All Forum Posts by: Joseph Riv

@Joseph Riv: Most investors will tell you that, 99% of the time, there's no need for FMV (fair market value). That's a reference to what a retail buyer presumably would pay for the property in its present condition. Most of the time, you'll be paying less....often, much less. The only three figures you should be focusing on is the price YOU pay, the ARV, and your costs (repairs, holding, etc.). That's what you need to calculate whether something's a good deal. FMV doesn't play a role.

I recently had a deal similar to yours. Two children (middle aged) had inherited their mom's home. They just wanted to sell, pay off a mortgage and a HELOC, pocket the remainder, and get on with their lives. I put the house under contract for $305,000. The house needed a lot of work--maybe $75,000 or so. The ARV was $550,000. Frankly, I didn't care what the FMV was. Maybe someone would have paid $440,000 for it. But the children were willing to sell it to me for $305,000...so, in this transaction, the FMV really was $305,000.

If you're thinking of "wholetailing" other properties (a blend of wholesaling and selling to a retail buyer), I can think of two ways to come up with the FMV. The first is to take the ARV and subtract 125% of the repair cost (the extra 25% is for the hassle a buyer would have to go through). In my example, the FMV using this method would be about $456,000. The other way is to look at the low-end comps...sales prices for properties that weren't all fixed up...and subtract 50% of your estimated repair costs. Other properties in the area that weren't in pristine condition were selling for about $475,000. So, subtracting 50% of $75,000 from $475,000 comes to $437,500. Those two numbers--$456,000 and $437,000--are reasonably close. So maybe someone would have bought it in as-is condition for $440,000. But it would have been a hard one to sell.

Again, unless you want to specialize in wholetailing, there really isn't any need to know FMV. Stick with ARV and the price the seller is willing to accept.

Hope that helps.

Joseph,

Buddy, read everything mentioned on BP. Listen to everything on BP. It will not take long to learn that " motivated sellers" these days are the treasure. And there's a lot of maps with X's on them. The actual ways of finding sellers are taught here on the Podcasts. Listen to them on your phone, or however.             Find the Deals !                           People with money want deals. YOU FIND A DEAL, MONEY WILL FIND YOU. Didn't that already happen for you ? If you get a deal  & can't find the money. Email me.

Jump on it with both feet, grab a hold of it, drag it home.                                   

Gil thanks for the response I think looking for anything ready made in any industry is foolish, That isn't at all what I'm looking for looking for a service that has found or identified people that have paid cash for a property. But I may have not been as clear as needed. Thanks for the response though!!

Joseph. Perhaps you have identified a service that is needed and you might even become a person that somehow puts this type of information together which you can offer as a service to others. I am assuming you are concerned about such a service in your own area but maybe this is something that is needed industry wide. Maybe developing a website that will bring cash buyers, wholesalers, and retail buyers all together in one location. 

I am sure cash buyers would love to have a source of inventory properties, Wholesalers like you would for sure love to have a place to market to cash buyers that is easy to access and maybe in time retail buyers ma

Find the deals first these days is the general thought. 

Put an ad on the BP Market Place, Craigslist house needs a cash buyer, if you don't get at least 10 calls responding that combination I'd be greatly surprised. Then there's landlords. Check houses for rent again Craigslist. Guess what landlords have money. Check  "We Buy whatever " .Google search buy houses . Networking with escrow and title company, re agents, any body involved in re.

There's a few. Should get you started.  But find the deals. 

GO Forth and Conquer 

An existing cash buyer's list, sound dream if you could just buy one ready made, current, and...................... You will have to work on building your own list through postings, advertising, etc. You're going to have to use some creative thinking here to come up with a way to have the people you want to come in contact with you. 

I am sure that is you do come up with a list of some kind it will be constantly changing, being added to and subtracted from but you may luck out and find someone with deep pockets. 

I don't think there is any way around it. Wholesaling is allot of work, allot of researching and allot or running around and of course you do need a strong marketing effort. 

Kent Clothier's "FindCashBuyersNow" service (FCBN) is pretty cool.  You can pull people who have purchased for cash (no lender lien) in the past six months, year, etc.  If you decide to use that service and have any questions, feel free to reach out to me for more info on how we use FCBN.

My only complaint about Kent's stuff is it is hard to figure out how to BUY the FCBN service.  Go to the site and they want to send you eBooks & DVDs.  DVDs??  All you want is the online FCBN service.  I have NO IDEA where you simply buy THAT, and honestly, I can't remember how we finally got to the right place to purchase just the online service.  So, be ready to deal with an info-marketing funnel from hell, but if you figure out how to buy that service, it can really work for finding REAL cash buyers.