Flip This Wholesaler

Just got back from putting out signs again.

It’s 2:18am. I put out 35 tonight, so I have about 65 out total (minus some that have been taken down).

I got one call today from a security guy telling me I can’t put them up in that subdivision. I told him no problem and apologized. He actually called me back a couple minutes later and told me that he would hold the signs for me if I wanted to pick them up. I thought that was pretty nice.

Over the weekend I talked to a guy who is selling one of his properties and moving out of state.

He has 3 empty rentals right now and needs to sell asap. The ARV of the property is around 220-230. He was asking 169k originally. I offered him 155k. He told me he had another buyer @ 165k, so I told him to keep me in mind if the buyer didn’t work out.

He ended up calling me today telling me the buyer is jerking him around. He asked if I could go higher than 155k, and I said 159k was the best I could do. He was supposed to talk to his wife and call me back, but he never did. He sent me an email later on saying he was with a client and would call me later, but he didn’t. I hope he calls tomorrow because I would like to get this house for my Dad.

I am also talking with another investor who is liquidating his properties and moving out of state. He called me again today to tell me he wants to sell fast and that he will lower his price. The property is really hard to value, because the area that it’s in is being revitalized, and comps are all over the place. I know his mortgage balance is pretty low, so I think I’m going to call him first thing in the morning and try to get his bottom line.

The buyer for the Nightmare Deal sent me an email today saying it is closing this week. I’ll believe it when I see it.

I finally got an email from the buyer for the Nightmare Deal telling me that everything was fine with the financing so far, it is in underwriting right now. I guess I need to stop always assuming the worst of every situation.

I made a bunch of phone calls (not the 20 I had planned on), and in the process, added two more buyers to my buyers list.

A little bit ago, I received an email from a seller who received my postcard. This is what it said, verbatim (except for the address):

“How fast can you give me cash for my home? I live at
XXX Drive, Tarpon Springs 34689. What will you
give me for it? There are no liens and it is paid for
with no mortgages. I paid $112,000 for it. You can
check the other info on the pinellas public records.”

I sent her an email back immediately asking if it was too late to call (this was around 9:30 pm).

I ended up calling her a few minutes later.

The house is 3/2 1300 sf, built in 1957, and needs updating. I asked her what the the least amount she’d take if I could offer all cash and close quickly.

She said 105k (She paid 112k for it 3 years ago).

I’m not familiar with the area, so I said I would check comps and call her right back.

There are two solid comps (within the last 2 months), for 150k and 178k.

I told her I could get her close to what she’s asking, and set up an appointment to look at it tomorrow @ 1pm. I am going to try and get it for cheaper than 105k, but even at that price, I’m pretty sure I can find a buyer no problem.

Actually, one of the guys I added to my buyers list today buys properties in this area. Also, it seems like houses in this price range (close to or below 100k), are much easier to get rid of. It would be great to get this under contract tomorrow.

I can at least get a good night’s sleep tonight now that I know the buyers of the Nightmare Deal are still planning on buying. I was up until about 2am last night worrying about it.

I stayed up really late last night working (2 am, I think), and was up early to have coffee with an investor friend.

I had big plans for the day, but once I got home I could barely keep my eyes open. I decided to take it easy today, and really didn’t get a whole lot accomplished.

I got a return call from one of the sellers I talked to yesterday, and am going to look at her property tomorrow.

From what the seller says, it needs about 10k in work. The comps are around 110k (I verified this), mortgage balance is 57k (sweet). She was originally asking 80k, but came down to 69k on the phone (take over mortgage of 57k, plus 12k cash). I get the feeling she will take less, which is why I want to go out and look at the property and talk to her in person. We hit it off quite well on the phone, and so far, it has been my experience that I make better deals with people who like me. I guess that just makes sense.

Anyway, I’m going to try to get a good night’s sleep tonight, and have a full, productive day tomorrow.

I am exhausted. Lots of ups and downs today. At 10am I went to look at the house I found on the mls. It was in good condition, but the back yard was the interstate (the listing didn’t give this information).

At first I was going to forget about making an offer, but a sentence from one of Steve Cook’s articles that I’ve read 1 million times stuck in my head- something about making an offer on every property that he looks at. Then I started thinking- if I took the time to look up comps, talk to the realtor, get lost on the way here, and actually view the property, I might as well make an offer. So, I did.

I warned the realtor ahead of time that I am an investor, I make many offers a week, and that my offers are generally around 70% of market value. I asked him if a letter of intent would be ok to fax over, and he said it would be fine. So I later faxed over my pre-approval letter along with a letter of intent offering 91k. I’m sure they are still at the office laughing at me.

On the way home from looking at the property, I stopped at Starbucks (my guilty pleasure) for an overpriced eggnog latte, and from the parking lot, called the seller that I spoke to last night. He said he would take $113k for his house that is worth $165 (I checked comps last night). I said I would be right over.

I stopped home first to print up a contract, then headed over. We ended up agreeing on a price of 112k, but he had to run it by his wife first . I thought I would never hear from him again. He ended up calling back, we renegotiated a price of 113k and I’m going to sign tomorrow @ 8am. Hopefully.

I got 2 calls from postcards today. The first was a seller who bought a condo last year (another speculator), hoping to “flip” it for some fast cash. She owes 130k, and was willing to sell for what she owes. It’s now worth maybe 150k. The other call was from an out of state owner who has a vacant townhome in need of repair. We talked about a possible subject-to scenario (her pmts are only $740 per month). She’s supposed to call back.

I decided a few days ago that I’m going for broke, and I’m not going to get another part-time job. I promised myself a long time ago that I would never get another job bartending, and I’m sticking to it. I think one of the reasons I haven’t been more successful in my investing is that I’ve always had something to fall back on. I know that I can do whatever I set my mind to. So, I’m going for it. I still have a part-time job, so I’m not being totally reckless, I just know it is time to make a change.

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.