Hi Everybody!
Sorry I’ve been such a bad blogger lately. I’ve been busy working on the ebook, which should be ready to go a week from Monday.
Once that’s finished up, I’ll be able to get back to posting more than once a week..
Anywho, I put together another Reader Mail video for you guys last night. Hope you enjoy it…
.
P.S.
If you haven’t already subscribed to my YouTube channel, you can go here to do so.
On August 23, 2009 at 5:13pm, Shae said...
Good stuff as always Steph!
On August 23, 2009 at 5:34pm, ARodOfIron said...
Ur videoz r getting better and better Steph! I definitely want to implement this method.
One thing I don’t think you mentioned in the video was how far back you search for those cash sales. I assume you’re looking for something fairly recent (30 -90 days), but I’ll let you answer instead.
Keep it up!
On August 23, 2009 at 5:36pm, Stephani said...
Hey Alex.
I don’t like to go back more than a couple of weeks. 30 days at the most.
Hope you’re doing well..
Steph
On August 23, 2009 at 5:34pm, Stephani said...
Thanks, Shae.
I like how YouTube always picks the most unflattering frame to freeze. I look like i just drank a bottle of Jack Daniels or something.
On August 23, 2009 at 5:48pm, Shae said...
LOL! That’s true. Looks like YouTube does give you a few choices of frames to use. Click on edit for your video and check it out.
On August 23, 2009 at 5:57pm, Stephani said...
Yeah, I switched it already, but it takes awhile to work. i look like a jackass in all three frames, but the one they picked is the worst.
On August 23, 2009 at 7:04pm, Jusitn McClelland said...
Steph, this video was right on time. This is something I need to get done and I like the non-conventional approach you explained. Actually going by the property bought with cash and establishing buyer contact at that point is genius. I’m on it!
On August 23, 2009 at 7:09pm, Stephani said...
Awesome- got get ‘em Justin!
Hey- you should try it for a couple of weeks, and then come back here and do a guest video post about your results. What do you say? I know you’re not shy..
On August 24, 2009 at 5:16am, Kelly Miller said...
Thanks Steph. This is a great technique. I have found ‘for rent’ signs and called. It’s always good practice for me talking with the cash buyers.
On August 24, 2009 at 8:10am, Tamara said...
Oh wow, this video is SOOO on time! Im scrambling to find good buyers and I NEED a process that makes sense and THIS makes CRAZY sense! lol Now….all i have to do is get my hands on MLS access….
Thanks again Steph!
On August 24, 2009 at 8:35am, Shae said...
Tamara, did you see Kelly’s article on how to get MLS access? It was very good and it works… http://www.strugglinginvestor.com/2009/08/how-to-get-mls-access-without-your-license/
On August 24, 2009 at 8:56am, Vannie said...
Steph,
Awesome stuff!! Always informative and on point! Can I ask you though, when you do a driveby and you cannot get hold of the buyer/owner do you try to reach the owner through other means like mail or otherwise and how do you go about searching (do you go to the courthouse or use the tax rolls for that information)?
Thank
On August 24, 2009 at 9:23am, Stephani said...
Hi Vannie,
I usually just go on to the next one if there’s no one there.
It takes awhile for the owner’s info to show up in the tax records, so, your best bet would probably be to tape a letter to the door explaining who you are and telling them to contact you if they are looking for more deals in the neighborhood.
Hmmm. I might have to start doing that myself..
Steph
On August 24, 2009 at 7:27pm, Alyse said...
Thanks for another great video Steph! I had both of these questions myself. I do have MLS access, and did just what you suggested. I now have a list of cash buyers in the area and will drive by the houses as soon as possible.
On August 24, 2009 at 7:42pm, Stephani said...
Awesome!
Come back and post your results so the rest can see how you did…
On August 24, 2009 at 7:58pm, Jamie Dzierwa said...
