All Forum Posts by: Nadirah Dawson

@Account Closed, I so appreciate that. I'm nervous and excited all at the same time but I'm ready. Many thanks!

Wow! This was amazing feedback (I read EVERY response and literally took notes) thanks guys for having my back on this. Ok let me start answering some questions: 1) I was entering the agent fee as I was trying to offset all the costs that the buyer would incur. So that the offer would leave room for all those costs. (I guess that was wrong, I will take that out-thanks for letting me know not to do that) 2) I was scared to put the deal out to buyers until the deal was locked. I want to have all the numbers right so I can build the buyers trust. I did speak to 2 buyers that I got from Craigslist, one specifically said they wanted a house in Bloomfield, hence, my reason for searching for houses in Bloomfield,NJ but she didn't want the cost of repairs to be over $20K. That's why the estimate of repairs is so importatnt for me to get. So when I shop it to the buyers, I have accurate information. When I asked her what was her purchase limit. She said "not to worry about price, just give her a good Deal" I was shocked! 3) I did do comps, got 4 from: searchcomps.com/Zillow/ , Redfin /homesnap. Hope these were reliable sources. The highest with similar specs (6bd/3bth) was $418K... Lowest $317,000. I took the middle value price (not the Listing price) and set the ARV at $384,600. Houses in a 1 mile radius are selling at $499k (3/2) lowest $420K. I do understand that this is market price,hence my reason of offering so low, so the buyers know it's below market price, but whats even better... 4) the house is free and clear! 5) house is in a great neighborhood. Bloomfield, NJ 6) for some reason, no agents wants to walk me through this, I asked 3. I even told them I would give them a $1,000 from my profits as an incentive. 2 referred me to attorneys that own their own Title company so that was a good lead. 7) I called both attorneys and left a message for One and was told by the other they will call me back today but they didn't yet, however was the 2nd was very knowledgeable of this type of transaction so I will call them back tomorrow. 8) finally the seller, the contractor was supposed to come to the house on Friday but had to reschedule, the owner said anytime this week but when I called to meet up with him today, he didn't answer :/ I even went to the house and wrote a letter to try to clear any doubts and left my card. I hope he didn't change his mind. I don't want to be pushy or sound desperate. Like I said in my original post, he is an older man (70'ish) and very kind. We spoke 4 times, all times he was on board. The last time was Friday and now Monday nothing. Wonder if I did something wrong. I will keep you guys posted. Ur advice will not go in vain. I will post that I either assigned this house or another one... Either way, I didn't do all this for nothing. Thanks guys!

I will try lawdepot.com now!

Chelsea Tustison Thank You Thank you Thank you! Yes you have answered ALLL of my questions! I so appreciate you. I feel so much better now, like I got a plan But:) when u say go to Staples for the contracts, when I'm in the store, do I just ask a worker or is there an aisle with contracts or something. I know it's problem a dumb question but I just never knew I can get legal docs from Staples! Kindly advise and thank you!

Hello All, So I found my first deal! Kept driving by this house that showed the signs and finally got the nerve to speak to the owner. He is an older man (so sweet) who just can't maintain the property anymore. Now here comes the work... I got a GC to come to the house get an exact scope of work for repairs. I originally thought the house would need about $40k for repairs but after speaking with the owner several times, I think it's going to be more. But I don't know what steps to take first, please help! Now my question is, 1) where do I get a purchase and sale agreement WITH an "and/or assign" clause? 2) when I present it to the owner, do I just give him an earnest deposit in his hand? I was told u can give as little as $10. How do I record such deposit? 3) once he accepts the offer (hopefully), then do I send purchase agreement to my Title company ? 4) then do I shop the deal around? I did speak to 1 cash buyer who gave me her specs so I will present to her first. But I will give the cash buyer the assignment agreement to sign. 5) here is the big twist! The owner said he will need about 60 days to move all his stuff and find a new place to stay. Can this time be given to him for this type of transactions? Will a cash buyer be willing to wait that long? Was thinking to tell the owner that he will be responsible for the taxes as long as he stays in the home. 6) how can I protect myself from being swindled if the cash buyer wants to see the house, which mostly he/she will. Will the owner and the cash buyer just try to deal with each other even though I brought them together? So here is the "deal" ARV:$384,600 / it's in a great neighborhood! (6 bedrooms / 3 baths) according to the owner. Offer: 196,812 (384,600*.7= $269,229 - $40K(repairs) - $10,000(estimating closing costs) - $12,408 (estimating realtor fees 6%) - $10,000 (my wholesale fee) The cash buyer could easily make $115,392 from the property. But I need your help with this. Are my steps correct? Kindly advise and many thanks'

this is a pic of the house, I hope this is a good deal.

