Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Ricardo Acevedo

Ricardo Acevedo has started 4 posts and replied 17 times.

Post: I need advice on a Wholesale deal!

Ricardo AcevedoPosted
  • Rego Park, NY
  • Posts 17
  • Votes 2

I learned that the property has hardwood refinished floors, new windows, a new roof, and new plumbing, even though I took a look inside the property and could have known that myself had it not been the first property I ever looked at inside and if I wasn't so focused on the age of the home itself.. I am most likely going to start a seller's contract with the seller and have my name on it with and/or assigns next to my name, so I can have a buyer purchase that contract from me. I'll have exit clauses in the contract in case I can't find a buyer. Although, I am getting more confident that I will. The only thing I am truly worried about is the chance of there being asbestos. How can I find out if there are any from a reliable source? Would I be held liable if there are asbestos found later, since I never actually owned this property?

@Kaye Thompson How much does the seller want for the property and how much are you selling your contract for? Maybe the spread is not enough for a buyer to want to spend 2-4k and their time.

Post: I need advice on a Wholesale deal!

Ricardo AcevedoPosted
  • Rego Park, NY
  • Posts 17
  • Votes 2

@Jeff Copeland Previous seller was asking for 265k down to 181k until it was foreclosed. Now its the original lender's headache, and possible a nice little jackpot for me. Would rehabbers touch such a historic property? There could be asbestos, too. I am also hesitant to ask buyers if they would invest into a property like this because I don't have the seller's contract, yet, so I don't want to market a property that does not have my equitable interest, or even have the property bought right under me. 

Post: I need advice on a Wholesale deal!

Ricardo AcevedoPosted
  • Rego Park, NY
  • Posts 17
  • Votes 2

Hello, everyone. I have my focus on a property that seems to be a great deal, but I don't know what a buyer could possibly do with it..so I don't know whether I should have my lawyer make a seller's contract to begin the wholesale process. It is a colonial style home built in 1850 with 3 beds and 2 baths. The parking lot is paved and excessively large enough to park more than a few cars, 10 school buses can fit in the lot. The home was last sold for 272k in 2007 and the owner had no luck in selling the property starting in 2011 through 2014, until it was sold foreclosed back to the lender. The lender has been unable to sell the property and now wants only 100k for it. I contacted the seller and was given the key codes to look inside the property, so I did and took many pictures. I have a buyer in mind that is actively rehabbing homes and recently told me he has 50k in cash and can get loans for the rest on a great deal. The comps show this property is valued over 200k. Here lie the problems.. I am new to wholesaling. I do not know the rehab costs of the property even though I took a look inside because I am new, but I did take a lot of pictures, and could possibly revisit inside with a contractor for an estimate. I cannot calculate ARV x 70% - repair costs for my MAO because I don't know the repair costs and the property is so old I do not know if my comps research would reflect accurately for an After Repair Value. Theres also the chance of there being asbestos. I know that real estate is a game of opportunity, and the profit is made in the acquisition. I've focused on finding buyers and then sellers, but I've read that you should get a seller's contract on a property when it is a really great deal and the buyers will follow. If I do choose to do that then I could put exit clauses in the contract. What should I do?.. This will be my first wholesale and want to make the best moves right now. If the move is go on to another property then I will.

Thank You

Post: Comps

Ricardo AcevedoPosted
  • Rego Park, NY
  • Posts 17
  • Votes 2

@Kurt Naletko

Okay, would you know the range that the compensation varies by? I understand there are different markets and agents, but I don't want to overpay disproportionally. Do you have a ball park idea? Have you used an agent to research your comps? I actually have access to the trial version of RealeFlow and they offer full CMA in the paid subscriptions, but thanks for the heads up because that does bring up another option now. I'd rather not waste my own time finding low quality comps, so I'm looking to have someone else or a system do it for me more accurately while I work on finding other deals and buyers.

