Hola Ladies and Gentlemen!
I hope you all are enjoying your weekend. I also hope you didn’t forget my Valentine’s Day present for tomorrow…
My gift to you is this Reader Mail video that I just threw together. And when I say “threw together” what I really mean is that it took me 4.5 hours to make because Windows Movie Maker hates my guts.
Anyway, hope you enjoy it!
Later Alligators!
P.S.
If you haven’t subscribed to my YouTube channel yet, you can do so by clicking here, then clicking on the yellow “subscribe” button above the video. 
On February 14, 2010 at 6:44am, Jared Christiansen said...
Good video Steph. I liked the way you answered the first question when she asked about somebody looking up the value after the purchase. I would also ad that Zillow’s prices are all over the map. I have around 20 listings right now that are all listed very close to market value (a little higher of course so we have room to negotiate) but if you look them up on Zillow their values aren’t even close. My two cents. Keep up the good work!
On February 14, 2010 at 8:15am, Stephani said...
Hi Jared,
I should have mentioned something in there about Zillow- thanks for pointing it out.
I actually haven’t looked anything up on there in a looooong time, but when I used to use it, I remember it being highly inaccurate.
Thanks for stopping by- hope all is well w you.
On February 14, 2010 at 6:53am, Eric said...
Good info. Steph. All of the properties in my area that have been on the market for a long time and are holding at about the same list price I have found are not good deals. Eventually these Sellers will have to drop it to a good deal so keep offering on them at what you think is the good deal price and I assume that sometimes those will pay off.
On February 14, 2010 at 8:16am, Stephani said...
Yes, that’s it exactly. Keep following up with offers that work for you, and every once in awhile the banks will come around to your way of thinking.
On February 14, 2010 at 9:50am, Greg said...
Steph,
Good to see another episode of Saturday night reader mail. As a general percentage, how many of your deals come from the MLS? Everytime I talk to wholesalers about this, answers tend to vary widely.
How does Windows Movie Maker manage to be simple, wonderful, and infuriating all at the same time?
On February 14, 2010 at 10:31am, Stephani said...
Hi Greg,
I started out targeting private sellers, then went to strictly REOs. There are a ton of them on the market here, so it seemed like a no-brainer. There’s a lot more competition now, though, so I’m starting to shy away from the MLS a little bit and just focusing on doing joint venture deals with other wholesalers. I’m still making offers on MLS properties, but not as many as before.
Regarding Windows MM- I think you summed it up nicely- simple, wonderful (when it’s cooperating), and infuriating.
On February 14, 2010 at 6:20pm, Nick@Subject2.com said...
gotta love those YouTube thumbnails
cool building light show in the background.
Nick@Subject2.com´s last blog ..Subject2 eBook
On February 14, 2010 at 6:32pm, Stephani said...
That was actually the best choice out of three, if you can imagine that.
I’ve just resigned myself to the fact that I’m going to look like a jackass
in every YouTube freeze frame.
By the way, Nick, I keep meaning to tell you that every time I try and go to
your site it’s really, really, slow loading. Sometimes it makes my computer crash.
It might just be me and my never ending computer issues, but you might want
to check with some of your blog readers and ask them if they have the same problem…
On February 15, 2010 at 7:03am, Nick@Subject2.com said...
Ya, I’ve heard that a few times. I dunno why or how it does it.
Nick@Subject2.com´s last blog ..Subject2 eBook
On February 15, 2010 at 4:19pm, ARodOfIron said...
I also have problems visiting Nick’s site, especially when I use the mobile browser. I think the site has some really bad JavaScript it’s trying to load, I’d recommend looking into that. The content is good though!
Good vid, Steph! I still have no idea why you have so many issues with WMM, you’re hardly doing anything complicated with your video.
Take care!
On February 15, 2010 at 5:58pm, Stephani said...
Hey Alex!
I have issues with every computer program and also every piece of electronic equipment I come into contact with. I’ve accepted my fate, and just try as hard as I can to not take my anger out on inanimate objects. It’s a struggle, but I manage.
On February 14, 2010 at 9:08pm, Neil Uttamsingh said...
Great video Steph!
Catchy tune during the intro and conclusion.
Keep them coming.
ps: The Youtube freeze frames are a huge pain in the arse. You should see some of mine!
pps: there is no spell check for the word ‘arse’
Neil Uttamsingh´s last blog ..How to buy your first rental property – Step Seven
On February 15, 2010 at 9:30am, Gus said...
