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Hi Guys/Gals,
Hope you all are having a delightful weekend..
I’ve got a new Reader Mail video for ya about simultaneous closings. I’ve had quite a few people asking questions about them these last few weeks, so hopefully this will fill in the blanks.
I was planning on posting this last night, but Windows Movie Maker is a PIECE OF CRAP and kept making my computer crash. I decided to call it quits at 4am, as I was starting to have fantasies of taking a bat to my computer. Wouldn’t be the first time.
Anywho….here it is.
I’m still working on the whole editing videos thing, so just pretend like you don’t notice. :)
If you have questions after watching, feel free to leave them in the comments section.
Later Alligators!
P.S.
If you like my videos and want to subscribe to my YouTube channel, you can go here to do so!
On September 12, 2009 at 7:30pm, Bill Lassiter said...
Good, informative content Steph. Soon you’ll be editing these video’s and crankin them out like you belong in Hollywood
.-= Bill Lassiter´s last blog ..Looking for Bulk REO’s in Tampa Bay Fla =-.
On September 12, 2009 at 7:33pm, Stephani said...
Thanks, Bill.
Hey, did you get in touch with that guy about the bulk stuff?
On September 12, 2009 at 7:51pm, Bill Lassiter said...
Sent him an email and will give him a call either tomorrow or Monday. I’ll let you know how it goes. Thanks!
.-= Bill Lassiter´s last blog ..Looking for Bulk REO’s in Tampa Bay Fla =-.
On September 12, 2009 at 8:04pm, Stephani said...
Cool. I’ll let you know if I hear anything back about the other..
On September 12, 2009 at 8:04pm, ARodOfIron said...
Great video as usual!! I’m sure I won’t be the only one to say how much they’re appreciated!
Agh, I feel your pain with Windows Movie Maker. I won’t tell you what I use because you’ll say I’m a pro and am just showing off. *cough* Adobe Premiere Pro *cough*
On September 12, 2009 at 8:05pm, Stephani said...
SHOW OFF!
I was so ticked off last night trying to get it to work. I started at 10pm and was still up at 4 trying to make it work.
Stupid technology.
On September 12, 2009 at 11:38pm, ARodOfIron said...
Wow, that sucks. Hopefully you’ll find a way around that. Also let me know if you need a hand, it seems all you’re missing is an intro? Because the rest of the video is pretty straight forward.
P.S.: How’s the e-book work going (forgot to ask)?
On September 12, 2009 at 11:58pm, Stephani said...
Thanks, I appreciate it. It worked fine today- didn’t crash once..
E-book is almost done (famous last words)….
On September 12, 2009 at 8:49pm, Bruce said...
Hey Steph, excellent video….I especially like the cool intro music and graphics.
(very Guru-like) he,he
Have you ever tried Cam Studio? …supposed to be pretty decent.
On September 12, 2009 at 8:57pm, Stephani said...
Hola Bruce!
No- never heard of Cam Studio. I will have to check it out, thanks.
On September 12, 2009 at 9:00pm, Niki said...
Hey Steph- great video! One question though, since you are closing with 2 seperate title companies and both of them have their own title fees, does the end buyer end up paying double the title fees, or am I missing something?
On September 12, 2009 at 9:06pm, Stephani said...
Hi Niki,
There will be 2 sets of closing costs, yes. On the first sale, you will have to pay whatever fees the bank dictates in their addendum.
On the second sale, it depends how you nogotiate your deal with your end buyer. I always sell my deals at a net price to me, which means my buyer pays all of the closing costs on the second transaction…
Make sense?
On September 12, 2009 at 11:23pm, Andy Rumple said...
Steph,
Your video did not mention disclosure of using the end buyer’s funds for the A-B purchase. I’m told it is not legal in my state to do this unless it is disclosed. My question is….. does your title company handle the disclosure form? and who is required to sign it? If disclosure is not required in your state maybe someone else can answer this. Thanks!
On September 12, 2009 at 11:32pm, Stephani said...
Hi Andy,
My title company has the buyer sign a document at closing saying they know about the simul close. This is not because it is illegal to do otherwise, but because the underwriter will not insure it unless the document is signed.
I have a lot of people (usually mortgage brokers and realtors) tell me that simul closes are illegal, but I have yet to have anyone provide me any information that says so.
I would check with a real estate atty in your area to find out for sure. That’s what I did, and was assured that there’s nothing illegal about what I’m doing..
HTH,
Steph:)
P.S.
Not sure if I mentioned it in the video, but these closings will only work with cash or hard money buyers. Conventional financing won’t fly.
On September 13, 2009 at 7:35am, Ash said...
Howdy.
If they buyer is useing conventional financing does the lender require seasoning and if so is that why it wont work? Thanks!
On September 13, 2009 at 8:20am, Stephani said...
Most conventional lenders will have title seasoning reqs, yes, so you want to sell to hard money or cash buyers. Some with regular assignment deals- when the loan goes through underwriting and they see the contract is being assigned, it will kill the deal in most cases.
On September 13, 2009 at 8:29am, pj said...
Steph,
Do you put language in your B-C contract that specifies you do not have title? You are putting something under contract for sale that you do not own, so how do you get around this? And how do you finesse your end buyer to sell them on this? What do you say to get them on on board with this…or do you? Seems like they would haggle to get a bigger piece of the action.
