All Forum Posts by: John Chan

I agree that $4,000 in closing costs is way too much for a $10,000 transaction. As an agent and an investor, I can tell you that closing costs typically should be under $1,000 for that kind of a closing. Sometimes, the seller will pay for your title insurance if you go with their title company. I recently brought a 4 family for $26k and paid $400 in closing costs because they paid for my title insurance.

Giving the agent both side's of the commission can sometimes work in your favor. If you already know what you're doing, call the listing agent up and put the offer through him/her.

Also, I do recommend a stronger funding letter. If you are writing an offer for 20k with 14 day inspection while another investor writes an offer for 19k, no inspections, and POF showing cash funds, the lower offer may win it. I've seen it happen over and over again.

Jason,

I'd recommend instead of paying this house off, save up for a down payment for your next investment. Buy a house where value isn't already added (in this case, the house is already rehabbed). Find a foreclosure or distressed seller and renovate the property using a good contractor. That way, you will have plenty of equity. Good luck.

Kim,

Commission or Fee, you can't legally collect any payment from an agent if you yourself aren't licensed. If you have a buyer and want to make a wholesale fee, you need to get the house under contract, then double-close to your buyer.

Even they may have to advertise those properties, the agent may of given a heads up to investors he or she knows and may even try to push through a certain offer to the bank. That is why sometimes a property may be already under contract the first day it hits the market. It's not fair game for everyone.

Finding out which agent is moving the most properties in a certain area is easy. Just search the MLS under that agent's name. As for developing a relationship with a top REO agent, that takes time. You can't just try to spark a conversation over the phone. Most likely, you'd be talking to one of his or her assistants. If you're consistly buying from this agent over time, they will get to know you. Also, if you give both sides of the commission to the agent, they always appreciate that. That is from my experience as an agent dealing with REO agents.

I recently saw a 20+ unit apartment $200k value building with $70k back taxes that I was thinking about bidding on. I drove by the building, and long behold, a part of the building was previously on fire and it's completely vacant and needed a good rehab. Needless to say, no one bid on that one at the tax sale.

According to the National Association of Realtors, home sales in July are down 30%. I actually do notice a lot more inventory staying on the market in my area. However, that does not mean there isn't any money to be made on flips. There's always money to be made in investment properties.

I thought you meant "gutted" as in down to the studs. Carpet and paint is really a regular rehab.

Taking your word that this is in a good part of town, I would offer 70% of the price of comparable properties minus accurate rehab costs.

To get more leads, I find bandit signs to be very effective. I get most of my leads from bandit signs, both on the buy side and the sell side. I also run Google ads and get a few leads from people who want to sell me houses around my area.