All Forum Posts by: Joe Stafford

The Home is in Tamarac, Woodmont area.

Here are some pics of the way I purchased it.

For those of you who viewed my first rehab , https://www.biggerpockets.com/forums/67/topics/115833-completed-my-first-rehab

I recently closed on my second rehab! I closed Feb 24th on my 27th birthday. .. what a present! Purchase price was $130,000 and the house came from a probate case. It is a 2400 soft home with 3 beds and 2 baths, 2 car garage. I was lucky that my neighbor knew about the house and informed me about the sale. After 1 month of negotiations we finally came to terms. The rehab is extensive, all flooring, kitchen, bathrooms, drywall all over, electrical, plumbing, garage door..... The list just goes on. Estimate of $65,000 - $70,000 repairs with an ARV of $270,000 - $280,000.

I will post pics and details soon.

I have completed transactions just like this. My advise go for it if the numbers work. Foreclosure can be an expensive nightmare or cheap it depends on your laws and the owner. I was super lucky on one where I provided a satisfaction of mortgage in exchange for a quit claim deed. Cost me $300 and 2 days to foreclose. I then had to pay back taxes and HOA dues as well as repair the property.

This note holder called me.... so as to finding more, I'd like to know too!!!

Closed on Dec. 26th, I could have had this turned around in 2 weeks but I decided to do some of the work plus with Holidays it was a little slow moving.

Looks great!

Bryan is right on, decide to do something and execute!

I send multiple letters to the same person in an aggressive form, they receive relevant content: Day1,3,5,7,10,14,21,28,35,42,49,56,63,70 days out.... seems excessive to some but it works for me. 13 pieces per person over 10 weeks. I may keep mailing depending on the feedback if any.

I just goggled around to find material.. its really a no brainer, pick some different stuff and alternate it all. depending on your budget adjust how many you send to the same person but I think the 1st 14 days are important... particularly if it is probate,divorce etc.

... Please keep in mind as far as the agent thing goes, this is how my market is in Ft Lauderdale...... may be different other places.

http://www.biggerpockets.com/forums/93/topics/54108-buyer-s-list-how-to-

Above will help. Wholesaling is the ideal way to get started as it takes the least amount of capital. The first thing in my opinion is finding the people you can sell the property to and building a list of those people. Just call around, you can call Realtors and ask if they have buyers for rehab properties, google in your area, basically hit the phones and build a list of as many possible people that may be interested in buying something you find, the more people the better. This way when you do get a property under contract you have a very high likelihood of selling it to someone.

As for finding the homes, my best techniques are: Mailing to absentee owners (google for a list), divorced couples (divorce attorney) and Probate. Agents are the worst (and I am one) we dont take listings that are "such good deals" think about it, why would a seller give their home away AND pay a realtor to do it. Also networking, let everyone and I mean EVERYONE know what your doing. (my neighbor came to me last week and told me about a house next to her best friend and Im closing on it on the 24th) If she didn't know what I did I would not be getting this home.

Now for pricing it out, maybe this is the hardest thing, you have to buy it low enough that you can sell it and make some money and then the flipper can make theirs. Figure a flipper using this ratio (ARV(after repair value) x .70) = X - repair cost = reasonable purchase price

EX. $250,000 (ARV) x .70 = $175,000 - $55,000 (repairs) = $120,000

so here $120,000 is a good purchase price for the flipper (keep in mind this is a rough rule of thumb most people use) now you have to buy the home for less than $120,000 to make your profit, how much is up to you.

I really hope this helps, good luck and take care of those 3 kids! ...... Oh yea, and your husband! :)

Loans, borrowed money, lines of credit even credit cards are all acceptable. Make sure to account for the interest or the cost to obtain that money into all of your figures. Borrowing money can be expensive and wipe out your profit especially when new because there is a lot you may not account for or under estimate with a rehab (in my opinion).

I have a line of credit on my personal home that I use on flips and then pay it right off when it sells. I do not use this line for buy and holds as it is an interest only line. I even have a very high limit Credit card that I put most everything for my rehab on so it cost me very little out of pocket to keep flips moving.

Hope this helps.

Thanks, I only mention it because when I was "thinking" and not "doing" I couldnt do anything.....

Best of luck to you, remember you can always change somthing if it doesnt work out but if it works no need to change.