All Forum Posts by: Zach Schaar

@Dean Suzuki

Welcome! Your experience and what you've accomplished is to a level I only wish to be at. Very nice. I hope to learn something from you and everyone else here on Bigger Pockets.

So again, welcome from Columbus, Ohio!

So there is no follow up address, but does it have a name at all of the owner? If it does, you could always do a people search or contact your county auditor or city development program for more information!

Thanks Edward.

I am just concerned with myself being too conservative or not. It is one of those properties that everything is perfect except for maybe one or two things. My profit margin on this property would be low, but none the less, it is a profit. I just think it would be a gamble. I guess I will chalk this up to experience. I may do a modified contract offer or throw something in there that will give me more flexibility if the seller allows. Always something new.

Wholesalers....

What do you do when you feel as if you could get a property under contract that is really, really close to being a deal, but in some instances may be a bit under your criteria requirements what you would normally contract?

For example, without being too specific, you can get the house under contract for X amt, but the seller is firm, no way of getting it cheaper. At the sellers price it is very very close to being a deal but not a clear cut 100% deal.

Should you take the chance and tie up the sellers property not knowing for sure if your investors will snatch it up? Or should you pass, save your reputation (if you can't sell it), and wait for many of the other good deals to come along?

Thanks, just wondering what everyone's input is.

Trial and error, my friend! I definitely think it is a unique idea that has positives and negatives. I think you are completely correct by trying this on a smaller scale first. I would be interested to see your results!

I have thought of something similar however as you mentioned maybe sending like a voucher or postcard with some fine print to cover you so it's not a guaranteed offer and you end up with something you don't want or can't sell. I personally think this would be better than an actual p&s agreement. That may be intimidating to the average person who is not use to looking at contracts.

Just my 2 cents!

Of course! $10k is a better deal than $15k right? I would definitely use the repair cost as motivation for the seller to drop the price. You may have a tidy deal on your hands my friend!

@Bill Gulley

Thank you so much! I seem to have a tendency of over thinking things!

How would I write this situation into a contract....

Amount to seller at closing: $2,000.

Amount to back taxes owed: $500

Total Due At Closing From Buyer: $2500

These numbers are just examples to make it easy. But what's the best way to write this stuff into a wholesale contract? Should I do a sale price and then add an adendum for the back tax?

Thank you!

Brandon,

It's good that you are starting and interested at a young age. It appears you have a couple of things going on here. One being you want to rehab homes, and two being obtain rental properties. These can work well together or are good using only one of them. Rehabbing or "flipping" the houses will give you faster profits, while rehabbing then renting out will take a bit longer to get your money back. So, I would first ask yourself how quickly you want to see a return, and what type of income is right for you.

Also, being a college student, do you have credit? If not, there are many ways you can obtain property without credit per say. Seller financing comes to mind first off. I would not recommend hard money lenders at this point in time because you're new and in school. I would focus on learning on sites like Bigger Pockets, and really studying your market. If you want to invest without money, then there are ways to do that, as I mentioned.

Best of luck.

ALSO regarding your question on obtaining a real estate license. I would strongly encourage getting one. It will expand your income vehicles and you will learn and meet alot of people in the process. However, it is very expensive to get and maintain your license, and if you're not making money to pay for it all, you can easily end up in the red.