All Forum Posts by: Jacci Konkle

Why won't they sign your offer in writing if they are willing to accept it verbally?  Have you given them your written offer for acceptance? I feel like I'm missing a part of your situation. 

An LOI isn't strong enough to tie up the property. You can get the formal legal description and see the liens by having your title company run a search and hold though. I never trust the legal description on the tax sites because they always seem to be different on title once you receive it. Always go with what the title company reports if you need the true legal description for a note and mortgage (like for a private lender) or any other legal doc.

Sounds like you might have a cool deal!  I hope it works out for you!

I'm not an attorney, but a contract is a contract.  If they agreed to the sale price and they signed an amendment in concordance with an inspection report within the dates and times of an inspection contingency to do the repairs, then they must fulfill that contract.  Now, that's the black and white...the grey is this...if they back out, all you can do is sue for specific performance.  You'll likely win, but it could take forever!  During that time, they will not be allowed to sell the home to anyone else, so it might pain them.  However, you won't really be able to move on very well either.  In the end, if they just insist on being a pain in the butt, your best bet might be to bite your tongue, get your earnest money back, and move on.  But not knowing how long this has gone on or really anything else about the whole situation, I am certainly not in a place to give advice.  If you're working through a Realtor, have your agent get their broker to talk to the listing broker and see if they can shake some sense into this seller.  You can also contact an attorney and just have them write a letter.  Many times, people wake up and see the light when an attorney puts the threat of a lawsuit in writing.

Good luck in your endeavors!

Register a free guest pass online at www.AppletonREIA.com if you've never attended one of our events before. If you've visited in the past, pre-register online for $15. The day of the event is $20. This is a fan favorite, so bring all of your questions for the panel and let's help you build your real estate business! We will have an attorney, wholesalers, rehabbers, landlords and property management all there for the best answers to your burning questions. 

Registration, networking and pizza begins at 6pm.  Meeting begins at 6:30pm.

@Cody Kayser, I actually AM a Realtor, but I still rarely even bother with listed properties. I never had any luck with investor friendly agents because most of them have no idea what they're looking at when it comes to repairs and the costs. I know they're out there though and have heard of an investor or two having really good luck using agents. Just remember to ALWAYS pull your own comps for your ARV. The agents want you to buy and then to list it with them after rehab...they aren't footing the bill and might over estimate that property's worth. Keep your finger on the pulse of the market too. Prices are high right now with our sellers' market and will eventually slow down...watch for the signs and keep in mind how long your rehab will take. Be quick to lower your ARV in your purchase formula to protect yourself.

As far as marketing, sure direct mail can be great...just remember to be patient and plan to put out a minimum of 3 or 4 mailings to the same list.  It can be a long term play while waiting for replies and finding a good deal, but it's a good line in the water.  There are many other things you can do to market for deals that are cheaper and faster.  Do them all!

I also agree with @Scott Schultz when it comes to auctions. They are a bit of a gamble because you don't normally get in to see them, but they can also be dangerous in the liens you're left with!  Be sure it's the FIRST mortgage that is foreclosing or that you can afford to clear the 1st when buying the 2nd.  Have your title company run a search and hold on the title and see what liens are on there that will not get wiped.  EX: back taxes, water bills, other mortgages in senior positions.

Good luck in the hunt!

HI Cody,

I'm in WI but not in Milwaukee. I'm up in the Appleton/Green Bay area. I found my first rehab flip through a wholesaler when I was brand new. Things have changed a lot since then, and it's more difficult for people to buy them cheap enough to wholesale to a rehabber and make any money, but they're out there sometimes. My advice is to start doing your own marketing and get the sweeter deals that way. Waiting for a wholesaler to appear with anything worth buying for a retail flip might take awhile and you'll starve in the meantime. Same with the MLS....not much to see there most often. It's such a seller's market that there just isn't much to pick up at the price you'd need to pay for it to make any money (unless Milwaukee is just WAY different than Appleton).

When I first started, I had a few of the homes inspected to help me know what I was looking at.  It's not a bad idea if you're super green!  Mistakes in this business are not cheap, so you don't want to miss anything important.  It doesn't matter what anyone else does....what matters is if you know what you're looking at enough to catch it all and know what's a problem.

