All Forum Posts by: Caleb Reits

Investment Info:

Single-family residence wholesale investment in Muskegon.

Purchase price: $25,000
Sale price: $50,000

This home was filled to the brim with trash and belongings. We actually saved this owner's dogs and cats from the freezing cold! She had no water or electricity in her home. We helped her find homes for these animals (6 of them) and helped her sell this home that she was sleeping in with NO electricity. She had no heat in the middle of the blizzards we were in and slept in the basement area. Keep in mind, no electricity also means no running water to the sinks, toilets, or showers!

What made you interested in investing in this type of deal?

Wholesaling has a lower risk than taking it on and flipping it ourselves and sometimes is the better option for our sellers we come into contact with that have a home that's unable to have financing because of the condition.

How did you find this deal and how did you negotiate it?

We actually left marketing materials at her home in person. We spent a lot of time with her, taking her to doctors appointments, dropping off water because she had no electricity or running water, and helping her in other ways rather than just focusing on the "what's in it for me". We could have gotten it at a lower price, however that wouldn't of left her with enough to start over. We'd rather do the right thing than get greedy trying to make the most amount of money possible.

How did you finance this deal?

ZERO FINANCING. That's the best part about wholesaling. The end buyer brought the EMD and cash needed to close.

Lessons learned? Challenges?

Challenges - It's easy to forget to ask people WHEN they will be moved out by. We now have a specific area in our contracts that specify when the home owner or occupant will be out by - if that means vacant at close or needs an additional 30 days after close to move.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We worked with a local real estate agent who helped bring the buyer. He made the process easy as he maintained contact with the buyer while we maintained contact with the seller. For any wholesalers out there, it is GREAT to work with agents who are connected to many buyers to help dispo and sell your deals. Real estate agents specifically who work with investors are great agents to build a relationship with because chances are, they'll have a client who might end up being your end buyer.

Investment Info:

Single-family residence wholesale investment in Muskegon.

Purchase price: $25,000
Sale price: $50,000

This home was filled to the brim with trash and belongings. We actually saved this owner's dogs and cats from the freezing cold! She had no water or electricity in her home. We helped her find homes for these animals (6 of them) and helped her sell this home that she was sleeping in with NO electricity. She had no heat in the middle of the blizzards we were in and slept in the basement area. Keep in mind that no electricity also means no running water to the sinks, toilets, or showers! We were glad to help her get out of this situation and start fresh.

What made you interested in investing in this type of deal?

Wholesaling has a lower risk than taking it on and flipping it ourselves and sometimes is the better option for our sellers we come into contact with that have a home that's unable to have financing because of the condition.

How did you find this deal and how did you negotiate it?

We actually left marketing materials at her home in person. We spent a lot of time with her, taking her to doctors appointments, dropping off water because she had no electricity or running water, and helping her in other ways rather than just focusing on the "what's in it for me". We could have gotten it at a lower price, however that wouldn't of left her with enough to start over. We'd rather do the right thing than get greedy trying to make the most amount of money possible.

How did you finance this deal?

ZERO FINANCING. That's the best part about wholesaling. The end buyer brought the EMD and cash needed to close.

Lessons learned? Challenges?

Challenges - It's easy to forget to ask people WHEN they will be moved out by. We now have a specific area in our contracts that specify when the home owner or occupant will be out by - if that means vacant at close or needs an additional 30 days after close to move.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We worked with a local real estate agent who helped bring the buyer. He made the process easy as he maintained contact with the buyer while we maintained contact with the seller. For any wholesalers out there, it is GREAT to work with agents who are connected to many buyers to help dispo and sell your deals. Real estate agents specifically who work with investors are great agents to build a relationship with because chances are, they'll have a client who might end up being your end buyer.

Hello all! Just wanted to share some success and how we did one of our biggest deals / biggest checks in wholesaling: 

What's going on with the home? 

This home was filled to the brim with trash and belongings. We actually saved this owner's dogs and cats from the freezing cold! She had no water or electricity in her home. We helped her find homes for these animals (6 of them) and helped her sell this home that she was sleeping in with NO electricity. She had no heat in the middle of the blizzards we were in and slept in the basement area. Keep in mind that no electricity also means no running water to the sinks, toilets, or showers! We were glad to help her get out of this situation and start fresh.

Marketing

We left marketing materials at her home in person - it was a personalized letter letting her know we were interested. She initially called us mad saying she didn't want to sell, but we built a lot of rapport with her and ended up closing the transaction. But we spent a lot of time with her, taking her to doctors appointments because she had no vehicle, dropping off water because she had no electricity or running water, and helping her in other ways rather than just focusing on the "what's in it for me". We could have gotten it at a lower price and made way more money, however that wouldn't of left her with enough to start over. We'd rather do the right thing than get greedy trying to make the most amount of money possible.

Challenges 

It's easy to forget to ask people WHEN they will be moved out by. We now have a specific area in our contracts that specify when the home owner or occupant will be out by - if that means vacant at close or needs an additional 30 days after close to move.

Helpful People

We worked with a local real estate agent who helped bring the buyer. He made the process easy as he maintained contact with the buyer while we maintained contact with the seller. For any wholesalers out there, it is GREAT to work with agents who are connected to many buyers to help dispo and sell your deals. Real estate agents specifically who work with investors are great agents to build a relationship with because chances are, they'll have a client who might end up being your end buyer and ultimately getting more eyes on your deal. COMPENSATE YOUR AGENTS GUYS! Don't forget that. They don't want to work for free and you shouldn't want them too either. If they provide you value and you want to continue sending them deals or building a relationship, compensate them out of your wholesale fee! 

We'd love to connect with other wholesalers in the west Michigan area so feel free to shoot us a message! :) 

#GrandRapids #Michigan #Wholesaling #GR #Kentcounty #flipping 

Thank you so much for this information. I see what you are saying. I am looking at the link you sent now! 

Hello this is Caleb with City Lights Rentals; We have a client who made a purchase at the top of the market peak but didn't have a lot of experience being landlords. They have made a few repairs to the property currently but need help managing it. The property is a Duplex in the Grand Rapids MI area.

Looking to set up a meeting between my client and a property management company that can go over pricing

Please contact me on social media as I don't check this all the time 

Hey guys! Question for lenders out there - if a buyer is entering into a master lease option with a balloon payment at 5 years, would they be able to refinance out of the option to pay off the seller for the "loan"? 

Would love to connect with a lender that has worked with lease options before! 

Hello, my name is Caleb. I am a local wholesaler/agent in Michigan and currently have a non-preforming note in Vestaburg MI, I have never done a deal like this before, so I am going to the forums to seek advice. Anything and Everything will be taken into account thank you! 

Before paying for a mentorship I would strongly suggest talking with some of the local wholesalers in your market and seeing what they recommend most of the time they will be willing to meet, you can always offer to take that out to lunch! 

I started wholesaling without any mentor ship and made a lot of mistakes but when the deals started coming in it was all profit, I am always down for a quick phone call to talk strategy any time! Good luck on your journey!!

This will happen from time to time, something we do is take back up offers all the way up till the property closes this way if we do have somone back out we are able to give it to one of are prefered buyers for an even lower price to keep from losing the deal or even worse letting the seller down. 

Hey guys I love the energy and conversation here, PUSH PUSH PUSH the deals will come just keep marketing, and make sure you are slowing down the sales process and listening to what the client needs. 

My name is Caleb, I am a local wholesaler in Grand Rapids MI, and would love to connect with you.