Flip This Wholesaler

I finally managed to screw my head back on straight after a couple days of stress and anxiety. I’m trying to get better at adjusting to the ups and downs of this business, but it is tough. It really feels like a roller coaster ride sometimes.

My contact management software (ACT) decided to stop working yesterday. I have no idea what the problem is, and don’t really have the time to try and figure it out. So, I’ll have to stop sending postcards for the time being. I’m looking at it as a blessing in disguise, since I am trying to make myself be more pro-active, instead of just sitting around waiting for the phone to ring.

I got the newspaper today and made myself cold call a bunch of ads. I ended up with 3 decent leads that I’m going to look at tomorrow.

I also came up with a new set of daily goals that I’m going to make myself accomplish: (#1) Make at least 20 phone calls to ads in the paper, ads online, signs on the side of the road, etc. (#2) Send out at least 20 postcards per day- this may have to wait until I figure out what the heck is wrong w my ACT program, but I think there is a template in Word that I can use for printing address labels (#3) add at least one buyer to my buyers list per day (#4) Make at least one offer a day on a listed property. I think these are realistic goals as long as I manage my time wisely.

While calling ads in the paper today, I added another cash/hard money buyer to my buyers list. I”m now up to 19.

I really need to focus on marketing in the next couple of weeks. I have spent a lot of time looking for buyers for my current deals, which has taken away from time I could be marketing- another incentive for me to build my buyers list as quickly as possible.

I’m down to 3 weekends at my bartending job- New Year’s Eve is my last day. I still question myself every once in awhile, but I am not turning back.

I keep feeling like I just need to get one more deal to prove to myself that this is for real. I wonder how many I’ll have to do before I stop feeling that way.

Today was one of those days where I feel like I got nothing accomplished. At noon I went to look at one of the properties I found on the mls. There was a detour on the way there, and I ended up getting totally lost (my sense of direction is a joke to begin with), I had to call the realtor and he met me at a gas station. I got even more lost on the way home. What should have been a 1 hour drive (round trip), ended up taking over 2 hours. I almost ran out of gas as well, and had no cash on me (I left my purse @ home). When I got home I faxed over an offer. Haven’t heard anything back.

I had two other properties that I wanted to look at today. I called the first listing agent, who told me they were in negotiations w/ a buyer, and to call back tomorrow (she wasn’t very pleasant on the phone). I called the next listing agent and asked if I could look at the property today (this was around 3pm) she sounded aggravated, and told me she would call me back after she checked her schedule. I haven’t heard back from her yet. I wonder what her client would have to say if he knew his realtor was blowing off a potential buyer for his vacant house that’s been sitting on the market for 4 months. I know I would be pretty pissed. 3% well spent.

I searched through the foreclosure listings I got yesterday and have a bunch I am going to offer on. I am trying to find a way to streamline this whole process so I can make as many offers as possible as quickly as possible. A work in progress, I guess.

I have about 30 postcards to send out tomorrow. I’m suprised I haven’t been getting more calls from them, as I have been sending quite a few out lately. You just never can tell.

I never heard back from the seller of the house I got under contract last weekend, so I started doing some marketing for a buyer. I’m going to bring it to the investor meeting this coming Tuesday and present it there.

My goal is to get another house under contract before the end of the month. I think if I keep up the pace, I should be able to do so. Desperation sure is a great motivator.

Busy day again. Mailed out some more postcards along with a letter to the owners of a property in probate. I called on a bunch of ads from last Sunday’s paper. In doing so, I got a lead on another property from a realtor. It was a duplex that needed a lot of work. Not enough room to do anything with, but I had a nice talk with the realtor and gave him my contact info. in case he came across anything I might be interested in.

I am going to look at a house tomorrow @ 10am. It’s been listed since June, is vacant, and the listing says the owner is motivated. It’s listed for 159k, ARV around 170, not sure what repairs it needs.

I also got an email from a guy tonight who is in the process of moving and needs to sell asap. He called shortly after he emailed. ARV is 165, he’s asking 145 obo, and said he is willing to negotiate. Home doesn’t need any work. I was busy pulling daggers out of my back when he called (will explain in a second), and forgot to ask him what he owes. I told him I would call him back in the am.