Hi Steph,
This questions has nothing to do with this particular video, but I was not sure where to post questions for you. I was reading a article of yours and you had recommended a website fundthiswholesaler.net, would you be able to provide with more information about this website? It all just seems way too easy. My other question was say we use this service for a double closing and I plan on buying a property from the original seller, and later on selling to an investor. Obviously, the investor is probably going to want to see the property before buying before the closing right? So what stops the investor from going behind my back and purchasing the home through the original seller? Any help/adive would be great, I am somewhat new to wholesaling. Thanks alot.
On August 24, 2009 at 8:09pm, Stephani said...
Hi Jamie,
Click on the “Funding” tab at the top of my site, and there is a link to FundThisWholesaler.
http://www.fundthiswholesaler.net
Regarding your question about the seller going behind your back… are you talking about buying from a bank or a private seller?
If you’re talking about buying from a private seller then you would not need to do a double close- you could just assign your contract to your buyer.
A double close is done when you are buying from a seller (like a bank) who will not allow you to assign your contract. You have to actually close on the deal yourself, and then resell it to your end buyer. If you don’t have the cash to close on it yourself, that is where the transactional funding comes in. They will only fund the deal, though, if yo have the end buyer lined up to purchase the property immediately after you close on it.
If you’re dealing with a bank and you have the property under contract, there’s no way your end buyer can go behind you- the listing agent stops taking offers once they have an accepted contract.
If you’re dealing with a private seller, I think you can record your contract so it will cloud the title. I’m not positive about that one, so maybe someone can chime in and help me here…
Hope that helps a bit,
Steph
On August 24, 2009 at 8:18pm, Shae said...
That’s right, Steph. You can “cloud the title” by filing what’s called a “Notice of Interest” with the county clerks office. One of my mentors wrote an article on this that was reposted here: http://bit.ly/nrTna. He recommends always doing this with private sellers to protect your interests.
On August 24, 2009 at 8:20pm, Stephani said...
Thanks Shae!
On August 25, 2009 at 6:15am, mobilehomegurl said...
Great video Steph, you’re a real pro! This is good info – I did this awhile back when I used to wholesale but did it by accident just driving around the neighborhood (I didn’t look up the cash sales in the MLS), it worked. Though, sometimes those workers were calling for other reasons…eek, though I learned to play cool, lol!
On August 25, 2009 at 7:19am, Stephani said...
Hi MHG,
Yeah- you gotta love the cat calls! Good times..
On August 25, 2009 at 11:47am, Vannie said...
Hey Steph!
Just so that I am clear – the situations in which we should use transactional funding would be in the instance in which we’d need to do a double close – for example, buying REOs from the bank. I would guess that we could also use transactional funding in the event where we scored a slamming deal and chose do to a double close instead of an assignment? So, in the event that we are dealing with just a private seller (not a bank), I would think that we’d just need to make sure that our buyer has their financing lined up (or have options for our buyers for financing) and that no transactional funding needed – unless the laws of the state dont allow for the simultaneous close? Am I understanding this correctly?
Thanks for all your help!
On August 25, 2009 at 12:16pm, Stephani said...
Yes, except, if you are assigning your contract, your end buyer will need to be paying cash, using hard money, or using a lender who will not have seasoning requirements nor care that the property is being flipped. Most conventional lenders will not fund a deal that is being assigned.
Also, if you’re dealing with a private seller, a simultaneous closing is not necessary- you just assign your contract to your end buyer and there is just 1 sale.
On August 25, 2009 at 12:17pm, Chris said...
Hi Steph,
I think I saw a post about this, but I figured I’d ask. Have you run into a situation where you got an offer accepted but no buyer came to the table? I think you said you basically have to get the price at such a deal that even if the buyer you had in mind says no, that you would be able to find one.
Just curious what the steps would be if you could not find a buyer. You would probably lose your earnest money, they would cash that. Then you would lose your credibility with that agent. Could anything else happen, or is that it? You could not be forced to buy the property because u showed proof of funds, right?