Hi Steph, Very good advice as always! I’m in the middle of a deal and this is not a Reo, it’s a agent own property and they ussually check on their properties often, I submited an offer almost at full price and I’m pretty sure I’m going to get it. I really want to show the house to my end buyer to make sure He really wants the house so if they reject my offer I can bid with more confidence
The problem is that there’s a huge sign on the front yard and I’m afraid that since he’s been working with an agent so He can call on the sign and find out that I’m trying to make 12K profit.
Should I wait untill I have it under contract? or Can I take the sign out and show the house right away. I f i do this I will know for sure that he wants the house and push my offer even harder.
Any advice ? Gus G. Best of Succes!!
On February 15, 2010 at 9:39am, Stephani said...
Hi Gus,
Technically you’re not supposed to remove the sign, but you could always set it on the side of the house, send your buyer over to look at it, and then put it back. The agent is probably going to be pretty ticked off if he/she finds out, so keep that in mind.
The other option would be to wait until you have it under contract and then send your buyer to the house. If they question why the sign is in the yard, just be honest and tell them you have the property under contract and are wholesaling it.
Good luck- let me know how it turns out!
On February 15, 2010 at 5:01pm, Erby said...
Hey Steph, I actually had a buyer that has bought a property from me only because it was not listed. I have brought them some great deals that I have gotten off the MLS and they would not buy it because it was listed. I still end up selling the properties so it was there lost.
Erby´s last blog ..3BD/2BA Single Family Home $55,000
On February 15, 2010 at 5:59pm, Stephani said...
I don’t get people like that. What the heck difference does it make? A deal’s a deal.
On February 16, 2010 at 11:42am, Gus said...
Hi Stephani, I just want to let you know what happend with the Huge Sign House. I talk to my buyer and he said he didn’t care if I was making a profit( 2 k -4k) but he would be upset if I was
making more than that.(I just don’t get it! It takes time and effort just to put a house under contract right? you deserve to get paid fot it!) Anyway I decide to show him the house and i got there 15 minutes before to take the sign out! . When I finally manage to take this stupid heavy sign out,the gay that lives next door aproach me and ask me if I bought the property. He was very upset about the market values (Hellooo! It’s not my fault) then he went back to his house and call the agent and told him about the sign!.
My buyer liked the house and I got a deposit. Now I just have to deal with this very angry
agent! I can’t belive people say that we make easy money,what an akward situation!
Thanks for reading and good luck to all investors out there!!
Gus G.
On February 16, 2010 at 11:54am, Stephani said...
Oy.
So, what did the agent say? Probably not too happy, eh?
Did you get your offer accepted with the bank? If so, what price, and what price are you selling it to your end buyer for?
You have to be careful if you don’t actually have your contract accepted yet, as there is always a chance that someone could come in and offer more than you. That just happened to me last week and I ended up losing out on the deal.
I am usually upfront with my buyers and tell them that I am in the midst of negotiating with the bank, that way if I don’t end up getting the deal, I don’t look like a jackass to my buyer. People tell me I’m crazy for doing that before I have the contract locked up because my buyer can always go around me, but I’ve never had it happen.
Anywho, I hope it works out for you. Keep me posted.
On February 16, 2010 at 11:53am, Gus said...
Hello again Steph , I’m sorry about my spelling on the last comentary I meant Guy not Gay.
Gus G.
On February 16, 2010 at 11:55am, Stephani said...
No prob- I figured it out.
On February 16, 2010 at 12:51pm, Shawn said...
Hi Steph!
I am so EXCITED! I got a counter on one of my offers on an REO. However I placed a bid for 20K and they counterd back with 28, 500, how many times do you tend to counter. I have never had a counter before! lol I am too excited right now! This house is a GREAT deal! 4/2 1500 sq ft. about 10K in repaairs and will sell for about 70-80K.
On February 16, 2010 at 1:00pm, Stephani said...
Woohoo- nice job, Shawn!
What is the list price?
They will usually go back and forth 2 or three times with counters. Usually two.
Are you wholesaling this, or keeping it for yourself?
On February 16, 2010 at 1:21pm, Stephani said...
P.S.
If it really is a great deal, you better hurry and lock it up before another offer comes in…
On February 16, 2010 at 1:21pm, Shawn said...
The list price is $30K.
On February 16, 2010 at 1:24pm, Stephani said...
Are you planning to wholesale it?
If so, what do you think you can sell it for?
On February 16, 2010 at 1:28pm, Shawn said...
$35K. I have 2 buyers lined up now.
On February 16, 2010 at 2:13pm, Stephani said...
Well, good luck and let me know how it turns out!
On February 16, 2010 at 1:48pm, Gus said...