Just for kicks, I decided to look up the listing for the townhouse I am living in that I rehabbed. I bought it with a friend 2 years ago, and now I know why people say to never do business with friends. Anyway, she apparently took the liberty of lowering the price without asking me. I thought it must be a mistake in the system, because who does something like that without consulting first with their business partner? I tried calling, but of course there was no answer. I left a message and haven’t heard anything back. I’m going to try to not let this bother me too much, although I must admit I ain’t too happy about it.

Luckily, today I was able to focus all of my efforts back into finding deals. I got a phone call this morning from one of the realtors I spoke with last week. Her client wanted to know why I wasn’t interested in buying his homes. I explained to her again that there wasn’t enough equity, and that also I am staying away from the area the houses are in (all brand new construction, tons of homes for sale mostly investor owned). I again told her to keep me in mind if she comes across anything that fits my criteria.

I received an email today from a guy who has an investor friend who is in big trouble. He has 5 properties for sale (most of them were bought recently) ranging from 300k-700k. The two most expensive ones are both sitting empty. They all have negative cashflow. He is starting to get behind on some of his payments and is desperate to sell. He is willing to sell any of them sub2. There isn’t enough equity in any of them to do anything with. Funny thing is (or maybe not funny), if I would have come across these properties a few years ago, I probably would have signed some of them up and then ended up in the same position as this guy. I got very lucky on the sub2 I did, and would never attempt to buy and hold again until I have a whole lot of cash reserves (everyone told me this before, but it never really made sense until I had tenants that took off for Alaska in the middle of the night leaving the place trashed). Luckily for me I bought the house right before the market started going crazy, and in 2 years it appreciated about 100k. Even after screwing the rehab up, I ended up walking away with a nice chunk of change.

Anyway, I sent out some more postcards today. I’ve only received a few calls from the ones I sent out last week, which is kind of disappointing, but that’s the way it goes I guess. I also followed up with some old leads via email. This is one area that I am really trying to improve on. Especially with houses staying on the market so much longer now, I think it is really important to follow up every few weeks or so.

I am meeting with an investor later on this week to talk about bird-dogging for him. He and a group of friends are looking to buy properties now that the market has slowed. I want to get a little more info. from him about what exactly he is looking for. I’ve known him for some time and we both have a mutual respect for one another, so I think it could work out well. I have more time than I do money, and he has more money than he does time. We’ll see.

I’m going to look through some listings tonight and go make some offers tomorrow. Hopefully something will stick. I’ll be living in a cardboard box soon if not. Just kidding.

Went to view the property I saw on Craigslist today @ 10am. Waited 20 minutes in the driveway for the realtor to show up (being late is a huge pet peeve of mine). Everything looked ok, except updating in the bathrooms is needed. House has been on the market for 5 months, vacant for 3. I put in an offer this afternoon for $160,250.

I have had my eye on a townhome for sale near where I live that has been vacant and listed since June. The owner bought another, bigger townhome in the same neighborhood and is now paying two mortgages. The listing says the seller is extremely motivated, make an offer. So, I did. List price is 160k, ARV 175k. My offer was $121k. My realtor called the listing agent and told her he had an investor interested and told her the price I was offering. My realtor said the listing agent laughed at him. She said the owner would maybe take 10k less than the list price, but only if we could close in one week. What a bargain.

I can sense that my realtor is already getting annoyed with me, and think that down the road I will just go directly to the listing agents and make my offers to them. I used to be intimidated by making low offers to agents, but now I don’t really care.

This evening I got the first call from the postcards I have been sending out. The sellers moved out of town in March and have had the home for sale since then. I had a rental/lease option/rehab disaster in the same neighborhood, so I know it well. I had a long talk w/ the seller about different options (subject to, cash offer, lease option). I asked her what was the lowest amount she would take in cash if I could close tomorrow . She said 215k, but I think she will go lower. Mortgage balance is 180k. ARV 260. She is going to call me back tomorrow.

I’m going to sift through some listings tonight and pick 3 to go look at and make offers on tomorrow. I also sent out about 45 more postcards today (the postcards I’m sending out are targeted to motivated sellers that I find on Craigslist, the newspaper, FSBO websites, and listings that my realtor sends to me).

I am amazed at how many people (realtors and sellers) still do not realize that the market has changed drastically in the last 6 months. Some realtors are still using appraisals and comps from the beginning of the year to assess value. Maybe they know better but just think I’m stupid.