Should I Do This

Question

Barry M. · Answer

Account Closed

Thanks for that tip.  I'm going to call the agent today and see what she says.  She gave me the Truth in Sale Report which showed a lot of things that needed fixing.  The report kind of frightened me a little, which is why I wanted to gauge low with my bid.

Paul Timmins · Answer

@Barry M.

Call the agent ask them what they estimate the repairs at. Ask them when the repairs are done what will be the value of the property will be. Then ask him to explain their answer.

Call the off campus housing office at the college. Ask where the students like to live going rates and what is included. You might have a strong value play using student housing as a best and highest use.

Good luck

Paul

Barry M. · Answer

@Jeffrey Mark

Hey man.  I've been hearing around the forums that there is another place or list to get inherited properties.  It's called the US Lead List inheritance list, or something like that.  There was another forum entitled "Inheritance List" where @Gary Parker kinda talks about this.  I think there is a fee though.

Jeffrey Mark · Answer

Hey @Barry M.

If I may ask where do you get your inheritance list from? I am looking to began my campaign and would like to know somewhere other than the courts in my area to look for leads.

Barry M. · Answer

@James Wise

While I do appreciate the advice of anyone who has accomplished what I want and I do agree that it would be in my best interest to have a knowledge of repair costs, I actually believe it would be a waste of time and energy to become an "expert" at evaluating repairs.  Most wholesalers get a bad reputation because they've tried to become an expert in this area.  They forecast, and they benchmark, and they project all the repairs that they think are repairs, yet they forget that the number one certainty is uncertainty.  This also creates another paralysis by analysis situation.  I want to create profitable opportunities for everyone and create enough of an umbrella so that my end buyer is cover if these unprojected problems do arise.  I feel it necessary for me and any other wholesaler to focus on and become experts at the art of negotiation and the law of large numbers.  Then I can tune my abilities for evaluating repairs when I'm doing a walk through with my end buyer.

James Wise · Answer

Before you will be able to make money as a wholeseller you need to become an expert in evaluating repairs. If I were you I would focus my time and energy into that. Without that knowledge you will not be able to find good deals that you can actually close. I believe throwing offers that are a quarter of what they want right as they are listed will be a waste of your time and energy.

Barry M. · Answer

@James Wise

I don't have any MLS worthy comparables for the subject property but for the recently sold properties on Zillow, Trulia, Redfin, and Realtor.com, I calculated an understated ARV of $150,000.  When the agent gave me the Truth in Sale Report, I almost didn't want to call back. I'm no expert when it comes to evaluating repairs, but things needed to be fixed from the basement all the way to the upstairs unit.  Not to mention other repairs that may arise while fixing the listed repairs. I'm just gonna throw it out there and see what happens. lol.

James Wise · Answer

What are the comps on this property ? You say retail is 199k. What are the foreclosed 2 families going for?.

Dev Horn · Answer

I always say - be confident and bold when explaining to people what you - as a business person - can pay for their property.  Such as:

"I appreciate that the family would like to get $199,000 for the property. However, I purchase real estate on a wholesale basis for investment purposes, so I must pay a price that allows me to make some profit at the end of the day.  I could offer $50,000 for the property.  Now, I realize that's way less than they would like to have, but it's a solid cash offer and I could put a check in their hand within 30 days...."  ... you get the idea...