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Greetings Guys and Gals- it’s time for another Flip This Success Story!
In this installment, you’ll hear from Charles Rilley….
….. a full time wholesaler and former Atlantic City black jack dealer who recently wholesaled 3 foreclosures (in an area he was unfamiliar with) and pocketed a whopping $35,909.69!
Check out the interview below and find out…
- *How Charles quickly found 15 cash buyers in an area he was unfamiliar with
- *The formula he uses when making offers on rental properties
- *How he structures his REO and HUD wholesale deals so he doesn’t have to come up with ANY OF HIS OWN CASH. (Not even an earnest money deposit!)
And Lots More….
The interview is a little over 20 minutes, and you can listen in by clicking here!
Enjoy the call, and have an AWESOME week!
On January 16, 2012 at 1:24pm, Steve Walter said...
As always, great stuff! Thanks again for sharing…
On January 16, 2012 at 2:11pm, Stephani said...
You’re welcome!
On January 16, 2012 at 1:48pm, Steve Walter said...
Hi, Steph! One thing I didn’t get was the rent to purchase price ratio of 30 x the rent. If I use monthly rent, it’s way low; if I use annual, it’s way high. Could you elaborate a little? Thanks – Steve
On January 16, 2012 at 2:14pm, Stephani said...
Hi Steve,
I believe that it is the monthly rent. Hopefully Charles can pop in and verify.
You may have to tweak the formula if you’re in a different market, though. Every market is different, so you may have to make some adjustments to make it work in your area.
Take care,
Steph
On January 16, 2012 at 6:26pm, Patrick said...
LoveLy Man A Live..So Lovely
On January 16, 2012 at 2:40pm, Russ L said...
Good Job Charles, great call, awsome hud flips
-Russ L
On January 16, 2012 at 3:34pm, Sebastian said...
Hi Steph,
I couldn’t find another way to message you directly so I am writing in the comments section. First, congrats to Charles, what an amazing achievement. The reason I am writing is because I have always wanted to invest in real estate but never had the knowledge or capital to get started. I purchased your ebook and I have been doing A LOT of research. Due to relative passing away, I now have access to funds that will allow me to purchase REO’s and possibly do some rehabing as well. I live in South Florida, close to Ft. Lauderdale. I have minimized all my expenses, sold my car and got a cheap pick up truck, my condo is paid off and I plan to get my RE license. I wanted to know if we could speak via email or on the phone? Thank you for all the great info on your ebook and website. I look forward to hearing from you.
-Sebastian
On January 16, 2012 at 7:03pm, Stephani said...
Hi Sebastian,
Glad to hear you are getting all of your ducks in a row! It will certainly help out to have your re license, and to have your monthly expenses at a minimum. Wish I would have done that before I got started.
If you have specific questions, you can post them here and I’ll do my best to answer. You can also respond to the email I sent out today.
Take care, and thanks for stopping by!
Steph
On January 16, 2012 at 3:49pm, Al Elliott said...
what is the formula based off of and where do it come from and how is this formula good analyzing deals
On January 16, 2012 at 7:05pm, Stephani said...
I’m not sure where the formula comes from- when I spoke with Charles on the phone he said he can’t remember where he learned it, but he tried it out and after tweaking it a little bit, he found that it works.
On January 16, 2012 at 4:52pm, Bernard said...
Hey Steph!
Thanks for the info, hopefully I can step in a pile and get this to work for me half as well as Charles has gotten it to work for him. Oh, BTW, just watched your video for the Option Contract and I have to say….THANK YOU for an INGENIOUS IDEA! I never thought to use the option as my lead off when locking up properties and I was always worried about getting out of them if a buyer is not found. THIS IS THE BEST R.E. TID BIT TO HIT MY BRAIN IN 5 YEARS! BRILLIANT, Absolutely Brilliant! It’s a shame that something so simple may have been holding be back from actually being successful in this business. I hope it works 1/10 of the amount of my excitement right now. THANKS AGAIN! Good Stuff!
Bernard
On January 16, 2012 at 7:06pm, Stephani said...
Go get ‘em, Bernard! Keep us posted and let us know how it works out!
On January 16, 2012 at 5:05pm, debbie said...
Hi Steph,
This was great information. Congrats Charles thanks for sharing.
On January 16, 2012 at 7:06pm, Stephani said...
On January 16, 2012 at 5:57pm, Anne said...
Congrats to Charles! I am having a hard time coming up with a formula that works. Can you help out? Thanks! Anne
On January 16, 2012 at 7:09pm, Stephani said...