-Chris
On August 25, 2009 at 12:31pm, Stephani said...
Hi Chris,
No, they can’t force you to purchase the property. Losing your deposit and pissing off the agent is the most that will happen if you can’t close.
It also depends on what it says on your contract. If you used an inspection contingency and you withdraw from the deal before it is up, you can still get your deposit back. Same thing with using a financing contingency.
You just don’t want to make a habit of backing out of deals when you can’t find a buyer. It’s bad business, and the agents will start chucking your offers on the trash can before long.
I recommend taking the time to study a few neighborhoods and line up some buyers BEFORE you start making offers. It’s much easier that way, and you will have a much greater chance of getting deals to the closing table.
Steph
On August 25, 2009 at 12:34pm, Tony said...
When dealing with REOs you’ve stated making cash offers is better, how do you get by the 10% EARNEST MONEY DEPOSIT if you don’t have it? Several companies will give you a POF but it is only deal specific and that’s one of the only ways I know of getting around that but it looks like hard money.
On August 25, 2009 at 12:39pm, Stephani said...
They don’t all require 10% down where I’m at. Just certain lenders like Fannie Mae.
If all of the REOs where you are want 10%, then you’ll either have to come up with it, or make non-cash offers. There’s really no way around it.
On August 25, 2009 at 2:30pm, Glenn said...
Steph,
I’m working on putting together marketing with pictures and details about my rental houses on a website and I was thinking about putting on another page ‘properties for sale’. Do you in your wholesaling take pictures of your houses and put them on a website to aid in your marketing efforts? Just curious.
As an aside, the Titanium retreat in Chicago was amazing. I can now see how a small group, like the Flip VIPs can be of such a big benefit in your life and business.
I hope all is well down there in Tampa.
Glenn
On August 25, 2009 at 2:43pm, Stephani said...
Hey Glenn!
No, I’ve never put up any of my properties on a website (well, except for Craigslist ads). I’ve thought about it, but most of the time I am able to get rid of them pretty fast with just a few phone calls to my good buyers, so I’ve never really had the need to, ya know? Some of my buyers I don’t even call- I just send them a text with the address, lockbox, and price. I’m a big fan of that!
Yeah, I tell ya, that Flip Vips group is just awesome. I can’t say enough good things about it.
Glad to hear you are getting the same benefit out of your group.
Thanks for stopping by,
Steph
On August 25, 2009 at 9:04pm, Jusitn McClelland said...
Wow, two days later and my follow-up is waaaaaayyyyyyyy down here. And yes, after using this strategy I would love to do a guest video.
And P.S.
I actually was able to obtain MLS access as of less than a week ago, using http://kelliflippingcali.blogspot.com Kelly’s technique. I’m the guy who she wrote about who succeeded here: http://kellyflippincali.blogspot.com/2009/08/mls-access-success-by-others.html
On August 26, 2009 at 5:45am, Shae said...
So that was YOU Kelly was talking about! Awesome
On August 26, 2009 at 6:01am, Stephani said...
Awesome. I’ll get in touch with you so we can talk about details.
P.S.
Congrats on getting MLS access, and thanks to Kelly for the post!
P.P.S.
If you want to reply to a specific comment, you can click on the “reply” thingy underneath the person’s avatar so your comment will appear right under theirs.
On August 26, 2009 at 10:59am, Shawn said...
Steph-
Can you please post something about your first flip. Unless I am missing it, I looked in the past blogs and didn’t see anyhting. Just want to know your experience on that. Thanks!
On August 26, 2009 at 11:11am, Stephani said...
Hi Shawn
I started this blog shortly after I closed on my first wholesale deal, so there’s nothing about it in the archives.
It was a deal with a private homeowner that saw one of my ads somewhere. The seller was having health problems and needed to sell ASAP. I can’t remember the numbers on the deal, but I remember that my assignment fee was 2k, and it was the easiest 2k I ever made! I found the buyer by placing an ad on Craigslist. The buyer was actually another wholesaler/investor, and I still do business with him today…
The End.
