Hi Guys and Gals…
Hope you all had a fantastic weekend!
I just whipped up another Reader Mail video for your Sunday night/Monday morning viewing pleasure.
If you have further questions after watching the video, feel free to leave them in the comments section and I’ll be happy to answer them…
Enjoy!
P.S.
If you need a proof of funds letter to submit with your REO offers, you can get one for free at FundThisWholesaler.net.
P.P.S.
If you have a bajillion questions about the REO wholesaling process and want them all answered ASAP, pick up my Flip This REO! eBook today!
On November 08, 2009 at 10:49pm, Brandon said...
Hey Steph,
Kind of off topic here, sorry.
Do you know if Peer Title will do simultaneous closings on short sale deals?
I think I remember you saying they won’t, but thought I ask to be sure.
Thanks,
B
On November 08, 2009 at 11:03pm, Stephani said...
Hola Brandon,
I’m 99.9999999% they won’t. You can give them a call to find out for sure (http://www.grumanlaw.com/), but I think they put the kibosh on doing simuls on short sales.
Are you doing short sales now?
Steph
On November 08, 2009 at 11:10pm, Brandon said...
I may be getting one under contract that was listed on mls.
Never done one before. I guess I’ll have to get transactional funding to close it if Peer won’t do a simultaneous closing on it.
On November 08, 2009 at 11:16pm, Stephani said...
Yeah, I don’t think there are any title companies in Tampa who will do one for a short sale.
Hopefully there’s enough room in the deal for the fees..
On November 08, 2009 at 11:27pm, Brandon said...
There is.
On November 09, 2009 at 5:40am, Shae said...
Great video, Steph. Of all the REO offers I’ve ever made in the past 15 months, I only got push back from the listing agent twice on a transactional funding POF letter.
Shae´s last blog ..More offers, more deals
On November 09, 2009 at 10:01am, Georgina said...
Great information Steph.. thanks, gb
On November 10, 2009 at 7:26pm, Chris Ranney said...
nice video Steph
On November 14, 2009 at 10:53am, Greg said...
Hey Steph. I’ve been trying to make offers on REO’s with a POF letter. The Real estate agents not only want a POF but a bank statement from the POF provider stating that they have the funds to actually fund the purchase. Any suggestions or does your transactional funding provide this with the POF? Thanks
On November 14, 2009 at 5:07pm, Stephani said...
Hi Greg,
No- transactional lenders will not provide you with an actual bank statement (none that I know of, anyway).
Like I said in the video- every lender will have different criteria as to what they will or will not accept, and there is not much you can do to change their mind.
Have you tried submitting the offer with a financing contingency? If they won’t accept that either, I would just move on to the next property.
Steph
On November 14, 2009 at 5:53pm, Greg said...
Not yet, will do that next. Tyvm.
On November 18, 2009 at 7:29pm, Adam said...
Hello Stephani,
Stupid question here, but what exactly is meant by “transactional funding”? I understand the concept of having to show a bank some sort of statement proving that I have the funds in a checking account or a line of credit or something, but how are those actually different than transactional funding? I think I’m just hung up on that wording…. I would greatly appreciate it if you could clarify.
Also, if the bank does reqire me to show funds actually in a checking acct or a line of credit can I simply use anyones (Dad’s, Grandparents, Friends, etc.) account (with the applicable funds in it) to just get the offer submitted? Let’s say I use my Dad’s line of credit statement and submit it with the offer. Do you think I would have to actually use funds from THAT account? Or could I fund the deal with some other acct after they accept my offer? I’m guessing they probably wouldn’t care…. Just wondering if you’ve ran across that.
Regards,
Adam
On November 19, 2009 at 6:19am, Stephani said...
Hi Adam,
Transactional funding is used when you are doing a double closing….they fund the first transaction (called the A-B transaction), but only if you have an end buyer lined up. Check out this link for more info:
http://fundthiswholesaler.net/how-it-works/
To answer your second question- yes, you can use a letter from someone else’s account, and no, they do not check to see if it actually comes from that specific account. For awhile, I was using a letter from a line of credit that my Dad had. I think there was only one occasion where they questioned it, and I just told them he was my partner on the deal.
Steph
On November 19, 2009 at 11:30am, Adam said...
Thanks so much Stephani. I appreciate it!
On November 20, 2009 at 9:53am, Tony Zamberlin said...
Hello Steph,
I have a quick ? Every morning i get up i feel like shit man, pretty lazy and negative most of the time!! How do i turn that around! I don’t think getting back on my wholesaling biz is a good idea until i feel good about myself and life bro!! might just make it worse. thanks alot
On November 20, 2009 at 4:11pm, Stephani said...
Sitting around doing nothing and waiting to feel better usually doesn’t work. You have to get out and take action of some sort, which will help you feel a little better, and help to build momentum.
I think Zig Ziglar said- “Motivation follows the action.”
It’s not the other way around..
Steph
On November 20, 2009 at 8:02pm, tony zamberlin said...
thanks Steph!!
On November 28, 2009 at 12:38am, John said...
