Holy crap, I’ve had a loooong, productive day.
I was up at 5:30 am, worked all day, went for a 3.75 mile run, interviewed Eileen for my brand-spanking-new Flip This Success Story series that I’ve been procrastinating doing for the last, oh, 3 months or so, and then I decided to cap the day off with a Reader Mail video for you guys.
I’m beat.
Speaking of beat- I hate to beat a dead horse, but I seriously want to bash Windows Movie Maker in the face as hard as I can with a shovel. We are officially broken up and I will be seeking a replacement ASAP.
Anywho, I hope you enjoy the Reader Mail. You can kind of tell I’m a wee bit tired when I totally lose my train of thought and forget what I’m talking about in the first few seconds of the video. Hehe.
Enjoy your weekend Everybody. 
On February 20, 2010 at 10:08pm, Joey said...
Steph c’mon now. You know people who handle movies and editing use Macs right?
On February 20, 2010 at 10:11pm, Stephani said...
Yeah, I know. I’m definitely getting one next time around. Do they make them in pink?
On February 20, 2010 at 10:45pm, Nick@Subject2.com said...
Hey everybody, its Steph Davis here………………………………………………………….from flipthiswholesaler.net
funny! btw, after I went iMac, I never went back
On February 21, 2010 at 7:00am, Stephani said...
Funny isn’t it. I thought about re-recording, but I already did the whole thing over because I said “um” 17 times my first time around.
I’m already sold on an iMac, but I’ll wait until my Vaio starts acting up. Or until I spill a glass of wine on it and ruin it like I did with my last laptop.
On February 21, 2010 at 8:25am, Chris said...
Great info as always! Love your e-book too!
On February 21, 2010 at 9:24am, Stephani said...
Thanks Chris. If you have any qs about it, let me know.
On February 21, 2010 at 9:20am, Justin Schnettler said...
I also hate windows movie maker, it will not let me edit my flip video’s without converting them first, which of course, I do not have the software. Anyways, good post. I was wondering how the wholesaling contract to use, sounds like I can use my AZ Realtor one. Thanks.
Justin Schnettler´s last blog ..Kitty Kat is out of the Bag
On February 21, 2010 at 9:28am, Stephani said...
That’s weird- what kind of software do you have to have? I have a little RCA flip cam, but I don’t have to do anything but upload the video to my computer (which takes about 5 years, btw).
On February 21, 2010 at 6:54pm, Eric said...
Ha Ha… You definitely seemed a little tired in this edition Steph!
Good info. though.
Quick question for you Steph… On REO, do you see the need for putting $1000 down on it? It is pretty competitive up here in Northern Virginia and the agent that found this property for me thinks my $100 deposit should be raised to $1000 to be competitive. Normal As is contract $237,000.
Thanks in advance,
Eric
On February 21, 2010 at 7:00pm, Stephani said...
Hi Eric,
I’m not even sure if they will take $100 for a deposit on an REO (I’ve never tried it, though, so I don’t know that for sure). $1000 is standard, and sometimes they will want 1% of the purchase price.
I would definitely at least raise it to $500, esp if you have a lot of competition going for the same properties.
Steph
On February 21, 2010 at 8:27pm, Neil Uttamsingh said...
Steph,
Another solid video!
That was a sweet into song to your video. What is the name of the tune?
Regards,
Neil.
Neil Uttamsingh´s last blog ..A message from the author
On February 22, 2010 at 6:49am, Stephani said...
Thanks Neil.
The name of the song is Kalifornia by Fatboy Slim.
On February 23, 2010 at 7:10pm, Neil Uttamsingh said...
Thanks Steph,
YouTube-ing it now…
Neil Uttamsingh´s last blog ..A message from the author
On February 21, 2010 at 8:29pm, Neil Uttamsingh said...
into = intro.
sorry about the typo.
Neil Uttamsingh´s last blog ..A message from the author
On February 22, 2010 at 7:35am, Imo said...
Hi Stepn,
Great info, so pretty much the contracts you used are state approve contracts. I’m from California, so I should be using the California approve real estate contracts..Thanks for the info..
On February 22, 2010 at 7:48am, Stephani said...
Hi Imo,
Yes, for making the offer to the bank you will need to use the state approved contracts, but when selling to your end buyer you can use whichever purchase and sale agreement you feel comfortable with.
Take care,
Steph
On February 22, 2010 at 11:33am, Shae said...
Looking forward to hearing your interview with Eileen! She’s awesome
Shae´s last blog ..Go-Givers Sell More: An awesome follow up to The Go-Giver
On February 22, 2010 at 11:39am, Chris Ranney said...
Hi Steph, great stuff. Great work ethic. Thanks again for everything.
