All Forum Posts by: Ozzie Konar

Thanks for the detailed explanation Steve. I have one question though, how often does these kind of tax sale auctions take place? i couldnt find that information?

Brandi;
I wish you are near my area, but you are too far away unfortunately. I am PA.

Steve;
I asked the owners if the title is clear, they all verbally verified it is. I am waiting for my option contract to be signed and sent back to me. It's one of the contengincies in the contact that it needs to be clear or I am out.

All right people!!!!!. Here are the results of the first day on the battlefield.

House #1
The owner of the house was also an investor, he said that he got the house from Tax Sale (not sure what that means, but will look up in bp). The house was totally gutted out, needs a new roof, rewiring of electricity, the only thing the house had standing was the 2 by 4s. But the structure is solid. Estimated repair is between 40K to $50K.
His asking price is $10,000. He agreed to put it under option the purchase contract for $5,000.

House #2

This is a 2 family house, the owner said it can be converted to 3 family. This is also a tax sale. Estimated repairs on this is about $45K to $55K. He asked for $15K, I negotiated it down to $6,000.

House #3

Another Tax sale. Estimated repair is about $25K, he asked for $7,500, negotiated down to $6,000.

They all agreed for me to try to sell the property for them. So that was a big surprise for me !!!. Maybe I am missing something, but not sure what it could be at this point. But they were all investors who would buy home from tax sale and either sell him to make a couple of thousand dollars or fix it up and sell it.

Let me give you some details about the houses i will be seeing so maybe one of the people who have done it before like you would catch something i haven't caught.

Properties:

1.) It's three partners who are planning to seel this 3 family house.
Their estimated repair for the house is about $50,000. They woul'd like to sell it for $10,000. Their estimated ARV is $90,000.

So I printed my rehab repair cost form and I will walk around the house to see what my estimate will be. Then I will talk to my re agent to pull me the comp in that area.
I will also see if they allow me to take alot of pictures.

2.) This is half of a double with three floors. Single owner asking for $7500 cash, and says that the house needs to be gutted out, needs new roof and everything else.
I havent done a thrill researh but the ARP value in this area seems to be around $40k to $50K.

3.) Single owner half of a double asking for $10,000. I dont know much about this, i will find out on Saturday. the owner hasn't confirmed the time yet.

And i told all of them that i might buy the property but if it doesnt serve my needs, i will work on finding a buyer through my investor friends.

Thanks Jerry. These are the kind of comments that help newbies like me make fewer mistakes on my road to success in wholesaling.
I am seeing 3 properties this Saturday, planning to put at least one of them under contract.

Hi everyone;
I found BP about a month ago and have been on it since then almost every night for at least an hour. I am a beginner wholesaler like alot of poeple who are just starting with real estate investment.

Since this section has the most information in BP regarding wholesaling, I spend most of my time here and can't help but notice that a lot of people ask very similar questions without really looking up to see if it has been asked or answered before.

So from what I learned from BP and other sources I wanted to create a step by step structure of a wholesaling deal from beginning to the end.
I am not doing this because I believe I am an expert wholesaler (not even close, I am working on my first deal) but my goal is to have this list analyzed by experts, and investors, gurus, coaches here in BP and tell me if I misunderstood something, if I am missing a point, if I am not ready yet or etc. So hopefully it will help me and beginners like me to create road map to be successful in this venture.

Please, please correct me if I misunderstood a step, and missing the correct information

Here it comes;

1.) Educating your self about wholesaling and choosing your geographic area to focus on.

2.) Build your buyer's list and Power team (RE agent, title company, Lawyer).
I am not going into the details of how to do that since there are alot of great posts about that in the forum.

craig's list
facebook
bandit signs (where they are allowed)
preforeclosure lists
calling the number on "for rent signs"
networking, REI groups etc.

3.) Marketing materials

Business cards
car magnets
bandit signs
flyers
yellow mails

4.) Finding the property and being able to analyze it
a.)Finding the property:
online (craig's list etc)
auctions
distressed properties
house for sale by owner signs
pre-foreclosures

b.) Analyzing property:

How much for repairs?
what kind of repair?
Clear title?
how long to close?
ARV?
FMV?

5.) Negotiating the price and putting it under contract;

After doing above due diligence, negotiating the deal down to a price where you can add your assigment fee and still have the end buyer make money from the transaction.

-Be able to explain to the buyer who you are and what your intention is as a wholesaler.

-take a lot of pictures of the property

-have the buyer sign a option to purchase contract.

-Send your earnest money to your title company.

6.) Finding the end buyer.

Blast an e mail or call your buyers about the house.

If the interest is high, have an open house where you can have them come in the same day, (bidding war)

Have the buyer sign the assigment contract.

Try to collect a portion your assigment fee at signing the assigment contract.

Have the owner sign a purchase and sale contract with option to assing.

Send it all to the title company,

7.) Get your assigment fee at closings.

Any comments, criticism, or corrections are highly welcomed??????

Sorry for taking this much space.

It seems like getting all Jersians together over coffee or lunch generated alot of interest. Thanks for the idea Chris.

Would everyone be available to meet somewhere (we will pick the place later) on Saturday, Jan. 21st?

I am really exited about this idea, let's see how many people could join us....

Brian;
Thanks a lot for giving me a couple of cities to focus on, it will definetely help me narrow down where i put my mind into since I can't be searching for properties everywhere.

Al;
Thanks for the welcome. You are right, I came across alot of people from NJ in the forum. Even though we are from different parts of the Jersey, we should be able to get together to network every once in a while. I am down for it.

Thanks Rob. I enjoy reading your comments on the forum. It looks like you are one of the most experienced people on this site about wholesaling.

There definetely is alot of useful information here about wholesaling, and that should help me get starterd asap.

I meant to ask my New Jersey people what geographic area would they recommend me to focus on for wholesaling in NJ. Any help would be appreciated on that.

Thanks everyone for a warm welcome. Brian and Chris, I have lived in Caldwell for a long time, but 3 months ago, I bought my first home in Portland PA by poconos, and moved there.
I am an outside sales rep, working in NJ around Rockaway area, and even though I haven't really chosen where I would focus on for wholelsale deals, Rockaway is one of the first places I will look into.

Any recommandation on what area to focus on would be highly appreciated. ?