Anne, there’s really no cookie cutter formula that works in every single market. You really just need to do some research to find out what prices the investors in your area are paying for properties, and that will give you a good idea of how to structure your offers.
In most areas, if you use ARV (After Repair Value) x 60-70% -repairs… you will be OK. You may have to tweak it a little up or down depending on what’s going on in your market- but it’s a good starting point.
Take Care,
Steph
On January 16, 2012 at 6:23pm, John said...
How long does it take to get title info back from title co that a wholesaler has under contract?
On January 16, 2012 at 7:11pm, Stephani said...
Depends on the title co. Most can do it in a day or two.
On January 16, 2012 at 6:24pm, Patrick said...
Hey There Steph And Charles’ thank you Thank You Thank You…Very Informtive ..Love Ya’s..
On January 16, 2012 at 7:11pm, Stephani said...
You’re welcome, Patrick!
On January 16, 2012 at 9:38pm, Sandy said...
I have worked with Charles before & he is a total pro. I could tell from his bandit signs that he had read this blog or watched some of Steph’s videos. His properties do go fast! Great interview.
On January 17, 2012 at 1:40am, Mallorca property said...
For me is a big amount of money… Hope that you will make more this year.
On January 17, 2012 at 10:00am, Charles Rilley said...
Hey guys, Charles here. First, thank u guys for the support! There are a lot of questions here, and I would like to focus on how I structure my offers. I have found that you shouldn’t base all your offers on the 70% rule, mainly because rehabbers (aka flippers) and landlords (aka buy and hold investors) have very different objectives.
Your buy and hold investors aren’t worried about selling the property right away, they are holding on to it for the long term and the objective is to rent these properties out. They typically don’t do major upgrades to the property such as hardwood floors, central air units, nice upgraded kitchens, etc. A buy and hold investor will only put the minumium into the property to get it tenant ready. Knowing this, my area allows me to do a formula of: monthly rent x 30-38 minus repairs (you may need to tweek this for your area). Remember, we are wholesaling property…you should be getting your buys property at a deep discount!
Rehabbers on the other hand, they have a totally different objective. They want to acquire a property, rehab it quickly, put it back on the market and sell it fast. They tend to go all out with nice hardwood flooring, upgraded kitchens, baths, newer windows, etc. My area allows me to
On February 08, 2012 at 10:37pm, Carlos said...
Hi Charles! I am into the Real Estate arena and I live not too far from you, I believe your near AC. Im about 2 hours away from you, and I would like to team up and share ideas and possibly partner up. I feel the larger the network the more successful you are. It would be great to hear from you, my email is caruiz76@gmail.com if you need to get in touch. Take care Charles.
On January 17, 2012 at 10:03am, Charles Rilley said...
CONTINUED: do 70% of FMV minus repairs. In closing, a rehabber may spend $30-35K rehabbing a property…and a landlord may only put $15-20K touching up that same property. Hope that helps!
On January 17, 2012 at 10:12am, Stephani said...
Thanks for the clarification, Charles!
On January 18, 2012 at 2:27pm, Shirley said...
Good post. I needed to hear how an investor has established a realtionship with an agent. That was really helpful. Thank you both, Shirley
On January 18, 2012 at 3:33pm, Stephani said...
You’re welcome.
On January 18, 2012 at 3:25pm, Dan Lyman said...
Hi Steph, I recently stumbled acrossed your site here and saw some of your videos in the FAQ section. I assume you are making offers on REO’s in your own name and double closing on them to your end buyer, using a POF from your transistional funding “guy”. this works great if your end buyer is a buy and hold investor. However, For a fix and flipper( your end buyer) who will sell (retail), to Jon and Suzy Homeowner. And siad John and Suzy use FHA Financing ( witch most do). FHA will have a seriuos issue with the multiple title change. Why not make your offers in an LLC and transfer ownership of LLC at closing…
On January 18, 2012 at 3:39pm, Stephani said...
Hi Dan,
Most of my buyers are buy and hold guys, and the ones who aren’t haven’t had an issue reselling their properties (or if they have, they keep buying from me anyway). If it ever becomes a problem, though, I will keep your idea in mind.
Take care,
Steph
Take care,
Steph
On January 19, 2012 at 8:00am, Dee said...
Another GREAT Success story Steph! We really appreciate these types of postings. My Question to HUD Wholesalers is – Do you make offers on the IE Insured Escrow properties or just the UI Uninsured escrow props?