On February 23, 2010 at 8:57am, tony zamberlin said...
Steph,
I need help on one!! its an reo and i have an attorney lined up for the simeltaneous close. if that dont work have access to cash to double close. here’s what were looking at..
realtor also says has not been detitled due to bank cant find the serial # of mobile. will not clear title, realtor says builder can clear that up though. and wants 10% on the earnest mone dep.
my appraiser says a a mobile home was there and built over, but he crawled up under and didn’t see any metal. appraiser says 200k for arv, im thinking 170k and my broker is saying 165k ??
another brick is under contract over there for 245k right now but has not closed.
i kicked the 250 and one of the other comps because they were more than 6 months old and newer houses,
also due to the distance. I drove the comps yesterday and the 200k and 145k on were 1 story brick and the 165k was like some kind of wood (1 story as well). let me know what u think.
Large 2 story house around 15 to 20 yrs old, vinyl siding, 5 bdrms 2.5 bths, on an acre lot. Home is around 2200+ sq ft. Has covered porch, rear covered deck. Home is with in 10 minutes of Clemson University and one mile from Lake Hartwell. Home will need a lot of upgrades. It was built as an average quality home and will need to be upgraded to a good quality home. There are four comps with in 1 mile that support a value of 200K to 225K once rehabed. The rehab estimate is at least 70K. If any one is interested in project this big let us know, it will have a great return. The price for the property will be 34k!! Also there is like 3 duplexes off to the right of the house and to the left about 1/4 mile up road more nice houses. Not sure if thats good or bad or not, but the duplexes are next door. looked well taken care of though…
Ps. i’ve got pics and will send to your email address….
On February 23, 2010 at 1:46pm, Stephani said...
Hi Tony,
I’m not sure what your question is? How much to offer?
If so, I would be looking at the investor/low comps to get an idea. I would also try and find some investors who are currently buying in that area and ask them what their price point would be for a similar property in that area.
I don’t ever look at retail sales when coming up with my offer amts. I look at the investor sales, and ask active investors what they are looking for in a deal, then make my offers accordingly.
Good luck with it,
Steph
On February 23, 2010 at 10:34pm, Tony Zamberlin said...
Steph,
i dont have any investor lows as far as i can tell. the lowest was 145k and 165k and they were in good shape when i drove by. others are around 200k and up to 250k… ??
On February 24, 2010 at 7:03am, Stephani said...
It’s kind of hard to give you advice without knowing your market.
I always like to talk to some of the investors who are buying in a particular area before I start making offers, or I will look at the lowest comps (which are usually investor comps) and try to come in under those prices.
This is why I always advise people to spend some time studying their market before they start making offers, as it’s really difficult to make an offer on something when you don’t know for sure what # you would need to get it at for it to be a good deal.
Not sure if that makes any sense…
On February 25, 2010 at 12:09am, tony zamberlin said...
Help Steph!!
just got this thing under contract today!. arv somewhere between 160k-180k. comps are all within .70 ranging from 145k-250k. needs 70k in rehab. on 1.3 acres of land. got tied up for 29,100!!! i have attached comps and pics. let me know what u think… would love to rehab this thing , but pretty big one to do when ya never done one b4. for some reason my local mentor/guy here says he could only sell it for 20k don’t make much since to me. its next door to 3 duplexes that are well kept and on the other side .25 down the street is lots of other nice houses. good area near lake
PS. bank wants 2900 earnest $ which i don’t have and they won’t give clear title and wants me to sign a hold harmless. something about a mobile home was once there and they cannot find the serial # to it to give clear title ?? thanks alot man…
On February 25, 2010 at 6:23am, Stephani said...
So, what is your exit strategy here? If it is to wholesale, I would be kind of concerned if your mentor is telling you he can only sell it for 20k. I would also want to get the opinion of an atty about that title issue. I have never dealt with anything like that, so I am definitely not the one to be giving you advice about it.
I applaud the fact that you are out there trying to make things happen, but you should really have an earnest money deposit on hand to give to the bank in the event that you get a property under contract. The listing agent is going to want it as soon as the contracts are signed, and if you are not able to come up with it, you are going to start burning bridges with the REO agents, which is not a good thing.
On February 25, 2010 at 7:01am, tony zamberlin said...
i plan to wholesale, but if i cant move it then plan to find a partner to rehab with that has the cash. only prob is i have not experience with rehabs. u think its a good idea just to try and get the money and then find a partner and say hey i’ve got the cash and u can manage rehab, etc. since u have the experience or u think it would be easier to find a partner that has the cash and we parnter that way and they teach me??
PS. i’ll call attorneys asap..
On February 25, 2010 at 3:03pm, Stephani said...
