All Forum Posts by: Keith Saunders

Hey Keith,

I agree with Mark, each state is different in what is allowed. To give you an example. In PA I can wholesale a property with a simple 2 page Sale and Purchase agreement and assign it with a one page Assignment contract. I wanted to expand to wholesaling in Florida. But, after speaking with an attorney I found out my contracts were useless in Florida. Florida requires a standard 33 page (if memory serves) real estate contract with special language just to put the property under contract. The Assignment is another 14 page (if memory serves) document. After meeting with her for over an hour, she dropped the bomb. She told me another attorney in her firm was just finishing up a case filed against an investor for wholesaling properties in FL. She thought the verdict was wholesaling was found to be not legal due to the fact the wholesaler does not own the property when they sell it to the end buyer. I spoke to a local investor group and kinda got the same take on it. More trouble than what it's worth is what I was told.

Now I never did any wholesaling in FL, and the market segment I wanted to go after was the probate market. So I can't know for sure if this is all true or not but, it does show just how different 2 states can be so different in the requirements of their contracts.

Regards,

Keith Saunders

P.S. If anyone can confirm or deny the information I was told about wholesaling in FL I would appreciate it.

Greetings All,

Personally I like a "Targeted" direct mailing campaign for probate. In which I pull my own data from public records separating the junk from the actual motivated sellers. Then I send letters every month until they call or the property is sold. I get an 18% callback and close about 83% of those deals. 

I have a much smaller pool that I send to by doing my research up front. I spend a lot less time and money by doing my marketing this way. It takes me about 30-45 seconds to vet each potential lead. And another 30-45 seconds to add the info into my database. Since I do it every day it only take me 15-30 minutes to go through the new leads each day.

I tried buying the leads from the big listing services but found a lot of junk leads. With my method I can target just the leads I know have property, must sell, and are motivated to sell. Yes it takes more effort but the shotgun approach is a waste of resources IMHO.

It's the not number of leads, it's the quality of the leads.  

Regards,

Keith Saunders

Jeremiah, I had the same kind of bids some even higher to do a similar house here in Pittsburgh. I also found a guy on thumbtack that was willing to do the work for about $8,000. Which included updating the whole houses electrical, breaker box and all new line from the pole to the box. I suggest you get more quotes as others have done. Check out thumbtack, it's a really good source for finding contractors or what ever you need. 

I'm interested in possibly moving to florida, where I know there are a large number of 55+ communities. Can you wholesale houses/condos/duplexes in 55+ communities through lets say a probate, foreclosure, short sale, etc?

I know they have age restrictions for those who live in the property but is it possible to wholesale one to another investor who plans to fix and flip or rent it out?

If so are there any restrictions from the home owners associations or gated communities these properties might be in or part of?

Thanks,

Keith

I have been trying to suppliment my wholesaling by sending out probate letters in addition to my yellow letter campaign. I finally got a call back from one of my probate letters but the the situation is less than ideal.

The home is worth about $100k ARV. or about $80k as-is. The problem is there is a loan against the home of approx $68K principle only. The buyout with be higher. I suggested a short sale but the executrix didn't want to do that.

Is there any other way to make a deal out of this other than a Short sale?

I was thinking maybe a lease option but I don't have the money to do it myself.

My next thought was a sandwich lease option.

Keep in mind I have no money, but do have a large buyers list of actual buyers.

What are your thoughts?

Not all neighborhoods in Pittsburgh are like this one. I just happen to be dealing with houses in nice neighborhoods, so the cops frown on bandit signs. I asked my friend thats a cop if they would have really fined me the $100 per sign and he said "YES". I had 20 signs out, it would have cost me $2000. If it wasn't so much of a hit I would have left them up because I know they are effective. In the low income neighborhoods there are bandit signs on almost every corner and sometimes 3 or 4 on one pole.

The only signs they tolerate in the neighborhoods I buy in are yard sale signs and the like. If I could only figure out a way to sell a house at a yard sale I would be golden, lol.

I tried that on the first house I wholesaled, The police called me less than 2 hours after I put them up and told me to take them down Immedietly or be fined $100 per sign. So when I say bandit signs are STRICKLY PROHIBITED I mean it. Although the city workers may be off over the weekend the police obviously are not. So it was not only a waste of money but a huge waste of time for me.

But, thanks for the response.

Yeah, I kinda figured that was the case. Given the situation, what would you do if you wanted to move forward with this deal?

Steve,

Do you think I should still have the home owner sign an option agreement, find the buyer then sign the purchase agreement and assignment contracts just to cover my butt? or don't you think that will be necessary?

Thanks

Keith

Steve,

I'm assuming the attorney's contact info will be on the letters sent to the home owner. If not, where would I get the attorneys contact info? The bank is CitiMortgage.

Do you think I should still have the home owner sign an option agreement, find the buyer then sign the purchase agreement and assignment contracts just to cover my butt? or don't you think that will be necessary?

As for the transfer taxes and the title company. I mainly changed title companies due to their total lack of communication on several important issues and the fact it took them almost a month to do a title search. The issue with not telling me about the double transfer taxes was just the last straw. I found a more investor friendly one that responds quickly to my questions and my needs.

One question though, do you usually split the double transfer taxes down the middle or have the wholesaler pay trasfer tax on what they put the house under contract for say $50K and the end buyer pay the transfer taxes on the assigned price say $65K?

Personally I think the state is double dipping as there are not 2 closings going on, I am mearly signing my rights to the contract over to another individual.But what do I know?

Keith