Well I’ll be a monkey’s uncle.
The investor who owns the land that Murphy and I are trying to buy ended up countering our offer of 50k with 52k!
Like I mentioned in my last post, I was expecting a counter offer of 75k, so this obviously makes me very happy.
I’m not crapping my pants just yet, though.
As it turns out, the guy who owns the land bought it at a tax deed sale (which we already knew from looking at the tax records), and never had the title quieted when he bought it. Now, I’ll just be honest here and tell you I have absolutely no clue about tax deed sales or quiet titles, which is why it’s always good to have a title co/real estate attorney on board who does.
We’re having the title pulled on all 3 parcels of land right now, and hopefully it will all come back A-OK. According to the attorney who owns the title company we are using, we should be good to go since this guy has owned the properties for 9 yrs and “Generally the rule is that title is marketable after 4 yrs….”
I don’t really know what the hell that means, so I’ll just have to wait until tomorrow to see what the searches turn up. If everything looks good, we can close immediately. Our purchase price will be 52k net, with a sales price of 75k net. We’ll be doing a simultaneous closing on this one as opposed to an assignment because we don’t want the end buyers to see our profit. You know, just in case.
Of course, I don’t want to get ahead of myself here. Murphy and I don’t have the best track record when working deals together, but I think we both have some good Juju coming our way.
We shall see.
I’ll keep you all posted. 
Later Alligators!
P.S.
Happy St. Patrick’s Day!
On March 17, 2010 at 2:36pm, Clifford said...
This is HUGE Steph! Keeping my fingers crossed for ya.
Clifford´s last blog ..Cycles: The saga of GrassGuy
On March 17, 2010 at 3:28pm, Stephani said...
Thanks, Clifford!
I’m keeping my fingers crossed as well.
On March 17, 2010 at 5:44pm, Eric said...
Very cool Steph! I’ll through some good juju your way for this one to complete. Looking forward to hearing it closed.
Nice pic of the Chicago River! My wife Val and I used to go to that every year from 1997 to 2002 when we lived there. Our friends still go and were there calling us this weekend. I was very jealous. Any excuse to start drinking in the morning is a great one!
Have a great rest of the week!
Eric ´s last blog ..Focus is an issue
On March 17, 2010 at 5:47pm, Stephani said...
I actually grew up about 45 miles from the city but never went down there on St. Patty’s Day. I imagine it would be a good time.
On March 17, 2010 at 6:10pm, Erby said...
Attn. all wholesalers! Send out some positive energy into the universe for Steph. Your check will be waiting for you at the title company Steph. Go Get It!
Erby´s last blog ..2BD/1BA Single Family Home $30,000
On March 17, 2010 at 6:14pm, Stephani said...
I’m envisioning it there now, Erby- thanks!!!
On March 17, 2010 at 6:47pm, Shae said...
W00t! Money comin’!
Shae´s last blog ..Relentless forward motion
On March 17, 2010 at 6:54pm, Stephani said...
Don’t jinx me!
On March 17, 2010 at 6:56pm, Shae said...
I can’t jinx you unless you believe you can be jinxed
Shae´s last blog ..Relentless forward motion
On March 17, 2010 at 6:56pm, Stephani said...
I so knew you were going to say something like that.
On March 17, 2010 at 6:57pm, Stephani said...
P.S.
How’s the article coming?
On March 17, 2010 at 6:58pm, Shae said...
ugh…you see I’m commenting on blogs, right? LOL!
Shae´s last blog ..Relentless forward motion
On March 17, 2010 at 7:04pm, Stephani said...
Ha!
Yeah, me too.
On March 17, 2010 at 8:56pm, mobilehomegurl said...
Sweet deal, Steph! I’m crossing my fingers for you!
p.s. It’s funny b/c I’ve known wholesalers in the past who have moved on to wholesaling land (lots) too. Sounds like a great opportunity!
On March 18, 2010 at 4:58am, Stephani said...
Thanks Rachel!
Actually the guy I’m working this deal with does quite a bit of land flipping. He used to do more back when the market was hot, but it’s slowed down quite a bit for him since then so he’s doing houses now, too.
On March 17, 2010 at 9:50pm, Lila said...
Yay! I’m so stocked for you. Why? ’cause I live vicarioiusly through you…and one day I’m going to doing this myself. I don’t think your realize how motivating you are for us all. Thank you, Steph.
On March 18, 2010 at 5:00am, Stephani said...
That’s very sweet Lila, thank you.
There’s no reason in the world why you can’t do it, too. I’m always here if you have questions…
On March 17, 2010 at 9:51pm, Lila said...
