All Forum Posts by: Faisal Tunis

@Drew Denham Here In Providence/Boston, 80-90 % of properties were built around that era. I havent seen too many investors knock down these properties- avg rehabs are usually anywhere from $10k - $30k(Providence) $25k - $75k(Boston), if youre dealing with a mostly cosmetic rehab.  I say this bc since most of these properties have been occupied throughout their existence, it is very likely that some updates to electrical/plumbing, roof etc. has been done.  If not- it will definitely get costly and there are some properties that may be more cost effective to knock down and rebuild rather than rehab depending on the extent of work (lol- or avoid all together).  I guess it all depends on how much it will be worth in retail condition (or income it can ultimately produce). I'd think abt it like this....if the rehab isnt feasible- I am comfortable buying the lot at this price and is there enough room for a profit  at the end of a rebuild? If there are a lot of other similar properties in close proximity- I'd stay away.

Will Barnard- lol, I just left my attorney and he tells me to go for it. The bridge and I have a mutual NCND agreement. We have done 2 deals since 2010 and we have a great relationship- the guy just seems to have fallen off the map!?! The buyer and seller went into contract directly with each other. My attorney was going to perform the closing and put my company on the hud.
Apparently the bridge had boasted that he had a few million to invest instead of disclosing that he was actually just brokering the deal (which is a whole other topic). He's been dragging the seller along while he was looking for a buyer. Ive done this before and have lost deals and contacts bc of it.

Karen Margrave- I definitely tried to show patience because initially, when I couldnt get in contact with the bridge, I figured the deal was dead in the water. Thankfully and surprisingly my attorney actually knew the seller- which reactivated the deal and myself.
I also agree with you guys that I should give him a finders fee at least- the initial agreement was to split the commission ($12k total). I think at this point I have more dedication to the deal(and my buyer) than the bridge. Lol, Im from NY- I see people fixing bridges all the time.
The buyer is planning to perform on Friday- I'll let you know how it goes.

Thanks guys
PEACE

Hey

A few times Ive found myself @ a juncture where I have to decide whether to honor a NCND or completely seize an opportunity myself.

Dont misunderstand- Its not my intention to burn bridges, but sometimes- even though youre ready to pay the toll- the tollgate is unattended and its like the bridge is really a wall bc you cant get anywhere with the person (bridge) youre trying to work with.

Ive decided to risk it and seize the opportunity.

I have a wholesale deal in KC, MO involving 12 properties to 1 buyer and my bridge has been Missing In Action for over 1 week. No phone call, email or text......making me look like a fool and jeopardizing my company's (PROPERTY PUSHERS UNLIMITED) reputation. Im tired of apologizing for whats not my fault.

In this deal, the arrangement was for me and the bridge to be paid by the seller as not to complicate things.

By chance- My attorney knows someone who knows the actual owner of the properties at hand.

The owner has expressed that he "hates" working with my bridge and doesnt think he can get the job done. He says if my buyer is ready I can arrange the deal and he will pay me the entire commission.

Im going for it & I dont feel bad. Should I??

Should I fear a lawsuit?

I would like to know what you would do, or have done, in similar situations.

Peace

Faisal

I agree w/ you Carl- I think any seller that will do this will end up being more of a partner in the deal. Though I had a lender lend to a client for the purchase holding 1st position- then lent him rehab funds holding a second with another of his llc's. But this is real estate- anything is possible I guess.

Yea I think most of them are unrealistic- and you never get the sense of the physical stress of making a deal happen. I like "Million Dollar Listing" LA and now NY. It's not really a flip show but it just amazes me to see how much money they make. I dont like when they go into tangents abt their personal lives- but I like to study how they broker deals. I actually took notes the other day.

The agent Josh Altman is somebody that I like to watch- he is aggressive and selective when looking for listings and is always realistic- I've seen him plenty of times make sellers readjust their sales price to what he feels is a more marketable price- they are always apprehensive to the idea but 80% of the time he's right. But still, I've seen him be wrong plenty of times like when a house sells for what he said it'll never sell for. Ive noticed that this usually happens when he's dealing with an investor who wants a certain return- which has taught me to be realistic, but to stick to my guns.

