All Forum Posts by: Blake Woodham

@Account Closed Have you ever played Texas Hold 'em? It's a bit like that.  Don't show them your cards by explaining every detail of the deal. That's overkill if you ask me. They most likely will not ask any way. They probably have a good idea of what their house is actually worth. Anyone can google their address and get a zestimate, etc. 

Explain that this is where it fits your business model. Don't feel like you have to justify why you are making them this offer, just see if it works for them. 

Every offer will not be accepted. If it is, you are offering too much or a master negotiator. I always make a lowball offer just to see where they are at. If I cant judge where they are at, I will offer them $10k. They will immediately say no, and now we have begun the negotiations. "So, we know 10K is too low, what is a number that would meet your needs?" 

Are you wholesaling or rehabbing? Your profit margin is up to you to decide, is it worth the hassle of a rehab? I am analyzing a potential flip with a 40K potential, just have to line up financing. 

Go out there and make offers man. That is how you will truly learn how to read people and know where they are at, and what is motivating them to sell. 

My go to line for "explaining" my offer is that it has to fit my business model, repairs needed, etc. 

You'll be surprised at what people will say, and each negotiation is different. 

Don't over analyze it bro. Get out there and make it happen.  

I am still a fairly new wholesaler (3 deals to date) but I would always do as you said above. Explain the repair cost and make sure you point out any issues as you are walking through. 

Then it comes down to the offer... I usually do it something like this..

Always preface it with saying that the price we offer will be the "net" to you. This is what you will walk away from the table with. No closing cost, realtor fee's etc. 

I will usually lead in with "based on the repairs needed, and the condition of the property, we would be able to offer you XXX to meet our current business model." Then wait...   ... and wait... it may even be a long awkward pause, but wait until they respond. Do not say another word until they respond. ( I did this with my 2nd wholesale, sight unseen, using the 70% rule, and made a 9K fee) 

Making an offer that you think will get accepted has a lot to do with how much rapport you build. Feel them out, and see what they really need to get the deal done. I have often asked, "If I wrote you a check today, what would be the lowest you would take with out losing sleep at night?" 

Sometimes, I will explain that we will not do a deal unless ALL parties are 100% satisfied with the terms. Say this is how you feed your family, and you have a business model that you have to meet. 

Just let them know that you are the real deal, and not some silver tongued scam artist, and they will usually open up about the current situation. 

I am no expert, just a guy trying to figure it out like the rest of us, and this is what I have learned so far. 

Cheers, and let us know if you have any other tips!! 

Welcome to the forum! I am an active investor in Fort Walton Beach. We have a great investment club called the professional investors guild that meets once a month. Shoot me a message with you contact info and we can link up. I'm active duty as well.

@Jeff Moore Welcome to the Forum! I am to the west of you in the Fort Walton Beach market. As Edwin mentioned, there is a great investment club called the Professional Investors Guild that meets once a month on okaloosa island. Can be an excellent resource for off-market properties and networking. 

Give me a shout if you are interested in partnering on some properties! 

Thanks for the input guys! Will keep this thread updated as to how it goes! 

No points. I am having him edit the contract to clarify no pre-payment penalty, or future interest payments if I pay off early. 

I know, 20yr at 5% interest only seems almost too good to be true. I haven't received the money yet, so it may be... Will update when there is progress. 

BP nation, 

Got an off market 4-plex. Brings in $3200/month, and in Great condition. New AC/s, tile, etc. Previous owner kept it in immaculate condition. 

Market value right now is about $320K, I can get it for $250K. 

Now, I have a hard money guy lined up willing to loan me $250K, at 5% with a 20 year balloon. Seems almost too good to be true. $610.77 monthly payments (interest only). 

End game is to hold it for a few years, let it cash flow, and then either sell it or do a cash out refi. 

1. Has any body ever heard of hard money loans at this rate? The guys is out of New York, and the contract looks legit (havent signed). If anybody has had bad experiences with similar terms, PM and I will let you know who the lender is. 

2. Bank will refi after seasoned for 1 year. Would you sell at market value and get the approx $70K in equity, or let is cash flow until depreciation is exhausted? 

3. Quick nickel or the slow dime?

Any insight/experiences with something like this would be greatly appreciated! 

@Jay Johnson Nice. Thanks man, I'll check it out. 

@Tim Herndon any recommendations on what system to use?

Any words of wisdom when working with a large amount of buyers? I put up signs around a deal I had, and my phone literally rings 10-15 times a day off that one deal. I am thinking about scalability. What If/when I get 3-4 properties under contract at a time, I dont want to spend every minute of my day talking to Jimbo who is wondering If he can trade his old Ford Pickup for that house.