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Hola Blogosphere!
Hope Everyone had a fantastic weekend…
I got quite a bit of work done- looked at 13 REO properties, and made 12 offers.
One of my offers was for 5k. Hehe. This particular house has been listed for close to two years, is a total piece of crap, and I figure the bank has got to be getting sick of it by now. I’ve made 9 offers on this property over the course of the last two years, so maybe the tenth will be a charm? Or maybe the idiot asset manager(s) will keep holding out for more money and continue to hang on to the property for another two years. That sounds more logical, eh?
In other news, my buyer ended up passing on the deal I was talking about in my last post. As luck would have it, another wholesaler sent out a deal in the same neighborhood that was a little bigger and on a better street, so my buyer ending up taking that one instead. Son of a…
The good news is, I spent the weekend marketing the crap out of this house (signs, ads on Craigslist, etc), so my phone has been ringing off the hook, and by the end of the week, I expect to have a slew of fresh new buyers added to my arsenal. So that’s a bonus. See how I turned lemons into lemonade?
This week I plan to keep marketing the crap out of that deal, and make as many offers as possible on REO properties.
My goal is to close 6 more deals by the end of the year, so I guess I better get moving…
Gotta run- I’m off to Starbucks for my Pumpkin Spice Latte fix..
Adios Amigos!
P.S.
If you haven’t picked up my new Flip This REO! eBook yet, now would be a great time to do so. Click here to grab yourself a copy now! 
P.P.S.
That nut-job, Steve Piegari, who has been harassing me on Facebook, sent me a message this morning saying he is going to sue me. I am still laughing as I type this. Glad to see that you have a sense of humor, Steve.
On October 05, 2009 at 7:15am, ARodOfIron said...
Always good to read your updates, keep it up!
On October 05, 2009 at 7:17am, Stephani said...
Thanks, Alex. Did you end up finding a buyer for that last deal?
On October 05, 2009 at 7:24am, ARodOfIron said...
No Steph. To use your vernacular, I’ve “marketed the crap” out of this (signs, CraigsList, calls to buyer list), and still no bites. Quite a few people interested, but I think it comes down to everybody knowing something about that neighborhood except for me, if you know what I mean.
I’m not sure what to do at this point. I’m past inspection period, and time is running out. I’ll keep plugging away as much as possible, but I’m not sure if I have hope.
On October 05, 2009 at 7:32am, Stephani said...
Oh no.
I wish I had more buyers over that way. How long do you have to close?
On October 05, 2009 at 7:38am, ARodOfIron said...
I have until the 22nd.
On October 05, 2009 at 7:41am, Stephani said...
That’s still a long time to market it. Have you checked the recent cash sales in the area and done a drive-by?
And there’s always the chance that the title co can’t get it closed on time. Do you know who the title company is the bank is using?
On October 05, 2009 at 7:50am, ARodOfIron said...
Drive-by is one thing I confess I haven’t done. I’ll do that before the week is over.
TC is Title Insurers of Fl. Don’t know anything about their track record, except that they’re owned by the listing broker. The agent even called me last week asking if I’d be willing to close sooner if they cleared ahead of time. Not sure if that was out of his own hopes, ignorance, of if they’re really putting fire under people’s sentaderas given the fiduciary interest of the bank to close on time.
On October 05, 2009 at 11:59am, Stephani said...
They’re always ready to close early when you don’t have a buyer..
You’ve got plenty of time- just keep marketing it. Lower the price if you have to.
On October 05, 2009 at 12:38pm, ARodOfIron said...
I’m trying to market for a $3.5k profit. How low have you gone when you’ve been tight? I’m concerned about being able to cover A-B closing costs.
On October 06, 2009 at 3:02pm, ARodOfIron said...
Seems you didn’t see my comment, so I’m reposting. Feel free to delete if necessary.
I’m trying to market for a $3.5k profit. How low have you gone when you’ve been tight? I’m concerned about being able to cover A-B closing costs.
On October 06, 2009 at 4:13pm, Stephani said...
Crap, sorry Alex- I didn’t see your first comment..
If you sell your deal at a net price, your closing costs should only be $500 or so, so you have some room to drop your price if you have to.
Have you had any offers at all?
On October 06, 2009 at 4:19pm, ARodOfIron said...
No prob Steph, it happens! Thanks for the answer, that helps.
I’m getting about 3 – 5 calls a day, but no offers yet.
Funny trivia note: I put “Yo Hablo Español” on my signs, and turns out 1 out of every 5 callers wants to speak in Spanish.
On October 06, 2009 at 4:28pm, Stephani said...
When I use signs to market deals, almost all of the callers are Spanish speaking.
I would continue to put that on your signs. Definitely.
On October 06, 2009 at 7:07pm, ARodOfIron said...
Wow, that’s amazing Steph!! Maybe I can help you market your deals to the Spanish-speaking audience exclusively?
