All Forum Posts by: Eric F.

@Brian Pinckard About 3 years ago my friend bought a distressed property near downtown New Bern. He offered the bank over 100k for it, they turned him down, then he got it for 80k at the auction! He has an awesome old house in an beautiful neighborhood within a 10 minute walk to the riverfront for under 100k all in. The first time I saw it I could not believe it.  

@Account Closed I am having trouble following your logic in this thread. Your initial premise was the problem is the seller backing out. I cannot see how this strategy prevents that. They can back out just as easily if you are going to put it on the MLS after you buy it.

Your response in entirety:

"That drama statement is more directed to the seller. For example let's say you find a good off market deal from a grandma, do you know how many times a grandma changes her mind even after signing a contract? More than I could count cause in this market it happen to me so why not just buy the property yourself, eliminate the stressful seller and deal with another kind of stress with 75% you mention.

In this business your always going to have some sort of stress but I believe getting stress from agents wasting your time is much more better stress than sellers constantly changing thier mind and inflicting false hope that your might or might not have a deal."

-Where does this go away? I still don't get it. If the seller is going to back out, the fact you intend to close it and list it on the MLS will not change anything.

Go here 

https://www.biggerpockets.com/users/michaelquarles

Read through his old posts. There are a lot to go through, but he has some longer ones about Direct Mail that will contain all you need to know. A long time ago I spent a few hours reading through his old posts to find the ones about direct mail. It was worth it.

There is no reason to get a book written by someone who might be BSing when you can read posts reflecting the current market from someone like Michael Quarles. 

@John Zackery well you already bought it, I would go through with the repairs and sell it. I am assuming this is your first deal. Even if you break even or take a small hit you will learn enough to make it worth it. It sounds like you are not going to take a big loss since you still think profit potential is there. Also, since this is your first deal it is natural to immediately have doubts once the papers are signed. The first wholesale I did I signed the papers and immediately though "I know I missed something, I'm never going to sell this, man did I screw up, etc. etc." and 48 hours later I assigned it for over 15k. Fear and doubt is natural when starting out.

People pay Fortunebuilders 50k and never do a deal. You will learn on this one so you can prevent losses in the future. I barely broke even on my first major rehab but I learned so much it was worth it 10x over. Even if I would have lost 5k I would have learned 25k worth of information.

I figured that was most likely the case. Thanks Adam

@Jackie Lange As always, thanks for the information. Do you do vacation rentals or long term ones?

Bummer Big Daddy's sold...I hope they don't change those tacos. 

@Adam Schneider

Are you doing this twice a month now or did you reschedule the one yesterday? 

You can start with the county real estate property tax database. This is probably it for where you are. 

http://lrv.nassaucountyny.gov/

Type up the address and see if you can get the information you need.

Michael Quarles calls this wholetailing. I know people who have done it. 

I get your thought but it is two different things. Now you have to a) have the money to close and b) deal with retail buyers, real estate agents, contracts going back and forth, bickering over tiny things, etc. With your method within the first week I probably have to see e-mails or talk to 20 different agents, look at 15 different offers, etc. Or I can call up a buyer I know is legit, give him the lockbox, and 2 hours later have it sold. 

For me b) is 10x more of a hinderance than a. 

I see you say this "Wholesaling is not an easy job and alot of drama and games are played behind the scene and many deals have falling apart because of it. I believe that if a wholesaler purchases the off market deal or even an auction deal, he/she could eliminated all the stress and games involve and just re-sell fast."

Where does the stress get eliminated? Instead of talking to buyers I actually know I have to deal with 20 different agents or buyers I have never met, 75% of which are probably wasting my time.  How is this better?

edit

To be honest, I have thought about doing this with some properties and I might try it next year. However, I do not see how it is less work or stress. 

Honestly, I wouldn't pay anything. I see a lot of people suggesting you pay him half. Why? He broke the rules. You have to stand your ground at some point and you have arrived at that point. If he was otherwise a good tenant I would pay half, but this guy is going to keep taking advantage of you. There is a big difference between compromising with a good tenant and compromising with a bad tenant. This is a bad tenant. You have already gone against your rules (the dog) and if you do it again (paying for any part of this unauthorized repairs) there will be a third time. Each time you violate your own lease you just make it that much harder to not violate it in the future.

Don't pay him anything, read your lease, and pray to god there are grounds to evict him for making unauthorized repairs. It is pretty obvious your situation with this tenant is never going to get better, just rip off the band aid now.

PS I have reimbursed a good tenant for having emergency repairs before. We had a snow storm, branches fell on the roof, and she paid these guys about $100 to get them off. The power was out and she could not call me. I paid her back.  But this tenant you have, he is not a good tenant. No way I would compromise with him in any way. You do it this time, there will be the next time.