Hi Steph, The agent call and he didn’t mention about the sign but I’m sure he figured out about
my reselling intentions so he said he just got one more offer and if I really wanted the house
I have to come up with $2k more. I’m sure there is no other offer and he knows that I really need the house. I accept the counter. At least I have a deal dont’ you think?
Next time I’ll follow your advice and let the buyer know what’s going on.
3 bed / 1 1/2 bath. listed for $17.2 First offer $16, counter @ $18 (accepted)
$2k deposit closing in 2 weeks for $28.5
Thanks for Answering. I really admire your work and positive attitude towards life!
Gus G.
On February 16, 2010 at 2:16pm, Stephani said...
If you already have a buyer lined up who will pay 28.5k, then I’d say you definitely have yourself a deal!
Do you have your exit strategy in place regarding how you will close the deal (double close, simultaneous close ,etc.)?
If you need any help, let me know.
On February 16, 2010 at 7:53pm, Gus said...
Hi steph, Thanks for offering your help , actually you told me about transactional funding and
I found some local people. Reason Im using this is because looks like nobody in detroit metro area
is willing to perform a simo-closing. I used to flip houses buy-fix-sell so this is my first deal doing a double closing and to be honest I’m kind of nervous,I bought Steve cooks dvd’s but it doesn’t mention about transactional funding. Can you describe the closing. Can I close in a different agency?\
The deed will be on my name and the funding people?
If it is, they do a quit claim deed so I can resell it?
Any advice is welcome
Thanks again for your quick response.
Gus G.
On February 16, 2010 at 8:07pm, Stephani said...
Hi Gus,
I’ve never actually used transactional funding myself (I do simultaneous closings), so I can’t tell you exactly how it works. Your best bet is to figure out who you are going to use to fund the deal, and then ask them how they run things. They may have a specific title company that they want you to use for the B-C transaction.
Brian Meidam is the guy I recommend (fundthiswholesaler.net). He also posts on the flippinghomes.com forum, so I would also go over there and post a question about the specifics of closing with a transactional lender.
Sorry I can’t give you more help- but I’ve never closed a deal that way and don’t want to steer you in the wrong direction, although I think it’s pretty straightforward as long as you have your end buyer lined up.
Keep me posted,
Steph
On February 16, 2010 at 9:29pm, shawn rand said...
So so happy you said that steph cause I am soooo confused right now! I received an email from the listing agent that said that I put the offer in as cash and it is really a conventional loan. And they are going to re write it if I accept the counter. I went ahead and countered back due to the fact that my craigslist ad is getting a huge response at $35K. I was planning on doind a double close because houston investors are very secretive and will not tell me of a title company that will do a simultaneous closing.
On February 18, 2010 at 6:01am, Stephani said...
Hi Shawn,
It may be that there are no title companies in Houston that will do simultaneous closings, or that the people you are asking aren’t aware of any. I’d visit your local REIA and ask some of the members (or the people who run it) if they can recommend a good investor-friendly title co.
Regarding your cash offer- sometimes the banks will not accept letters from transactional funding sources as cash so you will have to make it a financed offer. It just depends on what bank you are dealing with.
Steph
On February 18, 2010 at 5:46am, Karen said...
Or perhaps you can recommend a good real estate agent in Tampa who is knowledgable in what I’m trying to do?
Thanks again!!!
On February 18, 2010 at 6:05am, Stephani said...
Hi Karen,
I hate to say it, but I don’t really know of any good realtors that I can refer you to. Most of the people I know who have their licenses are wholesalers who only use their license to get MLS access. I don’t use a buyer’s agent myself- instead I make my offers directly to the listing agents, so I am not working with any Realtor in particular.
I would start networking at the REIA meetings- there are usually one or two investor-friendly agents who attend those. Let them know what you are looking for and I’m sure they will be able to help you out. Here’s a link to the one in Brandon:
http://old.tbreia.com/SG/Brandon/Default.asp
There is also a Wealth Builders meeting that meets every week at the Perkins on South Dale Mabry. I think they meet every Monday or Tuesday. IF you Google “Wealth Builders Tampa” it should come up.
Hope that helps,
Steph
On February 18, 2010 at 11:31am, Shawn said...
Thanks Steph! You are a Saint! And I truly truly thank you for all of your help, becasue whether you know it or not. It means alot. I have been scared out of my pants about what the next step is! We are in a back and forth on the counter. I countered at 26,500 and they came back at 28 so i went back at 26,900. We will see. One of the investors backed out after seeing the house he said he did not like the area and that it was a bad neighborhood, and the other loved it so i am sticking with him, and the fact that he is willing to pay the 35K for it. He also suggested that we use First American Title. Anyway I said all of that to say that you have truly inspired me and assisted me with the many questions that I have. You dont have to do it, but you do. Thank you sooooo much! you are AWESOME! Oh and I love your pots!!! hee hee i have a purple set!