On October 05, 2009 at 7:16am, Shae said...
That’s the way to do it, Steph! Great job picking up all those new buyers. You’ll get 6 more deals before the end of this year easy…
LOL! I can’t believe Steve Piegari said he’s going to sue you…that IS nuts!!
.-= Shae´s last blog ..Will the REAL DEAL investors please stand up? =-.
On October 05, 2009 at 7:22am, Stephani said...
Good morning, Shae..
I don’t know if 6 will be easy, but I plan on getting it done either way.
On October 05, 2009 at 7:25am, Shae said...
Oh I know you do Steph – and I’m just going to keep saying it will be easy and sweatless for you
On October 05, 2009 at 7:31am, Stephani said...
I guess it’s hard to do the static thing over the internet… hehe.
On October 05, 2009 at 7:38am, Shae said...
LOL! Precisely.
.-= Shae´s last blog ..Will the REAL DEAL investors please stand up? =-.
On October 05, 2009 at 7:44am, Scott Costello said...
I’ve completely missed the Steve Piegari thing, I’ve got to check facebook more often.
6 Deals Steph? no problem for ya!
.-= Scott Costello´s last blog ..30DC – Day 29 – Learning From Mistakes =-.
On October 05, 2009 at 8:21am, Ace said...
Is Steve Piegari the one who wrote “You Suck” on your Facebook page?
On October 05, 2009 at 12:00pm, Stephani said...
Yes, that would be him.
On October 05, 2009 at 12:06pm, Justin H said...
Steph,
Long time follower, first time poster. My comment doesn’t directly relate to your post, but wholesaling in general, and it’s been bothering me for some time now. Why wholesale instead of short sale?
I’ve thought of a couple possible answers to my own question, though I’m not sure which is right. Maybe you can help.
1. Wholesaling only applies to REOs and properties bought at auctions, hence helping buyers in preforeclosure should always be short sales.
2. Short sales don’t always fly with the bank.
On October 05, 2009 at 12:43pm, Stephani said...
Hi Justin,
Many investors who do short sales end up wholesaling their deals once they get them negotiated. Doing a short sale is just another way to get deals- just like going after REOs on the MLS. Once you have the deal locked up, you can wholesale it, retail it, hold it for a rental, etc.
I choose to go after REOs as opposed to short sales because they are generally able to close much quicker than a short sale deal. I have a severe lack of patience, so working on short sales and waiting several months to get a deal to the closing table would not work well for me.
The spreads are generally larger when you are wholesaling short sale deals as opposed to REOs, but I’m OK with that. It’s just a matter of personal preference, really- you can make great money with either or..
Steph
On October 05, 2009 at 12:12pm, Sabrin Dutta said...
Hey Steph,
Great new look on your website. Also, got your e-book the other day; great read. I need to start taking action on it. I have been focused on short sales for the past 10 months, and have gotten some deals done, but it has been a lot of work. Mostly for my wife who has been negotiating with the banks. She can’t stand it, and I don’t blame her. Your book has gotten me motivated to go after the REO’s.
Thanks,
Sabrin
On October 05, 2009 at 12:52pm, Stephani said...
Awesome, Sabrin- glad you liked the book!
It will be much easier for you to get started if you’ve already closed some deals- getting that first one out of the way is half the battle…
There are some hoops to jump through with REOs, but once you get the hang of it, it’s not so bad. If you can do short sales, you can this, too. You just have to start taking action, like you said.
Looking forward to hearing of your success,
Steph
On October 05, 2009 at 5:41pm, Erby said...
I’m with you Steph on the six before the year is out. Try this. don’t go for six go for ten. That way if you don’t hit the moon at least you will land on a star. ;-}
.-= Erby´s last blog ..4/2 Investment Property In Jacksonville,FL(((REDUCED))) =-.
On October 05, 2009 at 5:48pm, Shae said...
Great advice Erby
So you’re in J-ville, eh? I grew up there. I will have to go check out your blog.
.-= Shae´s last blog ..Will the REAL DEAL investors please stand up? =-.
On October 05, 2009 at 6:24pm, Stephani said...
I like your way of thinking, Erby…:)
On October 06, 2009 at 10:10am, carlos said...
hey steph, do you ever wholesale properties in the 35-45k mark> or do you just stick with low low offers? thanks!!
On October 06, 2009 at 10:40am, Stephani said...
I go after anything listed under 60k, but prefer the cheap, cheap stuff, as that is what most of my buyers are looking for..
On October 06, 2009 at 1:08pm, carlos said...
thanks, also did the house you offered 5k for was it a brick or frame? do you ever go after frame if its in a good neighborhood?,thanks!
On October 06, 2009 at 1:32pm, Stephani said...
It was frame. Yes, I go after frame houses in all neighborhoods, I just have to adjust my offers down as investors pay much less for them.
