All Forum Posts by: Account Closed

I was narrowing down comps on a house and noticed that 2 comps were extremely high and if used would push my comps up by 70k. Using comps purchased by "jane doe" the house comes to be around 188,000. If I include the other 2 houses purchased under an LLC the house comp pushes to 255,000. Would I be wise to not use these types of comps as they are the outliers from other comps? One LLC was named after the housing address and the other was "we buy houses fast llc" or something like that. I can't find any other comps like those two. And if they are investors i wonder what they saw to make them purchase at 275k and 295k in that area.

Im breaking down my presentation with sellers and want to start a forum on fine tuning our "pitch" or "presentation". I want to hear some of the objections you hear while with the seller as to why they won't sell their house to you. Im going to work the objections into my presentation early so they don't come up in the end. I thought this might be helpful for new and seasoned negotiators. Thanks for any input. 

Thanks. Im glad to hear it happened to you too. Sorry it happened to you but I was devastated for that day and the owner ignored me. I got that deal to 60% of the ARV but Im finding that most cash deals are selling between 77-84% of ARV. With a few deals 50-60% of ARV. I Changed my goal to 75% of ARV or (10% of ARV+20K+Repairs)-ARV. What are you guys shooting for? After marketing the last three months without a deal I think I'm almost forced into wholesaling now. Thanks again for the posts guys.

And I also started Johnny Manziel yesterday in my playoff matchup. haha. I deserve to lose. 

Tom that is really good advice. I might have been lucky with my first "almost deal". I took a contract with a  3rd party authorization letter to the bank and talked to them and explained what was going on. Then finally got the info to which law firm they were using. Took the contract to the law firm where they took copies and sent it somewhere to ask for an extension so I could close. I asked for an extra 30 days and explained I would close sooner than that but I was being cautious. The law office said I should know if they approve the extension within 10 minutes but we waited an hour. When I called in they said they needed to have the homeowner call in about it. Owner called in and said it was approved but he also was canceling my contract and selling to someone else. Im using the real estate contracts off of the state website that includes the colorado foreclosure protection act. We agreed on monday evening. Approved by mid Tuesday and he cancelled my contract within the 3 business days. Original auction date of that Wednesday. I'm new so I'm learning as I go. 

Thanks for the advice. Im going to add that only a certain % of loan mods get approved and make sure to hand them my card when they say that. With the houses that do answer the door I don't hand them the print out with the list of options. I keep it to the point and short. I introduce my self and ask them if they found a solution to the auction date and shut up. I try to make it known that I want to buy there house. I did get a hefty number of houses that said they are doing a loan modification. And from the responses I received through emailing them on Facebook they all said they are doing a loan mod. So maybe a quick follow up letter should be sent out today. Thanks again for that gem. And the houses where no one is home or just don't answer is when I leave the brochure hand out with a vague hand written yellow letter and my info on it and business card. Im currently playing phone tag with a homeowner from yesterday so its excited to see something come from 83 miles of driving and door knocking. And I just started this, but I have been leaving the hand written letter and brochure in one of the postal envelops made for sending docs. Putting their info on it and leaning it on the door just like the mail carriers would. I started that bc I was worried about the invitation envelops I was wedging in the door getting blown away or just taken down from other "last one there" investor. 

The first few doors were gut wrenching/way too excited feelings. But then it was easier. I found it hard not to approach a door with a big smile as I probably started enjoying it too much. Ive turned to door knocking and cold calling a lot this month as Im not happy with the phone calls off of direct mail. 

And thanks for doing that pod cast. Ive listened to it 3 times already. Its one I listen to when I'm out in the truck door knocking. Im pretty competitive so it drove me from door knocking like 1-3 every now and then to doing 30 in a days trip. 

One odd questing is I've come across a lot of FHA loans and I've been told to just stay away from doing a sub-2 on those houses. But if I assume it with out it being my primary house and plan to flip/assign it ASAP do I need to worry about the lender coming after me for some type of damages?

Yesterday I door knocked preforclosures and didn't get the best results. I would say about 70-80% of the houses had their issue resolved. Good for them. The other houses no one was home and I left a vague letter asking them to call me. I have been using foreclosure.com for my leads and target the ones with equity. When I do get someone to answer the door I keep it simple and tell them, "Hello. My name is Cordell. I noticed there was an auction date scheduled for the house and came to see if you found a solution." I haven't had any bad responses yet and would go as far to say they have all been good considering why I'm knocking on their door. Although there was one gentleman that ignored me as he was about 3 ft away from me with only a window separating us. I also bring along a hand out with a foreclosure hotline on it with a list of options to pursue that has a basic explanation of each one. Ive been door knocking the houses with an auction date that has been 1-2 weeks away. There was about 4 houses that showed signs of getting ready to move out. Trash piled up as if they cleaned out the house. These houses I'm going to follow up with again. Im hitting up another 30 houses tomorrow on the other side of town. Oh and I've mailed these houses 2-5 times over the last couple of months already as well. Any advice in your door knocking adventures or horror/funny stories you want to share, share. Anyone know of a way to find out if the preforclosures already have taken care of their problem would help out a lot too. thanks. 

Hey Robert, 

Im new  at the probate process as well. I want to mention I love google. So googling "Colorado probate" I have a basic understanding of how it works. The state webpages even added a downloadable brochure with the process of probate and Colorado's 3 different types of probate. Great for taking on appointments I think. On monday I'm headed to Jefferson and Denver Court to stop in and ask someone there more questions. 

Quick story on how I found my title company. So every time I called a title company asking them if they could do double closes or assignment closes, I was told that is illegal and they wouldn't do that. After so many of those I went to the nearest title company in person and received way better service. It was even a title company that told me what I wanted to do was illegal. But going in person was way more beneficial to me because they explained all I needed in my contract and which contracts to use and had suggestions from their experience. So I'm going to use the same process and go find the probate offices in the court houses. Im going to go in with a big smile and hopefully get handed off to someone that is willing to let me bug them with questions. 

Good luck with your leads. 

It was a pre foreclosure deal. He called and I went out to his house. Negotiated a price. Went through the contract and signed it. But the hardest thing is keeping a contract while the homeowner has 3 business days to cancel for any reason per the colorado foreclosure protection act. So what I learned after feeling sorry for myself was to door knock/email/direct mail the pre foreclosure list between 3 weeks and 1week before he auction date. I noticed a lot of other investors door knocking the week of the auction date which I did too. A lot of competition. And I was shooting for a price of 70%ARV minus repairs which is too low to compete with other offers in the pre foreclosure arena. After checking cash comps I'm going to start using 80% minus repairs. Im sure I'll get a contract to follow through now after a lesson in school of hard knocks and not properly looking at cash comps.

Good advice. But after looking at cash comps in the area here in denver I'm finding that most investors or wholesalers are using 80%ARV minus repairs. And some investors are higher. The worst one I found was one bought at 84% ARV before repairs. Im wondering if they turned a profit. The last contract I had signed I went up to 77% ARV minus repairs. I still lost the contract. Im hoping its a matter of time before I land a deal.

So I found a couple of probate leads but don't know the process. If the house is still under the recently deceased, how do I go about buying the house? Can anyone explain the process? What happens when there is no next of kin?