All Forum Posts by: Peter Giardini

Hey James... you are so right. Once money, easy money enters the picture there is no thing as ethical behavior.

Sad... very sad but true.

If this is a killer deal then there should not be any problem wholesaling it as long as you don't squeeze all of the profits out of it in your fee.

Your biggest challenge is how to get the word out and fast.

Determine if there is a local real estate investor association in your area and present the deal.

Put an ad up on Craigslist... there have been a bunch of discussions on how to do that here. In fact one of my clients just via Craigslist and Postlets a complete video of the their deal... a complete walkthrough of the property.

It worked.

You should also be contacting some hard money lenders to see if this is a deal they would finance and getting your assigned investor financed is becoming a real challenge today. And who knows, maybe the HML will know someone who wants the deal.

Good Luck...

Hey Nick... Happy Sunday to you too:)

Was that the right side or the left side of the bed you got out of this morning.

Oh... great post by the way...

It is because of idiots like these "investors" and I use that term loosely... that Maryland has one of the most stringent Pre-Foreclosure and Foreclosure laws in the country... and I believe 11 other states have seen the "light" and implemented their own version of this law.

Why can't investors just be ethical?

Lucia...

Thanx for sharing... I am not sure if you are looking for specific feedback... so here goes... your approach seems a bit mild to date.

As soon as I have the first indication that a tenant is deviating from the lease I start the process of keeping them off balance until they are retrained or leave.

By keeping them off balance I mean the actions you mentioned, the action MikeOH mentioned, things like doing formal Safe and Clean inspections with followups... and the first day their check bounces... into court they go.

While Mike recommends getting physically in their face... I also recommend doing the same adminstratively.

Good Luck...

Great question...

What I didn't explain is that the 40% that was taken off the top of your ARV represented the following...

Costing costs in both directions
Holding costs
Soft costs (insurance, utilities, etc.)
The investors PROFIT.

What I also didn't talk about is the approach if you are wholesaing a deal to a landlord. The approach would be different.

Great thread...

I would add that as an investor our number one job is to help sellers with their problems.

When approached from that perspective we are no longer trying to get the seller to sell us anything... but creating a scenario where we are there to help them.

Once you can make that shift in your perspective having a discussion with a seller becomes much easier.

Also, remember, the person who asks the most questions wins...

Troy... one way that I teach my clients is the 70% rule... only I recommend they use 60%.

Let me explain...

Somewhere along the line a guru, I don't know who, was teaching that the best way to determine your offer price was to take 70% of the After Repair Value (for a disucssion of determining ARV I posted a blog last Sunday related to the subject) and the subtract the repair estimate from that 70% and that would be your offer price. For a wholesaler, you just have to add in your wholesale fee on top of the repair estimate.

Lets look how that works using real numbers and 60% instead of 70% because the market is still shaky.

For discuss sake ;lets say that the ARV was $100K... 60% X $100K equals $60K.

If your repair costs are $15K you would subtract them from the $60K to arrive at an offer price of $45K.

Now you subtract your wholesale from the $45K to arrive at your offer price.

I hope this was helpful?

I would add one more question to Benolyn's list...

What guarantee will the PM give for tenants they place? For instance if the PM charges one months rent for placing a tenant and that tenant is evicted or quits the lease within a certain period of time will the PM find a new tenant without cost to you as the owner.

The last thing you want is for a PM to be churning tenants.

Rich... thanx for the feedback and reminder.