I hope I don't get chewed alive on this chat as I see a lot of bad ideas about wholesalers...but I am doing my first wholesale deal (yikes). The owner is an older man (so sweet) who just can't maintain the property anymore. I spoke to him several times and I will even lower my initial fee of $10K to $5K to fit his goals. Question is: I plan to go with my General Contractor tomorrow to get a true estimate of repairs on the house. I had guestimated $40K of rehab but after speaking with the owner, it might be much more.

After tallying up the scope of work, I want to come back with the offer. I originally thought to offer $196,340K the ARV for the house is $384,600. (384,600 x .7 = $269,220 - $40K repairs, - $10,400 closing cost (5%) - $12,480 realtor fees (6%) - $10,000 my fee ). House is free and clear, great neighborhood!

Anyway, I say all this because I think could be a great deal and I don't want to screw it up on either side. I need to come to buyer with a Purchase and Sale Agreement with an "and/or assign" clause. My Google search isn't bringing in any good results. Can someone kindly advise where do I get this doc? Do I get it from the Title company or do I have to find an attorney who is familiar with wholesaling for them to draw it up? Kindly advise,

Many thanks,

Thanks @Jeff Bridges, you are now the 3rd person to give that exact advise. I was just given a pre-approval for $180K, lender said best option is to use the credit cards for the 3.5% down, it would be a 203K loan, lender said stay in there for a year and then I can rent it out.

I currently have a 3 family property, I am renting 2 of the units out and am staying in one unit. I can simply move out of there, move into the house and let the rent roll from the other property help with the mortgage for the one family. Ugghh I guess you have to crawl before you walk.

I am also looking into some hard money lenders to fund the 4 unit, maybe I can do both if I stay in the SFR and then use the hard money to purchase the 4 unit. We will see, but I truly thank you for your wisdom.

Many thanks,

Nadirah

Thanks Everyone! @Emily B. that's what I was thinking (to do both)! and congrats on your deal, I know all will work out. I'm having faith that whatever I decide, it will work out as well but I must be smart about this, can't throw it all in the air and see what sticks in this situation.

  @Jeff Bridges  thank you so much for your thorough response...allow me to verify some things 1) you are right the full $60K can not be used to liquidate, for example one card is $12,500..I can only get $9,000 cash advance with an 1% fee. they all have a 1-3% fee for the first 60 days upon activating the account (introductory deal). So with that being said, the full amount that I can actually liquidate is $47K.

2) 5 cards are 12 months 0% APR the other 3 cards have 24 months 0% APR.

I've been so scared to liquidate as I know that's when the time begins to pay back, however, I have this 0% APR from the time I activated so the clock is ticking either way.

3) Jeff you make a great point about the cash out refi chances. Once I pull out all that money from the cards, my good credit score will tank so if the lender is determining their approval upon my credit score, I may be in trouble as that was the only way I could think of to pay these cards back hmmm.

uggh decisions decisions. 

Hello Everyone! I recently used this company that got me approved for 8 credit cards that gave me a line of credit of $60K...after going to a few guru classes, they told me I could use the credit cards as "investor cards" and use towards my down payment/ closing costs, I quickly realized 1) the credit cards to use for down payment / closing cost is counted as debt for banks when they determine your debt -to -income ratio. 2) They also didn't want me to liquidate the cards in the bank as they didn't want large deposits made. So now I have these cards and am not sure the best way to use them unless I find a deal where I can pay straight cash. 

Originally, I was think to use the cards as my down payment for a 4 unit. The building already has tenants and I could do a cash out refi in 6 months to pay back the cards. But I keep being told not to use the cards for a hold, but rather a flip.

 Now, there is a house for $25K, i can liquidate the cards to buy this house, use about 30K to rehab it and put it on the market to sale (the cards have 0% apr for 24 months). I can use the remaining $5K to pay the monthly minimum until the house is sold, where I can then pay the cards off and have some capital from the profits of the sale. Problem is, it's in Irvington, NJ and I don't think that area is big on buying homes but rather renting. 

Does anyone else have a good strategy to use the cards so I can begin my real estate portfolio? Should I use to flip or hold? thanks everyone...