All Forum Posts by: Eddie Egelston

@Peter K.

As others have said, it's pretty typical for multiple offers nowadays. I have seen many times where a property is on the market for a long time and then suddenly gets multiple offers. I always feel suspicious too but I have never caught anyone in a lie.

Just FYI it is also typical for them to not negotiate with you until you submit your highest and best.

The best deal I have ever seen sell on MLS had multiple offers, and it was still a steal after it sold...so there's that.

@Pat Jackson Those sound like some of the best terms I have found from a "national" lender. Is yours a local lender; would you mind sharing their info? When you save "live auction" is that a Sheriffs sale, or some advertised REO dump? Thanks!

The 2 I have found that I like are LendingHome and Barnett Capital (Northbrook IL)

I'm not pitching and I have no affiliation.

I don't want to be Debbie Downer; not sure if this is unicorn...

You have a seller that refuses to negotiate... cash flow properties that are not cash flowing and likely need work...

Has the sane owner agreed to a killer price with you?

A really savy person needs to chime in here...

Maybe the sane sister needs to sue the crazy one for these financial hardships. Right now it's free for the crazy sis to ignore people; start serving court notices and the "free" part goes away. If you can establish an option agreement with the sane sis first, maybe that is a path to ownership.

Maybe adverse possession can come into play? If the sane sis just keeps paying the taxes and starts renting the properties could the crazy sis eventually lose all her claims to the property? Perhaps you can partner with the sane one.

I can't even count how many posts exactly like this I have seen on BP. Typical story, the contractor is the"partner" but will only be doing contractor work, yet the other partner will give him half. What a gig!

Your contractor is adding almost no value here, above and beyond the value of a contractor. All contractors get materials at discounted prices. If your loan is a typical loan, each of you are fully responsible for the loan repayment. (If he was was splitting the loan, and thereby splitting your risk and need for capital that would be different.)

I see 2 ways for your partner to add value and therefore earn more than contractor wages. #1 provide the labor and materials to the LLC for free, and get paid at closing rather than in draws as work is completed. That adds a ton of value because it's that much less you have to borrow @ 20% interest. Don't kid yourself HML is 20% when you add up all the fees, costs, appraisals,draws, points and interest.

And #2 if he can be a true partner and not someone who needs to be managed, but rather do some of the managing and "boots on the ground" type stuff, that should be valuable to you.

I have run a lot of numbers on flips, and depending on your price point and scope of work, generally the guy wearing the "rehabber hat" earns 1/3 of the profits, the "investor hat" earns 1/3 and the "Realtor hat" earns 1/3. So my experience tells me you'd be earning 66% and taking 50%.

$30k pp & $140k arv = rehabber makes more       $300k pp & $500k arv Realtor/Investor make waayy more

No*

The house needs what it needs. Unless your margins are fabulous you can't afford to not maximize the property value and make money.

*Unless you get a steal on an off-market deal

 Would this help? I am in no way affiliated with this or any other similar lender.

http://www.latimes.com/business/la-fi-home-equity-investments-20170106-story.html

Your newbie is showing haha!

A friend of mine lives in San Francisco and wants to buy a home.- Okay nice! They want to use a conventional loan, but cannot qualify for the current market prices, which are ridiculously high. -Maybe they should look else where for housing :/   They thought of buying a foreclosure, but need a willing wholesaler to get a home under contract long enough for them to close with a conventional loan. -What? Do you mean right off "court house steps"? I know of no seasoning issue with that on conventional financing. Are you referring to the previous owner's redemption period? Is this even a thing? -I don't think it is, I think you made this up! You are trying really hard to fit your round friend into this square market. Will a bank even underwrite? If so, how does one go about finding someone who will do it? -If they are going to go with one of these crazy routes, speak to local banks that can listen and understand what is going on. It could require multiple appraisals or or some letter of explanation why a house is being bought and sold for $100k difference with no work put into it. They are already pre-approved, but have told the bank they are holding off because they cant find anything in their range.

I know it's tempting to set something up with a wholesaler, but man it's so far out of the norm for all parties involved. Very tough IMO.

1. Is Zillow the best place to look for the best agent? - I wouldn't say it's better than any other place. Sure is convenient.

2. I am buying my first home and am wondering if going on Zillow and choosing the agent with the best/most reviews and sales is the best way to go?  - Probably not. Finding an agent with knowledge in the area you are looking would serve you well. Finding someone that is readily available to show properties would also help, it this crazy, low inventory environment... I met someone via Zillow yesterday, and she said she tried to set up a showing for a property with another agent, who couldn't show it until 10 days from now! LOL good luck getting a hot property with that agent!

3. I see some "team leaders" on Zillow with like 40 team members/real estate agents. Does the team leader also help clients sell/buy houses? - Odds are bad. You will likely never get to speak to them again after the first meeting. (no joke)

4. Should I contact one of their team members directly so that they don't assign me to a "newbie"? - That's kinda their prerogative- I suppose you could ask. The team members are all "newbie" compared to the team leader.

5. Do you get the choice of the real estate agent when working with a team? - I have never approached a team as a consumer, my guess is that if you asked they would let you pick. Just don't be the creepy guy that wants the hot girl to show him houses in the middle of nowhere. lol

6. Are team members able to work with only one broker, or can they work with other brokers as well? - Not sure what you mean. A "team member" might be part of multiple "teams" all within an office. The "team members" are nothing more than Realtors who can't be or don't want to be on their own. You won't find one "team member" who works for Re/Max and Coldwell Banker. All Realtors can work with any other Realtor. So it does not matter which Realtor has a property listed, your Realtor can show you the property and help you buy it.

I hope this helps! If this is your first house be sure to have your agent go over some of the basics with you. I personally believe a good agent should be meeting with you for an initial consultation before trucking around wandering through houses. (I've done it both ways, there's only one professional way.) That's my 2 cents.

Few thoughts... In my market it seems either people re-list right away, or 6-12 months later. You're missing the "right away" people, and I get it, it's competitive. It's seems you might be first in line with the other group of people. How long have you worked this system? I would think it should take a year to gauge it.

I'm not a big fan of the "can I bring a buyer Google template". #1 I think you should have an active buyer to want to bother people. #2 If you really do have an active buyer, that message should be genuine and not a canned "template". That would seem extra disingenuous.

I'd probably keep hitting them with more than a newsletter after the initial push. Ask to stay in contact, and call / engage every month or two. Tough, icky work. That's why I wouldn't even try. Props to you for trying.

Handle this through your attorney. My opinion is:

It hardly sounds like you are out your EMD. Are there no contingencies on the contract? Sounds like your inspector disapproves, that's an out. Is it contingent upon attorney review of the contract? That's an automatic out. Still can't get out? Tell the underwriter on your loan it's a shared septic with an abandoned house! haha the underwriter will write the disapproval letter himself lol.

Although legally there is no requirement in my state for someone to disclose that, it would be good practice to do so, for this exact reason. I helped buyers buy a house on a shared well. They met the neighbors who seemed like pretty decent people, and there were no worries. Exact opposite of your deal. Good luck!

I am not an attorney. No legal advice given.