On August 26, 2009 at 2:21pm, Thomas said...
I have a questions with the cash buyers from the MLS.
1. cant you get there contact info from that search.
2. And cant you match them up with a search with the absentee owner list.
Thomas
On August 26, 2009 at 2:36pm, Stephani said...
Hi Thomas,
No, the buyer’s contact info is not available on the mls, at least where I’m at it’s not..
Not sure what you mean about matching them up with an absentee owner list. Do you mean would these buyers show up if you bought a list of absentee owners in your area? If so, yes, they would show up, but it takes about a month for the info to show up in the tax records. I Ilike to get the info asap so I can drive out to the house and see if I can meet them in person.
You can always send letters instead. It’s up to you.
Steph
On August 26, 2009 at 3:31pm, Thomas said...
I thought that you could pull up the absentee owner list on the MLS?
And just start matching the cash buyers list with the absentee owner list, so you could get more info on your buyers,and mail to them.
Thomas
On August 26, 2009 at 3:40pm, Stephani said...
I’m not sure what you’re referring to..
On August 26, 2009 at 4:16pm, Shae said...
Hi Thomas, you get absentee owner lists from public records or from a list provider like listsource/realquest.
On August 26, 2009 at 5:46pm, Yvette said...
Hi Steph, I found your website yesterday and I’m learning quite a lot! Thanks! I’m interested in assigning my contracts to my end buyer/investors. My question is…1) It is better to find a buyer who pays all cash, correct? My concern is…it’s not wise to use someone who’s thinking of getting a conventional loan…due to seasoning requirments and as you said..most conventional lenders don’t like assigned contracts. Correct? 2) My understanding is that you don’t want them to get an FHA loan either….reason being??? What questions can I ask my buyers to make sure they can pay cash? Or whether they actually qualify?
On August 26, 2009 at 6:12pm, Stephani said...
Hi Yvette,
Yes, you’re correct, you want to stay away from conventional lenders if you are assigning. FHA has a 90 day title seasoning requirement, so that won’t work either.
I sell mainly to cash buyers, with a few hard money buyers every now and again.
I have “CASH ONLY” on all of my marketing, and I make sure to let people know it has to be a cash sale when they call. I get a 2k non-refundable earnest deposit from them- there are no financing or inspection contingencies allowed. This usually weeds out the tire kickers.
If you are still unsure, you can ask to see proof of funds from them, and ask for a larger deposit.
After awhile you will be able to pick out the serious investors within a minute of talking to them. Until then, make sure to verify that they actually have the cash, and ALWAYS get a deposit. The bigger, the better.
Hope that helps, and welcome to the site!
Steph:)
On August 26, 2009 at 7:17pm, Hugh said...
Hi Steph,
I sent you something via email.
Hugh
On August 27, 2009 at 5:03pm, Dwight said...
Hey Steph, hope all is well. I have a question for you! I have had so much trouble finding a good title company in the area. The double close scares them to death and i also just had an investor from the area tell me they aren’t doing it like that here anymore where you can just buy it under your name then second transaction right into anothers. He said there are ways and gave me his title agent to ask so i will do that. I even ran into a lady who works with investors that said you have to disclose to the bank on the purchase contract that you are going to double escrow otherwise they can walk from the deal. And also that some of the banks here now are requiring you to hold the property for 90 days before you can sell. This isnt for the sale of the property to an FHA loan, i mean to the end buyer! So if it went in my name first, then resold to the end buyer, im penalized.
I thought about maybe doing a partnership of some sort with the end buyer as in he will be my “private money lender” and then can reconvey the title and he can take ownership of it and somehow i could get a fee so there is no double close. Any info at all on this? Cause i have EVERYTHING ready to go just lacking the right title company so i dont get in a situation that i cant get out of.
On August 27, 2009 at 5:16pm, Stephani said...
I haven’t been having any problems like that here.
