How to Wholesale Real Estate: Making Blind Offers on REOs

So, I have another Reader Mail video for you guys.

This week’s question comes from Jacob, who wants to know if I actually go out and look at every single REO property that I make an offer on… (The short answer, for those who don’t feel like watching the video is: NO.  But most of the time I do).

To get the extended version of my answer, please enjoy the video below…

If you have any questions about the video, feel free to ask away down yonder in the comments.

Oh, and because I know you’ve all been staying up at night wondering how my new retro ‘do turned out (and also because I wanted an excuse to wear a pink boa and pretend like I was auditioning for America’s Next Top Model), I took some pictures for y’all.

Here’s the pic I brought in to my hair cutter lady, in case you forgot:

And here’s a pic of my new ‘do…. (I don’t look this orange-y in real life, btw)…

And the one where I look like I’m about to cut someone. Tyra would be proud, I bet.

Hehe.

OK, that’s all I’ve got for now.

Gotta run- it’s time to make the doughnuts!

10-4, over and out…

P.S.
My attempt at running 88 miles this month has been temporarily thwarted by an unfortunate flip flop related accident that happened over the weekend. My back is a little hurty at the moment, but hopefully it will get better soon. :(

P.P.S.
For those of you who weren’t able to get in on the Red Pill course when it came out earlier in the year, it’s going to be available again next week. I’m on my 3rd time through the course as of right now, and all I can say is that it totally kicks ass.

How’s that for a product review?

You can get the first 50 minute module for free by clicking here.

Listen to it and let me know what you think.

  1. On August 09, 2010 at 6:59am, Armondo Bocci said...

    Love the hair Steph.

    Got a question for ya about the video. On that deal you just contracted, how did you get inside to look at it? Do you use a buyer’s agent?

    • On August 09, 2010 at 7:20am, Stephani said...

      Thanks Armondo!

      On this deal, the agent gave me the lock box code and I just went in by myself.

  2. On August 09, 2010 at 8:20am, AnotherSteph said...

    Love the new ‘do. Looks great on you. Tyra would be proud…looks like you’re even “smizing” in the photo! :-)

    To your fierceness,
    Steph
    .-= AnotherSteph´s last blog ..CPH Offer Update =-.

    • On August 09, 2010 at 8:25am, Stephani said...

      Thanks Steph!

      Hehe, I’m totally smizing… ;)

  3. On August 09, 2010 at 8:40am, AnotherSteph said...

    LOL – love it!
    .-= AnotherSteph´s last blog ..CPH Offer Update =-.

  4. On August 09, 2010 at 9:20am, George said...

    Hello Steph,
    I am a New to Wholesaling and need a recommedation on a good MLS/synopsis product? Thanks for all of your video’s(They Rock)!!

    • On August 09, 2010 at 9:43am, Stephani said...

      Hey George,

      Glad you like the videos!

      I’m not sure what you mean by MLS/synopsis product? I have an eBook that walks you through how to wholesale REOs off the MLS- is that what you’re talking about?

      There is also the REO Rockstar course which is available in the resources section of my blog.

      I recommend both.

      :)

  5. On August 09, 2010 at 10:36am, Shirley Farrington Atlanta, GA said...

    Hi Steph, Love your helpful videos and post. I am doing my first short sale right now and it’s with Bank of America. I am havaing big trouble with doing the Hud 1. They want me to fignure the numbers and all so they can get their bottom line. I am a Licensed Agent & new investor and I have never had to do a Hud 1. I’snt this backwards? I mean I can pull up a blank form, but it’s knowing the rght numbers to plug in. The closing Atty’s office always does these. I know you mentioned one time about doing the Hud 1. Does it always work out for you? Thanks, Shirley

    • On August 09, 2010 at 10:48am, Stephani said...

      Hey Shirley,

      I honestly have no clue. My title company always handles that stuff for me, so I have never had to worry about it.

      Try posting your question on the Flippinghomes.com or BiggerPockets.com forum, or if it will fit- post it on my FB fan page wall and someone will be able to help you.

