All Forum Posts by: Andrew Massaro

@Roselee Perrigan

They have an option, which is to short sale their property.  They probably won't walk away with any cash, but they an keep a foreclosure off their credit, which is a pretty big deal.  Find someone local, who negotiates short sales.  It's usually a realtor or attorney (just google "stop foreclosure (your city)" or "short sale (your city)" and you'll find someone).  The best way is to contact another investor and ask him or her.  

Short sale negotiator/loss mitigator needs to be part of your power team.  Work out a deal with one, where you refer the leads for a piece of the action.   And any lead you get that needs one, you refer over to them.

Good luck!

Guys and Gals,

I need help.  I need a program, that will allow me, as a wholesaler, to analyze a deal outside of just cash.  I'm looking for strategies like subject-to, balloons, wrap-arounds, seller carry-back, etc, etc.  But, I need to know how to analyze these from a wholesaler's perspective, not just from the buyer and seller's.  Does that make sense?

I've tried studying the strategies, individually.  My brain just doesn't work that way.  I need a program, where I can pick a strategy, input some data and have it spit out the solution.

Does such a program exist? REI Pro has it, but it's one of a gajillion features, that frankly, I don't need. Any ideas would be greatly appreciated.

@Ravi Kumar

send me a friend request

@Christopher Sica

I think you have it backwards, dude. i would make your business plan the last thing you do. start at the end and work your way back. put it on a napkin. and, if it's too much to fit, then it's too complicated. this is one of the first things i do with my new students. here is an example:

i ask... how much money do you want to make flipping houses?

answer (example): $10k/mo

so, lets make that happen by working back from there.

$10k/mo = 2 deals = 3 contracts = 105 leads = marketing plan/business plan

ensure your success by quantifying your business. and, if you don't hit your goal, then all you need to do is look at the numbers.

@Stephen Johnstone

welcome! cali is a different animal than most other states. but, that's not to say to it can't be done. a lot of people are making a lot of money in real estate there. i have two students in socal that are doing well, too. so, get after it. be persistent. remain steadfast in your ultimate goal. and stop at nothing till you get it.

good luck. and hit me up directly if you need to. i'm here to help.

@Mark Etheridge

welcome, bro. here's my advice. read, research and ACT. don't get paralyzed by info-collecting. seen it happen too many times. if you want to wholesale, quickly, find someone doing it successfully and ask him to teach you. beats the hell out of trial and error.

@Stephen Lyons

Couple of things. one, i'm in Tampa. i'm willing to meet up with you in person and give you any advice and guidance i can. i'm a wholesaler, but as a wholesaler, we sell a lot of rentals. and, it's our job to know what our landlord buyers want. so, i have quite a bit of experience with it. in addition, i know a ton of landlords, some with over 100 properties in their portfolio. i've picked their brain many a day on what they look for in a rental. i actually interviewed one on my weekly podcast a few months ago. he turns every one of his purchases into rentals.

and two, if i were a landlord, i would look more at roi (cash on cash rate of return) and cap rate (these two are the same for cash deals), and much, much less on percentage of ARV (instant equity).

i would want to know what the annual return on my cash investment is (rate of return) and how quickly i will own the house free and clear, given the money i've put in to purchase, repair and upkeep (cap rate). so, show me a deal that's 90% of arv, but that has a 20%+ cap and return... and i'm all over it. in 5 years, it'll be mine free and clear... and basically an atm machine.

that's basically what the hedge funds are doing...

listsource.com

I'm not talking about short sales. I don't touch those.

But, @Bill Gulley , again you seem to be hell bent on finding every possible thing that could go wrong with one of these deals, instead of looking at the myriad positive results. In addition, I'm not sure you have the faintest idea what wholesaling is. I mean, get a grip. It's just flipping houses. Flipping a house in foreclosure is no different than flipping any other property. They are all in distress for one reason or another. If not, they wouldn't be selling to us. They'd list it with a realtor.

Things can go wrong in every deal. Should I refrain from an attempt to ever flip a house? Maybe I should sit in my house, cuz I may get hit by a bus if I go outside...

@Bill Gulley

I think you are misunderstanding what I do. I do absolutely nothing with the banks. I simply search a database of foreclosures, while adding in the filters of LTV and auction date within 60 days. I view the properties that fit that criteria, and then contact the homeowner directly. I then attempt to wholesale their house... before their auction date.

This is a win-win for all parties involved. The seller gets out before he is foreclosed on. The bank get paid in full, so it doesn't need to auction the property and/or take it on as an REO. And, I make an assignment fee, whatever I can get.

I make no attempts to stall the foreclosure process, or allude the auction. I simply offer the homeowner the option of selling to me at a discount, rather than losing their home at an auction, which is at most 60 days away. And, if he chooses to go with me, I bust my *** trying to assign the house in time.

It's really not even an issue if I can't find a buyer. I mean, he's going to lose it, anyway. I'm not putting the seller out at all.