All Forum Posts by: Ricardo Murph II

Thank you @Darrin Carey I am glad hear it is possible.  Do you know any investor friendly title companies?

@Paul Amegatcherand @Darrin Carey I agree that the repairs may be low.  Flooring and paint(it has lots of wallpaper) alone could eat up a good bit of the budget. I am will do my best to get someone I trust to go look at it soon. 

@Jose Martinez are you recommending I stick with the $63K, offer put in under contract, then go out for bid? What if it the bids come back higher? 

I am working on a wholesale deal in Dayton, Ohio. I live outside of Houston, TX (Pearland) This is my first deal that may actually work, but its kinda complicated.  I found this through my brother. This home is owned by his business partner and they both moved to ATL to pursue being music producers. The home owner is going to move his family down to ATL the end of July and wants nothing to do with the house after that.  

The home has no mortgage. 5/3.5/2 3700 sqft plus full finished basement brick exterior on almost 1/2 an acre near Miami Valley Golf Club. Zillow has the property a little over 160 and county tax 155.  It has a new roof (2015) sump pump (2015) I needs new carpet whole house but owner says wood floors under. 

So lets say ARV is 150K due to slow Dayton Market (haven't talked to Realtor). 150*70%-20K renovation =85K The seller wants 85K but that does not include my fee. On top of that the seller hasn't paid taxes in 3 years and owes 17K. I talked to him to help him understand it is his responsibility. If I have a 5K fee and take off taxes I could offer $63K. His wife is going to send me a walk through video. I told him I would make an offer after that.

Now that the long back story is done... 

1. Am I crazy to try to do this deal? I know Ohio is not wholesaler friendly. 

2. I know the renovation is a wild guess especially for a big home. Does my logic make sense at least?

3. If I move forward can I close the deal without traveling to Ohio?  I am guessing I can fedex contracts and use mobile notaries.  Can I do final closing from afar? 

4. Is there anything I should look out for? 

5. How do I handle back taxes? (I checked the county auction list and it is not on there.)

My wife is from Dayton and her friend's grandfather is an investor so he may be a buyer and the owner tells me his friend is interested in the property and gave me that friends number and said his neighbor was asking too. So I have possible buyers to reach out to after a contract. 

@Denise Mayo-Walley I listen to Podcast 136 and Shawn Holsapple found great deals on Hud.  He made a lot of low offers and get a few accepted.  I just discovered Homepath.com yesterday.  Investors are allowed to make offers after 21 days.  You can make some low offers that match your criteria until you get one to stick. 

Do you know someone with a 401K from a past employer that can be turned into a self directed IRA. You can borrow money at X% for a cash deal then refinance and pay them back their money plus interest.

@Teddi Henry I am new, so I am learning and crafting my plan.  I understand most of the wholesaling steps but I was worried about finding buyer.  I have taken your advice and have an agreement with a BP member on here with buyer contacts but no budget for marketing. If he can find a buyer for one of my deals we will split the fee. I have no problem partnering with others to make deals move faster. 

I wanted to go to the January county actions but I had meetings at work and couldn't take off.  I will go to one in March for sure. 

I had never heard of @Sabrina Kane's suggestion before and it is very clever. I have sold many things on CL and forget to take down the listing and get many extra calls.  

Another source of cash buyers are coworkers. I have two that currently invest in RE (one has 2 properties and other has 4). I think they both bought on the MLS. They both have cash. A third coworker is a stock trader that has went to classes to beat the market and is losing big time on oil. So much for market timing! I think if I build a track record I can get him to fund flips or buy and holds in a Self Directed IRA for for a good fixed return.

There have been some awesome tips here!! Thank you all. 

@Jessica A. Smith I work in Oyster Creek, I am guessing the property is close to Clute, and would love to help you talk through this deal.  I am new as well but I have been doing some deep research and will start marketing soon.  

I am interested as well I live in Pearland and want to invest in the area. 

@Rakan Abuzahra the MLS comps will help determine ARV (after repair value) this is the base number the flipper uses to determine max investment. So the basic math to a wholesaler is 70%ofARV-Wholesaler commission-repair cost= offer price. A realtor can provide data and information but wont make money helping out a wholesaler unless he starts fixing and flipping, you can get a referral fee (assuming that is legal) or he finds a seller that wants retail price for their property and you can list it.

@Rakan Abuzahra I am new at this but there are a few things I would look for as a wholesaler

1. 1. Understanding the market like recent sold and rental rates.
2. 2. Doing quick appraisals and help understand what improvements buyers in the area expect.  This will help the wholesaler can estimate rehab cost.
3. 3. Finding property details.  I asked my realtor to find intell on a vacant property. 
4. 4. If you come across a vacant to poor maintained property while in the target area, tip your wholesaler off. You may get a finders fee from that too. 

@Jordan Nelson you can do it!  Make sure you are involved in your college community.  Join a real estate club or make one.  This will be a great time to network. Listen to all the podcast and read all the real estate books you can from the library.