the property has sold, and ask them if they would be interested in getting notified when you get new properties. Then you collect their name, phone number, and email address. Add them to a buyer's list, and send an email blast to everyone when you get a new house under contract.

Also, as an alternative if you have some money to spend, you can purchase a couple different programs that I am currently using:

1. iFlip/Fast Cash with Foreclosures from Cameron Dunlap

It costs $1,000, but it's pretty much an all inclusive online system to streamline your real estate business and also includes training and gives you access to tons of cash buyers who you have to direct mail, but you can also do that through the iFlip system. Also, your $1,000 is credited towards your first deal. Cameron will fund almost any wholesale deal up to $600,000 per deal. No credit checks, income verification, or anything. Plus, you get proof of funds letters 24/7 online, and he will provide "wet funds." That is where he will actually fund the purchase of the property for you on the day of closing, then you turn around and do a second closing where you sell to your buyer. It's call a "back to back closing", or a "double close." I would highly recommend this if you can afford it.

2. Find Cash Buyer's Now & Find Motivated Sellers Now from Kent Clothier

I believe both systems will run you about $2,000, and there might be a monthly fee of $100 or something like that. Granted, both products are expensive, but they both cut the learning curve, and do exactly what you need them to.

With Kent's systems, you get access to a ridiculous amount of cash buyers, and motivated sellers nationwide. I'm talking 1,000's of cash buyers, and 1,000's of motivated sellers. Just for an example, when I just pulled up a search in Los Angeles County, CA, there are almost 20,000 vacant homes, and you get contact information for all of the owners. Also, there are over 1,200 cash buyers in Los Angeles, CA when I just did a search for that. Of course you still have to mail them a letter or post card, but that is still a great start. If you are interested in getting either system, just google it. Good luck.

I don't believe you have to disclose that, but I'm not positive. You may want to verify that with possibly a title company, or if you have friends who are real estate agents, maybe check with them. I think you are O.K., but like I said, better to check and know ahead of time before a deal falls through over it.

Lakeesha, you might want to contact Lawyers Title via their website. Here is their corporate number [REMOVED]. If not, then the only thing you can do is start calling title companies in your area. Let them know that you are a real estate investor and that you will be doing back to back closings. Eventually, you will find one. It just depends on who wants to make money by working with you. Good luck.

Keep it simple Matt. People with money don't have time to read through a 10 page break down of a single property. They need the bare bones details. They don't need comps or any of that. They will get those for themselves, and decide if it's a good deal. Also, you need to include a rough estimate for repairs, and price it accordingly.

Here is what I mean: I NEVER go into any houses I buy. I determine repair costs from the pictures. Those pictures either come from the realtor, listing agent, or bird dog. I use 3 categories for repairs: Bad, Really Bad, or Awful. If it's "Bad", then multiply $10/sf. by the square footage of the house, and there is your repair estimate. If it's "Really Bad", use $15/sf. for the same formula, and "Awful", then use $20/sf. Figure out how to determine which of those 3 the house falls under, then you will save yourself TONS of time and you can stop looking at every house, and meeting contractors for repair estimates. It's a waste of time and a HUGE time sucker. You need to focus on getting properties, and moving them ASAP.

Here is an example of how I determine what to offer on a property, and what to sell it at once I get it under contract:

EXAMPLE PROPERTY

123 Main St. Anywhere, USA

3 bedrooms 2 baths 1,500/sf.

(property is in "Bad" shape, referring to the repair condition)

ARV $100,000

Asking Price $50,000

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ARV X 70%= $70,000- this applies only if you want to sell for $0.70 on the dollar

(you can decide what you want to sell at, and adjust as needed)

-Repairs $15,000 ($10 X 1,500/sf.)

-Closing Costs and Funding Interest $3,000

-Profit $10,000

-Counter Offer Margin $3,000

= Max Purchase Price $39,000

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ARV X 70%= $70,000- this applies only if you want to sell for $0.70 on the dollar

(you can decide what you want to sell at, and adjust as needed)

-Repairs $15,000 ($10 X 1,500/sf.)

= Sell Price to Buyer $55,000