All Forum Posts by: Krishonda Johnson

When you get more experienced you will look back and laugh about it all.

That is how I was when I first started. Fight (waste time) for every deal. The more you fight, the more desperate you seem, hence unlike everyone here I do not follow up.

I have plenty of leads to be arrogant picky and basically a pre-Madonna.

If you try to play me I say goodbye. If you try to argue with me, it is bye.. if you give me any resistance.. GOOD BYE.

Why ?

How?

This is why and how:

Every day I get leads, every few hours. I have more leads than I know what to do with them. All this for free. My website simply performs splendidly.

When you are this far, why would you fight for a great lead, when you have 3 other FRIGGIN SICK CRAZY AWESOME leads in your inbox... AND knowing that by tomorrow I will receive an other 5 crazy leads.

Anyone that spends so much time trying to make a deal happen is forcing it... and you give the image that you are a small time investor, and thus people walk all over you. Play hard to get if you do not have all these leads come in.

Fake it till you make it is a real thing.

My advice is to spend your time automating lead generation and less time fighting to make one deal happen. It is an investment into your future of the company. I get you need a deal NOW to proceed. You need money... sure I get it.

But, do not neglect company growth just to make a few grand right now.

You need a plan and a strategy and you need to follow that plan, always!

@Krishonda Johnson ARV cannot be calculated by a program. You have to use sold data. Remember ARV is an educated guess of what a property will sell for once its fixed up. You HAVE to look at the similar properties in the neighborhood that have sold. Youve gotta look at the pics to determine condition. There is no program/technology/algorithm that can do that. Thats why Zillow is always inaccurate. Find an investor friendly agent to help you get comps. Pay a contractor to walk your properties with you to get repair estimates.

If you are in TX you should be using the TREC. Dont listen to anyone who says to use something else.

If your price leaves the buyer room to make money then dont negotiate. Just because buyer wants to negotiate doesnt mean you have to. But if you do an assignment the buyer will see your assignment fee. Thats how you get paid. If the fee is big enough that it makes you worried that it will ruin the deal then do a double closing instead.

Best price range of properties to market to is 250k and below. Delinquent property taxes are hard because it takes so long for the county to do a tax foreclosure so owners are less motivated. Best thing to do is to get multiple lists and look for overlap with your delinquent list. Divorce, eviction, preforeclosure etc.

Keep asking questions. It gets easier the more you do it.

@Krishonda Johnson If its a good deal buyers will be easy. ‘Good' and ‘deal' are the operative words there. You dont have actual comps (MLS is the only place to get SOLD data in TX) you dont know actual rehab numbers, you are trying to buy a house that has a considerably smaller buyer pool than the average home. If you are a buyer buying this property to rehab it and your goal is to sell it for $950k how many people are buying 950k houses? How long will it sit on the market before a buyer comes along? You think $1,000 is an acceptable EMD for a house that you say has an ARV of 950k? Your estimations on closing costs were way off. You have to calculate what buyer will pay to purchase as the buyer AND what they will pay when they sell. All of these things are essential for a good deal. The numbers show that this isnt that good of a deal.

You posted here asking to know if this was a good deal or not. Its not.

You are displaying the reasons that wholesalers get such a bad reputation. Inaccurate ARV, inaccurate repair estimates, incorrect contracts (you are in TX you should be using the TREC), wholesaling properties off the MLS, inability to put up reasonable earnest money.

Please dont become the type of wholesaler that gets repeatedly bashed here on BP and in the real estate community in general.

@Krishonda Johnson Here are a few things to consider. 1. Once you get this house under contract who are you going to wholesale it to? Do you actually have buyers that you know would be interested? 2. You put the ARV at 950K, how did you arrive at that number? How did you arrive at 200k for repairs without having been inside the house? Also, what state are you in? If you are some place expensive like CA or WA your numbers will make a little more sense. 3. Do you have money to put up for EMD? Because the house is listed the realtor is going to require it. And it will probably be a substantial amount given the price range of the house. 4. Having a purchase agreement and a title company that does assignments is a pretty important piece. 5. Personally I feel that wholesaling off the MLS is a no no. Think about how this will go, lets say you get the house under contract and you send an email to your buyers list. First thing they will do is look up the house and do their due diligence. They will see that its listed on the MLS and there isnt anything preventing them from calling up the agent and telling them they can offer more for the property. Agent will cancel contract with you and accept the better offer.