Thanks!!!
On September 13, 2009 at 8:35am, Stephani said...
Yes, I add a clause in my contract w my end buyer that says the sale is contingent upon me buying the property from the bank.
I offer my buyers great deals, so there’s no need to sell them on anything. The deals sell themselves. There are always negotiations involved, and if we can’t agree on a price that we’re both happy with, I find another buyer.
The key is having a great deal to offer. Great deals sell themselves. Garbage deals don’t.
On September 13, 2009 at 9:07am, Jusitn McClelland said...
Good stuff as always. Funny that you were having issues with Windows Movie Maker, I do from time to time. I find that when it crashes, there are too many other applications open. When you go to publish close out of everything else. That does the trick for me.
.-= Jusitn McClelland´s last blog ..Windows Movie Maker – Extremely Quick Tutorial =-.
On September 13, 2009 at 9:18am, Stephani said...
Thanks, Justin!
That could be the problem, as I usually have about 25 million things open at once..
I noticed your tutorial on your blog after I finished this last video. I have it bookmarked, and will watch before the next one I make. Otherwise, I’ll forget.
On September 13, 2009 at 12:02pm, Del'Win said...
I was told this type of transaction has to be disclosed to the bank and there title company from the title companies in my area.
Does your title company disclose this to the bank and there title company and if so what is disclosed?
On September 13, 2009 at 12:14pm, Stephani said...
No, there’s no disclosure to the bank or the bank’s title company.
The way my attorney explained it to me was that since the bank is being represented by their own title company, my title co does not have a fiduciary responsibility to the bank, so they do not need to disclose what is going on with the second transaction.
If you have questions about the legality of simul closes in your state, I would ask a real estate atty.
On September 13, 2009 at 12:26pm, ARodOfIron said...
While we’re on the question of title companies, I’ll ask one.
I know you’ve had a few A-B deals fall apart. I imagine during that period you had you B-C title Co. working on title search for you. I imagine that those services have a cost attached that would have been satisfied at closing, but given that closing never came, what have you done? Have you had to come out of pocket for those expenses?
On September 13, 2009 at 12:30pm, Stephani said...
No- you’re not responsible for the title fees if the deal goes bust.
It’s a cost of doing business for the title company.
On September 13, 2009 at 1:08pm, ARodOfIron said...
Ah gotcha! I imagined that was the case with the A-B TC, but wasn’t sure if the B-C TC worked the same way, thanks sis!!!!!
On September 13, 2009 at 2:00pm, john said...
Good stuff Steph!
.-= john´s last blog ..Awesome Potential New Lead Source! =-.
On September 13, 2009 at 2:12pm, Stephani said...
Thanks John!
Hope everything works out with the law firm leads. That would be SWEET.
On September 13, 2009 at 2:30pm, Anthony said...
Steph,
As always, great content.
Question: Is transactional funding a factor, here? It sounds like there isn’t a need for it, unless I didn’t catch something in your video, which is alway possible with my terrible hearing — I was in a rock band for six years.;-)
On September 13, 2009 at 2:44pm, Stephani said...
Hello Anthony,
No, you are correct- there is no need for transactional funding since the deal is being funded with the buyer’s cash.
You would use transactional funding when a simul close is not possible.
If I were doing a short sale, for example, I would have to use trans funding as my title co will not do a simul close on a short sale deal..
Steph
On September 13, 2009 at 4:28pm, Chris Ranney said...
Hey Steph, great video. Question: You mention Buyer A as the bank. Can Buyer A also be a homeowner provided its not a short sale?
On September 13, 2009 at 4:41pm, Stephani said...
Not sure if I understand your question..
Do you mean can you sell to a homeowner? If so, yes, as long as they are paying with cash or hard money.
Or do you mean can you do a simultaneous closing where the seller is a homeowner?
If so, it would not be necessary, as you could just assign the contract. The bank’s will not allow you to assign their contract, which is why you have to find another way to wholesale REOs.
On September 13, 2009 at 6:06pm, Anthony said...
Steph,
Thank you for the clarification.
On September 14, 2009 at 7:05am, Vannie said...
Hi Steph! Thanks for another really informative video!!
I have a question – would there be any other clauses that you regularly use in the contract with your end buyer to protect yourself besides the sale of the property is contingent on whether you were able to buy the property from the bank? Would that be the only one that you would need?
Thanks again!
On September 14, 2009 at 7:16am, Stephani said...
Hi Vannie,
I make my contracts non-assignable and don’t allow my buyers any financing or inspection contingencies.
I always suggest finding a good real estate atty in your area and having them review/revise your contracts to be sure you have everything you need in it to protect yourself.
Steph
On September 14, 2009 at 7:36am, Vannie said...
Thankyou thankyou Steph!!
On September 14, 2009 at 5:55pm, Andres said...
Hey Steph,
Love the info that you put into this site, you’ve done a great job. Anyways my question is when you want to submit an offer for an REO property or any type of property dont you usually have to submit an earnest money deposit? Arent they usually at least $1,000? How do you get around that?
Also, do you only do REO properties? If not what type of other deals do you do?
