Flip This Wholesaler

4/11/09

I ended up getting those two deals I was talking about in my last post, plus another one, and am very close to signing a 4th. Sweet.

On top of that, I just made a connection with a guy who is getting bank owned properties before they hit the mls. He doesn’t have any buyers or connections in the hood, so he’s going to start giving those properties to me, and we’re going to partner on them 60/40 (he gets 60 since he is backing the deal if I can’t sell it). We’ve already got one locked up together, and I talked to him this morning and he said he should have 4 more coming on Monday. Having access to deals before they hit the mls is pretty much like winning the lottery. I’m not going to put all of my eggs in one basket, but if this actually works out long term, I am going to be making some seriously sick money. I’m still skeptical, but so far, so good.

A buddy of mine called one of the bigger REO agents yesterday to ask him what the hell was going on, and why there are hardly any new REOs being listed. The agent told him that the banks are holding on to all of their properties to try and create a demand in the market, which will in turn drive up prices. It seems to be working, but I would think that this is just going to make things worse in the long run as the inventory keeps piling up. He also said that Fannie Mae is one of the only lenders who is putting properties on the market right now, and that if it wasn’t for their listings, his office would be selling hot dogs on the side of the road. He thinks that in another month or two, all of these properties are going to start flooding the market, and it is going to be an absolute blood bath. I tend to agree with him.

So, that’s what I’ve got going on right now. Lots of good stuff in the works.

Have a great weekend!

2/22/2009

Well, it’s 1:19 am, my flight leaves at 6 am, and here I am, still up, and just finished packing.

I was kind of bummed because I wanted to get another deal under contract before I left, and it didn’t look like it was going to happen…. I was in Ross today (I love me some Ross), looking for some last minute vacation flip flops, when I got one of those rare Saturday calls from an agent that I have been going back and forth on a property with for the last week….The bank finally agreed to my last counter of 22k (property was listed at 35k, I offered 20k initially, and they finally came down to 22k).

Anywho, I started to panic a little since I’m leaving tomorrow (today, actually), and won’t have cell access for the next week, so it will be really hard to try and find a buyer for this deal, and also, I don’t really feel like being stressed out about finding a buyer while I’m on vacation.

I had already called a few of my investors when I got the initial counter offer from the bank earlier in the week, and none of them were interested….. I did some quick thinking, called my friend Lee, and asked him if he wanted to partner on this deal with me (I get the deal under contract, he gets the buyer).

He went out to look at the property, called me back less than an hour later, and said let’s go for it. I talked to him around 7pm, and he said he already has it sold and should be getting the contract and deposit tomorrow.  Woohoo!

I guess I better try to get some sleep.

I promise to drink plenty of margaritas for you all while I’m gone.

¡Adios Amigos!

P.S.
I am officially almost a Cougar.

1/15/2009

Well, I now have 4 deals going, and have 3 of them sold! The only one I have left to sell is the one I just got accepted Tuesday at 16k, and I can sell that one in my sleep. I offered to close this one in 10 days, but the bank set the closing date for Feb. 10th, which is an ETERNITY in my world, so I am going to take my time selling this one, and am going to hold out for top dollar. I think I can get 23k easily for this house. It only needs flooring, and an ac condenser to be ready to rent, and it will easily rent for $600-$650.

One of the deals I put together yesterday is with my friend Lee (aka the REO Rockstar) who beat me to the punch on a house that just popped on the market at a ridiculously good price. It is a totally remodeled 3/2, and it came on the market at 23k. I was at the house within 15 minutes of it being listed, and had an offer of 24k in within the hour. No contingencies, 7 day close, and I gave the listing agent both sides of the commission. And that crafty bastard beat me to it. So, we put a deal together yesterday with one of my buyers who wanted the house. Easy money on that deal…

OK, gotta run- going to put out a bunch more signs…

P.S.
If you are a Steve Cook student and didn’t get the memo today…….the doors to the Wealth Explosion Event are now open to us- don’t forget to sign up! If you aren’t already a Steve Cook student, and would like to be…..go here for more info. One of the many bonuses of being his student is that you get to attend all of his events for free…

P.P.S.
If you live in the Tampa Bay area, beware of the feces-throwing monkey! (thanks for bringing this to my attention, Dustin)

12/13/2009

I just got a call from the listing agent (it’s 8:30 am) about the property I got the counter on over the weekend. The bank came down to 16k (from 29.9k). Deal!!

Going to call my buyer now and see if I can get 21k out of him.

Happy Tuesday, y’all- go make some offers!!

1/10/2009

Would you guys believe me if I told you I got another offer accepted on Friday?

How ’bout two?

Well, that’s what happened, and I ended up selling one of them in less than 30 minutes!

I don’t know what the hell is going on, but it seems to me that the banks are finally waking up and smelling the sweet, putrid scent of looming disaster. I’m not kidding- it’s like a free for all over here!

One of the houses was listed for 43.9k (which is already a pretty decent price, but not quite good enough). Anyway, I offered 30k on it right before the end of the year, and the bank only came down to 42k. I told the realtor 31.5 was the best I could do, and told her to call me back if they decide to drop the price. Well, she called me Friday morning and said, “You’re not going to believe this, but the bank is willing to take your offer of 31.5k…. are you still interested?” Hehehe.

The second deal, I am splitting with another wholesaler friend of mine. He called me early Friday and told me he had some inside info on a duplex that was about to have a drastic price reduction. He knows I have buyers in this area, so he asked if I wanted to joint venture on the deal, which, of course, I did… This deal was an absolute no-brainer, and I knew I could sell it to sans-ID buyer in a heartbeat, which I did. We ended up getting the duplex (it’s concrete block, with 2, 2/1 units), for $21, 500! Even in the hood, this is a smokin’ deal! We sold it for 29.5k, and everyone is happy. That’s what I call easy money!!

So, now I have two houses to get rid of.

I still haven’t sold the one that California Guy was supposed to buy, but I have an emergency back-up plan just in case…. One of my wholesaler friends has a buyer who will take it for 1k over what I have it under contract for. I will make almost nothing if I have to sell to him, but it is better than having to close on it myself, or worse yet- backing out of the deal. I haven’t even really tried that hard to sell it, so I’m not too worried about it. Yet.

I put out 40 handwritten signs today (which was a huge pain in my ass), marketing the house that I just got under contract Friday. Tomorrow I will put out 40 more in the neighborhood where the house is that CG was supposed to buy.

The only calls I’ve had so far from the 40 I put out today were from people who, either: (A) couldn’t speak English, or (B) Just got finished reading a Carelton Sheets course. That’s the way it goes, though…. Sometimes you have to go through 50 annoying calls before you get to a gem…

Have a great rest of the weekend, y’all. Go make some offers!!

P.S.
I was having technical blog difficulties earlier. Sorry to those who were locked out.

P.P.S.
Me and the guy who are working the duplex deal are convinced that we are cursed when trying to do deals together- we’ve worked on about 5 deals over the last year and a half, and they have all crashed and burned for one reason or another. So, we decided that if this one actually closes, we are bringing a bottle of bubbly to the closing table to celebrate! Hehe.