Greetings Guys and Gals!
I just whipped up another Reader Mail video for ya..
Enjoy!
P.S.
Have a great rest of your weekend! 
P.P.S.
If you haven’t subscribed to my YouTube channel yet, you can go here to do so. Just click on the yellow “Subscribe” button above the video.
On November 21, 2009 at 9:03pm, Erby said...
Good Stuff as usual. Knowing exactly what your buyers are looking for makes the wholesale prosses so much smoother. How are you coming along with your end of the year goals. Are you hitting your numbers? Remember, Kick A$$ and forget about taking names!
On November 21, 2009 at 9:06pm, Stephani said...
Thanks Erby!
Things are going well- been busting my butt the last few weeks. Focusing mostly on finding new buyers..
How are things going for you?
On November 23, 2009 at 6:36am, Gene said...
Hey Steph- nice TShirt.
If you’re around today give me a call. I’m working on a deal in the Springs that you may be interested in (non-REO).
On November 23, 2009 at 6:43am, Stephani said...
Thanks Gene, will do.
P.S.
I have buyers coming in town this week looking for something non-hood. Let me know if you get anything.
On November 23, 2009 at 8:05am, Erby said...
Same here. Its been a slow month so I have been working on building my buyers list as well. A buddy of mines who has 4 properties under contract just sent me a email telling me he sold all of them over the weekend! Can you say MOTIVATED!
Erby´s last blog ..3/1.5 Brick Investment Property(((52K!!!)))
On November 23, 2009 at 8:46am, Stephani said...
That’s awesome! Inventory is flying off the shelves here, too.
On November 23, 2009 at 10:25am, Scott Costello said...
Good information Steph! i don’t get to see to many of your video’s while i’m at work, but I’m digging the music. Have you thought about doing an instructional type video where you walk us through your mls and pick out the properties you go after? I know you have a talking video about that but seeing helps some people learn, like me
Keep up the great work, you’re the best!
Scott Costello´s last blog ..How to Actually Network? Answered!
On November 23, 2009 at 10:40am, Stephani said...
Hi Scott,
No, I hadn’t thought about that- will add it to my list of ideas, though.
Hope you are doing well,
Steph
On November 23, 2009 at 11:35am, Erby said...
I second that Scott. Great Idea!
On November 23, 2009 at 6:07pm, Josh said...
Great suggestion Scott about the MLS video. That would be valuable.
How Steph makes her offer is a very bullet proof way of doing it because she already knows what her customer base wants and what they will pay for it. If the newbie investor doesnt have that info yet then the MAO Formula might help (Maximum Allowable Offer). Its a general formula that many investors use. Take 65% of the ARV and subtract rehab cost and your desired profit.
So if the property is worth $150,000 (ARV) and needs $12,500 (repair cost) in repairs to get it back to market value, and you want to make $7,000 (desired profit) on the deal then the most you would offer on the property would be $78,000 (150,000 x .65 – 12,500 – 7,000). This is typically the formula investors use to come up with their maximum offer so in this situation the most they would offer is $85,000 (wouldnt pay my fee) if they found the property directly. Steph’s way of doing it is great because she already knows what they will pay and so she can figure in her profit from there. Idealy thats where you want to be!!!
Great Video Steph
On November 24, 2009 at 5:18am, Stephani said...
Hello Josh,
You just have to be careful when using that formula- in some areas you will need to be lower than 65% of market value, so you might have to adjust it to make sure you aren’t over paying.
Thanks for stopping by!
Steph
On November 23, 2009 at 8:27pm, Chris said...
Great shirt Steph!
On November 24, 2009 at 5:19am, Stephani said...
Thanks Chris!
I’ve actually had quite a few people email me asking where I got it….
Maybe I’ll start my own T-Shirt line. Hehe.
Happy early Thankgsgiving!
On November 24, 2009 at 3:02pm, Josh said...
That is a great point Steph. I am in Los Angeles where there are higher values than most parts of the country so more profit can be earned. If you are in a state that doesnt have the high price points of LA then 60% might be a better multiplier.
On December 01, 2009 at 12:14am, Jason said...
