All Forum Posts by: Aaron Schwartz

reicoach ..your right ....if you get 200 leads per month....absolutly you wont have to look at all of them...thats why i said "potential"..
And Im not saying your way is wrong...
But if a property qualifies over the phone.....the seller tells you it needs 5k in repairs.....so you put a contract on it ....and try to sell it to your buyer...and your buyer goes and looks at the property and sees that 2/3 of the houses floors are bulked up due to a seriouse plumbing leak from a pipe busting under the house. You got your self in a bind. Sure you may be able to get out of the contract. But if you continuesly try to sell a house you have undercontract that need more repairs then you thought ....you going to lose your buyers. or atleast there not going to jump at your deals.

and your right ...whatever works for one wholesaler might not work for another.

just be careful putting a contract on something you havent seen.

Thats a good point Jon

You guys are right about not calculating the" selling the cabinets" in the math. And i wasnt. I just was meaning to point out that i would be saving time and money on not having to demo the kithen....and place and modify new cabinets.

I meet with the seller again this evening ....ill let you know how it goes.

jon you are exactly right ..those are the numbers that i got too...although the reason i posted is i might have a guy who would buy at maybe 60k -63k..i was looking for some feed back on what opinions you guys had at 63k and material coming along with it...I dont even think putting the new cabinets is neccassary. i probly could resale the cabinets. Comps in the area are an average of 67sqft without being updated too much.
Ill Try to get him down to 56k-58k and rehab it myself.
thanks jon

i personally disagree that you shouldnt even look at the properties. Once you find a potential deal....go look at it!

but before that....make sure you know your market. spend time learning the market you are going to be doing deals in. Know what price investors are buying at in each area ...know what the retail value is in each area..take a few days and look at some homes on the market and find out how long they have been on the market and the details of each home ...(price per sq ft etc.) may take a few weeks..found out what price homes are SELLING FOR!

once you know your area and what price investors are buying at....it is much easier.

Now as for your expenses ....you will need to spend a little money on some marketing...doesnt have to be a whole lot ...get creative! and a little gas money!

Target motivated sellers in your marketing! again be creative and simple!
Foreclosures and Huds are going to have alot of competition.
when starting out i personally would stick with bringing in highly motivated sellers.
do a search on who motivated sellers are.

As for the contract....i would find another wholesaler in your area ...and see if he/she would lend you a copy for you to use and change it alittle to what fits you.

Again research your market hard! Read Read Read! And you can do what i did and read all 1300+ of (Ryan Webber's post) losts of good, real knowledge about wholesaling

hope this helps

Ok i looked at a house today owned by a construction worker. He is in the process of having a house built and should be done in 30 to 40 days.

heres the deal.....house is tax valued at 83k..mkt value 87k to 92k
he owes 53k.....the house is in pretty decent shape. He has new cabinets sitting in the garage...original cabinets are decent. 3 bed 2 bath 1300+ sqft 1 bath is completely gutted but said he would throw in all the sheet rock..bath remains ..Has almost all materials to finish the job...all new ceiling fans.for every room....does need a little interior paint...not much exterior work needed....again he said he would throw in most of the materials ...now he wants 70k.....i said yea right....I talked him down to 63k. he wants to walk away with atleast 10k....told him i would talk to my partner so i havnt tied it up yet....i would like to be at around 58k...any thoughts? Would you touch this for 63k .......i personally would like to get it for 58k and wholesale it for 63k..

no problem....as long as you can pay all mortgages off .....which in this case ....if you have a buyer for 209k......out of that 209 you use 130 to pay off the first......65 to pay off the second......that leaves you 14k to pocket.....and of course minus any closing cost..your responsible for...if you are assigning it to someone....then you can pocket the 14k....

now you also have to take into consideration....what the home owner needs too......as in this case he owes a total of 195k......and if he needs 5k to move on.....you have to take a cut on your fee....therefore your new fee will be 9k.....so you get a contract to buy for 200k.....and assign it for 9k ......and you can pocket that.

You can wholesale it for 209k if you have a buyer for 209k.....although you wont make a 51k fee ..your fee will be 14k..........130k + 65k =195k......therefore if you have a buyer for 209k.....you will make 14k

the 51k will be the equity your buyer gets..260k-209k= 51k equity

Well you can always do a few wholesale deals and build up some cash reserves before you jump in to rehabbing...just locate some really good deals put them under contract...and sell your right to buy to a rehabber..this is what i am doing! I have done one deal so far and it has only cost me around hundred bucks...for some marketing and supplies and gas...also i have a full time job....there is still plenty of time in the day to make some real money :D

What type of vacancies are you going to inquire....are they government assisted houses?

John you are exactly right! And thats what Im doing....I do have a busy schedule that changes every week.. and my fiance has an even busier schedule with nursing school...and 2 jobs ....(her choice)..and raising a 23 month old ....and i am not complaining or making excuses...It sure would be nice if I had that extra 40 to 45 hrs a week to spend finding deals! I havent been able to make a REIA meeting due to it being on a very incovenient night. As for taking and experienced investor out to lunch...Iam working on that....as soon as myself and Mr. Ryan Webber don't have conflicting schedules ill get to pick his brain :D Although i already feel i have learned so much just reading alot of his posts. Any ways thanks for the ideas and encouragement John.