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Happy Friday, Blogosphere!
It’s been a busy week over here in Steph Land.
I’ve been making lots of offers, marketing properties for my buddies, and hunting down new cash buyers to add to my list.
Of the 12 offers I made last weekend, 4 of them were rejected, 3 went to highest and best (I wasn’t the best on any of them), 2 of them I got counters on and am still going back and forth with the bank, and the others I never heard anything back from the agents, so I’m assuming they were rejected.
My buddy Lee (aka the REO Rockstar) just got a property under contract in my favorite hood, so I spent the morning trying to get it sold. I sent a few of my buyers out to look at it, but haven’t heard anything back yet.
I’ve also got 20 signs out in the neighborhood, so I should be getting quite a few calls from those. Tomorrow morning I’ll head out to get some numbers off of “For Rent” signs and call those people up to see if they want more houses. I would have done this today, but it was getting close to noon, and the streets were starting to fill up. Even though I thoroughly enjoy being whistled and barked at (who doesn’t?), I decided I’d rather go back in the morning when most people are still in bed with hangovers.
I’ve been doing a bit of research on the MLS lately, just to see what’s been going on, and I noticed that the City of Tampa is now buying up quite a few REO properties in the neighborhoods that I work in. So…. it looks like I will be competing with them for deals, too.
Yay!
According to this article, they have close to 14 million to spend, which will go a loooooong way, especially when they are purchasing properties for 20k and under.
Perhaps I need to look for a new favorite neighborhood.
Or maybe I should send the City a letter telling them they need to get the hell off my turf- OR ELSE. I got street cred in the hood, yo.
Well, that about wraps it up for now..
I’ll leave you with a hilarious video that Shae posted on Facebook today. It sums up the REO offer-making process quite nicely…
[youtube]http://www.youtube.com/watch?v=SM7oWKgCVo4[/youtube]
Have a great weekend, y’all- and don’t forget to pick up a copy of my shiny new eBook- Flip This REO! Click here to grab one now!
Later Alligators..
On October 09, 2009 at 3:40pm, Matt K said...
If the cities buying why not wholesale them your deals?
.-= Matt K´s last blog ..Plumtree Rd – Finished and Staged =-.
On October 09, 2009 at 3:41pm, Stephani said...
Hi Matt,
My understanding is that they have to buy directly from the banks. Otherwise, I’d be all over it..
Steph
On October 09, 2009 at 3:40pm, Jerry said...
Thats the funniest thing ive seen all goddamn day. Thanks.
On October 09, 2009 at 3:43pm, Stephani said...
Ditto.
Congrats on your private money, btw.
On October 09, 2009 at 4:20pm, Matt K said...
Ok…. I figured you had already looked into, but thought I would make the suggestion anyways.
Love the video.
.-= Matt K´s last blog ..Plumtree Rd – Finished and Staged =-.
On October 09, 2009 at 8:31pm, Erby said...
Hilarious video. Hey Steph, a brand new deal came out on the MLS yesterday already in pending status. You gotta luv these REO agents.
.-= Erby´s last blog ..3/1 Landloard Special! =-.
On October 09, 2009 at 11:22pm, Lui said...
Wow, that video says it all… sad but very funny! I like your website Steph, I’ll be tuning in more often.
On October 10, 2009 at 7:29pm, carlos said...
hey steph, are you having luck selling properties that you get at the listing price or when you bid higher that the listing price? what are your buyers saying about the bidding wars? do they just prefer to buy them from you? thanks!
On October 11, 2009 at 7:08am, Stephani said...
Carlos,
If I can get a good deal at or above list, then I will go for it.
My buyers are just looking for great deals- if the numbers work, they will buy. List price doesn’t really have anything to do with it.
Steph
On October 12, 2009 at 10:31am, carlos said...
hey steph, do you pay for title insurance policy or closing cost? what comes out of your pocket at closing? thanks!
On October 12, 2009 at 1:01pm, Stephani said...