You really should get your ducks lined up as far as the partnering stuff goes before you start making offers. If you don’t have any cash to contribute to the deal, and you don’t have any rehab experience, you are probably going to have a hard time finding someone willing to partner with you. Not saying it’s not possible, but you need to be bringing something to the table in order for it to be worth someone’s while to partner up with you.
I personally would focus on wholesaling, then when you have some cash reserves built up, move on to rehabbing if that’s what you want to do.
You also are going to need to have access to an earnest money deposit once the bank accepts your offer, so keep that in mind, too.
On February 25, 2010 at 9:35pm, Joshua Dorkin said...
Steph . . . get it over with and spill that glass of wine on your PC. Once you switch to mac, as Nick said, you’ll be a changed woman!
Joshua Dorkin´s last blog ..It’s All About The Benjamins, Baby
On February 25, 2010 at 9:42pm, Stephani said...
Yeah, I know.
I do like my Sony Vaio, though. It’s PINK!!
On February 25, 2010 at 10:34pm, tony zamberlin said...
ok great steph! thanks. if i can find an experienced rehabber and get the cash to put up myself it might be worth it then. what do u think?? your right on the wholesaling thing! hey i already got this thing sold steph!! lol the prob is i though the realtor said we had it and was waiting on contract to be signed, but instead i claried after already putting out to my list that it has to get 2-3 more people to approve my offer 1st! they buyer wants a contract tomorrow, but i told him we were waiting on the signed contract to come back and it may be like mon or tuesday. i had 4k non-refunable on the ad when i put out to my list, so theres my earnest $ right there just gotta get accepted now. what u think? am i good so far?
On February 26, 2010 at 7:49am, Stephani said...
Is this an REO or a short sale?
Did you find out about the title issue? That could be a deal breaker, so you need to get that straightened out, and you also need to let your end buyer know about it. If you sign that disclosure and then don’t tell your end buyer about the title issue, you could be opening yourself up to some serious legal trouble.
Regarding the earnest money- you should be OK, but keep in mind that some buyers will not be comfortable giving it to you and will want it held at their own title co or with their atty. In that case, you are going to need to come up with a deposit on your own.
Good luck,
Steph
On February 26, 2010 at 8:00am, tony zamberlin said...
ok well i have not checked yet or signed the agreement yet. but don’t u think i should. thats the buyer taking it over anyway once i sign its their responsibility when they buy to get it cleared right.. ?? also can i still do the a-b and b-c without having to double close if they use their attorney?
On February 26, 2010 at 8:11am, Stephani said...
They are going to find out about the title issue when the title company runs a title search, and if it’s a major issue, there is a good chance that they will back out of the deal, so you need to be upfront with them and let them know what is going on now. It is never wise to try and hide stuff like that from the end buyer.
Just write into your contract that the closing will be held at a title company of your (Seller’s) choice. Your buyer can still elect to have his/her deposit held somewhere else.
On February 26, 2010 at 8:25am, tony zamberlin said...
ok will do! ok i just talked with the attorney and they said its up to me to discose using the buyers money for both transactions. what would u do here?? she said some people disclose it and some dont, but at closing its on the hud..??
On February 26, 2010 at 8:26am, tony zamberlin said...
they don’t make em sign anything up front that discoses it and its not required to from what she says…
On February 26, 2010 at 2:38pm, tony zamberlin said...
ok, steph, just met the buyer at the house b4 i got it tied up. he heh. realtor called while i was there and said offer of 29,100 is accepted. waiting on hold harmless for title not being clear to come over and addendums. should i make sure we have 7-10 inspection period in there?? also i have an attorney that will do simeltaneous closing. The guy shook my hand today and says he’ll take it for 35k!! gotta split with 2 other people, but 1500 not too bad for 3-4 hours work. lol
attorney says title issue should be able to be resolved but no guarantees. My partner has got the 2900 earnest $ now due to a deal falling through! its strange when stuff just comes together when u have a little faith. How should i handle the simeltaneous closing to get it done right ?? thanks in advance
On February 26, 2010 at 2:55pm, Stephani said...
The banks may give you an inspection period in their addenda, but if not, you will get whatever you put in your offer. If you offered a zero inspection period and the bank doesn’t include an inspection period in their addenda, then you will get a zero inspection period.
Here’s a video that explains how I set up my simul. closings:
http://www.flipthiswholesaler.net/2009/09/simultaneous-closing/
Sounds like you are good to go unless that title issue creates a problem.
Nice job!
Steph
On February 26, 2010 at 6:09pm, tony zamberlin said...
that aint good!! Lee Kearney says in an audio interview i have from preston to put it on contract 0 day inspection then they will always 9 times out of 10 give u one ??
On February 26, 2010 at 6:16pm, Stephani said...
