Comments on: Prices, They’re a Droppin’ http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/ Wholesaling Real Estate Blog Sat, 11 Feb 2012 16:26:30 -0700 http://wordpress.org/?v=1641 hourly 1 By: Stephani http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-1045 Stephani Thu, 22 Jan 2009 14:56:00 +0000 http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-1045 Hi Jimmy,<br/><br/>I am not using any sort of formula.<br/><br/>I know the areas that I am working in really well, and I know exactly what prices my investors want to buy at in these neighborhoods, so I just try to get deals below those price points.<br/><br/>Steph Hi Jimmy,

I am not using any sort of formula.

I know the areas that I am working in really well, and I know exactly what prices my investors want to buy at in these neighborhoods, so I just try to get deals below those price points.

Steph

]]> By: Pharaoh Investment http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-1042 Pharaoh Investment Thu, 22 Jan 2009 06:23:00 +0000 http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-1042 Really quick question, Is there a formula that you follow when you are making an offer to the bank?<br/><br/>Like in Wholesaling we say 70%of ARV minus repairs minus fees = offer.<br/><br/>Thanks,<br/>Jimmy Really quick question, Is there a formula that you follow when you are making an offer to the bank?

Like in Wholesaling we say 70%of ARV minus repairs minus fees = offer.

Thanks,
Jimmy

]]> By: GoodFamilyHomes.org http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-805 GoodFamilyHomes.org Tue, 25 Nov 2008 14:50:00 +0000 http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-805 Steph,<br/>What can I say! you are doing your thing. I am always on your site just to get that extra push.<br/><br/>You are greatly appreciated...Thank you.<br/><br/>Are you assigning you contracts to the end buyer? if so...<br/><br/>I thought you could do that with REOs!<br/><br/>If you are not, are you funding the first close?<br/><br/>Thnx<br/><br/>Jay Steph,
What can I say! you are doing your thing. I am always on your site just to get that extra push.

You are greatly appreciated…Thank you.

Are you assigning you contracts to the end buyer? if so…

I thought you could do that with REOs!

If you are not, are you funding the first close?

Thnx

Jay

]]> By: Shae http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-801 Shae Tue, 25 Nov 2008 01:35:00 +0000 http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-801 Hey Steph, are you still making the offers in your name or are you making offers in an LLC name? Hey Steph, are you still making the offers in your name or are you making offers in an LLC name?

]]> By: Stephani http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-795 Stephani Thu, 20 Nov 2008 04:44:00 +0000 http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-795 Augie,<br/><br/>I am wholesaling REOs to cash buyers, so owner financing would not work for me. I want to be in and out of the deal, take my profit and move on to the next deal..<br/><br/>As far as the ugly houses go..pretty much all of the houses I am selling are "ugly". However, most of the investors/landlords who I am selling to want cosmetic rehabs as opposed to full blown gut rehabs. Cosmetic fixers are much easier to sell in this market than gut rehabs- that's what I meant. <br/><br/>Steph Augie,

I am wholesaling REOs to cash buyers, so owner financing would not work for me. I want to be in and out of the deal, take my profit and move on to the next deal..

As far as the ugly houses go..pretty much all of the houses I am selling are “ugly”. However, most of the investors/landlords who I am selling to want cosmetic rehabs as opposed to full blown gut rehabs. Cosmetic fixers are much easier to sell in this market than gut rehabs- that’s what I meant.

Steph

]]> By: Augie http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-794 Augie Thu, 20 Nov 2008 03:25:00 +0000 http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-794 Hi-<br/><br/>You mentioned that you have 12 offers out there. It also sounds like you're doing cash deals. Have you ever considered doing owner financing of those deals?<br/><br/>Also, as far as the ugly houses go, you mentioned that you've found that most people are not interested in these. Are they in war-zones? I'm also in Fl and find that there is more competition in ugly houses (vs pretty houses).<br/><br/>Buyers usually like pretty houses, but a lot of investors, flippers, wholesalers, etc, tend to like the ugly ones because of the perceived value in rehabbing. In my experience, at least. Hi-

You mentioned that you have 12 offers out there. It also sounds like you’re doing cash deals. Have you ever considered doing owner financing of those deals?