On September 14, 2009 at 6:01pm, Andres said...
Also, if I’m not able to find a buyer within the timeframe of the contract, what do I do? How do I get out of the contract or ask for more time? Or what actions should I take in a situation like that?
On September 14, 2009 at 6:31pm, Stephani said...
Hi Andres,
I have been doing only REO deals for the last 2 years. I figure I might as well take advantage of the opportunity while it is here..
Yes, you will need a deposit, usually a minimum of $500. There’s really no way around that unless you are able to line up a buyer extremely fast.
If you can’t find a buyer and you don’t have any contingencies in your contract, you will lose your earnest money deposit.
I have a very solid buyers list, so I usually have my deals sold by the time I ratify the contracts with the bank. I recommend having buyers lined up before you start making offers. It will make things much easier.
HTH,
Steph
P.S.
I just finished writing an ebook that will answer all of these questions and more. It should be ready to go next week. I’ll be sending out an email to the people on my list as soon as it’s ready. If you want to be added to the list, go up to the top right of my site and enter your email address..
Thanks for stopping by..
On September 14, 2009 at 8:34pm, Andres said...
okay, what type of contingencies could I put on the contract to be able to get out? What type of contract do you usually use?
also, if the REO is listed with a realtor how do you go about making an offer? do you get a buyers agent? i’m a licensed realtor so is it safe to represent myself in these transactions? thanks!
On September 14, 2009 at 8:39pm, Stephani said...
You can put whatever contingencies you want to in your offer- inspection, financing, etc. The more contingencies you use, though, the less likely the bank is to accept it. The bank will stipulate which contract you use, so you will have to ask the listing agent.
If you are licensed, you can just make the offers yourself directly to the listing agent.
On September 14, 2009 at 9:06pm, Andres said...
okay, where do you go to find the good REO deals?
On September 14, 2009 at 9:09pm, Andres said...
also I was told to put on the contract when wholesaling that it is “contingent upon approval of buyers partners”; is that something that you use? should I use that contingency?
On September 14, 2009 at 10:21pm, Stephani said...
I get all of my REO deals off of the MLS.
I would not use that contingency with the bank. If you must use one, go with financing or inspection.
On September 15, 2009 at 6:04am, James said...
This was my first stop to your blog. Great site! I really enjoyed your video.
On September 15, 2009 at 8:28am, Scott Costello said...
Hey Steph,
Have you ever tried using a Mac? I’ve always been a microsoft windows proponent but with the way PCs seem to not like you, maybe you should try an Apple product (I love my iphone).
.-= Scott Costello´s last blog ..30DC – Day 16 – Break Day =-.
On September 15, 2009 at 8:42am, Stephani said...
Hi Scott,
My first computer was a Mac, actually.
I think I will probably get another one next time around..
On September 15, 2009 at 9:00am, ARodOfIron said...
Steph, only thing about Mac/PCs you should be aware of (if you’re not already) is that our regional MLS only works thru Microsoft Internet Craplorer, so if you get a Mac don’t throw away your PC!
On September 15, 2009 at 9:07am, Stephani said...
Ha, that’s funny (or not)! That’s why I got a PC to begin with- so I could access the MLS. That was a loooong time ago, though, so I figured it would be Mac compatible by now.
I actually got software back then called Virtual PC that allowed me to use MLS on my Mac, but it ended up slowing my computer down so much that I could barely use it. It was never the same after that, even after I removed the software.
I’ve just accepted the fact that all things electronic HATE ME.
On September 15, 2009 at 9:28am, ARodOfIron said...
Nope, not compatible yet. Microsoft put out a version of Internet ExploDer for Mac a few years ago, but have discontinued it since. I feel your pain on Virtual PC type thingies.
I will tell you that there’s something called “Boot Camp” that kinda solves the problem. Basically, at boot time you can tell the Mac whether you want to boot in Mac OS or in Windows (or anything else actually). You still need to have a separate Windows license, which I assume you already have, and you Windows installation disk. It’s what I do with my Mac laptop actually, when I want to go into MLS. A little bit of a pain, but at least it gets me there. If you need help setting this up, I’m just around the corner.
On September 15, 2009 at 9:43am, Stephani said...
Thanks Alex, I appreciate it.
My Sony Vaio has been really great except that whole “shutting off for no reason” thing. It only did it a couple of times, though, and now is working fine. Keeping fingers crossed..
On September 15, 2009 at 9:15am, Sam said...
hi Steph,
I have a house under contract , 7001 lakeshore Drive Tampa. Looks like my buyer is going to back out. I am hoping you would JV with me to find a buyer. I need this closed before end of week. I can possibly get another extension if I have to.I am getting the property at 29k. This house is right next to the one Lee had contracted. Please let me know.
On September 15, 2009 at 9:21am, Stephani said...
Is is block or frame?
What repairs are needed?
On September 15, 2009 at 9:29am, Andres said...
Hey Steph,
How much time do you usually give yourself on the contract to find a buyer?
Also, just to get everything straight. When you prepare a contract for an REO property you state that its a cash transaction with no contingencies? Do you do the same for the B-C transaction contract?
On September 15, 2009 at 11:36am, Stephani said...