9 times out of 10 they do, but sometimes they don’t. It just depends on the lender.
On February 26, 2010 at 6:09pm, tony zamberlin said...
thanks on the video and i’ll let you know..
On February 26, 2010 at 6:19pm, tony zamberlin said...
so what would u do from now on on offers?? i mean i think its a better chance of getting it by doing that. if i get the addendum can’t i just ad it if its not there and sign??
On February 26, 2010 at 6:23pm, Stephani said...
They don’t let you change the terms once they send the addenda. You can try, but they are usually pretty adamant about not changing anything.
You can always refuse to sign it if you don’t like the terms in it, but you are also going to piss the agent off by doing that.
I make my offers with zero inspection, but I make them at prices where I know I can sell them quickly if they get accepted.
It’s up to you how you want to handle it. Just know that there is no guarantee that you are going to get an inspection period in the addenda. Usually, yes, but not always.
On February 26, 2010 at 6:32pm, tony zamberlin said...
thanks we’ll im gonna pray that they will…
On February 27, 2010 at 11:32am, tony zamberlin said...
ok steph,
just got the addendums and i have a 7 day right of inspection thank God!!! I”ve been sweating bullets. lol The seller has not signed yet, but the realtor wants earnest money by monday afternoon. i told him i’llhave it to him by tuesday. is this a good idea or wait until signed contracts are back. also the hold harmless agreement has not been sent to him yet and he says he don’t even know if there will even be one or not or it may have to be signed at closing. County tax records says the mobile home is still in the house, but i’ve had 2 contractors and my appraiser go look at it and there are no signs of it being there. Mobile homes are considered personal property here and my buyer says he saw one over there at one time, but it was beside the house not in it! any advice here would be greatly appreciated, just hoping this can be cleared up for getting insurance and clear title.
On February 27, 2010 at 3:23pm, Stephani said...
You usually are required to submit your EMD when you return the signed addenda to the bank, then they sign and send the executed contracts to their title company.
I don’t know what to tell you about the title issue, except I would not sign the hold harmless agreement unless you first tell the end buyer and make sure they know what is going on. You don’t want your buyer backing out because of the title at the last minute. If that happens and your inspection period is over, then you are going to still be on the hook to close (if you signed the agreement), and you will lose your deposit.
I don’t know anything about mobile homes or the title issue you are dealing with- you need to talk to an atty or the title company to get more info.
Good luck!
On February 27, 2010 at 3:36pm, tony zamberlin said...
ok thanks steph
On February 28, 2010 at 11:03pm, tony zamberlin said...
Steph,
i met the realtor today at the office and signed the addendum. it says 7 day right of inspection and seller will provide clear title to the property!! lol The realtor did mention they may want me to sign a hold harmless, but he has not seen it yet. maybe they know something we don’t. I told him i’ll have earnest $ over on tuesday so that buys us and extra day or so to get title started at my attorney which i will call 1st thing in morning. How would u handle telling your buyer that his funds will be used to fund both ends of transaction, or would u even tell him at all?? Here in sc the attorney says its not required to disclose, but im like you i like to be up front with people… talk soon..
On March 02, 2010 at 7:34am, Stephani said...
It’s up to you whether you want to disclose it or not.
My title company makes them sign a document letting them know what is going on, so I usually just let my atty handle it. Never had any problems doing it that way. Most of my buyers buy from wholesalers so they already know what is going on anyway.
On March 01, 2010 at 8:50pm, tony zamberlin said...
Everyone I got this thing accepted and i used the dang pof from http://www.coastal-funding.com!!! lol
On March 02, 2010 at 7:38am, tony zamberlin said...
attorney says its up to me to disclose it. so do u get the contract with your buyer or send it to the attorney and let them come in and sign it along with the addendum saying there funds is being used??
On March 02, 2010 at 4:39pm, Stephani said...
The addendum is signed at the closing table and my atty explains it to them at that time.
On March 02, 2010 at 4:32pm, Alyse said...
Hi Steph,
I’m watching your Contracts for REO video from last Saturday (and what is that great skyline view you have?). You say you use your title company, not the end buyer’s. Does that mean you pay for the title work? I was under the impression “you pick, you pay” when it comes to that.
Thanks,
Alyse
On March 02, 2010 at 4:38pm, Stephani said...
Hi Alyse,
I always sell my deals at a net price to me, which means my end buyer pays all closing costs.
It’s all negotiable, but you can save a lot of $$ by passing the costs on to your buyer. I’ve only had one guy complain about it so we ended up splitting them 50/50.
Steph
On March 02, 2010 at 7:47pm, Tony Zamberlin said...
Ok Steph,
So on the part with using buyers funds don’t put in contract just let them see at closing? thanks