Hi josh
Im in LA to!! would love to network with you!
my email is jasonedwardharris@gmail.com, Have many other wholesale friends to, love for you to join the circle!
On November 25, 2009 at 2:10pm, Charles Rilley said...
With REO’s…how do u go about making ur first offer? Lets say the bank has a REO for 45k…what would ur first offer be and why? What process do u use in dealing with the banks and making reasonable offers with them? Of course u want to pay the least for the property…how can u tell whats the lowest they’ll take?
On November 27, 2009 at 10:37am, Stephani said...
Hi Charles,
I would make my offer low enough so that there is room for my buyer to make a profit, and also room for me to make a profit. Like I said in the video- I determine how much to offer by asking my buyers what prices they are willing to pay, and also by looking at the comps.
The only way to tell how low they will go is by making an offer. If I see something that interests me, I’ll make an offer to test the waters. If they reject it, I’ll wait another month and if it’s still available, I’ll make another…
Steph
On November 25, 2009 at 8:24pm, Greg said...
Hi Steph, I know that you recommended a place to get the Chloroplast bandit signs but where you do buy the Stakes? I’ve bought the signs from the place you suggested and saved lots of money, but now I need to find a place where I can go to get the Stakes! Please recommend. Thank you !!!!!
On November 27, 2009 at 10:32am, Stephani said...
Hi Greg,
You should be able to get them at Laird. Or try any of the online bandit sign sites- banditsigns.com, supercheapsigns.com, etc.
If you’re on a tight budget, you can get mason ladder from Home Depot and cut it up into stakes. It’s in the concrete dept…
Hope that helps,
Steph
On November 28, 2009 at 1:42pm, Carey_PA said...
Love the shirt Steph. Wonder if Santa will get me one for xmas???
As far as the video goes…you know actually I’ve always use the 70% formula and last year maybe lowered it to the 65% formula but I gotta tell you…..since learning about your method, which makes total sense, that’s the way I’ve been going since I got back into the swing of things.
I’m gonna stick to it. It just makes the most sense, imo. Thanks Steph!
Carey_PA´s last blog ..Goin back to Cali….
On November 28, 2009 at 1:58pm, Stephani said...
Hi Carey- I’m thinking of starting a T-shirt line…don’t think it will be ready by X-Mas, but maybe Easter.
Regarding the offer formulas- they may work fine for some, but I find it much easier to just ask the investors what they are paying (or look at the low comps), and then make my offers accordingly..
Hope you had a Happy Thanksgiving! I think I gained 10 pounds.
On December 02, 2009 at 5:18pm, Greg said...
Hey Steph! Just found your Blog. Great information and design!
My question is about EMDs. When you are submitting multiple offers do you have to have a separate EMD for each offer or is there a way to have a copy of one EMD for all offers? Thanks!
On December 02, 2009 at 5:47pm, Stephani said...
Hi Greg,
You can write the following into your offer…. “Earnest money to be deposited upon acceptance and ratification of offer..”
They don’t usually cash the check until the offer is accepted anyway..
Hope that helps- and thanks for stopping by.
On December 07, 2009 at 12:45pm, Greg said...
Hey Steph,
One more question regarding EMDs. In the MLS it states that you have to submit a copy of the deposit with the offer. Do you still write in the offer that “EMD will be deposited upon acceptance…” Thanks!
On December 07, 2009 at 12:48pm, Stephani said...
Hi Greg,
Most of the time you can just submit a copy of your check, and they don’t cash it until the offer is accepted. This usually applies whether or not you write that clause into your contracts.
Steph
On January 05, 2010 at 10:55am, Ramon Willingham said...
First off great info Steph, everything I have heard from you is right on! It doesn’t hurt that you are a very beautiful and educated woman in wholesaling either. I’m going to follow you for my wholesaling business. For Short Sales, I believe Nathan Jurewicz and Cory Boatright are the experts in that field. Are you doing any short sales in this market right now?
On January 05, 2010 at 6:04pm, Stephani said...
Hey Ramon,
Welcome to the site!
I have never done any short sales. There’s a lot of money to be made with them, but I don’t have the patience…
Nathan is a good guy to learn from. I was friends with him back before he went “guru.”