All Forum Posts by: Michael Williams

 
Normally I would agree with you on that point. But I believe if you are in this game long enough and let EVERYONE know what you do these opportunities will present themselves. Even though I agree with you I still believe this type of opportunity exists in the high-end market so I just want to be prepared with the right knowledge and people skills no matter what market I reside. 

I remember when I first started wholesaling in Atlanta there was a builder that had a gorgeous home that he had built by hand in Alpharetta, GA. He wanted $440,000 for this home because he was building another somewhere else. He was a Master Builder. 

I went and met this guy and his wife and he said if I could find him a buyer for his price he didn't care how much I made, he just wanted $440,000 out of it. 

He had it appraised and it was worth $1.1 million. If I would have known what I know now I could have flipped that house and made $60,000. He said he was O.K. with that. I didn't have the right knowledge or right connections at that time to close that deal. 

I discovered real estate investing when I moved to Atlanta in 2015, where I did two deals then stopped. I relocated back to my hometown of Memphis after retiring from my job of 27 years. Just jumped back into real estate and used my same old tactic to get a wholesale deal. I've had a CASH 4 HOUSES sign on my car for one month and I get the attention of one of my coworkers that said they are looking to sell a house. 

We set up the appointment and I ask the textbook questions. To my surprise, I get the textbook answers. 

The seller said that he outgrew this house and moved to a bigger house because the wife (Boss) was complaining. [I know the feeling]. I look at the house and explain that I work for a group of investors that buy houses. Textbook responses:

Me: Is there still a mortgage on the property
Him: Yes about $67k (comps put house at $93k)
Me: How soon are you looking at moving on the sale
Him: Yesterday
Me: Do you want to get any money from the property
Him: No I just want it gone
Me: Will you sell for what you owe
Him: Yes, but I don't want to pay anything out of my pocket
Me: Are you willing to sign documents giving me the right to verify the amount you owe
Him: Yes
Me: There are many ways my investors can buy your house, are you open to creative ways other than cash
Him: As long as I don't have to pay that note. How soon can you let me know something, I need this done
ME: We like to cross all of our "T"s and Dot all of or "i", so we like to give ourselves 30-45 days but the goal is to make it happen sooner. I will write up a contract and we can both go over it in a week. 
Him: Great

It get's no better than that. 

His monthly note is a bit high at $810 per month. Rent-O-Meter has the rent at $934 for that area.

My strategy is to develop relationships with loan officers that have relationships with people that can afford a home but can't qualify through traditional means. The goal is to create a lease option wholesale deal that will require a $10,000 non-refundable deposit from a tenant buyer that will go towards the purchase price, which will be $110,000. I will be able to get this because the potential client CAN NOT qualify for a loan but has sufficient income to pay the new payment which will be $1,100 per month. 

I will market as a No Bank Qualifying home. I am an internet marketer and graphic designer that create my own ads. Plus I understand the power of good Ad copy and storytelling.  

I will get $10,000 on the front end, $300 (minus insurance) monthly, and $40k on the back end.  Let me know if I missed anything or can make it any sweeter?  
   

I have always told possible sellers the whole story. Just this morning I looked at a property that a coworking wants to get rid of because his family outgrew it. He moved into a bigger house and is now paying two mortgages. 

This is how I explain it to all of my motivated sellers. "I work with a group of investors that pay me a fee for finding properties that fit their criteria. In order for them to buy your house, I must do an analysis on what I think the possible repairs would be on the property and I make an offer to you based on that analysis. We first subtract 70% from the price of what the price of the home would be if it were completely renovated, then we subtract the cost of any repairs. I present the offer to several investors that will let me know if they are interested. If none are interested I will get with you to see what we can adjust to make this deal go quicker and stay within the best interest of both you and my clients. Are you O.K. with that process?

His response: I don't care, I just want it gone. I said "will you sell for what you owe? His response. "Yes whatever it takes for you to make the deal work, I don't want to pay nothing out of my pocket".

The Stress of paying two mortgages and a wife nagging you about it can be a powerful motivator. He is very motivated!!

If you truly have a motivated seller even the total truth won't stop the deal.   I'm drawing up the contract now.     

 

Hi Tom, it was just one Reminderman

Thanks Elizabeth, that sounds like a plan. 

 
Yes I am very interested, let's connect. 

One of my neighbors passed away about 20 years ago. Her husband passed some years prior. A granddaughter stayed in the house for several months but later abandoned it. The house has been vacant for about 10 years now. I researched and found out that she was a LE(Life Estate) and named, I think, her husband the REM (Reminderman). They are both deceased. I have a two part question. 

1. If both the LE and the REM are deceased what happens to the deed? 

2. If the REM is her son and I can't find him how can I approach this? 

The house was and still can be the nicest house on the block if fixed. Over 90% of the houses on this street are free and clear and they take care of their community.  I have Atlanta and Nashville investors interested in me finding properties for them in Memphis so I plan to flip it to one of them. 

If anyone here understands how the Life Estate and Reminderman works please help me out.   

 
Yes...you've put it into the universe now you are obligated to deliver. I believe in you. Happy Investing.  

Outstanding point 

Mike DeBuccio Jr.

 Mr Russell, I did not know that but I do know that there are people that dedicate their time for a bigger cause. I must thank you and others like you for what you do. You are correct many times it not just about the benefit of the individual. Please keep up the good work and again thank you and others like you.