All Forum Posts by: Mikel Graham

K, yes that is correct. The contract price has changed a bit, but not by much.

J Scott Would you mind if I sent you the buyer's package and you could look it over?

I feel that I'm not reaching the right people. So far, I've only been able to reach other wholesalers mainly. I arrived at the estimates via licensed appraisers and a licensed contractor, so I'm quite confident actually.

M

Hello everyone,

I'm a beginner wholesaler trying to close my first deal. You can see the property here...

http://www.biggerpockets.com/properties/13259-large-single-family-mansion

I only have 1 very low offer on the property that I'd prefer not to take. In any case, I need to close by July 5th.

I'm considering looking for a hard money lender and going through with the rehab myself. To be 100% honest, I have not done as much research about rehabbing as I have about wholesaling.

What advice can you offer me?

How much time is usually needed for an hml to analyze a property and disburse funds?

Please let me know.

M

Thanks guys, this is invaluable information. Bill Gulley I completely understand what you're saying, but I just wanted to be sure that my goals weren't too lofty and from the sounds of it, sounds like they are. Believe me, I'm out here trying to get it done. I've gotten a few properties under contract, but I've yet to be able to close a deal yet. Really unfortunate for one particular property, but that's how the game goes. Martin CS Thanks for the information. I've been in search of a mentor and haven't had any luck so far, but I'm still moving forward. Your numbers let me know that my goals are a bit lofty, however, it's nice to know that that level is achievable.

I have a simple question for those who have been doing this for a while and have several deals under their belt.

How often are you closing deals? And on average, how much are you making for each deal?

I have some goals for wholesaling, but I want a reality check before I get even further ahead of myself.

hi everyone,

@K. Marie Poe, my apologies. I assume everyone has high speed connection these days and didn't expect it to be too much of an issue. My sincerest apologies.

I appreciate the advice everyone has provided me. I definitely feel a little more empowered. I'm a bit disappointed that I was unable to close on this deal at all, but it was a learning experience.

I can't help but wonder though. In the future, am I always better off getting an official appraisal? Between the house inspection (300-450) and appraisal (300-350), it seems to be a hefty investment for each POTENTIAL deal that may not even sell.

Hoping my next contract will be my first successful one.

Kristine, thanks for getting back to me. I'll email you the entire package for you to review that has the appraisal and everything I put together.

And to answer your questions... My asking price was $1.05M (room for negotiation). Yes, I ordered the appraisal and have already spoken to the appraiser. They say that the comps they used were the best match.

Well, the inspection period ends today at 5PM. At that point in time, if I do not cancel, I will be forfeiting my EMD. When I advertised the property, yes, I stated that the ARV was $2M.

I wouldn't say I expected 2M on the dot, but I did expect it to be higher than 1.2M. The house was originally listed for 2M. What is a better way to approach these situations? What is a more proper way of comping a house/deal?

Hello Everyone,

I'm working on trying to close my first deal in wholesaling. I've managed to get a REO property under contract. I used the comps that my real estate agent provided to me in a CMA to calculate the ARV value. The method I used was to look at sales in the past 0-6 months, a radius of 2.5 miles (big house, with big lots), and average the price per sq. ft. When I did this, the house comps out to be around 2M. 2 of the 3 comps were sold just this past March and the last was sold at the end of December. I have it under contract for 800k and it's listed on MLS for 1.1M. The inspection period ends this afternoon and by then, I will cancel the contract.

I had 2 buyers who were more than interested in the property but needed to see an appraisal. I had the appraisal done, but it only came out to be 1.2M. The appraisal used just 1 of the properties I used. Further, all of the properties were from 2011 and one was even from as far back as July 2011. The one from July 2011 was a foreclosure sale and 3.82 miles away.

I do not understand how there could be such a large variance in my calculated values vs. the appraisal. I really need to know and understand why this happened so I can avoid this pitfall in the future.

Any advice, expertise, and insight would be greatly appreciated here. If you want, I can forward to you the complete package which has the appraisal as well as my comps analysis.