I usually have my deals sold right away, so I always offer a fast closing (5-7 days).
You can offer whatever you feel comfortable with, though.
Yes, and yes on the last 2 questions.
On September 15, 2009 at 11:40am, Andres said...
Can you send me a template of the contract you use for both transactions? Also, do you only work out of Tampa or in any other state?
On September 15, 2009 at 11:52am, Stephani said...
Would you like my first born child, too? Just kidding.
Yes, I only do deals in Tampa..
On September 15, 2009 at 11:41am, Sam said...
Hi,
Property appraiser says masonary stucco;frame house. its a 3/1 1342 sq ft heated. i do not have a contractor repair estimate..Pictures of the property can be see on zillow
http://www.zillow.com/homedetails/photos/45081264_zpid/
On September 15, 2009 at 12:37pm, Stephani said...
I can make a few phone calls, but I think it may be priced a little high. It was sitting for awhile @ 28.5k… What’s the lbx code?
On September 15, 2009 at 12:52pm, Chad said...
Steph,
FIrst off, my condolences. I saw that your man R. Fed lost yesterday.
My question is how did you get access to the MLS even though you’re not a licensed agent?
On September 15, 2009 at 1:02pm, Stephani said...
Hi Chad,
Thanks for the sympathies.. I hate to see R-Fed lose, but that was an AWESOME match, and del Potro played his heart out, so I was happy to see him win. He definitely deserved it..
Regarding MLS access, when I was just getting started, I became an assistant to another realtor I knew and gained access that way. These days, most of my wholesaler friends are licensed, and they just give me their user names/passwords.
Here’s a great article that explains how to get access w/out being licensed…
http://www.strugglinginvestor.com/2009/08/how-to-get-mls-access-without-your-license/
HTH,
Steph
On September 15, 2009 at 1:40pm, Chad said...
Do you also use the MLS to come up with your comp prices? Do you use any websites? I’ve used Zillow before, but I’m skeptical about how accurate those estimates, or should I say zestimates, are.
On September 15, 2009 at 1:44pm, Stephani said...
Yeah, I just use the MLS if I need to look up comps. I used to have access to RealQuest, but don’t really need it anymore..
I havent used Zillow in a loooooooong time. Maybe it is more accurate than it used to be, but when I was using it, it sucked.
On September 15, 2009 at 3:03pm, Sam said...
Hi Steph,
Lockbox 8590
Sam
On September 15, 2009 at 3:29pm, Andres said...
When searching for REO properties, how do you figure out which ones are the best deals? What factors do you take into consideration? If a property has been sitting on the market for a long time, would this property still be a good candidate? Thanks so much Steph for all your help!
On September 15, 2009 at 5:43pm, Stephani said...
If the numbers work, or are within a reasonable range of working, then I will make an offer.
Usually the banks are more willing to negotiate when the properties have been sitting on the market for awhile.
On September 15, 2009 at 6:11pm, Andres said...
okay but the properties that you make offers on, are they usually ones that have been sitting on the market for a long time or do you go for ones that just hit the market?
On September 15, 2009 at 6:17pm, Stephani said...
I go after anything that is priced within a reasonable amount from where I need to get it at. New listings, old listings, and everything in between.
The newer ones have more competition, so I prefer the ones that have been sitting for awhile.
On September 15, 2009 at 6:28pm, Andres said...
okay but if the property has been sitting on the market for a long time, isn’t that an indicator that no one wants to buy it? including your prospective buyers?
On September 15, 2009 at 6:31pm, Stephani said...
Yeah, if you are offering full list price. You can offer lower than list price, and many times the bank will take it esp if it has been sitting there for a long time.
On September 15, 2009 at 6:38pm, Andres said...
okay but isn’t the whole concept of wholesaling is to lock in properties that are hot before your prospective buyers are able to notice them? so if you lock in a poperty that has been for sale
for a long time and that everyone knows about ( including your prospective buyers) then what would be the point of that?
On September 15, 2009 at 6:45pm, Stephani said...
No, that’s not the concept. The concept is to find a good deal, sell it to your buyer, and make a profit. My buyers don’t give a rat’s ass how long a property was listed as long as it is a good deal and the numbers work.
I’ve sold deals to my buyers that were listed for over a year. I lowballed the bank, got an acceptance, and CREATED a good deal by getting them to accept a lower offer.
On September 15, 2009 at 7:09pm, Jerry said...
Andres,
I hope you are sending Steph a check for all of this hot air you are blowing over to Tampa. Why should she send you or anyone else her contracts just for showing up and asking, or answer a million questions designed to poke holes in a strategy she uses?
Go ahead, im bracing for a rebuke..
If something has been sitting for a long time its because its overpriced. If the seller accepts a realistic offer it gets closed, and if you are the one making that offer you can sell it to someone else that didnt make the offer if you dont buy the thing yourself.
If you make an offer for list price on something thats sitting I can understand your question but who on earth would do that?
On September 15, 2009 at 6:50pm, Ani said...
Hi Steph-
Thanks for the great info – have you ever worked w/your own buyers agent on a wholesale REO? -do you think this may be helpful for certain transactions? (if agent is Investor friendly) & have you ever had to use transactional funding for these REO flips? or gotten any problems w/having your buyer fund both transactions? I would Love to know! Thanks again!
