All Forum Posts by: Brian Haskins

John,

There are several ways to prevent problems with your wholesale deals. I have been doing this for 9 years and have seen it all. Once I figure out how to protect myself I haven't had any deals fall through. Thankfully I figured this out quickly. 

Here are a few ideas:

1. do your due diligence on a buyer - make sure to look them up and see what they have bought before. 

2. Always collect a non refundable deposit from your buyers. Don't budge on this, if they wont put it down then you know they weren't serious and wouldn't close any ways. Always make them put some skin in the game. 

3. Work with buyers you have worked with before. This isn't always possible, but you shouldn't just be blindly building a buyers list. You should focus on the investors that are actively buying several properties in that area. They will buy properties from you over and over again. Build relationships wit them and bring them great properties. I have buyers that consistently buy multiple properties from me month after month. 

These aren't always the easiest things especially if you are a new investor because you just want to get the deal done.

Sean,

Bigger pockets has some good info online. I would also be glad to help. I am local in St. Louis. I am always looking for more deals. 

Send me a private message and I will help you out.

Marc,

Welcome to the group. I am in St. Louis please connect with me and send me a private note with your contact information I would be glad to help.

Ardie,

In St. Louis people still buy houses in the winter but not as many as in the spring and summer. The bottom line is that if you provide a good product and price it right it will sell. 

The one thing that concerns me the most is the lower end area you say you picked. Is there a strong retail market in that area. 

These are the things I would consider.

1. Is there a strong retail market where you are planning to sell. 

2. Have your realtor pull what has sold in the winter compared to the summer and spring. Were there differences in time on market or in price? 

3. Can you rehab the property, deliver quality work and sell it at or below what others are selling for and still make the profit you want? 

4. Choosing rehabbing is gutsy as your first deal. Make sure your margins are way high and account for the worst. There is a lot of stuff people forget to consider.

For example:

- realtor commissions

- closing costs - buyers will ask for it and its common in St. Luis to pay them

- holding costs (utilities and monthly payments as well as the extra points if you cant get it sold in 6 months)

- rehab costs - your rehab costs will be more than you think I would margin at least 10 - 15% especially since its your first deal

- negotiations - its still sort of a buyers market in St. Louis the buyer will try to negotiate with you and you will likely have to give in somewhat.

There are lots of deals out there so be picky make sure the deal you choose really makes sense don't just pick a deal and do it because you want to do your first deal. You will be setting yourself up for failure.

I hope this helps. 

Brian Haskins

Carlos,

We do not use attorneys in St. Louis for closings we use title companies. I would be more than happy to recommend one to you if that is what you need. 

I use Angela Murrell at Old Replic Title Company The phone number there is 314-692-8565

If you still need an attorney contact let me know what you need help this. I have different recommendations depending on your needs.

 I find properties under 25k all the time in St. Louis that are not in D neighborhoods. Many with long term tenants. I invest in many c neighborhoods and for 35 to 40k I can find great properties rented for $900 plus in B neighborhoods. St. Louis is a unique market haven't found anything else like it. 

There are quite a few larger real estate groups in St. Louis already which you can find on meetup.  Some draw over a hundred people each meeting. 

I ran across this post, I thought I would introduce myself. I have been investing in St Louis for 9 years, It would be great to connect with you all on here and in person. 

I look forward to connecting with you all. 

Brian Haskins

Dan Wilson I recently wrote an article on this topic. If you send me a Pm I will send it to you. I dont think I can post it here.

I have run across this many times over the last 8 years and you have a few options to make it work.

I have always bought a really good and thick carpet pad and went a little cheaper on the carpet. It will make it feel much nicer and like much better carpet. Its much cheaper to go with better pad than it is to go better on carpet.