      Or if there’s anyone reading this who knows how this short sale HUD stuff works, please let us know!

      Sorry I can’t be of more help, Shirley!

  6. On August 09, 2010 at 11:52am, Don said...

    You mentioned that you are not a Realtor , but that you have access to the MLS. How are you able to gain access to the MLS? Thanks.

    • On August 09, 2010 at 12:39pm, Stephani said...

      Hi Don,

      I have a few friends who have their licenses who let me use thier MLS.

      I also am set up for automatic email notifications, so anything that hits the market that fits my criteria gets sent straight to my email.

  7. On August 09, 2010 at 11:55am, wayne said...

    Hi Steph,
    I heard part of an interview you did w/ a lease purchase guru recently. Do you have any link still available or contact info? Thanks

  8. On August 09, 2010 at 12:52pm, Shae said...

    Just stopping by to say that I LOVE the hair :-) Looks great, Steph!
    .-= Shae´s last blog ..10 Quick Ways to Find Motivated Sellers =-.

    • On August 09, 2010 at 1:00pm, Stephani said...

      Thank you!

      :)

  9. On August 09, 2010 at 1:42pm, Julie Broad said...

    I admit – I haven’t watched the video but your hair is GORGEOUS!!

    • On August 09, 2010 at 4:54pm, Stephani said...

      Thanks Julie! :)

  10. On August 09, 2010 at 4:30pm, Gina said...

    Thanks for the info on looking at props! My question is how do you find out what houses were sold to investors vs non-investors. Does the comps that you get from a realtor tell you that? Also, is there any other way to get accurate comps other than through a realtor?

    Thanks,
    Gina

    p.s. love the doo and hope your back gets better soon!

    • On August 09, 2010 at 5:00pm, Stephani said...

      Hey Gina,

      I just look at the lowest comps and they are almost always investor sales. You can also do a search in the MLS (or have someone do it for you) to see which properties were sold to cash buyers.

      There are other ways to get comps- some free, some you have to pay for (like RealQuest). I just discovered recently that you can search for recent sales on my county’s property appraiser website, and that’s what I’ve been using lately. It’s free, so you can’t beat the price. :)

      Have you checked to see if your property appraiser is online?

  11. On August 09, 2010 at 4:32pm, Gina said...

    oh my grammar! I should have said “do the comps”! i had something else typed there before that required the word, “does”!

  12. On August 09, 2010 at 5:12pm, Susan Lassiter-Lyons said...

    Woo woo! Look at your hair, Miss Thing. Love love love it.
    .-= Susan Lassiter-Lyons´s last blog ..Why I Delete Emails =-.

  13. On August 10, 2010 at 6:16am, Esi said...

    Love your new hair do. Glad you are doing fine after the flip flop. Hope your back get better.
    .-= Esi´s last blog ..The Secret Deal Maker =-.

  14. On August 10, 2010 at 1:57pm, Karen said...

    Love the hair, Steph!! So chic!!!

    I’m getting a Brazilian keritan smoothing treatment in a couple weeks. It’s supposed to make my smooth and super manageable. Can’t wait!!

  15. On August 11, 2010 at 7:58am, Stephani said...

    Thanks, ladies!

    Karen- I totally want to get that treatment! Let me know how it works out.

  16. On August 11, 2010 at 9:22am, Toriano said...

    Hi Steph, bought your course last year loved it. I havent been reading anything as of the last three months due to working three jobs to save some money and yes Im stuck with paralysis analysis a little. I let two terrific deals past me by about 6 months ago and devoured to not let this happen again. I have a chance to buy a house for 12,000 with about 50,000 worth of equity. I have bad credit. My mother nlaw has lived in the house renting for 4 years and the owner is up in age and and letting all of his tenant have the house for nothing. How could I structure this deal with my grandfather who has a 800 credit score. Since 12000 is to low for a mortgage loan the owner is willing to place a price tag to 50000 and and give me 38000 for the equity to use for some repairs and things and he still gets his 12000. How do I structure this I am so nervous and feell like I just had a real estate brain dump. I do not want to let this slip through the cracks and you could see why. I could give you my number also if this is to much info. Need to do this deal asap.