If you can’t find a title company to do a simultaneous closing, use transactional funding so you can close on it with your own cash. You’ll just have to factor the costs into your offers.
Or, make the offer in a land trust and assign the beneficial interest.
http://www.biggerpockets.com/forums/16/topics/37088-flipping-reo-s-via-land-trust-
Or, make the offer in an LLC and sell the operating rights to the LLC.
http://www.flippinghomes.com/articles/readarticle.aspx?artid=19
Or add your buyer onto the contract and then quit claim them off in exchange for your fee.
Or go after non-REO deals so you can just assign.
Plenty of options available…
Steph
On August 31, 2009 at 3:41pm, red said...
Hey Steph,
what are you writing??? …. about wholesaling??? is it a beginners guide or advance guide???
On August 31, 2009 at 3:46pm, Stephani said...
Hi Red,
It’s an eBook about wholesaling REOs. For beginners..
Steph
On September 01, 2009 at 9:22am, William said...
Steph,
Great info!
I was wondering, for someone just starting out….
what would your monthly expenses be in finding “sellers”. When you started out, what were you spending monthly, on average, in market for your business.
Thanks in advance,
William
On September 01, 2009 at 11:04am, Stephani said...
Hi William,
It depends on what type of marketing you are going to be doing.
If you’re going after MLS properties, your marketing cost will be zero..
When I was first getting started, I used bandit signs and direct mail. I didn’t have a lot of cash, maybe a couple hundred bucks a month. I also used Craigslist, which is a great resource, and it’s free.
Steph
On September 01, 2009 at 2:19pm, William said...
Nice!
Thanks Steph!
On September 04, 2009 at 10:00am, tim martin said...
hi stef, do i need my real estate license to have access to the mls ? i ve been contemplating getting my license so i could have this market at my fingertips.thank you for your help . sincerely tim martin
On September 04, 2009 at 10:25am, Stephani said...
Hi Tim,
There are ways to get access without having your license..
Here’s an article that should help…
http://www.strugglinginvestor.com/2009/08/how-to-get-mls-access-without-your-license/
Hope that helps!
Steph
On September 07, 2009 at 10:19pm, Greg said...
Steph, this is sorta off the subject, but in the REO Rockstar course it says you should put a 0 day inspection period and 90% of the time they will send you a addendum that you will get a 7 day period. What if the bank just accepts and doesn’t send you a addendum? Isn’t this risky? Not sure why the Reo Rockstar would suggest taking this risk. Advice would be appreciated. Thank you
On September 08, 2009 at 5:49am, Stephani said...
Hi Greg,
I don’t think I’ve ever NOT had the bank send an addendum.
If you don’t feel comfortable making your offers that way, then give yourself an inspection period when you make the offer. Just realize that it will have less of a chance of getting accepted as compared to one with no cotingencies.
Steph
On September 08, 2009 at 10:13am, Greg said...
I would like to do what you do.. do you put a inspection period down? I would like to say… I’ve been reading your earlier blog posts from 2007 and you are a Soldier! Very inspiring, thank you.
On September 08, 2009 at 10:20am, Stephani said...
Hi Greg,
I don’t put an inspection period in my offers anymore. I wouldn’t advise doing that, though, unless you are VERY comfortable with your offer.
Thanks for stopping by.
On September 14, 2009 at 3:05pm, Tony Zamberlin said...
any more reo deals gone through lately??
On September 23, 2009 at 7:56am, Joe Ziolkowski said...
Hey Steph! This video is very helpful. I was wondering, if you did want to use an agent to access this for you, and maybe just send you the stuff once every 2 or 3 weeks to your email, is that pretty easy for them to do? Also, what can I offer them to make it worth their while? I deal mostly with sellers and assignments, so I don’t know how many properties I would be listing with them. I don’t want them to do this thinking that I’ll be buying or selling through them. How else can I make them happy? A monthly fee perhaps? Thanks for all the info!
