Reader Mail | Flip This Wholesaler | Wholesaling Real Estate Blog

Hi guys and gals!

I’ve got another Reader Mail video for ya- this one came from Laura, who posted the following question on my Facebook fan page:

Here’s your answer, Laura….

Have a great weekend y’all!

Later Alligators.

P.S.
Got more questions about wholesaling REOs? Pick up my Flip This REO! eBook and get all the answers!

P.P.S.
Thanks, YouTube, for another lovely freeze frame.

On May 14, 2010 at 8:17am, jermaine said...

Hey Steph,

Got a question. I’m not sure if this would qaulify for reader mail or not but here goes. Ok, I’m doing my due diligence to begin wholesaling REO’s and so far what I have done is I’ve gotten licensed to get access to the MLS. I’ve driven by and looked at the properties in my area that have sold to cash buyers, the pending sales, the actives, etc… I have also found out who the realtors are in my area but where I am getting stuck is trying to understand my market with pinpoint accuracy (things like the trends and the home values in my area.) I want to talk to the realtors that I’ve found out about to help me understand this.

So my question to you in my dilemma is what kind of questions do I ask the realtors? I would like to sit down with these guys and just be able to find out everything they know about the area, home values, neighborhoods and pockets and I’m in the dark about how to put my thoughts together to get this info.

please help!!!!
- On May 14, 2010 at 9:54am, Stephani said...
  
  Hi Jermaine,
  
  My recommendation is to focus your efforts on contacting some active cash buyers, and then asking them what they are looking for in a deal- part of town, beds/baths, max price, etc.
  
  Many Realtors don’t have a clue what investors are looking for, so I think you would be better off to approach the active investors if you are wanting to get a better idea of what kind of deals you need to be looking for.
  
  Try focusing on one part of town at a time- find some buyers in that area, and then figure out exactly what they are looking for.
  
  Hope that helps- keep up the great work!
  
  Steph
On May 14, 2010 at 10:02am, jermaine said...

oh, hey thanks for the response…

I just reread my post and I should have clarified that I want to wholesale to homeowners (I guess it doesn’t hurt to sell to investors though!) but does this same rule apply?? Sorry about about the miscue.

Jermaine
- On May 14, 2010 at 10:24am, Stephani said...
  
  Oh, Ok. That changes things.
  
  To be honest, I have no experience wholesaling to homeowners, although there is a guy in my mastermind group who does it successfully. Just keep in mind that your buyers are not going to be able to use conventional financing- they will either need to be cash buyers or you will have to have a lender on board who does not have title seasoning requirements or care that the property is being flipped.
  
  My friend who is wholesaling to owner occupants works with a small bank in his town who he has a great relationship with. They do not have title seasoning requirements, and they don’t care that he is flipping the properties, so he brings all of his buyers to this bank and requires them to use them for financing.
  
  This is something you will want to line up ahead of time, as you do not want to get a property under contract and then be scrambling around looking for a lender.
  - On May 14, 2010 at 2:51pm, jason said...
    
    hey steph,
    
    can you flip to FHA buyers if the property is a short sale?
    - On May 14, 2010 at 4:23pm, Stephani said...
      
      I don’t think so.
      
      I have no experience with short sales or selling to FHA buyers, so I’m really not sure. Try posting your question on the Flippinghomes.com forum- someone there should be able to answer your question.
On May 14, 2010 at 10:58am, Hope said...

Hi there Steph,
Your info is always sooo helpful. Thank you. Just getting started in RE wholesaling. Would you mind sharing the Title company you use for your simultaneous closings? I am located in the Miami area.
Thanks
- On May 14, 2010 at 11:16am, Stephani said...
  
  Hi Hope,
  
  I use Peer Title: http://www.grumanlaw.com/
  They’re awesome!
  
  Have a great weekend.
On May 14, 2010 at 3:19pm, Joreen said...