Post: Comps

Ricardo AcevedoPosted
  • Rego Park, NY
  • Posts 17
  • Votes 2

Hello, what is the best way for me to research or outsource the researching of the comps around a potential deal that I would like to wholesale. I am fairly new to researching comps and have been using zillow.com, trulia.com, and home.com. There is sometimes a significant difference between home.com's "Off Markest Estimated Value" and zillow.com's "Zestimate". I do not have access to the MLS. Should I have a real estate agent research the comps instead? and what immediate forms of payment would I gave an agent besides a future referral or comission?

Thank You

Post: Contractor Rehab Evaluation Fee

Ricardo AcevedoPosted
  • Rego Park, NY
  • Posts 17
  • Votes 2

Thank you for the inputs based on your experiences, everyone!

Post: Contractor Rehab Evaluation Fee

Ricardo AcevedoPosted
  • Rego Park, NY
  • Posts 17
  • Votes 2

@Brian Mathews I would pay if it's worth it or common. Everyone is telling me it should be free or there should be a cost if the contractor values their own time. I'm just trying to get an idea of the rehab costs since the seller would most likely miss a few important details when showing their property. 

Post: Matched Buyer & Seller (Help!)

Ricardo AcevedoPosted
  • Rego Park, NY
  • Posts 17
  • Votes 2

@Devan Mcclish I thought even a $5 earnest deposit was mandatory, but thanks for letting me know that you personally have done deals without an earnest deposit. I'll keep that in mind. Okay, before I put a property under contract I'll follow the wholesale formula of ARV x.70 less repair costs less my wholesale fee until I build experience and can make the occasional exception. I will be sure to have contingencies in the contract. I'd rather lose a piece of the profit due to double closing than make no profit if the seller was unhappy with my double digit win. I do not know how much double closing will be in New York, but I will find out. Thank you.

@Christopher Goldie Okay, I now understand that I have to have an interest in the property, such as having it under contract to show it to a buyer, or I will be acting like a real estate agent without a license, which is illegal. I'll speak to my real estate lawyer to explain the exclusive contract with the buyer to me more clearly; I might have misunderstood. However, I wouldn't need an exclusive contract if I have the property under contract before I show the buyer the property. The only reason I have been more focused on the buyers than the sellers is to avoid being stuck with a property under contract without buyers. As long as I do the comps, repair costs, and after repair value numbers right then I should put it under contract because I shouldn't have a problem finding a buyer when the deal is very great, correct?. Thank you.

@Stephen Chatto Okay, I get the point now. I was overcomplicating things with the rehab evaluation for the seller and buyer when that is not needed for the wholesale. Just the facts. Thank you.

I appreciate everyone's patience and wisdom in regards to my wholesale questions!

Post: Contractor Rehab Evaluation Fee

Ricardo AcevedoPosted
  • Rego Park, NY
  • Posts 17
  • Votes 2

@Mike F. Okay, you're saying you get what you pay for. What is your experience with contractor evaluation fees? I understand that everyones time is valuable and contractors are people that have bills to pay too. How much do you believe a standard evaluation fee is? or do you think it is usually free? I am going to find out anyways when I ask contractors, but I try my best to have a background on the questions I ask. 

Post: Matched Buyer & Seller (Help!)

Ricardo AcevedoPosted
  • Rego Park, NY
  • Posts 17
  • Votes 2

@Stephen Chatto If the buyer is an investor doesn't it make sense to provide them with a rehab evaluation list to make my business stand out?

@Devan Mcclish You're saying that a double close is usually only worth it when making 10k and earnest money is not actually mandatory? I will read J Scott's book. Thanks

@Christopher GoldieWhat would actually happen if a contract was done with a buyer, without a contract on a property? When you mean get a property locked you are referring to under contract? If I know the comps, an idea of the after repair value, but not the repair costs shouldn't I use a contractor before I "lock it up"? 

I feel like a rehab evaluation list would only be for my knowledge if I'm being recommended to not give that information to a seller and a buyer??