All Forum Posts by: Dennis Pressey Jr

@Reggie Maggard better yet, just PM me the address :P

Now, I am doing this on the fly - just conversing as I would just talking.

$6800 /mo income
- $3,200 /mo debt

= $3,600 /mo

$2300 /mo expense at 35% total expense (probably high)
+ $900 /mo PITI
____
$3,200 debt

This would be me thinking out loud.

What kind of condition is the property in? Vacant?

Hey everybody,

Lets talk submitting REO and Bank Owned offers - not short sale.

Now, I know of the usual question: "What % will get accepted?"

Typically, in New Jersey, REO properties move at 72-75% of original listing price. I have done some research and tracking. This conclusion comes from my own numbers and offers along with supporting records from other sales. It is not unusual to see a property move at 67% in really bad shape.

My question to others that are willing to share is this:

Do you see benefits with no contingency offers? Real, substantial success versus using say a 10 day inspection period. (not interested in maybes or hypothetical guesses)

Reason being - New Jersey is loaded with oil tanks and a septic system is not uncommon. So, the obvious concerns get raised when submitting offers on these. However, my feeling is this - banks may be much more willing to move this type of property (oil and septic) for a larger discount with no contingency, cash offer. Even though your offer will be substantially lower - because you must assume these systems are BAD.

Anybody experience this or have thinking along these lines?

How can you submit an offer with no contingencies with a hard money lender involved - because your lender will require a BPO/appraisal to approve the deal. Many investors I know put offers in as CASH with hard money - which could then raise this issue. No?

Continuing....

I have experience buying no contingencies, no inspections, sight unseen. With access restricted by seller...

Are any of you still able to work with your lender on an external BPO?

Thanks in advance

Price? lol

I would say those expenses are short on a 4 unit. However, I am in NJ :).

Assuming even a 15% increase in expenses, you still come in under $2000 per month.

If I were you, I'd be running this by the accountant immediately and submitting a cash offer.

@Brandon Sturgill 

A wholesaler, real estate agent, investor, etc are all just names for a position...

The issue at hand is SOLUTION. It does not matter if you are a Licensed Agent or Broker. Or just a "measly" wholesaler who places themselves in RE at minimal risk - the idea is creating solutions. THIS IS WHY YOU GET PAID.

Why should a wholesaler not get paid? If they...

Got the lead. Got to the bottom of the issue at hand holding the property hostage. Found a true win-win resolution. Acted fast on that resolution. Completed the deal.

As would apply to any other career type...

I find real estate agents (lumped together) to be a pretty lazy, disorganized, mis-trained or non-trained group of "Licensees" running around here "playing" real estate. Meanwhile..offers are lost, deals are botched, and people are sued.

This happens with wholesalers, mortgage brokers, car salesman...it happens in life.

I don't think any honest, creative, successful real estate problem solver would like to be lumped into some lazy stereotypical "wholesaler" group any more than a Licensed Agent would.

Example: One deal I know of. Listing agent L expired. Shuffles papers to relative agent, whites out info/names/etc. swaps theirs in. In a bank involved process no less!...

My 02...it is everywhere!

I contribute to the forums and network with people like others - I also pay my dues to be apart of this forum. 

Anyhow - the original post did not and does not even deserve me to be here this long, however I do not want a misconception of what I said.

This thread put wholesalers in a negative light and seemed silly, imo. I could not imagine this forum entertaining that as a real idea - as much as I've learned here on the subject.

Thanks @Joe Villeneuve

@Joe 

@Joe Villeneuve sleep in a rock bed or what? What is your issue.

The original post, is absurd.

@Joe Villeneuve No. Interested in the trending topic, but not interested in reading 9 pages. :)

Looking to see if this was a serious proposal.

I have not read this beyond the first post/op.

Is this a truly serious idea or are you trolling?

What a silly idea...

You need a lender or funding partner.

You can wholesale REOs - some tactics to get it done may be "frowned" upon by some but nonetheless - it is very possible. 

It is not as simple as contracting directly with a home owner, but it can be effective.

IMO, wholesaling REOs may be tough depending on your market because banks are just not giving their properties away with enough margin to add your end buyer into the equation.