All Forum Posts by: Matthew G.

Not sure if this is the right part of the form, but it's kind of a legal question.

I have a PSA that a fellow investor generously provided. I am planning on making offers on several houses I inspected in the past few weeks.

I would prefer to email the offer to the sellers, but is that a good idea? My plan is to fill out the offer with all financial details, inspections periods, contingencies, etc., sign and email it to them.

I just want to make sure this is a good idea, as I would be sending them a contract with my signature on it, but they would not have signed it yet.

Any thoughts would be appreciated. Thanks!

I did not know that's what was happening to the old bannister mall @Mike D'Arrigo. That will definitely boost the properties in Grandview and the surrounding areas.

I am buying the properties to wholesale to another investor.

Thanks for the info! I will definitely ask for the leases and management agreement.

Also, I forgot to mention that the seller also mentioned some sort of clause in the management agreement that states if the property owner decides to sell the house, they have to use their real estate agent when selling the house. It seems like that would be something they can't control, but if so I hope that doesn't break the deal. Does that sound like a normal clause?

Hey @Rapheal Pickett. I'm a wholesaler in the area that focuses on e-leads. Let me know if you want to meet up for networking!

Hey everyone,

I'm working on buying two houses from an out of state investor and things seem to be progressing well (inspection of the second house today). However, he mentioned that the management agreement he signed with the management company has an exit fee. He seemed a little unsure as to what that fee exactly was, but is it standard for there to be an exit fee of around $2k?

Also, would it be rude for me to ask for a copy of the management agreement? And a copy of the current lease with the tenant?

These will be houses that I wholesale. Thanks for the help!

Welcome to BP here in KC!

Thanks for the feedback Joel, just wanted to make sure I wasn't missing something!

Hey everyone, I just made my first offer last week on a possible wholesale deal. I just thought I would ask for someone else to take a look at it to make sure I didn't offer too low, since it wasn't accepted.

I got the lead from my lead generating website (yay!). The property owner is the son, who just moved his mother to a nursing home. The house is owned free and clear. It needs a lot of updating, but seems to be in good condition structurally. He doesn't seem terribly motivated, but motivated enough to reach out to investors. He just retired, and isn’t sure if he wants to pay for all the repairs or just sell it.

My main issue is there are not a lot of good comps for 2/1s in the neighborhood, they are mostly 3/2s, and this house is smaller than the rest. Here are my comps:

Seller's House: 792sf, 2br 1bth

ARV Comps within the same neighborhood, last 5 months:

$94,500, 2br/1b 810 sf ($116/sf)

$82,000, 2br/1b 958 sf ($85/sf)

$96,000, 2br/1b, 1,272 sf ($75/sf)

There are a lot of 3/2 or 3/1 comps in the area in the $110k to $120k range. There are several cash deals in the area for 2/1s, although I think this house is in better shape looking at them (all 2/1s):

$45,049 792sf

$41,000 815sf

$52,000 1,128sf

$35,000 725sf

$69,000 888sf

$34,653 1036sf

I came up with an ARV of $83k. The second comp above is the oldest, and looking at the values for other fixed properties in the area I feel that's about right. With the limited number of comps, it's hard to tell though.

After figuring up costs to refinish floors, gut and update the bathroom, update the kitchen, and repaint interior/exterior, I estimate the repairs to be around 14k. I based this off figures from J Scott’s book.

$83k (ARV) * .70 - $14k - $3k (wholesale fee) = $41k

I made an offer at $41k, and the owner was hoping for $50-$60k. Can I go any higher on my offer?

I plan to follow up with the owner here in a week or two just to see how things are going. Thanks in advance!

Sean, as you have said, you can get most of the information for free if you search hard enough. The trick is just knowing where to search.

If you are interested in wholesaling, I would recommend you read Steph's blog flipthiswholesaler.net. If not that site, there are several other people who offer personal experiences for free, including on these forums.

Graham, as other people have mentioned, I would recommend finding a local REIA group. Personally, I went to several meetings before finding a mentor. You will find after a few meetings the same names come up. Try to talk to those people if you haven't already.

The act of attending meetings and networking with people will really help you in finding someone who would be willing to help and/or mentor with you. Good luck.