On September 15, 2009 at 7:00pm, Stephani said...
Hi Ani,
I’ve made offers using friends that were licensed. Now I just make offers directly to the listing agents. It’s up to you how you want to do it, but it’s sometimes hard to find an agent willing to submit a lot of offers for you..
I’ve never used trans funding, and never had a problem with a simul close.
HTH,
Steph
On September 15, 2009 at 7:20pm, Andres said...
okay but what i dont understand is this, if a property has been up for sale for over a year, very noticeable and everyone in town has been aware of this including everyone from your buyers list. Would it make sense to make an offer with the intention of reselling it to one of your buyers?
Dont you think that if they were interested in the property that they would have made a move on it directly?
Why would they buy it from you when they could have made an offer themselves the entire time it was listed for sale?
Thats the dilemma i have with properties that have been for sale for long period of time.
On September 15, 2009 at 7:26pm, Shae said...
Andres, if you don’t want to deal with properties that have been on the market for a long time, just go for the new ones then. BUT do so knowing that there will be a LOT more competition for them and less motivation from the bank to accept lower offers far below list price. There’s no reason to have a dilemma with this…its being done successfully all of the time!
.-= Shae´s last blog ..No monkey offers! =-.
On September 15, 2009 at 7:29pm, Andres said...
didnt answer my questions
On September 15, 2009 at 7:27pm, Stephani said...
Am I on candid camera?
On September 15, 2009 at 7:53pm, Jerry said...
Timing. If you make an offer for 45 on something listed for 110 sitting for 245 days and it gets rejected, but I come along and offer 45 for the same thing at day 270 and it gets accepted its not because noone was interested in buying it, its because nobody hit the timing right but me. I submitted an offer that the seller thought was ridiculous just a little while ago, but now they need to sell it. Plain and simple.
The days here are arbitrary, but the point is that time changes everything.
A dozen people may be watching it and wanting to buy it. All of them may have made offers, some for much more than mine, and been rejected. I was just in the right place at the right time.
On September 15, 2009 at 8:01pm, Stephani said...
Thanks for clarifying, Jerry.
Andres, if that doesn’t answer your question, I don’t know what else to tell you.
Almost every REO deal I’ve ever done was listed more than 3 months, most of them a lot longer.
Like I mentioned previously, buyers are interested in the numbers, and if you bring them a deal that fits their #s , it doesn’t matter how long it was listed. Also, most of my buyers don’t have MLS access so they have no clue how long something was listed. It doesn’t matter.
If you prefer to go after the newly listed properties- go ahead, but like Shae was trying to point out- there is going to be a lot more competition, so be prepared.
On September 16, 2009 at 6:35am, ARodOfIron said...
Steph and Jerry, thanks for the detailed explanation. What you mention here is actually not very apparent to many people until they get into it. I’ve even had some licensed realtors making similar questions, not even many of them get it.
I put in an offer yesterday for a property (three actually, but I’ll talk about one for now
). At first they weren’t accepting anything under $1k – $2k below list. The property has been sitting for around a month, so my offer yesterday was for $16k below list price, and it seems like it’ll fly.
A lot of list agents are apparently too hopeful that the retail market has finally recovered, as I’ve seen many REOs in investor areas priced at retail. Although I’m sometimes hesitant, I’ve put in wholesale investor offers for those as well, you never know when they’ll get desperate to unload.
Now North St Pete is one area that still puzzles me about the action going on there. It’s VERY competitive, and most everything from what I can see ends up selling BELOW list price ($5k – $8k over!) and fast. In my current n00bness I feel it’s risky for me to speculate that much, but I keep on the lookout.
Sorry for the blogpost-sized comment!
On September 16, 2009 at 6:37am, ARodOfIron said...
Aghh… in my fourth paragraph, I meant to say “It’s VERY competitive, and most everything from what I can see ends up selling ABOVE list price ($5k – $8k over!) and fast.” My coffee hasn’t kickstarted my brain very well.
On September 16, 2009 at 7:43am, Stephani said...
Glad to see you are still out there making offers.
There have been many times when the listing agent will tell me there’s no way the bank will take my offer, and then they do. The one time I got a property @ 50% of list price, the agent was pissed off at me when I made the offer, and then they ended up accepting it.
The banks are consistently inconsistent- you never can tell what they are going to do, so I just make offers that work for me, and say to hell with what anyone wants to say about it..
On September 16, 2009 at 2:55pm, Jerry said...
That is a smokin market. You need to become familiar with that sucker and watch for deals to come screamin by. Watch for stuff that is underpriced, and or needs more work than a homeowner will take on. Id watch that thing daily, and setup as many automatic searches as possible in the MLS.
You do have MLS access dont you?
On September 16, 2009 at 3:00pm, ARodOfIron said...
Jerry, I do have MLS access, but I’ve felt that by doing what you suggest I may be abusing the agent’s trust. Maybe Im overthinking it.
On September 16, 2009 at 10:02pm, Jerry said...
Well buddy…I have absolutely no idea what you mean. Either you are in business or not. That is a hot market, and if they extend this tax credit id be ALL OVER THAT MOFO and cherry pick with daily searches, and id prob make an offer on every listing in there. Then id set em up w USDA financing if you can get it in there.
