All Forum Posts by: Ed Kahle

Have a property under contract to flip. Got an bank approved buyer with conventional fixed rate financing. FHA seasoning requires the deed of record to be in the sellers name for 6 months. This is a probate property I put under contract to wholesale. Then heirs have just cleared the seasoning time frame.

Question:

My buyer can purchase directly from the heirs but not me because the deed is not in my name.  The bank will not do a flip by a double close.   Can I sell my contract to my buyer and let him close with the heirs without me being involved at all in the closing?  My buyer has enough cash t do this.

I have a probate property under contract. I have a buyer who wants to purchase with a VA loan from USSA Mortgage. What are the seasoning requirements? Can i flip with an assignment or double closing? Can I close this with my own funds and then flip the next day to my buyer?

I have a friend who is willing to lend me 100% needed to purchase, fix/flip properties.  He would get 15% interest with principal and interest due when I sell the property.  His loan would be secured as first lien holder for the property.  We will be investing in properties we can turn around in four to six months.  I'm a retired builder so I will be doing all the work to maintain full control and we are working with a Realtor who agreed to sell at 3%.  Presently I wholesale full time.

Question:    Is there a place outside of hiring a lawyer to find a simple  legal agreement form to use?

I just started probate mailings this past December.  Scored first mailing closing a property on an assignment of $10,500.00.  The owner deceased in late October and the date was early January to settle.   I've been doing absentee also.  Sometimes get a 7% response, sometimes less than 1%.  Seems mostly curiosity as to what they could get if they did sell.

I decided to stay with probate so each week I do about 70 new letters.  I get the list from the local paper.  Some names list the Executor's address but many list only the attorney's address.  If I want to follow up mail these four to five times per year, would I keep sending to the attorney?  The paper doesn't give the executor address or estate address, many times so what should I do?   Is there a list somewhere giving heirs addressees? 

Has anyone wholesaled a lease option for a fee from the buyer?  I have some older wholesale properties I've offered for cash sales but can't move them.  I get calls to purchase as lease options more than cash sales.  If the seller goes for it, I'm considering on assigning the lease option to my buyer.  Sell for $5,000 down plus terms and buy for the same terms with $2,000 down, where I would retain the difference, $3,000 and assign the terms and walk away.

Has any one done this much and are there pitfalls to consider? 

Anyone use flat fee MLS to list wholesale properties? Any suggestions on which one to use?

I use listability. Yes be careful about ho the site lists equity. Listability uses LTV range so I use 0% - 50% loan to value. Other list companies may do it different. I stretch it out so if I can manage the amount of leads coming in. My target area is Concord, NC. There's allot of motivated leads there, problem is competing for buyers in next door Charlotte. Yes getting them under contract is a big hurdle but if you can't sell them it's in vain! Folks from Concord seem to think they can sell for Charlotte prices too which is another problem. Always something!

My list of multiple zip codes has 1,844 names so after three months, I'll resend it all over again along with new ones.

I'm going to start a new list next week for Charlotte itself.  Less inventory but maybe easier sales?  I do my own yellow letters off of my printer to save money and hand address the envelopes too.  Doing 125/wk. doesn't take too long.  I found that this is the most productive cheapest and quickest way to get motivated sellers.  

I'm working on how to find motivated buyers as easily!

Use absentee owners, that gives you properties that the owner may rent out, second homes or vacant homes. Use LTV range. Look for 0% - 50% range. That ensures equity. High equity owners have the ability to sell at less of a price, usually have owned the property a long time meaning they may want to dump it. Then you can the type of property, single family, condo, multifamily, etc... Works great for me! I do 500/mo. nailed out 125/wk. Last month I got about 8% return calls and put four leads under contract. Not too bad!

I got a deal under contract. ARV $76,500. Concord NC. Good neighborhood. Rents go for $700 - $800/mo. Asking $53,550. Two weeks. Two prospects to view. Listed Craigs, Zillow, ebay, owners.com, Postlets. Offered it at two REIA meetings. Dead!

I had a cash buyers list from Cameron Dunlap.  Used it once decided it was a generic list from records that was a waste of money and time.

Any ideas out there how to find buyers?  Maybe it's because of the season but it is the Charlotte metropolitan area!

Any thoughts would be appreciated.

REO's are risky compared to owner owned. There's a whole lot more earnest money and terms involved. Look for vacant properties with equity. Do a yellow letter campaign targeting absentee owners, high equity in an area you find desirable. Do it yourself to keep costs down. Use Listability.com to source your leads. Target 500 - 1,000 addresses per month. Do your due diligence on the motivated sellers that responded. Get some good comps. through Zillow or Redfin. Estimate the repairs/upgrades. Homwyse.com is a good place to fine tune this. Determine if the area is a sellers or buyers market to base the offer on, either 65% or 70% ARV minus the repairs/upgrades. Put the property under contract for $10.00 to make it legal. Market through networking REI's, Craigslist, Zillow, e-bay,etc...., asking at 70% - 75% ARV minus repairs/upgrades. Assign contract at closing to your buyer for your fee. Walk away with 5%. Simple low cost investing. Do it again. It takes time and work but it pays.