All Forum Posts by: Michael B.

@Mark Brogan, once you've had a phone conversation with the seller, do you follow up by calling or mailing or both? Thanks for the luck.

@James Wise, what do you say to keep things positive and keep the lines of communication open?

I just got off the phone with a couple of prospective sellers who called in response to my direct mail piece. I'm looking to wholesale.

I know they're not motivated. One already has two of his 4 properties listed with a broker. The other is just calling to see what I would offer but his valuation of the property is too high. (I'm still inclined to see #2's property to give him what would be a reasonable offer for my purposes.)

Chances are that these sellers will never be motivated, but I also know they own multiple properties and may have friends with properties. When you know that you can't make a deal work, how do you wrap up the interaction and preserve the relationship? Do you make your offer and, once rejected, let the seller know to contact you if he changes his mind or knows of anyone who needs a quick cash offer?

I'm looking to the collective wisdom of BP. Thanks in advance for your advice.

Lawrence, in King County, you can see recorded liens free on the King County Recorder's website. Most counties in WA have records available online.

--Michael

Welcome, @Jan Wanot. Welcome to BP and good luck in your RE journey. Hopefully I'll see you around the local investing circles.

Cheers,

Michael

Awesome job, @Tarl!  Delridge, Gatewood, and Arbor Heights have all been hot!

Thanks for sharing your inspirational story. 

Hi @Justin McCain, 

Welcome to BP! I'm also moonlighting--attorney by day and wholesaler at all other times. Eventual rehabber. Also in Seattle proper.

There are so many great folks and resources on this site. In addition, I've joined both of the local RE investment groups for lots of education and networking opportunities.

I look forward to meeting you in person!

Michael

@Rob Beland and @Mike M., thanks for your replies. I'm not a buy/hold investor at this time and, if I were, I'd be going for SFRs because of the exit strategy. I just wanted some input thinking that it would be shortsighted to throw it back without looking at all the angles.  I should find out more from the seller tomorrow.

Hello BP comrades,

Just did a marketing mailing in Seattle looking for SFRs to wholesale and received a call from a duplex owner.

Seller owes only $75,000 on it. One unit rents for $1200 and the other one (which he is in the process of renovating) he will rent for $1800. The unit renting for $1200 has not been renovated since the building was built in 1991 and these tenants have been in there for 6-8 years. Market rents in the area are an average of $1800 with $2300 at the high end and these are under market. Each unit is 3 br/2 ba.

He wants to sell and his wife wants to hold. I don't think this bodes well for owner financing  (or motivation) but I haven't made the ask yet because I'm first deciding what I want to do with this. 

Very few comps but there's one very similar that sold for $437,000. 

Do I want to:

a) Make an offer at, say, $430k and keep it for myself either with owner financing or conventional financing? Judging from the exterior, I think I would need to put $15k into it (carpet, paint, appliances, some landscaping). Buy/hold is not my current strategy.

b) Wholesale it to a buy/hold investor or local landlords?

c) Get it under contract and then list it on the MLS and see what the market will pay?

Any advice is appreciated. I don't want to "waste" a potential lead.

Thanks!

Michael

Hi Brian,

Thanks for your reply with your experience. Sounds like Sub 2 is a tool I won't be using too often unless I branch out of Seattle metro with my marketing.

I've added you to my cash buyer's list.

--Michael

Hi everyone,

I'm interested in having creative financing knowledge as a tool in my tool belt as I embark on wholesaling. My farm area is within the Seattle metro area.

I would love to hear from anyone doing subject to deals with lease options or wraparound mortgages in either Seattle or another high priced metro area with a big white collar worker/tech base (i.e., high median income).

Given the high prices of homes in the metro area and the incomes of those who generally live in the metro area, I believe there might be fewer end buyers who would want to do a lease option or a wraparound mortgage. My assumption is that many in-city buyers would have good credit scores and would qualify for conventional financing. I have not had success in finding helpful data.

Maybe I'm wrong and there is actually a sizable number of potential buyers in Seattle who have marginal credit and a 10% downpayment for a $500,000 house. 

I've love to hear from others either in the Seattle metro or other metro areas about the pool of buyers who need creative financing.

Thanks!

--Michael