On September 16, 2009 at 10:07pm, Jerry said...
Theres basically three price points in a market like that Wholesale to an investor, wholesale to a homeowner and retail. What you want to do is buy wholesale and sell wholesale to a homeowner. I may be getting ahead of the gate but theres alot of opportunity in those kinds of pockets.
On September 15, 2009 at 8:05pm, Andres said...
thanks so much!
On September 15, 2009 at 8:48pm, Bill Lassiter said...
Hey Steph, about the Bulk REO’s; I still have not been able to make direct contact with the guy you told me about, but I’ve been talking with someone who works for this hedge fund. I’m researching them well because I’ve heard a lot of negative things about hedge fund companies. I’ll keep you posted.
On September 15, 2009 at 8:53pm, Stephani said...
Hi Bill,
I asked around to the people I told you I was going to, and no luck.
Not sure if you’re aware, but there is a foum on Bigger Pockets that is just for making bulk REO deals- you may be able to find something over there.. here’s a link..
http://www.biggerpockets.com/forums/97-bulk-reo-discussion-and-reo-dealmaking-forum
Hope that helps..
Steph
On September 15, 2009 at 9:00pm, Bill Lassiter said...
Thanks kiddo!
On September 16, 2009 at 7:48am, ARodOfIron said...
Yeah. My mental attitude is that I never offer “low”, I offer “right”.
On September 16, 2009 at 12:49pm, William said...
Hey Steph
GREAT info!
Question:
When making REO offers, are you working moslty with sellers agents or do you have your own RE agent going out with you making offers on those properties that fit your criteria?
Thanks,
Will
On September 16, 2009 at 5:01pm, Stephani said...
Hi Will,
I make my offers directly to the listing agents. I used to submit them through a friend of mine who was a Realtor, and that worked out fine as well..
Steph
On September 17, 2009 at 10:09am, Andres said...
when coming up with a figure to offer on a property, do you usually take a certain percentage off the listing price or of the current market value of the property? What percentage do you use? Thanks
On September 17, 2009 at 10:17am, Stephani said...
No, I don’t use a percentage.
I find out what my buyers are looking for, and then make offers low enough to give them a good deal and still leave room for my profit.
On September 17, 2009 at 10:56am, Andres said...
I heard that typically wholesale buyers are looking to buy at 70% of the market value is that true?
On September 17, 2009 at 11:20am, Stephani said...
Depends on your market. It’s different everywhere.
In my market, there’s no way in hell investors will pay 70% of retail. I’d be a gazillionaire if that was the case.
You have to find out what investors are paying in your market.
On September 17, 2009 at 12:16pm, Ani said...
-what’s the best way to get this info accurately? RE: what investors are paying? ie: in So. Cal/los angels- where I am
any suggestions?
On September 17, 2009 at 12:19pm, Stephani said...
Start networking with other wholesalers and see what price points they are selling their deals at..
Check the sold comps in the neighborhoods you want to work in..
Find some active buyers and ask them what prices they are paying for properties in X area.
On November 10, 2009 at 9:56pm, Jason said...
Im in cali and I know so.cal is looking looking for at least 65-70% below market value! are market is way different from steph’s
On September 17, 2009 at 1:37pm, Niki said...
Hey Steph,
What % do your investor buyers purchase at, and do investors over there purchase at a percent of FMV or ARV?
On September 17, 2009 at 2:12pm, Stephani said...
They don’t use any sort of formula that I’m aware of.
They tell me what prices they are willing to pay in certain areas, and I go find them deals that fit their criteria.
On September 17, 2009 at 2:50pm, Jamie said...
Hi Steph,
So I am asking for some advice. I have my first property under contract now. I thought I had my cash buyer all set and ready to go, and backed out today. I have a few other contacts I am waiting on answers from, but I am very nervous. The bank wants to close by the end of the month. Is their any other marketing or advertising advice you could give me for this situation? Thanks.
On September 17, 2009 at 2:55pm, Stephani said...
Here’s what I would do…
-Ads on Craigslist twice/day
-Call every wholesaler in town and see if they might have a buyer.
-Put out 20-30 signs in the neighborhood where the house is
-Call every “For Rent” sign in the neighborhood and see if the landlord is looking for more rentals
-Do a search in the MLS (or have a realtor do it for you) for recent investor sales in the neighborhood. Go drive by the properties and see if there is a sign in the yard, if so, call it and ask if they want another deal.
-Print up flyers and go to any and all REIA meetings and pitch the property
If that doesn’t work, there’s a good chance your price is too high..
On September 17, 2009 at 4:09pm, Sam said...
Hi Steph,
Any interest from your buyers?
Thanks
On September 17, 2009 at 4:19pm, Stephani said...
Hi Sam,
I sent a few people by, but none were interested..
If it was concrete block, I don’t think it would be hard to sell. I don’t have many buyers who will touch frame houses, unfortunately..
On September 18, 2009 at 8:59am, Tony Zamberlin said...
steph,
do u ever tell ur buyer his funds will be used to fund both transactions or just let him sign the form at the attorneys office to find out?? thanks
On September 18, 2009 at 5:20pm, Stephani said...