Also, as far as the ugly houses go, you mentioned that you’ve found that most people are not interested in these. Are they in war-zones? I’m also in Fl and find that there is more competition in ugly houses (vs pretty houses).

Buyers usually like pretty houses, but a lot of investors, flippers, wholesalers, etc, tend to like the ugly ones because of the perceived value in rehabbing. In my experience, at least.

]]> By: Stephani http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-793 Stephani Wed, 19 Nov 2008 22:39:00 +0000 http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-793 Yup. Great deals like that come on the market all the time, but they are usually gone in a day or two. I get email notifications sent to my Blackberry, so if something good pops up, I am at the house and have an offer in within a few hours. I'm not the only one doing that, though. I've got quite a bit of competition.<br/><br/>I don't even look at the stuff that's listed at retail. Once the price gets lowered to within 30k of where I want it, then I go after it. Yup. Great deals like that come on the market all the time, but they are usually gone in a day or two. I get email notifications sent to my Blackberry, so if something good pops up, I am at the house and have an offer in within a few hours. I’m not the only one doing that, though. I’ve got quite a bit of competition.

I don’t even look at the stuff that’s listed at retail. Once the price gets lowered to within 30k of where I want it, then I go after it.

]]> By: Joe http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-792 Joe Wed, 19 Nov 2008 21:54:00 +0000 http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-792 Interesting. Yes, list price is often not actual value. But most of the REOs I've seen listed have been listed close to their actual value, maybe 5% to 10% under. So that last deal you had was listed under 50% of actual value. Interesting. Yes, list price is often not actual value. But most of the REOs I’ve seen listed have been listed close to their actual value, maybe 5% to 10% under. So that last deal you had was listed under 50% of actual value.

]]> By: Stephani http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-791 Stephani Wed, 19 Nov 2008 19:47:00 +0000 http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-791 Hi Joe,<br/><br/>I think you may be confusing list price with the home's actual value.<br/><br/>The houses that I'm going after are already listed at heavily discounted prices- for example, the one I just got for $23.5k, is probably worth 70-80k.<br/><br/>All of the deals I am getting are well below 50% of today's retail value. <br/><br/>Hope that makes sense,<br/>Steph Hi Joe,

I think you may be confusing list price with the home’s actual value.

The houses that I’m going after are already listed at heavily discounted prices- for example, the one I just got for $23.5k, is probably worth 70-80k.

All of the deals I am getting are well below 50% of today’s retail value.

Hope that makes sense,
Steph

]]> By: Joe http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-790 Joe Wed, 19 Nov 2008 19:28:00 +0000 http://www.flipthiswholesaler.net/2008/11/prices-theyre-a-droppin/#comment-790 I'm just trying to figure how discounted the deals are to get buyers excited. Given, in my part of California listing prices start at $300k for SFRs and go up from there. So if list is $300k, and there's a contract at $280k on it, no one gives a hoot unless that's the exact home you want for yourself to live in. To get investors interested, you would have to give them the deal under $250k. Excited, maybe $225k. So I would start offers around $200k ... $100k off listing. For a $60k home in your area, that would be interested at $50k, excited at $45k, your offer starts at $40k. Which sounds like what you are saying. I’m just trying to figure how discounted the deals are to get buyers excited. Given, in my part of California listing prices start at $300k for SFRs and go up from there. So if list is $300k, and there’s a contract at $280k on it, no one gives a hoot unless that’s the exact home you want for yourself to live in. To get investors interested, you would have to give them the deal under $250k. Excited, maybe $225k. So I would start offers around $200k … $100k off listing. For a $60k home in your area, that would be interested at $50k, excited at $45k, your offer starts at $40k. Which sounds like what you are saying.

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