All Forum Posts by: Stephani Davis

Is it an REO?

If so, they are going to want proof of funds to go along with your offer, and most banks will not allow you to assign your contract.

Most realtors are not going to be too excited about presenting your offers if they know you have no intention of closing on it yourself.

I never tell the agents that my intent is to wholesale, I just make sure that anything I put under contract gets to the closing table.

Steph

Tiara,

I got started when I was flat broke, too.

My first deals were with homeowners, and I never put more than 10 bucks down for an earnest money deposit.

It is definitely much easier to get started when you have cash on hand, but when you don't, you gotta do what you gotta do.

No shame in that.

Steph

My latest REO wholesale..

List price $34,900
My purchase price $22,000
Price to my buyer $31,500
Bought from the bank and then sold to my buyer via a simultaneous close.

Property was a 3/2 1100 sf frame house, 10-15k in repairs needed. DOM=32. Not sure what the ARV is. I sell to landlords and base my offers off of what they are looking to spend in each neighborhood.

Steph

Some agents will pre-sell their good deals so they are already spoken for before they hit the mls. It happens.

There are still plenty of deals to be had, though, especially in this market.

Steph

Not so much, Curt.

If you are honest with the seller and let them know your intentions, I don't see how that is jerking them around.

Steph

Why not get an option on it? That way you are not obligated to purchase it, and you are not jerking the seller around either.

Steph

A lot of banks won't accept a letter from an HML if you're making a cash offer. They want to see proof of actual, liquid funds that belong to you... like a bank statement or something along those lines. A line of credit will also work.

You should still be able to make the offer, just not as a cash offer.

Steph

I don't consider 40k a low ball offer on a 55k property. I'd offer 30k and see if you get them to bite. You can always come up if they don't budge much on their first counter.

When you say there are 3 comps on the market for 120k, do you mean 3 that have recently sold for 120k, or 3 that are currently listed for 120k? There's a big difference.

Steph

You usually will have to wait until the property hits the mls. I would contact the agent and let them know you are ready to make an offer as soon as it's available. Maybe you can get a leg up on the competition..

What's your exit strategy?