All Forum Posts by: Tim Lindstrom

This sounds like a good deal to wholetail.  Close on the property, clean it up, and sell it at retail.

Assuming the only major problem is the junk.

@Adam Curry,

I have a buddy who did just what you suggested.  He bought 2 properties and put 15 year mortgages on them.  His kids were 1 and 3 at the time,  so it wasn't right when they were born.

I asked him why he didn't finance on a 30 year note, to bring down the mortgage costs, and he said he wanted them to be free and clear when his kids were ready to move on their own.  They would each get a house, and if they went to collage,  they could refinance them to pay for it.

@Brandon Booth.  I feel your frustration.  I have been looking for a good deal for quite some time.  The inflated ARVs that wholesalerspost goes way beyond BP.  it's across the board (at least with most of the wholesalers that I work with).  I do have a couple that send me deals that have good numbers, but they aren't in my area, or in the case of one deal;  was already taken by the time i responded.  

I finally broke down and started doing my own direct mail.  I have had several calls from direct mail,  but they either owe too much, or want too much for their property.  I wonder how many of these deals wholesalers would try to push onto cash buyers, if they talked to these same sellers.

@Peter Kehr  I gave my contact info, and what I'm ooking for to 3 wholesalers who used this tactic on CL.   Two have yet to send me anything,  and the third has sent me a few deals that were laughable.  I'm crossing my fingers for a good deal to come from any of the many wholesalers that have me on their list.

@Brandon Booth. I'm not going to disagree that the ARV is often inflated, and the Expenses are off on some of the posts in BP marketplace, but that is common among a lot of wholesalers trying to unload properties. They use best case numbers, while buyers use conservative numbers.

The OP here was talking about what he thinks might be outright fraud on CL, which is NOT what I see in BP marketplace.  He was talking about posters listing properties that obviously did not exist, or were clearly not the property listed.

@Peter Kehr.  I have seen CL ads in my area where they list a property that doesn't exist.  I actually contacted one of them (via CL anonymous email) and he said that property was no longer available, but he could add me to his buyers list.  I think it is less about fraud, and more about trying to build a buyers list before actually having any properties under contract.

The 50% rule should be renamed to the 50% guesstimate. Review the numbers they use for repairs/estimates and see if they look right. The age of the mechanicals and roof go a long way in determining how much should be put away for CapEx. The numbers do include CapEx right?

I'd be interested to hear expert, or experienced, opinions.  I thought bankruptcy wipes out someones debt.  If they don't owe any back rent,  I would assume you don't have any issues.  I can't imagine someone could live in your place rent free because they filed bankruptcy.  They should still have to pay rent.

Even if the comps are higher, the real question (for me at least) is; will it cash flow?  What can it be rented for (total of both units).  Can you still cash flow after financing the property, paying insurance, taxes, capex, PM, and accounting for vacancy?

nope.  I only have 2 of those, so I put them on the back burner and concentrating on the ones I know how to mail to.

@Chinmay J. D4D = Driving For Dollars.

@Jordan Lagrassa.  I found that I get about a 4% response rate on my mailings.  I haven't closed a deal yet,  but am in negotiations with a couple.

You might want to start with 1000 for the first mailing, and see if you can handle the calls.  If so,  and if you have the funds,  increase your numbers until you reach a comfortable call level.