Obviously I cant tell you what you should or shouldnt do. Like I said before I see a lot of reasons why this wont work. But part of being a new wholesaler is having learning experiences like this. If it works out thats fantastic and if not at least you gained some valuable experience. Good luck and keep us posted.

@Krishonda Johnson Congrats on your first learning experience. I am going to assume from the numbers that you are somewhere in California or NYC or some other high priced market. If you are in Dayton OH though thats another story....

Here is how I see this. This is not a deal. When you are new you are a hammer and every home is a nail, which you will learn through experience is not accurate. This is not a deal. Most of the sellers/homes you encounter will not be deals. The guy wants a million dollars for a property that appraised at 700k. Red flag number 1. His level of motivation is pretty low red flag 2. The property is listed with a realtor, red flag number 3-7!!! Listed properties are very rarely (almost never) going to be a deal.

My advice is to move on to the next one, this one is going to waste your time which is too valuable to spend on sellers who arent motivated or houses for sale that arent deals.

Also in looking at the numbers, if it appraised at 700k the guy would have to be a moron to sell it to you for substantially less than that. And if he has a realtor Im assuming he has signed a listing agreement with that agent) it gets even more complicated because that agent doesnt want to get cut out of a hefty commission.

This isnt a deal. Move on to something that is.

@Krishonda Johnson as an investor I'd rather see 50 pictures on a google drive than someone leses repair estimates. You can spend a lot of time on repair estimates and as long as you do not have a definition of the "after repair standard is" you can't tell how much work is needed. I see posts that say it needs only 10k in repairs - turns out more like 40k to bring the property up to our standard. Some people will call a kitchen okay, others will gut it an replace. So, you are absolutley correct, it depends on what your final product is going to look like. Any experienced investor knows what cost are involved, so I don't think you need to spend the time to break it down. 

Good pictures and the address are really all I need. Here is what I would like to see:

• a set of exterior pictures incl all 4 sides of the house, the front and back yard and the garage
• a picture of every room
• several pics of kitchen and bathrooms
• furnace, AC, water heater, electric breaker panel and electric service outside
• basement walls, cracks if any, water stains, any puddles
• a close up shot of: a sample window (the frame, not the glass), flooring, siding, roof shingles -  if possible
• anything else that needs attention or is broken (crumbeling chimney, a huge fallen tree, water stains on the ceiling etc)

Better to take the pictures with an actual camera with a real flash, cell phone shots are usually not good enough, because they turn out too dark and don't show details. A little pocket camera will totally do. Load the pictures into the cloud, send me the address and a link and let me know how much you are asking for; that's really all I need to tell you if we have a deal!

@Krishonda Johnson Congrats on your first learning experience. I am going to assume from the numbers that you are somewhere in California or NYC or some other high priced market. If you are in Dayton OH though thats another story....

Here is how I see this. This is not a deal. When you are new you are a hammer and every home is a nail, which you will learn through experience is not accurate. This is not a deal. Most of the sellers/homes you encounter will not be deals. The guy wants a million dollars for a property that appraised at 700k. Red flag number 1. His level of motivation is pretty low red flag 2. The property is listed with a realtor, red flag number 3-7!!! Listed properties are very rarely (almost never) going to be a deal.

My advice is to move on to the next one, this one is going to waste your time which is too valuable to spend on sellers who arent motivated or houses for sale that arent deals.

Also in looking at the numbers, if it appraised at 700k the guy would have to be a moron to sell it to you for substantially less than that. And if he has a realtor Im assuming he has signed a listing agreement with that agent) it gets even more complicated because that agent doesnt want to get cut out of a hefty commission.

This isnt a deal. Move on to something that is.