Hi Steph,
I’m new to Wholesaling and I wanted to start by flipping REO Properties. I don’t have a buyers list yet, so would you recommend that I build myself a buyers list first before or after I put the deals together?

Thank you,

Joreen Lono
- On May 14, 2010 at 4:29pm, Stephani said...
  
  Hi Joreen,
  
  It’s always helpful to have some buyers lined up ahead of time, but if you know your market well and know the prices you need to contract properties at to ensure that they will sell fast- then go ahead and start making offers.
  
  Bottom line- if you get a slammin deal under contract, it will not be hard to sell. The key is to know what constitutes a slammin deal in your market. Figure that out and you will be just fine.
On May 15, 2010 at 10:11am, Karen said...

Hi Steph!

Once again, an ultra-informative video from you! Thank you!!!

One thing I’ve been wondering is how long it takes to close an REO deal from the time you have a property under contract, assuming you have put no inspection clause into the contract. And how long do end buyers expect it to take to close? For example, say I have a property undercontract and I am talking to possible buyers, will they expect me to be able to close in a day or two? And is that realistic? What about when it’s a short sale?

Thanks,
Karen
- On May 15, 2010 at 2:02pm, Stephani said...
  
  Hola Karen,
  
  REOs usually take around 3 weeks to 30 days to close (on average). Sometimes it takes longer, though. I let my end buyers know that it is a bank owned property and that we won’t be ready to close until the the bank’s title company is ready. Most of the investors I sell to are familiar with the process, so they know the drill.
  
  If you’re dealing with an approved short sale, you can usually close right away. If it hasn’t been approved yet, you could be waiting months….
  
  Hope that helps!
  Steph
  - On May 18, 2010 at 9:59am, jason said...
    
    Hey Steph,
    
    Im using Drew downs and your methods to find cash buyers on the mls. But I’m running into a problem. Most of the buyers are LLC that are doing property management? Can those be prospective buyers or just a regular non-investment company?
    - On May 18, 2010 at 5:35pm, Stephani said...
      
      Hi Jason,
      
      A lot of investors take title in their LLCs, so those are actually buyers that you are seeing. Many times you can just Google their company name, and with a little bit of digging, it isn’t hard to find their phone #. Also, see if your state’s division of corporations is online. If so, you should be able to do a search for the name of the LLC and then get the info about who the registered agents are.
      
      Hope that helps!
      
      Steph
On May 17, 2010 at 9:18am, Karen said...

Thanks Steph!! I’m taking my real estate exam in less than 2 weeks, so I’m getting really excited about getting started!! I’ve already been learning my market by driving around and looking at houses from the outside. I know you probably don’t have to even go to the houses in person anymore since you know the areas so well, but when you were first starting out and making offers on houses that were in not-so-great neighborhoods, did you ever worry about safety issues? I’ve been finding myself driving around in areas that, even during the day, make me feel like I’m going to get carjacked at every intersection! Not fun!!

Thanks,
Karen
- On May 17, 2010 at 4:36pm, Stephani said...
  
  Hi Karen,
  
  If I don’t feel comfortable going into a house, I just do a drive-by or I get someone to come with me.
  
  I wouldn’t advise going into any houses if you don’t feel safe. Either bring someone with you, or bring a gun, or don’t go in at all…
  
  Steph
On May 24, 2010 at 11:28am, Greg said...

Hey Steph,
When using transactional funding for your REO flips, do the banks accept letters from your funding source as POF? If they don’t what is your solution to this problem?
- On May 24, 2010 at 2:19pm, Stephani said...
  
  Hi Greg,
  
  I don’t use them when I make my offers, but have heard that some banks will accept them and some won’t. Here’s a video I posted that explains in more detail:
  http://www.youtube.com/watch?v=FUjDeT5p55I
  
  Hope that helps!
On May 24, 2010 at 5:02pm, ChrisBuysApartments said...

ok Steph. Where’s a recent post? I am calling you out.
- On May 24, 2010 at 6:26pm, Stephani said...
  
  Alright, alright! I’m working on it.

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