Most of my buyers get their properties from wholesalers, so they already know the drill regarding simul closes. Most don’t care as long as they are getting a good deal.
On September 18, 2009 at 9:13am, Tony Zamberlin said...
steph,
do u just focus on wholesaling houses that cash flow ?? or flips as well?
On September 18, 2009 at 5:21pm, Stephani said...
Both.
On September 18, 2009 at 9:55am, Tony Zamberlin said...
steph,
i finally got a good pof from coastal-funding.com
do i have to use their funds to close or does it really matter. would like to do the simeltaneous closing with my end buyer.
On September 18, 2009 at 5:22pm, Stephani said...
Doesn’t matter.
On September 18, 2009 at 11:06am, Sam said...
Thanks for the feedback Stephanie. I should be contracting a block home shortly. I will be in touch.
Thanks again
Sam
On September 18, 2009 at 5:27pm, Tony Zamberlin said...
thanks steph!! I’m refocusing and gonna start making offers tomorrow or monday morning! i have another local guy that wants to double team the banks!! what u think?? if i do this i will have to quit working with my other guy though becasue me and him would split. the only thing i worry about is coming up with the earnest depost which i think we could put them off until we got a buyer.
On September 19, 2009 at 11:44am, Tony Zamberlin said...
Steph and everyone,
i have been lazy this week. its been really hard to push myself and stay possitive in my real estate biz. its only been a passion of mine for like a year and i have to force myself to evaluate deals, make calls and make offers. I’m beginning to wonder if its my true passion or not. ?? if not how do i find my true passion in life?? thanks alot.
PS. ever since i read rich dad poor dad i wanted to be wealty, but i’ve always wanted to be a cop….
and when i use to volunteer time just flew by!! i’ve been told by family and friends that thats my passion. law enforcement or emt, but if it really is how do i know and how the hell do i get wealthy doing it ??
On September 19, 2009 at 2:40pm, Shae said...
Hey Tony, the way I look at it is….the thing that you’d be willing to do with enthusiasm and joy and never get paid a dime for is ultimately your passion. I also am a strong believer in setting up multiple streams of income for wealth building…so essentially you could be in law enforcement (if that’s what excites you) and still do real estate as an additional income stream. However, whatever it is that you do, it will take hard consistent work and dedication to be successful, so it makes sense to find that thing that gets you going.
.-= Shae´s last blog ..No monkey offers! =-.
On September 19, 2009 at 2:43pm, Tony Zamberlin said...
thanks Shae! Makes since. I just can’t seem to get really excited about real estate other than the cash it would bring me.
On September 19, 2009 at 2:49pm, Shae said...
Well…if the cash it would bring you is still not enough to get you excited and motivate you towards action…your best bet may be to do some soul searching and determine some creative ways to generate income from things that you’re passionate about and motivated to work hard for. There is certainly no lack of income opportunity in this country
Real estate isn’t the only way (although IMHO its one of the best ways) to generate wealth.
.-= Shae´s last blog ..No monkey offers! =-.
On September 19, 2009 at 2:57pm, Tony Zamberlin said...
ok thanks Shae. whats imho??
On September 25, 2009 at 11:02pm, Garland said...
Hi Steph,
I really enjoy your video and the information was very informative. I’m looking forward to checking out more of your videos on Sat. Night Reader
On October 01, 2009 at 1:04pm, Dwight Droze said...
Hey Steph,
Got your book! AWESOME and stupid proof! I don’t have the best reading comprehension ( i dont even know if i spelled that right) and it as so easy to understand! BUT i do have one questions. Im in CA and finding a title company here in Sacramento area is a PAIN!!!! I found one girl who knows what she is doing BUT she said they wont close on the second deal (b to C) without waiting 48 hrs for everything to clear. So cant use transactional funding for her and she also said she doesnt deal with REO’s cause the bank chooses. I havent asked her “what if the bank sent me the closing docs and i finished with you?”. I will. Im going to call around again today.
I just got off the phone with a nation wide title company that does all types of closings like this and the guy is going to call me back and talk. How do you feel about using a company out of state to do this? I means wouldnt it take longer to send official documents and all this?
On November 18, 2009 at 3:44pm, Stephani said...
Hi Dwight,
Sorry for not answering you sooner- your comment slipped by me somehow.
Honestly, I have no experience with using out of state title companies, so I’m not really sure how that would work. It would probably make it a bit more difficult, as you would have to wait an extra day to get the docs from the title company to you, and then back.
Steph
On November 18, 2009 at 2:18pm, Kristie said...
Hi Steph,
Thanks for the great video on simultaneous closings. I have a property under contract(bank owned) and would like to flip it, but the bank has an addendum I have to sign stating that the title cannot change for 30 days after the sale. I also thought of adding the name of my buyer to the contract, but the bank will not allow this either. Any ideas on how to still flip this property using a simultateous or a double close?
On November 18, 2009 at 3:49pm, Stephani said...