On February 18, 2010 at 11:51am, Stephani said...
Glad to help out, Shawn.
Keep me posted as to how the deal goes, and if you end up going with this 35k guy remember to get a 2k NON-REFUNDABLE deposit when the contract is signed with him. NO EXCEPTIONS. Trust me one this one.
Steph
P.S.
You have a purple set of pots and pans? Awesome!
On February 18, 2010 at 1:21pm, Shawn said...
Ok Will do!
On February 24, 2010 at 12:48pm, Niki said...
Hey Steph- I noticed in one of your posts up there, that you said banks sometimes won’t except transactional funding so you have to use financing. We have put in about 5 offers with the POF on your website and keep getting rejected. We put another in, with a HML POF letter, on one of the same houses, and actually got them to negotiate. Are you having problems with your offers that you make with your letter? BTW…it’s not only this one, we have another transactional funding POF, and the same thing has happened, so I am not sure what to think!
Thanks for your help…:)
On February 24, 2010 at 1:10pm, Stephani said...
Hi Niki,
I use a bank statement from a private lender as my POF.
I have heard that some of the banks will not accept the letters from transactional lenders, and I think that there are probably a lot more people using them now, so maybe they are starting to catch on.
If you are having luck with your letter from a HML, then I would just stick with that.
Steph
On March 05, 2010 at 11:48pm, JIM GOULD said...
Hi Steph,
I live in Southern Calif between San Diego and LA near Newport Beach and REOs are being sold with higher than asking prices and multiple offers in many cases. With that being said it is hard to try to wholesale (however I have not yet done one) but have you heard about this kind of situation any where else. On short sales the same thing happens. So its hard to get in the middle of these to make any $$$$. Any comments…..JIM
On March 06, 2010 at 7:38am, Stephani said...
Hi Jim,
It’s the same way here, and in many other markets.
I have always avoided the new listings and price drops, and gone after the ones that have been sitting for awhile, have high DOM, and need a lot of work. That is where I have gotten my best deals.
Steph
On March 06, 2010 at 8:12pm, JIM GOULD said...
Thanx Steph,
By the way I did not get an ALERT on my email that you answered me, will this site not do that.
Thank you for the QUICK reply anyway. JIM
On March 07, 2010 at 10:13pm, gigi said...
what do you give a realtor if they bring you a cash buyer for one of your contracts ?
what if realtor has a house listed on Mls and askes you to help him sell it, and I find a buyer Yet the realtor still thinks its illegal for me to sell this house to anyone I’m a begginer a realtor wants my help, yet we don’t know how to get around this we are in the state of texas, what are the laws. And how can I protect myself, we can’t udse bandit signs in this town to market what wouls you suggest. And what type of contract should I have drawn up if I sell one of rhe listings. I want to be able to protect myself. Bythe way your website rocks… I listen to it over and over again.. But yet I I’m still confused, Its not you its totally me..I will be following you.. I have to go to sleep and go to my sucky job hrs a day less than minimum wage Please help me get started I hate my job!!!
Thanks
GiGi
On March 08, 2010 at 9:37am, Stephani said...
Hi Gigi,
I don’t know what the laws are in your state, but I’m guessing that you probably need to be licensed in order to sell deals for a Realtor and get compensated for it. So, your options would be to either get licensed, or to put the property under contract yourself and then assign it to an end buyer, or in the case of an REO, do a double closing.
Hope that clarifies,
Steph
On March 07, 2010 at 10:23pm, gigi said...
how do you put reo’s under contractwithout actually putting out your own cashto the bank. Won’t the bank know you have a end buyer paying the funds at the end Or do you physically come out of pocket and buy the property to tie it up and then sell it to the end buyer. Or ydo you let the end buyer pay for all the total transactions both a + bplus b+ c. Won’t the bank eventually know what you have done is this okay. Or do you buy it st to tie it up yet all closings are still done int the same day.
Ps you ROCK and your music is Great !
GiGi
By the way I lived in Fla for 25 years ! They have some of the best R.E. club meetings ever
Wish I was there
On March 08, 2010 at 9:40am, Stephani said...
Hi Gigi,
I do simultaneous closings where I use my end buyer’s money to fund both transactions. I explain exactly how I do it in this video:
http://www.flipthiswholesaler.net/2009/09/simultaneous-closing/
Hope that answers your questions- and thanks for stopping by!
Steph