On October 06, 2009 at 1:56pm, carlos said...
thanks, your site is pretty addicting i catch myself clicking on this site without paying attention,lol
On October 06, 2009 at 1:59pm, Stephani said...
Better than crack. Hehe.
On October 07, 2009 at 11:27am, Glenn said...
Steph,
For the properties that you are offering on, are you just looking at everything under $60k, or do you have some other criterion that you use to narrow down, like DOM? Also, are you just slinging mud on these, just offering what works for you regardless of the list price?
I hope all is well down Tampa way.
Thanks.
Glenn
On October 07, 2009 at 11:38am, Stephani said...
Hi Glenn,
I search for all single family homes in Tampa that are 60k and under. Then I go through the list and pick out the ones I’m interested in making offers on. I like to keep the search as broad as possible so I don’t miss anything.
I make offers on stuff where the list price is relatively close to where I need to be (like within 30k). If it’s something that’s newly listed, I don’t bother low balling them, as it is usually a waste of time…
Nice to hear from you- hope you are doing well,
Steph
On October 07, 2009 at 4:59pm, Niki said...
Steph, I have finally figured out why I am stuck in this “over analysis, paralysis” cloud! I am scared that I won’t find a buyer, and also don’t know how we will come up with the earnest money once it is accepted! What advice can you give my husband and I, so we can get on with it already?
Thanks,
Niki
On October 07, 2009 at 5:13pm, Stephani said...
Hi Niki,
I wouldn’t start making offers until you have the earnest deposit squared away. Not sure if you’ve watched the video I posted about earnest money- if not check it out here: http://www.flipthiswholesaler.net/2009/08/ernest-money-and-reo-offers/
Like I mention in the video, it’s possible to get around the deposit, but it’s not easy to do.
Regarding finding buyers- I recommend lining a few buyers up BEFORE you start making offers. Find out exactly what they are looking for, and then go and find deals that fit their criteria. It’s much easier and less stressful if you do it that way.
I do not recommend just jumping in and making offers if you don’t have these things taken care of ahead of time..
Steph
On October 08, 2009 at 8:10am, Niki said...
Yes I did see that video. Great idea, but I agree, I think it may be hard to do. We are working on our buyers list now. So far, we have had 1 investor tell us that it is just not possible to find good deals to be able to wholesale on the MLS which is a “crock of s**t”…next….and the other one, we are working on finding him some properties so hopefully we can tie one up for him, and some how get around the earnest!
Thanks for the response. Always look forward to reading your posts and watching your reader mail!
On October 08, 2009 at 8:18am, Shae said...
Niki, don’t you love it when people tell you its JUST NOT POSSIBLE? As soon as I hear someone say something like that, I stop listening…. good luck to you!
.-= Shae´s last blog ..Hubby makes his first offer =-.
On October 08, 2009 at 8:26am, Stephani said...
People still tell me all the time that you can’t get good deals on the MLS.
Blah, blah, blah. Whatever.
On October 08, 2009 at 11:17am, Shawn said...
Hi Steph! I just purchased your ebook and i am on pg37….AWESOME!!!! So much good info! I just had one question and I do not know if you will be able to do this or not, but is ther any possible way that you can show us how the contract for your end buyer should look or explain how it shold be worded. Like who would be put down for the seller?? Would this be my name?? I know these may seem like basic questions, but I am a little confused on how this should be done. Thanks!
On October 08, 2009 at 11:39am, Stephani said...
Hi Shawn,
Glad you liked the book!
I use the standard FAR (Florida Assoc. of Relators) As-Is contract when selling, and add the clauses that I mentioned in the book.
For the contract between you and the end buyer, you are the seller (or your company, if you have one), and your end buyer (or their Company) would be the Buyer.
The second transaction between you and the end buyer is totally separate from the transaction between you and the bank. Is that where you are getting confused?
Steph
On October 08, 2009 at 12:23pm, Shawn said...
Yes thank you!!!! That helps a great deal!
On October 08, 2009 at 12:34pm, Stephani said...
My pleasure.
On October 11, 2009 at 7:00pm, Greg said...
Hi Steph! Had a quick question.. When you’re doing a REO Deal, how do you get your buyers into these properties since they aren’t a Realtor and don’t have the lockbox code. Thanks!
On October 11, 2009 at 7:03pm, Stephani said...
Hi Greg,
Most of the agents give out the lock lox codes, I then give the code to the buyer if they are interested in seeing the inside.
Steph
On October 19, 2009 at 2:29pm, William Seminario said...
Steph,
Your E-book is very tight… right to the point. Thanks for leaving out the fluff. Can tell you put your heart into it with such thorough answers to it’s Q&A format. You could of charged more… but glad you didn’t…lol.
You’re a STUD!
Thanks,
Will
On October 19, 2009 at 3:02pm, Stephani said...
Thanks for the feedback, Will- glad you liked it.