    • On August 15, 2010 at 7:17am, Stephani said...

      Hi Toriano,

      I’m not really sure if I understand your question. What do you mean by “the owner is willing to place a price tag of 50k, and give me 38k for the equity?

      What is your exit strategy? Is your mother in law planning on staying there to rent, or are you planning on flipping the property?

      Steph

  17. On August 12, 2010 at 7:38pm, wholesaler said...

    Beautiful hair.

    • On August 15, 2010 at 7:17am, Stephani said...

      Thank you!
      :)

  18. On August 15, 2010 at 10:28am, RJ said...

    Hey Steph the new doo looks coo. Hows the 30 day challenge going??
    .-= RJ´s last blog ..Closings and Sneaky Buyers =-.

    • On August 15, 2010 at 10:48am, Stephani said...

      Hey RJ,

      30 day challenge not going so well. My back is totally messed up, so running is out of the question.

      100 offers is still doable, though. Gotta get my ass in gear.

      :)

  19. On August 16, 2010 at 6:36pm, cheryl said...

    Hi Steph,
    I asked u about using my dad’s line of credit for offers and he’s okay with it. However, he doesn’t quite understand what he’s asking for. He went to the bank and I guess they wanted some info from him and he just doesn’t get it. Please tell me how to explain to him what he needs to ask for, what he should say and who to talk to. I would really appreciate this so that I can get started doing what I need to do. Thanks :)

    • On August 17, 2010 at 8:00am, Stephani said...

      Hi Cheryl,

      When I was using my Dad’s it was just a statement that said how much $$$ he had available on the LOC. I didn’t go into the bank with him to get it so I don’t know who he talked to or what he said. All you need is a piece of paper that shows that he has the cash available. If he has the LOC already set up, it shouldn’t be hard to get.

      I would say something like this “Hi my name is: (insert name here), I’m going to be making cash offers on REOS and using my line of credit to fund the transactions. When I make the offers, the bank is requesting proof that I actually have the line of credit set up and the funds available. Can you provide me with a letter or statement that shows I have the funds available so I can submit it with my offers?”

      Hope that helps,
      Steph

  20. On August 17, 2010 at 8:25pm, Carey_PA said...

    Hey Steph….I like the new do. It looks great.

    I got my new do and I like the highlights but my sides really drive me up a friggin wall….I go back to my hair cutter dude (who is not gay lol) on Friday and I’m gonna have to ask him to do something about that!

    I guess that’s bad to assume all male hair dressers are gay huh?
    .-= Carey_PA´s last blog ..Glad to be alive- 30 Day Challenge- Past Sub2 Client… =-.

    • On August 21, 2010 at 5:25pm, Stephani said...

      Actually the last guy who cut my hair was straight, too. I totally thought he was gay until this last time I got my hair cut at the same place and had this lady cut my hair who turned out to be his wife.

      :)

  21. On August 21, 2010 at 7:40am, Curtis Gabhart said...

    Cheryl,

    If it is a line of credit Just tell them you would like a letter from the bank stating how much is available.
    It’s best to actually have the cash (in San Diego at least) in an account even though you will have to pay interest on it while it is sitting there.

  22. On August 21, 2010 at 2:14pm, jason said...

    Great Info Steph. I have a question though. How do you deal with investors that have cold feet when making a decision or take FOREVER doing their due diligence? any tips on how to make them come up with a offer or answer faster?? need help!!

    • On August 21, 2010 at 5:28pm, Stephani said...

      HI Jason,

      I mostly deal with seasoned investors who don’t play games, drag their feet, or kick tires. They usually get back to me right away when I send them a deal.

      There’s really no way to make someone hurry and make an offer- if the deal is good and they want it, then they will get back to you quickly. If they are dragging their feet or not getting back to you, it’s probably because they don’t want the deal or they are just flakes who are wasting your time.

  23. On September 01, 2010 at 6:17pm, Pete said...

    Steph what do you think about virtual wholesaling?

Post a comment

Subscribe without commenting