All Forum Posts by: Darrick P.

This is the regular meeting night so I'll be there.

I'm also in Philadelphia. Online networking is cool but lets setup a light dinner face to face meeting.

How did you find this deal if you don't mind me asking?

You can't make an offer until you at least see the place. You can only make your offer based on e amount of rehab work that you estimate. Her 100k offer is most likely too high because if it weren't shed list it with an agent (I assume).

I too am in Philly we should link up.

Andrew Wentzel - Hi,

I think DIG is the only REI Group in town. We meet on the last Thursday of each month. If you're interested in attending send me a colleague request, our next meeting is next Thursday.

I guess we're going a little off topic in respect to the steps in the deal, not really how / who presented the deal.

Matt Devincenzo - I used the terms interchangeably for this example only to get to the steps in the rest of the "deal". Fully understanding that if this were a bird dog, step 1 would be eliminated and if this were a wholesaler step 1 would be needed.

For the sake of instruction I searched for the buying process but couldn't find it so I started this thread.

Being a new investor I was trying to explain what a bird dog does to someone else and while I was talking to him I realized that if I had to document the process step by step, I would probably miss a couple of steps. So chime in with your process; if you've used a bird dog in the past.

A bird dog calls me with a property he's found. [Please note that all my numbers are fictitious]

Property Address:

123 Market St.
Philadelphia, PA 19123

Bird dog / Wholesaler has a the property under contract and is looking for a cash buyer. He calls me and says; "I have 123 under contract for 25k" ARV is 100k and it needs 35k in repairs.

So taking a quick glance at the numbers we're looking at between 30K to 40K in profit assuming all goes well. The comps are on point and the repairs are on point. Assuming I've taken a look at the house and is willing to purchase the property my next step would be to?

1) Get an assignment of contract between the bird dog and me for 123 Market Street?
2) Order title?
3) Get an inspection?
4) Close?
5) Pay the bird dog?

The person I was explaining this to asks me how did I know the bird dog would get paid after he assigns the contract to me. I told him that if I didn't pay the bird dog he would never send me another deal and the assignment of contract is a legal document that states the amount of money that I agreed to pay him.

He says he doesn't think 30K can be made in just 5 steps. I told him not necessarily "5" steps but this is the process.

Your thoughts?

I didn't run away - I have some personal connection to the building collapse that happened in CC Philadelphia last week and by virtue of being linked to the unfortunate situation I did speak with an attorney about the agreement.

[Off topic] I was in the then "CitiGroup" Building at 388 Greenwich Street during 911 and watched from the 32nd floor. Now the CC building collapse; I wasn't in the building but being linked is close enough. I will say that I'm beginning to form a stigma against high rises.[back on topic]

The attorney I spoke with said the following;

1) Being on the deed is a plus.
2) Being a lien holder is a plus. Push for 1st position.
3) Have borrower sign as a person, not a business.
4) This would work if loan amount wasn't so large.
5) Prepare a private mortgage for the borrower.

Between last week and today the deal fell through because the ex-boyfriend (who's doing business on behalf of the absent owner) asked for more money after the additional deal was struck, but before the paperwork was signed. The deal was for 1 rowhome and 3 adjacent lots and although his asking price had been on the market for over a year with nobody interested; the ex-boyfriend felt like asking for an additional 80k was in order.

Patrick Martinez - no response yet.