I am new to wholesaling. I have two questions. First, when speaking to a realtor or a homeowner on phone, do I tell them I am a wholsaler or just an investor? Also, I was wondering without using a realtor how can I find deals? I have tried advertising in local supermarket bulletin boards but it doesnt seem to help…
On November 28, 2009 at 7:36am, Stephani said...
Hi John,
I don’t recommend telling the realtors that you are planning on wholesaling the property. I just make my offer, and if it is accepted I make sure it gets to the closing table.
If you plan on looking for deals outside of the MLS, there are many different ways to advertise for motivated sellers- newspaper, online classifieds, direct mail, bandit signs, etc.
Hope that helps,
Steph
On November 29, 2009 at 1:22pm, Scott said...
Steph,
Love Flip this REO. I’m really happy I bought it. I’m taking action. I thought I was taking alot of action but re evaluating I dont think I’m taking Massive action. I’ve done alot of driving and research and have alot of phone numbers to call and alot more info to look up. These homes are just about perfect for wat we are looking for as wholesalers and I have alot of potential buyers lined up. Now assumeing I follow up on every lead and make all my offers.
What else can I do to consider myself taking massive action. I really feel like I’m moving forward. I dont want to be dragging my feet on any part of this.
My next plan is to get at least 25 signs out. This may not sound like alot but there are no other bandit signs in the area at all so I think these signs will be noticed by all.
Any other suggestions?
On November 29, 2009 at 4:36pm, Stephani said...
Hi Scott,
It sounds to me like you are doing a great job so far. You are getting out there and taking the first steps, and that is exactly what you need to do.
Once you have some real buyers lined up and you feel fairly confident about the type of deals they are looking for, then you can start making offers.
Keep up the good work!
Steph
P.S.
If there are no other signs out in the area you may want to ask around to see if there are any restrictions and/or fines that might be involved with putting them out. You don’t want to get yourself into trouble…
On November 29, 2009 at 6:24pm, scott said...
I assume there probably is some sort of ordinace against it but I’m planning on useing a number that they cant track it back to me anyway. I have a magic jack with a phone number and nothing about that leads back to me unless they want to go so far to set me up.lol. I plan on useing a sign like you make. That looks legit. Not something that says I buy houses. I think those signs make people mad. Your sign looks like someone really just wants to sell a house. As long as my signs look like that I figure the worst I would get is a stern message.
I plan to make offers on the FSBO’s now. This is as long as I can get a long option period. I’ll explain to them that I’m an investor and kind of what we do to get them on board if they are motivated. If they truely are motivated they will agree more than likely. I’d like to get a 60-90 day option period like Shae does.
I’m going full speed ahead with this. I know when I put my mind to something I can do it and now this is what I want to do. I tried Lease option before. Actually sandwhich lease option. I did one deal in about 2 months of trying and made 5000k quick but theres way to much to go wrong in that type of deal. Wholesaling is awesome and as I write this I’m going through your course again. More and more click everytime I read it.
As far as the REO’s go. I am going to hole off on making offers on those until I have a few solid buyers lined up.
Sorry if I’m taking up alot of space here again. Once I start wrting I usually get out of hand and it ends up long.lol…..
Thanks again. I’d recommend your book to everyone! I have quite a few courses and the other ones are so long and drawn out you get frustrated before you get through the whole thing. Yours is real world to the point info.
On November 29, 2009 at 6:56pm, Stephani said...
Sounds like a plan, Stan- now all you have to do is execute, and STICK WITH IT!!
I look forward to hearing of your success in the coming months.
On November 30, 2009 at 7:17pm, Tony Zamberlin said...
Steph,
I got a headache! Wandering what to do for leads/deals?? Some people are saying do reo’s, some r saying do bandit signs and direct mail only! On the other hand most people i talk to are saying bandit signs are not working in todays market because most people are overleveraged! I do have a person to outsource short sales too though and i also have access to the mls. Some are saying do craigslist ads for seller
PS. I just end up doing nothing lately trying to figure this out! any advice is greatly appreciated.
On December 01, 2009 at 6:04am, Stephani said...
Hi Tony,
All of those methods work- you just have to pick the one (or more) that suit you best and then stick with it.
I personally prefer REOs because #1) I don’t have any marketing expenses and #2) I hate dealing with homeowners.
Once I set my mind on REOs, I made a commitment to not stop making offers until I got a deal. It took me over 120 offers, but I did it!
You have to be in it to win it- if you’re wishy washy, or doing it half-assed, chances are you’re not going to get very far….
Hope that helps,
Steph
On December 07, 2009 at 1:24pm, John said...
Question… If your a wholesaler, the homeowner or the realtor ask you, are you a investor etc.. what is best to say? I may have a property that a owner wants to sell becuse of downsizing.. They are avoiding realtor likely cause of comission fees.. What might your suggestions be for that?
On December 07, 2009 at 1:41pm, Stephani said...
Hi John,
I never tell the listing agents that I am a wholesaler when I am dealing with REO properties. They don’t want to work with wholesalers- they want to work with buyers, so I keep my mouth shut about it and just make sure the deals get closed.