It depends on what your contract with the bank says, as well as your contract with the end buyer. I always sell my deals at a net price which means my buyer pays all closing costs on the second sale. For the first sale between you and the bank, you will have to check their addendum to see which costs they are paying and which costs you will be responsible for.
On October 13, 2009 at 7:21am, Justin H said...
Hi Steph! Commented a couple times here and there and was lead here by Shaun’s RE Adventures (http://shaunsre.blogspot.com/). As I get closer to a deal each time, new questions come up, just when think I have it figured out! Imagine that!
When you first started, did you start putting in offers without a buyer and just use the contingent on funding clause or did you market properties before you bought them for what you plan to get them for? Do you use a title agency for your end deal? Do you have to lowball all your offers to make the end price to acceptable to your end buyer? When you submit an offer do you have to use a specific form?Have you ever bought at auction?
whew….I think that’s all for now
Thanks for your time!!
Justin H
On October 13, 2009 at 1:36pm, Stephani said...
Hi Justin,
I have always shopped my deals to my end buyers while I am negotiating w the bank. I usually don’t put anything under contract unless I already have a buyer lined up, or am 99.9% sure I can sell it.
I use my own title company to close my REO deals- here’s a video that explains how I do it:
http://www.flipthiswholesaler.net/2009/09/reos-and-simultaneous-closings-saturday-night-reader-mail/
I don’t always low ball the banks- sometimes I will offer list price or over list if it is listed at an attractive price. Many of the banks are pricing their properties really low right out of the gate, so you may have to offer full list or above if you want to get the deal.
Yes, you have to use a specific contract when you make an offer on an REO- ask the listing agent and they will be able to provide you with the appropriate contract.
No, I have never bought at auction- I just stick to REOs..
Hope that helps,
Steph
On October 13, 2009 at 6:44pm, carlos said...
hey steph do you normally pay for title insurance policy? or do banks always deliver title insurnace policies? also what fee does your title company charge for the closing? thanks!
On October 14, 2009 at 6:19am, Stephani said...
There will be a policy issued for both transactions. Usually the bank pays for it on the first transaction. I always sell my deals at a net price to me, which means my buyer pays ALL closing costs on the second transaction (including title insurance).
I’m not exactly sure what my title co charges in closing fees, to be honest. My buyer always pays for them, so I don’t really pay too much attention. If you have a title company lined up to close your deals, you can call them up and ask them to give you a ball park estimate of what your fees would be on a sale for X amount of dollars…
On October 16, 2009 at 10:29am, William Seminario said...
Steph,
Trying to get your new course. Do I have to go through Pay Pal to get it? Is there a number I can call and make a purchase over the phone with my cc?
On October 16, 2009 at 11:08am, Stephani said...
Hi William,
You can pay with your credit card online…
Go here: http://is.gd/4mL3o
Then submit the required information (the fields that are in bold), then click the “submit order” button at the bottom of the screen. Once you get to the next page, click “continue” where it says “Don’t have a PayPal account?” That will take you to a screen that will allow you to use your credit card.
Let me know if you still have problems.
Steph
On October 16, 2009 at 9:48pm, Leesa C. said...
Hey Steph!
I didn’t drop off the face of the earth, yet!:) You are still rocking it! Go girl. I just checked out you e-book ad. Could I be one of your testimonial peeps even though I don’t have the book yet? I can proudly say that I have read your blog since the beginning! I swear on a stack of bibles:) Could you hook me up with a discount for being one of the first peeps to have ever read you blog? Anyway, keep up the good work. Sorry so goofy, I just realized I am up way too late to make any sense!
Sincerely in Christ,
Leesa C.
Eph.2:8,9
L.J. Cramer Properties
.-= Leesa C.´s last blog ..Not Giving Up Yet =-.
On October 18, 2009 at 10:48pm, Stephani said...
Hi Leesa- nice to hear from you.
I’d love to have a testimonial from you… if you go to the contact page of my site: http://www.flipthiswholesaler.net/contact/ you can submit it there..
Thanks for sticking with me these last three years- I appreciate your support.
Take care,
Steph