All Forum Posts by: Bryan R.

@Jay Hinrichs 

Looks like a killer deal.

Have you considered trying to sell all the MH's (and bringing in 3 new ones) and holding the paper? Then you're collecting 2 income streams - lot rent + note income. Get the place fully performing and then sell it for hopefully significant value. 

How much work are they willing to do? There is a multiunit of 10th and I that looks kind of interesting.

Just some quick items:

• Remember the purchase price is your bid + 5%
• Opening doesn't mean anything. There is usually a reserve price. Just figure out your max offer. 
• If you win the auction you will have to sign the most unilateral contract you have ever seen. Make sure you actually want the property

I'm a REAPS member. Go to meetings occasionally when I can. It is pretty guru oriented. Lots of people pushing their products/services. Some of the member meetings are OK.

Don't know much about REIAWA.

• Most are just too desperate to make any and every lead work. They try to turn garbage into a deal. They do whatever they do to get leads and when they get one they take it and run with it. No filtering out of the trash. Consequently I get a lot of emails from wholesalers filled with junk which in turn leads me to ignore most everything they send me, likely missing out on the one actual deal they may have found. 
• Lowballing the rehab costs
• Overselling the ARV, using bad comps.
• Not doing their due diligence. I had one recently send me what truly looked like a great deal. So I drove out to a property over an hour away only to discover from the owner that it was actually 2 separate parcels and only 1 of them was for sale.
• Sending me stuff from the MLS.
• Co-wholesaling without disclosing up front. I can't tell you how many times I'll get 2 or 3 emails offering up the same property. It is not necessarily bad, but annoying, especially when they mark up the price.

Edit: One more. Trying to squeeze too much juice out of the deal. I've been seeing this quite a bit recently where they email blast out a property. Obviously get no takers, then a week later offer it again at a reduced price, then again, and again....leaves a bad taste in my mouth. You're trying to skin me so you can make a killing.

@Henry Cobb 

Auction.com is notorious for step bidding their trustee sales. Ignore the minimum bid and just run your numbers. The mechanics lien will generally stay if it has been perfected over time. Check the records. Sometimes you can negotiate a decent discount on payoff to the lienholder after acquiring the property. HOA lien status will be subject to state law.

Great post and interesting read. 

I saw a lot of people who were looking at taking losses or just breaking even on their slow flips get saved by that rapid come up in prices that boosted your profits. 

2.5 years process though, that would drive me nuts.

Evernote, Todoist, Google Docs

@Derrick Strope 

Basically what @Will Barnard said. If you are using NWMLS standard forms it is even easier. The inspection response notice includes a rejection and return of EMD line where you just check a box, single party. For other notice situations generally both parties must sign. Also NWMLS forms use arbitration of disputes.

If you are wholesaling and using your own contracts you should make sure your attorney drafts language that specifies the inspection disapproval and return of EMD process.

I just plugged in your numbers. I had to guess a few from your description (closing costs, repairs, capex, vacancy). Based on your assumptions it looks like $340/month cashflow. The -972 is with depreciation.