All Forum Posts by: Travis Moe

Desert Dwellers and Friends!

Join us for a meetup for BP members and any other local area real estate fans to network and discuss their ideas. We meet centrally in the area so that east-enders like me can more easily attend and anybody coming down from the High Desert can have easy access. Roc's Firehouse Grille is right off I-10 on Cook and Gerald Ford.

Like so much in Real Estate, consistency is key. We'll discuss our goals, efforts, and challenges. We'll share our haves and wants. We'll encourage one another and enjoy the opportunity to meet people, make connections, and learn from others' experiences.

I hope you'll join us and spread the word.

There's no selling/pitching at these events and there's no fee to attend. We don't pay for the table at Roc's so be prepared to order some drinks and appetizers. Roc's has a decent happy hour that ends at 6p if you want to get there a little early to enjoy it.

It's helpful to know how many to expect (so I can reserve a table vs a room). Please RSVP here if you'll be attending.

Looking forward to tomorrow evening's meetup. I'm eager to hear everybody's successes and challenges over the last month since our last meeting.

@James Henderson Has volunteered to present this month and I can't wait to learn from him.

See you all there!

@Tyler Weinrich

I just found myself in a similar position. I know your post is several years old, but I'd love to know how it turned out for you and any lessons learned. If you're willing to share, of course.

Originally posted by @Israel Hernandez:

I am located in Indio CA, home of Coachella Music Festivals. If anyone is looking to sell multiple SFR homes within the Coachella Valley, let me know so we can negotiate a multi-unit deal.

I also specialise in rental properties in Desert Hot Springs. I have seen that city along with the rest of the Coachella Valley grow since 1986.

You're specifically looking for a portfolio sale? I may have a seller I can connect you with. DM me and let me know more about what you're looking for specifically.  

@Christopher Janney

Thanks! On to the next one!

Desert Dwellers and Friends!

Join us for a meetup for BP members and any other local area real estate fans to network and discuss their ideas. We meet centrally in the area so that east-enders like me can more easily attend and anybody coming down from the High Desert can have easy access. Roc's Firehouse Grille is right off I-10 on Cook and Gerald Ford.

Like so much in Real Estate, consistency is key. We'll discuss our goals, efforts, and challenges. We'll share our haves and wants. We'll encourage one another and enjoy the opportunity to meet people, make connections, and learn from others' experiences.

I hope you'll join us and spread the word.

There's no selling/pitching at these events and there's no fee to attend. We don't pay for the table at Roc's so be prepared to order some drinks and appetizers. Roc's has a decent happy hour that ends at 6p if you want to get there a little early to enjoy it.

It's helpful to know how many to expect (so I can reserve a table vs a room). Please RSVP here if you'll be attending.

This is about pleasant persistence and working thru one's inexperience and mistakes.

Deal:

4 bed, 2 ba SFR, 1404 sqft. Total gut job. Place is a shell. ARV $375-$425 (depending on pool). Rehab $70K - $115K (depending on pool). Assigned at $245K.

I originally found the house after driving past it in April of 2018. I found the owner via county records, googled his name, found an email for him on his company architecture site. I emailed him a selfie of me in front of the property. The message was the exact truth: That I passed it on the way to my daughter's school one day. That I wondered if he might be interested in selling it so that I could fix it up into a nice family home. I originally wanted to make it a rental or residence for myself.

Seller responded with one line: "What are you offering?" I made a very low offer and never heard back from him.

So I sent another email a month later, just checking back in. He declined my offer. Wanted more, but didn't say how much. One month later, I sent another check in email. He responded, saying he had other offers at $200K and could I beat that? I offered to match, and then raised to $212K.

He declined, saying he had plans in at the city and was going to rehab and sell it himself. So I just watched the property. A year later, it still had not been fixed up. So I sent another check in email. I reintroduced myself and reminded him I was interested. I did this two more times over two months before he finally just said: "$235K and it's yours."

I got it locked up at $235K. Then a different house I'm working on in FL went from 7K in repairs to over 25K in a week. I no longer had the money (or the time) to fix this local property up into a rental. I decided to assign the contract. I am not a wholesaler, I had no cash buyer list. So I reached out to every element of my network I could. I posted to BP, Craigslist, and MyHouseDeals.com. I made a free Google Site with tons of pics, videos, and property info and shortened the link with Bitly. I text that link to every investor, realtor, friend, and neighbor I knew that had any interest at all in real estate. 

I eventually received offers from 3 different cash buyers. I didn't want to start a bidding war so I sent identical assignment agreements to them all and said the first buyer to sign and return the agreement got the contract.

In addition to the assignment fee I made, this process allowed me to gain immeasurable first hand experience wholesaling. My network of investors and cash buyers grew from 2 to over 75 in a two week period. In many ways I am thankful for the surprises at my FL property that forced me to make this pivot and become a better, more versatile investor.

Biggerpockets was a huge factor as I gained many contacts and advice. A special thanks to James McCoy at buysellfixflip for his help.

Background: After months of driving for dollars, I managed to get a what I thought was a decent off-market lead under contract. The plan was your typical wholesaler operation - I locked it up, put deposit in escrow, and set about marketing the contract to my network. I was aiming for a $5K-$10K assignment fee. The owner was aware of the plan. Everything is on the up and up.

Situation: I had difficulty obtaining comps. Nothing in the neighborhood that is a reasonably close match to my deal has sold in the last 24 months. The recent solds are much newer and much larger. So did the best I could to get my ARV and came up with $425K. I am into the property for $235K. So far, so good. I figured a rehab cost of $105K. I ran my numbers and was thinking a flipper could make $35-$42K profit. I'm asking $245K, thinking I could take anything from $245-$240K and make my assignment fee goal.

Results so far: No takers. My contingency period ends Weds 8/28th. I've had 15 buyers walk the property. It's a big project. A studs-out remodel. They're all coming back saying my ARV is high and my rehab is low. It should be more like 330-350K ARV and 150K rehab. So that just totally kills the original plan.

My regret: Last thing I wanted to do was be what everyone says they dislike about wholesalers - pitching crap with inflated, inaccurate numbers. But, that's where I'm at anyway.

What to do: Well, that's where I need help. What else can I do? I hate the idea of going back to the owner and saying I can't make it work. I feel like I need to do everything I can to get this closed. Are there any creative ideas for another exit strategy? My ideas so far:

1. Approach the owner for an extension on my contingency period for more time - but that won't change the numbers.
   
2. Owner has the property free and clear. I could offer to do all the rehab at my expense, then he and I sell it together and split the profit.
   

What do you lovely BP folks think? Any good ideas for saving a deal?

UPDATE: Location change.

NEW Location is Roc's Firehouse Grill. This is right across Gerald Ford from the Starbucks - so it's essentially the same place. Exact address is:

36891 Cook St # 10
Palm Desert, CA 92211

Assuming we see a similar attendance as last time, Starbucks just isn't a good fit. It's too small and they close the lobby at 7p. Roc's has a small room off the main floor.

Roc's is not charging us for the room, so the expectation is that we order some drinks - so plan on that. They have a great happy hour menu. It ends at 6p so, if anybody wants to get there early, that's just fine!

I'll see everyone there!

I may be moving this meetup from the Starbucks. It's pretty tiny for a growing group. I'm thinking Roc's Firehouse which is right across the street. Stay tuned.