PS – I meant, “stoaked for you”. Oh, and also, “vicariously”.
On March 17, 2010 at 10:49pm, Chris said...
NOW I know where those $20,000 profit wholesale deal testimonials come from! lol
On March 18, 2010 at 5:01am, Stephani said...
I know, right?
Certainly doesn’t happen very often with REOs.
On March 18, 2010 at 12:15pm, sean said...
Don’t you love when a well executed plan comes together? Great Job Steph!! Love the Blog!
sean ´s last blog ..So – Who Is Making Money in Real Estate Now?
On March 18, 2010 at 12:35pm, Stephani said...
Thanks, Sean!
Just keeping my fingers crossed that the title is clean…
On March 18, 2010 at 8:56pm, Justin Schnettler said...
Steph-
Your HUD does not show the net proceeds to seller on the HUD? Just curious.
Justin Schnettler´s last blog ..1895 Desert Seasons Dr, Queen Creek
On March 19, 2010 at 5:12am, Stephani said...
Hey Justin,
Yes, it will show the net proceeds on the HUD, but it will be less obvious than having them sign an assignment agreement for a 23k fee.
They probably won’t care either way, but you never know.
Steph
On March 19, 2010 at 12:16am, Lila said...
hey Steph-o, how come you don’t tweet?
It would be so fun to hang out with you during the day and let us know what’s going on for you. I know it’s probably not a big “value add”, but some of us like to keep in touch more regularly, even if it’s a twee from you saying, “Hey compadres, I’m heading out to do my monthly pick-up phone numbers from rent signs in my farm area. There’s always more buyers to be had.” That would give us the encouragement to “Do the stuff, Steph style!”
Food for thought,
Lila
On March 19, 2010 at 5:14am, Stephani said...
Hi Lila,
I’ve started up a Twitter account on 2 occasions, but ended up deleting it both times. I just don’t like Twitter at all.
I much prefer Facebook.
On March 20, 2010 at 4:36am, Craig Fuhr said...
Love the attitude, Steph. Why be bothered with all the silly details, when you could just hand all the crap over to somebody who cares. Nice.
Craig Fuhr´s last blog ..Video Tip: How to Have a Foreclosure Party!
On March 20, 2010 at 3:47pm, RJ said...
Good Luck Steph! Im sure you’ll pull out a winner on this one.
Cheers
RJ
RJ´s last blog ..How 2 Cell Phone Geeks Crush The Columbus Wholesale Market
On March 20, 2010 at 4:20pm, Tony Zamberlin said...
Steph,
i could not find the old posts that i made and u answered, so if u don’t mind could u answer this again please. I’m gonna do what u say and focus on listings that are 90 dom and older. also most investors say that new listing the banks only take 10-20% less than asking price here and that goes on price drops as well. Do u have a certain formula on older properties that have been on the market that u follow?? ie: offer 30%, 40% less than asking ?? thanks in advance and get ready for my next deal because its coming soon!!!
PS. so u never go after new listings and price drops or do u rarely do it??
On March 21, 2010 at 5:48pm, Stephani said...
No, I don’t have any formula that I use. I just offer low enough to leave room in the deal for me and the end buyer.
Sometimes I go after new listings and price drops. There is more competition on those, though.
On March 21, 2010 at 9:55pm, Tony Zamberlin said...
steph,
ie: u have one thats been on market for 4 months. banks asking 90k. you can only pay 45 and sell for 55K. would u make an offer on it, if so at what price would u start at??
anothr ie: on thats been on market for 2 months. bank is asking 90k. you can pay 65-70k and sell for 75k. what would u offer on it?? or would u even offer on it? thanks in advance.
On March 23, 2010 at 6:34am, Stephani said...
Just offer whatever number works for you and your end buyer(s).
Worst that can happen is they say no.
On March 24, 2010 at 10:28pm, tony zamberlin said...
so it don’t matter what the bank is asking?? even if its like 40k above what i can pay?? just trying to work smart here…
On March 27, 2010 at 11:03pm, James E said...
Hi Steph,
Got a guy that owns the prop. free and clear wants to sell for sure – would take a bit less than fair market – prop. is about 2 hrs from my place – wheres the best place to get an end buyer
On March 28, 2010 at 6:10am, Stephani said...
Here’s an article I wrote on the BiggerPockets blog that will give you some ideas…
http://www.biggerpockets.com/renewsblog/2009/08/06/easy-ways-build-wholesale-buyers-list/
And another…
http://www.biggerpockets.com/renewsblog/2010/01/21/easy-ways-build-wholesale-buyers-list-part-2/