All Forum Posts by: Adrien C.

Advertise on BP

Advertise on CL

Search county websites for properties owned by %% properties LLC or %% investments LLC - send a letter to them

Purchase cash buyer lists online- send letter. 

30 wholesale deals 

5 fix n flips (sell as turn key to those CA investors)

5 holds to keep personally 

1 rehab charity house (start a non profit charity to provide temporary housing for domestic abuse victims). 

Is there any particular reason you're limiting yourself to Hobart? Crown Point and Mville also have good properties s well as the nicer towns west in lake county. 

Cool- I'll check it out and give you some feed back. 

When you say foreclosure- i'm assuming the bank has regained ownership of the property and the owners have no way to redeem it at this point. I am not referring to properties where a LIS or NOS has been issued but the owner still maintains control of the property up to the time of sale. 

It just depends on the source of the house. If it's a bank REO- you will only have access to it once it's listed w a agent - at which point every investor and their realtor can see it on the MLS. I'm not a fan of wholesaling anything listed on MLS. I've tried to no avail to relieve the bank of the property prior to listing. I don't know many wholesalers who try to flip these to investors since the investor already has access to the property.

If you are buying a HUD listed house and are the winning bid, you can put down your EM and market it while you are waiting to close. You can not assign the contract so will have to close yourself w HUD and a second time with the end buyer. I know several wholesalers who do this.

If you are buying at an auction or county sherif sale- you can buy with your own cash and resell to anyone you want in whatever condition you want. I know several wholesalers who do but you again need your own money to close. 

The reason they stress pre-foreclosure over foreclosure from a wholesale perspective is because as you can tell from my comments above, it take actual cash you possess to close on a foreclosure. With a pre-foreclosure you are still dealing with current owner who isn't care if you assign the PA. 

 South Chicagoland was were I was thinking. I was also thinking about E. Chicago in Indiana. There has been a lot of economical development by the city there to bring in business/blue collar jobs. 

The price I list a house for includes my wholesale fee. In 99% of the situations, the buyer has already viewed the property and accepted its condition before submitting an offer- they don't feel the need to run an inspector through for a 99 point checklist. My non-refundable fee, which is half of my assignment fee, is held by the title company. It is only refundable if a clean title can not be provided. I have the nonrefundable fee in there to ensure I am dealing with a legit buyer and not another wholesaler who wants to daisy chain this property. 

@Account Closed dude- that was my question

Over the past few weeks, I've spoken with several out of state investors interested in my area because of higher ROI compared to their area and lower costs to purchase. Many want to buy turnkey properties that are either tenant occupied or ready for tenant placement. I understand the thought process because what it takes to buy 1 SFH in say California can buy 3-4 here and the investors receives 2-3x the possible rents.

However, I was thinking that this involves a lot of risk being an out of state investor. One has to rely on a solid PM company to take care of the property, keep it maintained, and keep it occupied. Also, being out of state, the investor has to be more intentional about staying abreast on local happenings that may influence the investment. My thoughts lead to the idea that it makes more sense for an out of state investor to take that same $60K that they'd spend to buy the house (which rents for $1000) and instead be the bank for a local investor. Sure the ROI may be less (like 3-4%) but there's a different set of risks and a lot less hassle since they don't have to deal with the physical property.

So what are the pros/cons of being the bank vs being the actual owner of the property? Assume the ROI for the owner is 12% and the interest for the banker is 8%.

There is a group up here in IN that does this all the time. When they have an accepted HUD offer, they put down EM and start marketing the property. If they find an end buyer in the 30 days, they do a same day double close. Since it's 2 closes- they pay all the costs associated with the first close and the end buyer pays all the cost of the second close. Occasionally they lose a EM deposit because they don't find an end buyer and let it go back to HUD. It's pretty simple but you have to have the funds to close.