These property sell themselves most times (malibu and beverly hills duh)- thats why I figure he stresses the initial sale price so much bc the sales process is just a bunch of phone calls- I like how he bluffs sometimes and puts himself out there- big risk big reward. Most of all he has developed a distinct brand for himself that is working- I admire that. As an investor of course I know that that is an unusual market- tons of buyers- limited property.

Im selling a totally different kind of property- in a totally different type of market- but the principles are the same. Their commissions are nutz bc their selling million dollar homes. It is entertaining, but I think some of the situations we find ourselves in as investors would make much better t.v. We dont have exclusive listing agreements and mls.

Lessons learned:

check my ego(u dont know everything)
dont be (too)greedy
collaborate w competition
move to l.a.

Hey Jesse-
I can forward u a copy of RI P&S- plz send me ur email.

As far as offers- a lot of real estate agents go by the book- offer sheets and what not. If youre speaking to an investor (actual owner) or hedge fund the process - in my experience- is usually smoother- a verbal confirmation of the price followed by a day and date to sit down and complete p&s and deposits (if not immediately). Hedge funds will shoot that contract over to you immediately after a price has been nailed down.

Assignment of contract- bank deals( reo or short sale) have never allowed me to assign a contract. When I asked them explicitly they said no and when I tried it w/o their knowledge im 50/50.
Standard RI P&S allows you to assign the contract- it is #26 on the contract and it states " this contract may be assigned by either party w/o written consent of the other, and shall be binding upon the assigns of buyer and seller"

I hope I can help-

My best buyers are contractors- I used to drive around and talk to the guys working on properties around my property. Im in a small city so if they buy on one end of the city they may buy anywhere. Ppl in this business love to chat abt whats going on so I used to just stop and chop it up with different contractors. Ive made a lot of good connections like that- and meeting face to face like that on their playing field validates what youre trying to do and shows them youre serious. The supplementary website is a MUST bc craigslist is a jungle and you need the distinction. PEACE

Hey Reggie-
I was always told that value/price is whatever someone is willing to pay. Because we are dealing(most times) with properties that are not in retail condition/unlivable, our prices(asking prices) can be very subjective. If the property needs a roof and your selling it to a roofer- his perspective of it's current value is much different than someone who will have to pay full price for that roof to get fixed. The ONLY real value a property has(to your end buyer) is when it is in retail/livable condition- so the question is- how much is this property worth retail/fixed up?? Only wholesalers like us see value in dilapidated property while it's in its current state- there is NO real value in a useless property. Its value is in it's potential- what it COULD be. So the logic is like this:

1. What are similar homes in the area being listed at?(retail and foreclosure)
2. How many similar properties have sold in the area and for how much?
3. How much would a bank lend on this?(retail)
4. Realistically- how much work does it need($ amount)

Im a bottom feeder- I like to buy cheap and sell cheap. When I see a property I may want to pursue in a particular market the first thing I do is call my top ten guys and tell them the address and my asking price- if I get a reasonable response then I will proceed with my offer bc my end buyers have already helped me guage its worth with their responses. Its backwards, but thats the only sure way for me to know if its a workable deal. I hope I could help you Bro-
Peace & Prosperity

Hey-
I definitely think Jon has a point in stating that the banks buy these properties in bundles and essentially just buy paper and sell paper(deeds). And I think thats where the best opportunity is. I purchase property from hedge funds and other bulk buyers all the time via quitclaim deed- its actually my business model. I wholesale these properties to other investors. I always tell the investor that the deed we receive is the deed that they will receive- and that it is essential that they perform their own due diligence on the property before purchasing because the buyer will assume any outstanding liens and encumbrances.

Hi..
Im also a beginner, but as far as the llc question, definitley do business as your LLC- it is the greatest business invention ever-thats the best way to protect yourself and ensure that you are distinct from your business