All Forum Posts by: Account Closed

Absolutely!

@Hattie Dizmond ,  That's awesome!! Good job and congrats!

@Jerry Puckett Well said Jerry! Thanks for jumping in with clarity!

@Terry Evans Awesome story Terry!  Great story of persistence. You "passed" the test, proved your mettle, and looks like you'll be rewarded for your efforts!  Good job!

@Hattie Dizmond , you're doing great! You're taking action and asking all the right questions. 

I a wholesaler myself and have a short story for you wtr to having cash buyers first or not.  I'll *try* to be brief.. 

I once had a very motivated seller lead in an outlying area with few cash buyers wanting ppty in that area. It was a job transfer situation and they needed to sell quickly and wanted a certain price. I ran the numbers and it was tight at their asking price, but possible. I did not think my current list of buyers would work. The owners told me that they felt God had sent me to them (this isn't the first of such occurrences btw).. whew, what pressure. I told them up front I don't normally buy in this area, but thought I could make it work. I put the ppty under contract. This was not a listed ppty, it was off market. I told them my funding partner will need to inspect and approve the deal.. Had 10 days inspection. I called my normal buyers.. all said no. I sent it to my entire list of buyers.. no takers. I went on craigslist and postlets.. No buyers.. I called the owners and let them know my normal funding partner didn't want the deal due to location which I was afraid might happen. I told them I know and network with other investors and might be able to find a new funding partner to fund the deal, if they would give me some more time.. They agreed. I called and emailed a bunch realtors who had recently sold to cash buyers in the area.. Found a cash buyer - yea!!  The cash buyer said he wanted me to pay his realtor's fee. What?? (what's up with some investors.. LOL) My wholesale fee was small already to make it happen for the sellers. But paying the realtor fee too meant I would make ~ $1K.  So, we agreed and made it happen. Seller moved out on time and made them *very* happy.  Buyer rehabbed it and made money. The little money I made on that deal didn't even pay for the marketing cost to find the lead.. But, I slept well that night!!

Keep moving forward , don't let naysayers distract you, be open and honest and remember, we're helping people who need our help.. 

@Angelo Mart This is a tough one for a first wholesale deal since you don't have a relationship with a solid cash buyer yet. A solid cash buyer could put up the $1K earnest in escrow via assignment earnest to cover your earnest with the seller. Further, he could provide POF for you. The agent is there to help the seller. They are doing the right things by asking for POF and larger earnest. But, these things are all negotiable. Personally, I have not purchase properties off the MLS nor from a seller with an agent. So these things I've not had to deal with directly. You could negotiate the earnest down to say $100 because it's a cash, as-is transaction. Tell them this is your policy with such transactions, and should be anyways. You would need to have an inspection period of no less than 10 business days for your funding partner to take a peak and inspect the property.. Again, this is your company policy. During this time you work your arse off to find the buyer or back out of the contract with-in the inspection period and get your earnest back. For POF, you could use a transnational funding source provide this for you, or someone you know who has that amount of cash in their back account write a POF for you (it does not obligate them to fund the deal, just that they're willing to). If these things are not possible, you may have to pass on this one.. Personally, I market directly for motivated sellers off the MLS. These issues then become mute for the most part. Yes, spend time now looking for and marketing for cash buyers.. Tell them you'rr actively marketing for discount deals from motivated sellers and need cash buyers who can make quick decisions.

@Angelo Mart , standard purchase agreement, but you need it to say and/or assigns after your name so that you can assign the contract. Also want to make sure you have an inspection period of 10-15 days, preferably business days. That's the time you have to find an end buyer. You will have to back out of the contract before then or you lose your earnest should you not find a buyer. Set the COE out about 30 days. Put the least amount of earnest down possible. I would should for $25 and justify based on this being an as-is cash purchase.

@Angelo Mart    Seems like a good deal using $185K conservative comps with $30K rehab costs and buy at $95K.  I'd lock it up.. try to wholesale it out at $100-$105K.

@Steve Johnson , BTW, I would highly recommend you find and join the AZREIA (Arizona Real Estate Investors Association) group. They meet in Phx monthly and provide very detailed market updates. Also great place to network.

@Steve Johnson I've not tried to market to preforeclosure. I suspect it is similar in one respect to marking to absentee owners lists in that it's a list you can easily buy. Meaning, therefore, that there is a lot of competition going after them. However, I also hear that that list is a tough one because the owners, while needing help, often have their heads in the sand and don't realize or admit they need help until the very end. My previous post and this one, while perhaps sounding negative, mean only that it's tougher to find good deals in Phx/Tucson with so much competition driving prices up. But they are still there... and it costs more to find them.. and requires more effort and skill to secure them. ;-)