If you’re working with a homeowner, it’s up to you whether or not you tell them that you are wholesaling the property. You don’t want to be jerking people around, though, so if you put something under contract, you need to be sure to follow through and get the deal closed. If you don’t know for sure if you can locate an end buyer, you can always try to get an option on the property instead and let the seller know what your intentions are.
Steph
On December 10, 2009 at 7:53pm, John said...
I found a property that is “for sale by owner”. The property was rebabbed except the floor may need to be redone, according to owner. I am wondering is it possible to put the property under contract? I am guessing it is. Also, when should you bring a contractor with you to give you estimates.. I am guessing only when property needs a full rehab. Sorry if these questions are common sense. I am just trying to learn about this stuff as it is of interest to me.
On December 10, 2009 at 8:16pm, Stephani said...
Hi John,
Yes you can put the property under contract, but you need to have an exit strategy lined up first. Are you planning on wholesaling the property? Do you know what price you need to get it for in order for it to be a deal? You definitely want to figure that info out before you put anything under contract…
If you are just getting started, you might want to walk through a few properties with an experienced rehabber or a contractor and have them give you a run-down of repair estimates,
that way you won’t need to have a contractor go through each and every house you look at.
Hope that helps,
Steph
On December 10, 2009 at 11:37pm, John said...
Steph, I appreciate your feedback.. I just did more researching and from what you said plus the research am I correct to say, instead of ever really using a contractor I can check the COMPS out in the immediate area and also compare the property I am interested in wholesaling to that of a property thats already been rehabbed and check out the details to that property? To answer your question, my exit strategy is to have a buyer lined up.. I will make a few phone call and think I do have a few.
On December 20, 2009 at 7:59pm, bruce said...
great stuff. do i need a pof if i use the conts. providing buyer can obtain financing.
On December 20, 2009 at 8:04pm, Stephani said...
Yes, you will need your own proof of funds if making a cash offer, or a pre-approval letter if you are making an offer with a financing contingency.
On December 24, 2009 at 12:46am, Tony Zamberlin said...
Great steph thanks!
well i only have 24 hours per week to put in due to full time job and only 30-50 buck a month for marketing, so im thinking reo’s and maybe i can get my partner to put up money to do bandit signs. would it be ok to do both by not putting my eggs in one basket or would u just stick with one??
On December 24, 2009 at 10:03am, Stephani said...
Hi Tony,
You are going to need $500 to $1000 for an earnest deposit for REOs, so you might just want to focus on private sellers until you have some extra cash for deposits…
Steph
On January 04, 2010 at 4:59am, John said...
My question is… I am finding mostly motivated sellers that have no repairs that need to be done to the property. I am looking to wholesale these properties that I find. How do I determine the Maximum Offer for deals? Also, what kind of formula can I use to figure out after I put a deal together, how much my assignment fee to the end buyer should be? Thanks
On January 04, 2010 at 8:11am, Stephani said...
Hi John,
You need to study the comps and find out what investors are paying, and then offer less. If the properties don’t need any work, then it should be easy to come up with an offer. Find some investors who are buying in the area, ask them how much they would be willing to pay for a similar property, and then offer lower than what they would pay to leave room for your profit.
The assignment fee depends on how much you have it under contract for and how much you are selling it for. If you have it under contract for 100k and are selling it for 110k, then your assignment fee would be 10k.
Steph
On January 05, 2010 at 5:44am, John said...
I was wanting to get your opinion about whether I should use a realtor that specializes in working with real estate investors. I was thinking of doing mostly wholesale deals with her. Also when I am putting a property under contract who gets the real estate contract after it gets signed.. The home owner or myself? Thanks
On January 05, 2010 at 7:03am, Stephani said...
If you are going after listed properties, then that would be good to have an investor-friendly realtor to work with. If you plan on going after private sellers, then there is no need for a realtor.
Make a copy of the contract once it’s signed and give one to the seller. You both will want to have a copy.
On January 07, 2010 at 12:29am, Tony Zamberlin said...
Ok steph,
for now im focusing on selling other wholesalers in my area deals at a mark up! i made 9500 in 09 doing that and im sure i can make tons more. then when i get more than 25-50 buck a month budget i can do signs and other stuff…
As far as reo’s go i’ve got a local guy thats a wholesaler makes like 50k a month on auctions and reo’s he will put up deposits for me. what do u recommend? he wants half of deals though
On January 10, 2010 at 1:39pm, Stephani said...
I would do both.
On January 08, 2010 at 8:54am, John said...
Question… I am having problems getting in contact with homeowners of abandon properties. I came across a abandon property I contacted a realtor that said he would help me get contact information on the property yet he never got back to me. Is there a better way to do this than I am aware of? Thanks
On January 10, 2010 at 1:23pm, Stephani said...
Hi John,
Try looking up the address in the tax records. The owner’s mailing address might be there. If so, you can send them a letter expressing interest in purchasing the property.
You might also want to talk to the neighbors- ask the if they know the owner’s whereabouts because you are interested in buying the house and fixing it up.
Steph