Thanks
On January 23, 2012 at 5:42pm, Hank said...
Most of the deals you’ll get from HUD are CHUDS (Cheap House Ugly Disgusting) which means more than minor repairs, which means UI.
On January 28, 2012 at 10:46am, Stephani said...
Thanks Hank!
On January 28, 2012 at 10:44am, Robert said...
I heard Charles mention htt://www.hudhomestore.com and I was wondering if you had to register to the site in order to make offers or do you just get the address from the site and find another way to make an offer? I see a few properties in my area (Greensboro, NC) that I’ve seen before and need minor work and are listed at a decent price. I want to make an offer but I can’t register to the site. Any suggestions?
On January 28, 2012 at 10:51am, Stephani said...
Hi Robert,
If you want to make offers on HUDs, you’ll need to use a HUD certified broker in your area. You can do so here: http://www.hudhomestore.com/hud/BrokerSearch.aspx?sLanguage=ENGLISH
Hope that helps!
Steph
On January 30, 2012 at 7:44am, Robert said...
Steph,
Thanks for the information! Sorry it took so long to respond. It was very helpful in finding a GOOD broker in my area. How can I ever repay you! =)
On February 01, 2012 at 3:36pm, Stephani said...
No need to repay me, Robert.
Glad you were able to find a broker to work with!
On January 30, 2012 at 3:04pm, Michael said...
Hi Steph,
I’m looking to jump in the REO game. I’ve been sitting back watching and learning a lot from your blog and newsletters. The main question I have for you thought you probably already answered is, how do I get on the MLS to do these REO deals? What if you can’t find someone to help you get access? Am I just out of luck, being that, if I don’t have a friend or know anyone as a real estate agent is that going to stop me from making money with REO’s. I really don’t have the time or money to go out and buy signs and I’m looking to make fast cash now! I know things take time but, I just don’t see me doing well in this business with out access to the MLS. A lot of people are not likely to share or don’t want to see you get a head. Please help me with this, it would be greatly appreciated.
On February 01, 2012 at 3:39pm, Stephani said...
Hi Michael,
If you don’t have MLS access, you can either get your license so you have it, or find an agent who will submit offers for you.
You can also use sites like Realtor.com and Ziprealty.com to look up listings, and then contact the listing agent directly to make your offer.
It’s not the end of the world of you don’t have access to the MLS, but it does make it easier to wholesale REOs if you do.
Take care,
Steph
On January 30, 2012 at 5:19pm, Mike said...
Excellent Interview! Your Videos and Interviews are always informative. Thanks for all that you do!
On February 01, 2012 at 3:39pm, Stephani said...
You’re welcome, Mike- glad you find them helpful!
On January 31, 2012 at 6:15pm, Dee said...
MICHAEL,
My Advise to you would be to get steph’s book on REO Wholesaling. It will save you alot of time wasting and newbie mistakes..Very worth it. It’s a very solid foundation in understanding the REO Wholesaling process
On February 01, 2012 at 3:40pm, Stephani said...
Thanks for the testimonial, Dee.
On February 01, 2012 at 8:43pm, Dee said...
Real Talk Steph! ur welcome too
On February 01, 2012 at 9:10pm, Michael said...
Steph,
Thanks, so much for your help! I will try those site that you’ve mentioned. Hopefully this helps and I will let you know how everything goes. Take care and I wish you much more success in 2012.
On February 03, 2012 at 8:12pm, Michael said...
Hi Steph,
I have another question! I’m looking to also buy the REO package that your selling online for $47. I was wondering other then the documents and the video. Do you walk us through the process of doing the actual deal as well? Or is it just showing us how to fill out the paperwork, when doing the deal? Please let me know, because I rather purchase something involving coaching then just the contracts. Thank you in advance for your time!
On February 03, 2012 at 8:52pm, Stephani said...
Hi Michael,
Yes, there is a course that comes with the package the walks you through the process of wholesaling REOs (finding the properties, making the offer, finding the buyer, closing the deal, etc).
Hope that helps,
Steph
On February 06, 2012 at 1:42pm, vinny said...
Hi steph, when looking for wholesale buyers what type of Questions do ask them?
On February 06, 2012 at 1:58pm, Stephani said...
Hi Vinny,
I ask them how they purchase properties (cash, hard money, etc)
What parts of town they prefer
What price range
How fast can they close, and how many properties are they looking to buy
Any parts of town they will NOT buy in
Preferred construction type (block or frame)
That about sums it up…