Hi Kristie,
I have not seen anything like that in a bank’s addendum thus far- I know that Fannie Mae has a restriction that says you can’t sell it for more than 120% of the purchase price for 90 days, but I’ve never heard of them prohibiting you from selling it all together (I know they are starting to do that with short sales, but this is the first I’ve heard of an REO doing it)…
I would cross that part of the addendum out and tell them you are an investor and may decided to flip the property. If they say no, I would back out of the deal, unless you can line up the financing for 30 days.
Who is the seller, anyway?
Steph
On November 18, 2009 at 4:20pm, Kristie said...
The seller is the BofA Servicing Center and it is a short sale…. Sorry for the confusion. I can think of no way to flip it..unless I could find a buyer who would actually pay for the property but would not take title for 30 days – pretty impossible!
On November 18, 2009 at 4:23pm, Stephani said...
Did you sign the addendum yet?
If the profit margin is large enough, there are private lenders who will loan you the money to hold it for 30 days, but you will have to have a buyer lined up first. I can put you in touch with someone who does those kind of loans if you are interested.
Steph
On November 18, 2009 at 4:50pm, Chad said...
Kristie,
Here’s a method that Steve Cook outlines in his course for just your situation. Make your offer in the name of the property, like 123 Main Street LLC. If they accept that, then form an LLC in that name. There are a bunch of websites that will do that for you for a small fee. I formed one in Indiana for $125. Anyway, once you find a buyer just transfer your membership rights in the LLC to them in exchange for your fee. As far as the bank is concerned, the buyer is still the LLC, the same entity to which they originally agreed to sell the property.
I haven’t actually done this myself, but I would definitely try it if I was in your situation. Hope it works out for you.
Chad
On November 18, 2009 at 8:22pm, Abel Morales said...
Hey Steph,
Great Video! Two questions, did you just call around and ask title companies if they did simultaneous closings? Also, where did you get the contract to sell the REO to the “end buyer”?
On November 19, 2009 at 6:25am, Stephani said...
Hi Abel,
I found my title company through a referral from another wholesaler. That’s the best way to find them…
The contract I use to sell is the FAR (Florida Association of Realtors) As-Is contract, with a few of my own clauses added..
Steph
On November 20, 2009 at 3:43pm, Josh said...
Great Video!
Obviously your buyer sees the closing documents between you and him when you are at the closing table (B-C Transaction), but does he see the closing documents between you and the bank (A-B Transaction) as well? He is funding the A-B Transaction so I was wondering if he had the right to see those documents (which would tell him how much you made). Also, as I understand it when you use two different title companies it is considered a hybrid close which is a little different from the simultaneous close. Please help clarify my lack of understanding on this distinction.
Thanks
Josh
On November 20, 2009 at 4:03pm, Stephani said...
Hi Josh,
The end buyer doesn’t actually see the closing docs from the sale between me and the bank, but the amount that I am making shows up on the A-B HUD, so they can see what my profit is.
Never heard of a hybrid close, so I can’t help you out on that one- sorry.
Steph
On November 20, 2009 at 4:35pm, Josh said...
So on the A-B HUD what does it list your profit as (proceeds to the buyer?). I will have to make sure there are no clauses in the contract that stipulate that I cant transfer title for a period of time (30 days, 60 days, 90 days, etc…).
Does that listing agent ever have a problem afterwards when they find out that you are wholeselling the deal and you didnt disclose that? It doesnt matter in terms of you getting paid at that point in terms of that particular transaction, but have you found that it kills your chances of getting “pocket listings” from top REO agents in your area if they feel you arent upfront?
On November 20, 2009 at 4:43pm, Stephani said...
It’s listed as “cash to seller.” Or something along those lines.
The 30,60, 90 day restrictions are for short sales, not REOs. Fannie Mae has a clause that says you can’t sell for more than 120% of purchase price for a certain amount of time, but sometimes you can cross it off of the addendum and get away with it.
The agents don’t know that the property was wholesaled. They don’t show up to the closings, so they have no idea. As long as you get the deal closed, they are happy…
On November 20, 2009 at 4:48pm, Josh said...
Also, do you make the REO “purchase” in your own name or in a LLC?
On November 20, 2009 at 5:08pm, Stephani said...
I use one of my LLCs.
On February 28, 2010 at 11:15pm, tony zamberlin said...
Steph,
the realtor says that here in sc we can pick our own attorney and don’t have to use the banks. the realtor wants earnest $ made out to the banks attorney though. what does this mean?? I also gave the realtor my attorneys info for closing….
On March 01, 2010 at 8:45am, Stephani said...
Yes, that is normally how it is done- the earnest deposit for the A-B is held at the bank’s title company. So, just make it out to them and they will hold it. Then once you have the purchase and sale agreement signed by you and your end buyer, give that to your atty along with your end buyer’s deposit.
On March 01, 2010 at 7:56am, tony zamberlin said...
heres what the attorney emailed me and said today:
Hey Tony,
You will be able to close at your attorney. We just have to let them know that. Or you can close with thier attorney and thery would more than likely come to our office in Anderson and close it there.
On March 18, 2010 at 10:21am, Tony Zamberlin said...
steph,
my agent showed up to the closing on the deal i just closed so he found out i was wholesaling, lol good or not good?
On March 18, 2010 at 10:25am, Tony Zamberlin said...
steph,
does the fannie mae rule for not selling for more than 120% apply when doing simeltaneous closings??