All Forum Posts by: Jonathan C.

Final attempt

Hi @Jon Klaus yeah, it is. 1020 square feet.  And thanks!

Looks like my profit calculations spreadsheet didn't get posted right.  I've attached screenshot in case that's helpful for anyone.

Wish more could be like this one.  Info below.

Purchase: 119k

Rehab: approx 67k

Sell: 263k

Net profit: $58k (really good one)

How I got it: wholesaler

More details below

Pics below

I think may be hard on a property with that low of a price point through a bank.  Loan would be too small for most banks to find it worthwhile.  Peer to peer lending may work.

FYI, I've found a couple local banks will do a 75% acquisition, 100% rehab loan for around 6 months, then convert to 25 year amort loan with balloon in 5 years.

LOCAL banks are key- smaller the better.  Have to search around a lot.  I called, literally, around 18-22 banks.  But they do exist.

How, if at all, are you changing your strategy next year given the FHA anti flipping restriction is coming back next year? Sigh

As long as your numbers work even with hard money costs, I would  I still use hard money on some deals and I've done about 50 flips since 2010.

I target at least 10% return on total investment (purchase, reno, hold costs, closing costs, etc-- ALL costs).  If I can hit that with hard money and I don't have money, I'll usually do the deal.

I saw this too.  All I can say is 'ugh'

Hopefully they decide to extend again.  Otherwise, well, that sucks

@Pat McGrath yeah it makes it much more tricky and much more difficult when an agent is involved.  This particular agent had dealt with investors before and so was more comfortable than the typical agent with the fact 'we may partner with someone on buying it or have another investor we work with be the buyer, but the price and terms we agreed on won't change.  We'll know for sure that we're going forward after a 1 hour window where we'll have the other investors look at the property.'

That's basically the scripting I use with an agent, or with a buyer, when I'm not 100% sure we're going to be able to find a buyer.  If I am 100% sure I would just usually commit and not go into who the buyer will be.

Owner shared my 'we buy houses' letter with their Realtor.  The house wasn't listed yet.

Realtor called me and we negotiated a price of $450K and attempted to wholesale at $479K.

Weren't able to wholesale it at that price (market has been softening a little in Northern VA for banged up investor properties).

Told agent unfortunately we weren't able to find a purchaser but we would be interested at $400K if anything changes.  I figured at this point it was dead- price we needed it at too far below price I initially offered.

1-2 months go by.  On a whim, I email agent and say 'hey, just wanted to see if the property has been sold yet'

Agent replies 'actually, we had a buyer but they backed out, are you still interested at $400k'

I say 'yes, definitely'

Tie it up at $400k, find a buyer at $430k net.  Co-wholesale with someone with a good buyers list.  We each make $15k.

Main Lesson: Follow-up is so critical when it comes to wholesaling.  Even if you think there's no chance... even if you think the house is already sold... until the house has actually been sold, you have a chance to buy/wholesale it.  I thought for sure this one was dead, but ended up getting a good wholesale fee out of it.

1) celebratory fist pump and/or karate kick once I hear that the buyer's have finished their part of settlement

2) have assistant call and make sure utilities out of my LLC's name

3) tell insurance company to cancel insurance

4) make sure I got da money

5) do profit reconciliation