All Forum Posts by: Andrew Smith

Well, I got her to sign the contract at $168k. I'm pretty excited!

I definitely understand that. She isn't too old, only 70. She seemed astute, but I'll make sure that everything is on the up-and-up. I definitely don't want to take advantage of her in any way.

I already know the interior will need to be redone. Built in '59 and hasn't been changed since. I drove by and the roof needs to be replaced. Also, I feel like she admitted to me that she is a hoarder (without actually saying it). So there is that, but still, I am undaunted.

I will update this evening after she and I have talked in person.

@Jay Dewberry Thanks for the advice. The owner and I had a great phone conversation. She is in her 70's, has lived there for 42 years (free and clear), taught for 30 years in three different schools in the same school district, knows it is an upcoming neighborhood, wants to move north, closer to her daughter. Even managed to find out that she has called two other investors in the area whom she has not yet met with, but she has talked with one over the phone. I've done some calculations in the BP calculator, even using very VERY bad scenarios, and I'm still coming out a winner.

I will definitely use contingencies and start shopping immediately.

I leave the Home Depot and realize I missed a call on my business line. Oh well, it was probably just someone looking to sell me SEO again. Of course, I still listen to the voice mail when I get in the truck, and good thing I did! The lady on the other end wants to sell her home to me! This is my first real lead. I didn't know how he got my number, but I sure was glad she did. She left her address and some info and the message was over.

I'm excited. My heart is pounding, I have to remember to breathe. I head home, compose myself, sit down at my desk and call her back. We have a nice conversation and she tells me that she wants $175,000 for her property. We set up a time to meet tomorrow.

I jumped on my computer and start doing my research. I pull comps and I'm astounded. I removed the outliers, actually drove to get a view of the home and the other "comps." I got home, removed one comp because it probably wasn't, but once all is said and done, I'm showing the ARV is somewhere between $308-$315k. I'm still not quite sure. This is my very first real lead, and therefore, my very first real estate deal.

I know how to negotiate, and I will, because I don't want her to think "that was too easy." I'm just thinking to myself, "this is too good to be true." I only plan to wholesale the property as taking on a reno project is not good timing for me know, but there is probably room for me to make $20-30k, even if repairs are $50k. I know it needs a new roof, that was apparent, but there didn't seem to be a ton of work to do on the outside. I know the inside will be dated, so there will be a lot of work in there, but overall I feel like I've got a really good deal on my hands.

Any advice? If you need more info, please ask.

-Drew

Thank you gentlemen. I actually do have an agent that I work with for REOs. I will ask him if he would go over it with me. I have a decent idea of what needs to go on there, but I've heard some varying things specifically pertaining to the this particular contract. I didn't formulate my question very well simply because I was on my phone at the time of posting and I rushed it.

Again, thank you for the replies and I will consult my agent and attorney regarding the matter.

Cheers!

How do I properly fill out the TREC 1-4 contract? I'd like to have one ready to go so all I have to do is fill in the blanks that change for each property. Thanks in advance for the help.

I am looking at a few properties on the MLS that may actually pan out. They've been listed a loooong time, some have expired and relisted. It is obvious that they are not "move-in" ready, so that leaves a lot of conventional financing out of the realm of possibility, which is fine, since I don't want to to use conventional financing. Do private or hard money lenders do pre-approval letters? A lot of times it is necessary that the other realtor know you have the backing available to make the deal happen. I know most HMLs lend on the deal, but if a pre-approval is required to get the contract than and the HML wants to see a contract first, then how to I bridge this gap? There is probably a simple solution I haven't thought of, but please, any help would be much appreciated.

If it helps, I am in the Dalls-Ft. Worth, TX area.

Thank you in advance

Is there a real estate agent in the DFW area who would allow me to become an unlicensed assistant. Obviously, any MLS dealings (buying/selling) I would generate would go through you. Seeing how I would like to rehab and flip, and I need someone to sell my rehabs, this could become a very lucrative partnership. Email me or message me if this is of interest. Thank you, Drew PS I hope I'm not violating any terms. If I am, let me know (administrator please) and I will shut this down.

So, I ordered a mailing list from ListSource. Mail outs should be going tomorrow or the next day. Anyways, I am trying to figure out the differences in the following dates:

"Foreclosure Effective Date"

"Foreclosure Recent Added Date" and

"Foreclosure Recording Date"

I'm assuming this is probably a simple answer, but I'm out of ideas. Basically, I'm trying to figure out whom to contact first. Obviously my goal is to contact the people closest to having their house auctioned off before I contact the folks having their houses auctioned later.