All Forum Posts by: Ryan Young

hi @Chad Bernstein , the first thing I would do is pull all the cash sales in the past month or two. I look for bank owned or govt owned, sold for cash at or above asking price and sold within 10 days on market. Chances are this is a pretty good deal and if you find an area with 3 or more of these sales this is an area with lots of investor activity. This is an area you want to target and dig deeper into.

The other way would be to attend your local reia and find the cash buyers and simply ask what areas they are buying in.

If you don't have MLS access you should be able to find an agent to pull the recent sales for you.

Hope this helps!

Hi @Brandon French , welcome to BP.

This site is full of great info and people and there is a fairly large group of investors from SE Michigan on here. I hope to see you at one of the local meetings in the future!

sounds like a fantastic idea Aaron, I would love to attend. If I get a vote I would say weeknights would work best for me.

I hear you on the no social life @John Knappmann , my evenings usually consist of analyzing the MLS and getting marketing together after I get the kids to bed, exciting stuff!

Thanks for the responses! I like the idea of putting the clause in there Seth, great suggestion. I have a meeting with a seller today in a similar situation so we'll see how it goes.

Lets say I have a seller who owns a rented property free and clear but owes 10K in back taxes and wants to walk away with 50K in his pocket. At 60K the numbers work and it is a good deal.

If I have an end buyer lined up at 67K, my question is how would the contracts look if I was going to double close? Do I write my contract with the seller for 50K and put an addendum in it that says all outstanding taxes to be paid by buyer at closing? And with my buyer do I just fill out a standard contract for 67K knowing that 10K of that money will be going to pay off the taxes?

Hi Raden Mantuano, it sounds like this may be a REO agent, these houses are probably foreclosures which means the seller is a bank. These can be difficult to wholesale because they will not allow assignments, and if they are listed that means everybody who scans the mls will be all over it the minute it is listed.

The pros are if you can build a relationship with an agent by closing on a few deals, he may throw you a bone in the future by giving you a heads up on a property before it is listed.

The other thing I would say is that most motivated sellers don't have time to list their property and involve an agent, they need to sell now! I would focus on creating a marketing strategy to get as many motivated seller leads as possible if you are just starting out.

I think it would be a good idea to check out his other listing and ask some questions. Find out if it is bank owned or private seller, ask about the market, it never hurts to network.

Hi Christian De Jesus, I would say that the relationship between offer price and equity is that the more equity the seller has, the more flexible you can be in negotiating. Having said that I wouldn't worry to much about the equity when coming up with your offer price. The numbers are what they are. If you take your ARV X 65 or 70%, minus repairs, minus your fee and you get a MAO of 50K, that would be the price I would stick to regardless of how much the seller owes.

If a seller owns the property free and clear, they will make some money, you will make your fee, and your end buyer will get a deal. Everybody wins.

If there is a loan, whatever is owed on the loan will be paid off first, if your offer is more than this that is the sellers profit.

Hope this helps

I used Real Estate Express as well and have no complaints. I thought it was put together well and simple to get through at my own pace.

Welcome Brian Schultz, it's good to see someone from the same area.

This site is an amazing resource!

Good luck and keep reading, you will find tons of details here to help you find the strategy to best accomplish your goals.

Tim Gordon, awesome job! Just had a few questions for you

1. How did you come up with the $335K price for you end buyer? I'm pretty new but that seems like a slim margin for your end investor.

2. With the response rate you get from your mailers, how many of those turn into deals?
I am only sending around 100 per week right now due to my budget but I hope to send more after each deal I close.

Again, congrats on a great deal