Welcome to the forum, and good luck in your RE journey in Milwaukee!!

In order to run a smooth, successful business there are many basic (and not so basic) tools every investor needs to have and use. Things like marketing and leads, a user friendly CRM, a bookkeeping system, contracts/documents, contractors, professionals, deal analyzers and good solid comps are all vital to any long-term business that brings in profits. We will share the top tools and tour some sites, etc that will be SURE to make your business easier! 

It doesn't matter if you're brand new to real estate or you have a solid six figure business, there is something for everyone and national discounts on different online tools offered by the National REIA. We can't wait to share it ALL with you!

Free pizza begins with registration at 6pm.  Meeting begins at 6:30pm.  Come and Network with us!

Print a free guest pass online at www.AppletonREIA.com .

I agree with Daniel.  However, that is likely only going to be the case with bank properties and motivated/distressed sellers.  Sellers who have a vacancy during this time of year become more motivated for sure!  That being said, as we turn the calendar and move into January, prices are generally strong.  I've been working in this area for over a decade and live 15 minutes from Green Bay.  As an investor, I like to pick up properties from motivated sellers in the month of December, but as a Realtor, I find my biggest month every year is February!  I find that in our area, the slowest months for sales (and deeper discounts) are in the summer when all the buyers are out playing and enjoying vacation while their kids are off school.  The buyers come out strong and buy everything up in late January thru end of March (believe it or not...I have years of numbers to prove it!).  BUT, buying a duplex is a bit different since the motivation of the seller is a lot different than an owner/occupant of a single family home...if they are vacant in the winter, and they're a tired landlord, they will just want to get it gone.

All that being said, if you don't like the property you have your eye on, it's ok to wait for the right one.  After all, you'll be living there. If the numbers work, and you're comfortable calling it home, then make your offer and see what you can get it for. Don't just buy it because of the season...you said you're not in a hurry. If you can wait and watch the spring market for a better fit, you'll likely be able to secure a nice deal. Everyone thinks listing in the spring is the way to go, but I find every year that the best time to actually sell is the first quarter. By the time Memorial Day rolls around, most buyers have already purchased something and are off in their vacation mode.

My 2 cents...for what it's worth.

Welcome to BP!  I was much like you in the beginning....felt like I needed to have a hands on experience in order to "really" learn it and know what I was doing.  Turned out I just needed to pull the trigger and get out there.  I feel the best way is to come alongside someone else who has already gone where you want to go, if you have the chance!  Take careful consideration of "who" and "how" as you move forward.  Consider a joint venture property by property instead of an all out partnership...or a partnership with a VERY clear operating agreement that spells out how to operate as well as how to dissolve.  Who is responsible for what AS WELL AS how do we value the properties if one partner wants out....or how to get out if you both want to sell...or one wants to sell to an outside person to step in...etc, etc.  When partnerships end, the best ones know exactly how it will go down...the rest fight and pay attorneys in the battle.  It's no different than a divorce without a prenuptual agreement.  Decide at the beginning what the end will look like, and you could take this thing to extraordinary limits!  Congrats on the decision to make real estate a part of your young family's financial plan.  Sounds like you've done the education, good luck on getting your feet wet!  My best to you!

Welcome to BP!  Deciding whether to go into flipping or rentals is a big deal.  They are both completely different, require different skill sets and education, require different time commitments, etc.  If you have any specific questions about either, I'm happy to help!  I've been involved in pretty much every different type of real estate....including a successful flipping biz AND rentals.  I also have a handful of great friends in Milwaukee with full time real estate success under their belts that I could hook up with locally as well.

Cheers to your future!!

A few municipalities in the state have their own rental inspection requirements but the state of WI as a whole got rid of the rental weatherization stipulation over a year ago.  Yay!  It's very expensive and cumbersome to run these building inspections so you'll find most of the areas free to reign.  However, permits are still required in most of the state if you're doing work to the property.  Always check with the local building inspector in each separate municipality.