All Forum Posts by: Jeremy Gonzales

I'm curious to know how your deal worked out. Any feedback?

@Will R. - I actually use Lynn's spreadsheet a lot but in 78702 nothing I plug in there even comes close but still gets snatched up. That's why I'm looking for other ways to evaluate since I can't make any sense out of them. 

@Mike Wood - I'll go that route and evaluate some of these crazy "deals" out here and see if that fits this area more.

Thanks!

I'm hoping to get some insight from a builder's perspective. How do you quickly analyze a lot if it is to be a scrape and build. I'm in Austin and am just dumbfounded by price that people pay for scraps out here so I'm thinking maybe I'm looking at it wrong. 

Any insight would be greatly appreciated!

Just throwing my 2 cents in here and giving you another way to look at wholesaling. When you wholesale, you're not selling a property you are merely selling your rights to purchase the property at a later date. You're selling a contract. 

I'm not familiar with Oregon real estate, but I've been doing this for 3 yrs here in Texas as a licensed agent for a brokerage that specializes in wholesale deals. With that being said I would read the state's promulgated real estate contract. If it doesn't say anything about the contract not being assignable then there should be no issues.

*I'm not an attorney of any kind and not giving any legal advice blah blah blah...

I'm a licensed realtor® with an investment background. I worked for a fully licensed real estate company that specialized in wholesale deals so I'm very familiar with the general needs of real estate investors. If there is anything I can do to help you out feel free to shoot me a message. I'm always happy to help.

Depends how quickly you need to close. Banks will give you better rates but will generally take longer to close. I would recommend Horizan Bank ( I can dig up the contact info if interested), they are local and I've had a client who closed several deals with me who uses them. Never had a hard time closing on time.

If you need something to close fast, hard money is the way to go. The rates will be higher but they can move quickly. I have a great contact that can get you a hard money loan with 3 points and rates as low as 10.75%. Let me know if you need either one.

I'm going to play a little bit of a devil's advocate on this one because I know where they are coming from. This is actually fairly common in a hot market like Austin, TX is right now. We have a ton of realtor's that will list properties well below the 80%-rehab rule (yes it's about 80% here in Austin because it's that competitive here) and have a highest and best due in 2 or 3 days for the sole purpose up driving up the bids. 

The wholesale could have a good working relationship with the wholesaler (because they have worked on other deals together) and pushes the seller to go with that wholesaler. Now the wholesaler has equitable rights in the property but could still fall under the 80% rule and still be a deal. Not to mention that tons of house on the retail market are selling 5, 10, even 20% over list.

There are too many variables to just tell us the list price and what the wholesaler is offering it for. You have to keep in mind that the wholesaler's true role is to save you time. You are paying a fee to have them hunt deals down for you. Who cares if he got the property for well under list or well over list, if the numbers work for you they work and if they don't they don't. 

Everyone says, especially those who work in real estate, "if it's on the MLS I could have found it myself". The truth of the matter is could you really? Do you truly have the time to be the first one to catch it on the MLS, figure out the ARV, get out to the property to assess, drive the comps, and then be the first person to put the offer in? What about running your business, putting out fires, etc, etc.

Again, just playing the devil's advocate =-)

From my understanding Denver is a pretty hot market like the one I'm in here in Austin. I'm a wholesaler myself and I have buyers that will go up to 85% on a deal if they can get in and out fast. It seems that markets like these the focus is turning more to "how much can I make in what time frame."

Another thing to consider (and I have a several investors who do this) is if they run multiple projects and run a full time crew that they want to take care of they will gladly take bunts and singles just to keep their crews working, feed and happy.

Try shooting a couple offers in at the higher percentage and see what happens. Worst case scenario you just cancel the contract. 

Hope this gives you some insight. 

Thank you all for the feedback. This is why I recommend BP to anyone who is looking for information about REI.

I'd like to chime it that Texas can fall anywhere in the ranges depending upon city. San Antonio is definitely going to be on the lower end but an hour up the road you have Austin and there will be a dramatic increase in price here.