On September 23, 2009 at 2:23pm, Stephani said...
Hi Joe,
You can have an agent set you up for automatic email notifications so you will get an email when something hits the market that fits your criteria. This only takes a few minutes to set up.
Are you planning on making the offers directly to the listing agents?
Steph
On September 23, 2009 at 8:55pm, Joe Ziolkowski said...
Nope, not at this time. That’s the thing. I’m dealing directly with sellers that I connect with through my marketing, and then selling directly to the buyers. I definitely want to hop on the REO bandwagon asap, but I want to get some money together for a good emd first. But that’s my issue. I wouldn’t need them at the moment for anything but the mls numbers. I don’t want to be dishonest with them in that regard, but how else can I make it worth their while? Thanks again for everything. Your blogs and videos keep me motivated when the going gets rough
Joe
On September 23, 2009 at 9:02pm, Stephani said...
Just tell them you want listings and ask that they set you up for automatic email notifications. It only takes a minute to do. Give them a gift card or take them to lunch to make it worth their while..
Or you can go on Realtor.com or Ziprealty.com and do searches on your own..
On September 23, 2009 at 10:10pm, Joe Ziolkowski said...
Excellent! Thanks Steph, I’ll get on it first thing tomorrow!
On October 06, 2009 at 11:12pm, Joe Ziolkowski said...
Hey Steph,
So anyway, just wanted to let everyone know that this is an EXCELLENT low budget way to find buyers. Thanks Steph!
Ok, so a little update. I found a realtor, told her what I wanted, dropped a starbucks gift card, and it worked like a charm! Just drove out to the listings she gave me (in a kind of scary part of town), went inside the first one I saw with a dumpster out front, and the owner was there working on the place. I went in, nervous as could be, and proceeded to have about a half hour conversation with him and his parnter. They’re cash buyers, and told me exactly what they wanted. Even told me stuff I didn’t think to ask
On October 07, 2009 at 5:44am, Stephani said...
That is AWESOME Joe!
Congrats to you on getting out there and taking ACTION! Now you just need to keep doing that once or twice a month, and you will have yourself a kick ass buyers list in no time..
Nice job.
On December 09, 2009 at 12:27am, Tiara said...
Hey Steph,
I have a question about the steps after you build your buyers list. I am trying to start 2010 off with a bang, which is why I am currently in the process of obtaining my real estate license (access to MLS and lockbox codes-I cant pass that up lol). I am steadily building a buyers list, but I have one question. When I am ready to start putting homes under contract and passing them along to my end buyers, what should I include in my email blast? I know I should include the address, price, pictures and possibly video (I hear this is a pretty good strategy), but what else needs to be in the email to make the decision a lot easier for my cash buyers? How are your emails structured? Do you use PDF’s, MS Word? Any advice would be helpful…
Tiara
Detroit, MI : )
On December 09, 2009 at 4:45am, Stephani said...
Hi Tiara,
I’ve never been big on email blasts to my buyers list, to be honest. I prefer calling them personally. I don’t have a very big list- I usually work with around 10-20 active investors at a time, and most of the time I’ll have a specific buyer in mind when I put a property under contract, so I only have to make a phone call or two to sell it. Most of the guys that I sell to are experienced investors, so all they need from me is the address, price, and lockbox code, and then I will give them a general description of the condition of the house.
If I do decide to send an email, I will include the following:
Address, beds and baths, square footage, type of construction (block or frame), and a ball park repair estimate or just a general description of the condition of the property.
Don’t get wrapped up in making your emails all fancy- if you are selling a great deal, the numbers will speak for themselves, trust me.
Hope that helps…
Keep up the great work, Tiara.
On February 19, 2010 at 9:50am, Eric said...
Super helpful video Steph! Looking forward to adding this to my routine.
On February 19, 2010 at 9:53am, Stephani said...
Glad you liked it, Eric. It’s definitely one of the most effective methods for finding cash buyers. Let me know how it works out for ya.