All Forum Posts by: Eric F.

Double close if you really want to "hide" what you make but the real answer is deal with professional investors. I wouldn't deal with someone who would cry about what I was making. I also would not deal with someone who I was worried would go behind my back. I know I would never do that to someone else.

The only thing that should matter to the buyer is if they are happy with the price. It doesn't matter if you are making 2k or 22k. 

Permit or not, bandit signs don't work too well in Raleigh/Durham/Garner in my opinion. I have put up a few hundred (around 800) and never gotten any good leads. When I say never I meant not only have I never done a deal off a bandit sign, I truly do not think I even got 10 good leads off EIGHT HUNDRED signs. I quit putting them up. I notice only 1 person consistently puts them up [(855(?) 9NC Sell] Every other time you see bandit signs out it is a 1 time attempt by someone who disappears, which is 95% of people who "start" real estate investing by the way.

I am not saying this to discourage you by the way. Put them out. Try everything. You have to learn. If you want to do deals in Oxford they might do great. I have a lot of friends in Greensboro/the triad who kill it with bandit signs and that is 90 minutes from Raleigh. To be honest, I would have quit putting them out a long time ago except these guys did so well with them. It is crazy they work so much better only 90 minutes away, but the world is a weird place ya know? What finally made me quit for good was I put up 100 signs and got ZERO, yes ZERO calls (seller calls, I got 50 do you rent houses calls). That was it. I quit.

NOTE: This doesn't count back when I was doing mobile homes. I did fine with mobile home bandit signs. Lot rents are so high now I bailed on that part of my business.

PS 

Does anyone know who the 9NC Sell guy is? He is the only person who puts signs up consistently in this area, and I certainly admire his discipline. He must do his run twice a month and he hits every quality location I can think of. I have called his sign 10 damn times and never gotten a call back. I never lied and said I was a seller though.

I think I am going to add a couple things to my lease thanks to this thread.

@JD Martin Thanks for the idea about outside dogs. I allow a dog in my rentals since I read it leads to longer tenant stays (so far I find this true) plus I love dogs. I never thought about what I would do if I had a tenant chain up their dog outside. I know what I would want to do to them but it would not be legal! Now I know how to prevent it. I donate to the animal rescue I got my dog from and I love dogs and I would lose my mind if someone in one of my houses was treating their dog like that. 

"This particular investor would need the contractor to visit the site once we locate a property to provide construction cost... and would potentially earn the job."

I would hope so! 

@John Thedford I've had seller agent's tell me "it needs about 15k of work" when I have looked at houses in bad condition (one "15k of work" needed 2 HVAC units and a roof, that is 15k before I open the front door lol). Some agent estimates are as off as the worst wholesaler estimates I have seen. Maybe you don't give estimates, and I get that, but I have had agents give me terrible repair estimates. 

@Mike Cumbie What does that have to do with you saying I said totally trust the wholesaler when I said the exact opposite? 

I can't @ in an edit

Tim "From what you're saying it sounds like that would be the best route to take...buy with hard money, then refinance as soon as I can into a 30 year fixed."

I had a hard money loan get paid back in 13 days when I was expecting 6 months. Every since then I put "must pay a minimum of 3 months interest." What you do is between you and your lender of course.

@Steve Wald What does the escrow agreement say? I do that with sellers who want to stay for a couple of weeks because "they need the money to move". It has worked for me every time though. Note: These are deals I sign and close on myself, no wholesaler involved, but I doubt that matters. How much is in the escrow? 

@Chris Martin "@Patrick Madigan I am in the Fuquay area for about a week and would take you up on visiting the property if this Friday or Monday next week...."

I saw this post and was going to beg to ride in the backseat just to listen to Chris Martin's knowledge for the trip. Then I saw the date :(  I would pay gas and everything :)

@Mike Cumbie "You may recommend he just trust fall into this guys arms because you share a title and that's fine."

In the same post where I recommended he pull all the comps himself and do a repair estimate himself instead of trusting the wholesaler? Is that the post I said trust fall into the guy's arms? 

@Tim Porsche

I understand you are trying to make it work with conventional financing, but from the wholesaler's perspective why would he agree to all that when he could (hypothetically) wholesale it to someone else and not have to hold it for 2 months. At that point he may as well rehab it himself. You're asking him to find the money to close and hold it for 2 months. It is one thing to get the money for 48 hours to double close, but to tie up money for 2 months is a lot to ask most wholesalers. I wouldn't do it. If I was holding it for 2 months myself I'd do the rehab work and sell it retail. 

As for the cash out refi, I don't know. It is difficult for me since I don't have a W-2 job, but you might be able to do it much easier, especially since you are going to occupy it.

@Michelle Mayer I want to believe that so bad. That is amazing.

I had a terrible (inherited) tenant turn into a great one. She is my first tenant.  When I bought the property they were always late and I was too nice for a few months (sound familiar?). Finally, they were a couple of months behind and I told them I was sorry I would have to file an eviction. I filed it, they paid up and promised it would never happen again. For the first time in real estate history, it was the truth! She pays the rent early every month, with a smile on the envelope, and is just great.

The only time I ever had to get mad at her since the eviction threat was when it was 95 degrees, her AC went out on a Friday, and she waited until Monday to call me "so she did not disturb my weekend." I told her I appreciated the thought, but as a landlord it is my job to make sure my tenants have a safe and comfortable house, and an interior temp of 90 degrees does not qualify! 

Yep, this tenant is so great the only time in 3 years I've had a problem was when they put my enjoyment of the weekend over their comfort.

@Pavel Yurevich "I have a clause in my leases - landlord can terminate the lease without cause by giving a written notice to the tenant. I hope you have that too."  Enjoy defending that one in court if the tenant does not have the same rights. 

@Mike Cumbie "The wholesalers job by nature is to get him\her self as much money out of the transaction as they can, period. I am not saying there is anything wrong with that, I just wouldn't send you to them expecting to get "a fair shake" until there is a relationship.

Sure, for the ones who show up, send out 2 crappy deals to a 300 person e-mail distribution, and then disappear. A long term wholesaler's goal is to make sure his buyer makes money too. 

Regarding @John Thedford

"BEFORE you deal with any unlicensed broker consider these ideas:

1. Always require WRITTEN comps that can be substantiated

2. Always require WRITTEN bids from LICENSED contractors

3, Always require WRITTEN comps to substantiate ARV

4. NEVER pay a non-refundable fee

5. Always correspond via email so there is written record to bring suit in the event of misrepresentation.

6. Always demand to see a copy of their contract."

I get what he is saying (and don't disagree) but for 1-3 DO IT YOURSELF! The wholesaler will provide comps and rehab estimates, but do it yourself too. Trust but verify as we in the CPA business (that I quit) say. If you are getting an assignment of course see a copy of their contract, but if it is a double close I don't see why you need to.  There are some wholesalers I know who I trust and don't even need to check their comps, and some I would spend 200 hours checking the info they provide before I trusted it. Until you know who is who redo it all yourself.

PS I would also say double check an agent's comps and repair estimates too. This is your business, double check everything. The agent won't pay the 10k overage on repairs or hand you back 20k if the comps were too high any quicker than the wholesaler would. Always do independent research.