Flip This Wholesaler

2/1/2009

I’m taking a little break from work while my Dad is in town, so I don’t have a whole lot to talk about real estate wise.

Well, except for the fact that I am probably going to lose money on that deal I told you I sold to my Sans ID buyer. He called me at 7 am the morning after he told me he would buy it for 20k, and said he went back to look at it again, and there was more work needed than he initially thought, and that he was sorry, but he wasn’t interested. (This is not a good way to start a day off, btw).

So, I called the other buyers who were interested a few weeks ago, and both of them passed.

Long story short, I ended up getting SIB to take it for 16k (that’s what my contract is for), but I am going to have to pay closing costs, so I’m going to lose around $800-$1000.

This is not good, but it is better than losing 2k (that’s what my earnest deposit is with the bank). This is my first time ever losing money on a deal, and hopefully it will be the last… I did get an offer today for 20k from a hard money buyer, so I am going to see if I can buy SIB out of his contract with me. I’d say there’s about a 50/50 chance of that happening. We’ll see.

OK, I gotta run- I’m up watching the Australian Open final- it started at 3:30am… Thanks Jason!

P.S.
Can someone send me some information about Than Merrill’s product launch? I didn’t receive any emails about it this last week.

P.P.S
Sarcasm alert.

1/23/2009

So, I didn’t get any offers accepted this week.

That’s just the way it goes sometimes, though.

It always happens this way- I’ll get a few offers accepted all at once, and then NOTHING for a few weeks. Then I’ll start panicking and thinking that all of the deals I’ve done thus far were a fluke and that this stuff doesn’t really work…. and then I’ll get another one accepted, and my faith is restored.

I still haven’t sold the house I got for 16k, although I now have 3 offers on the table- two for 18k, and one for 22k. The one for 22k is using hard money, and hasn’t been able to cough up a 2k deposit, so I’m pretty sure that is not going to work out.

The 2 who offered 18k are both cash buyers, but I’m still holding out for more.

I’m going to put some more signs out this weekend and see what happens. I’m pretty sure I can get 21k or 22k if I am patient. I still have a few weeks left, so I am willing to wait. Not too long, but I will wait until the end of next week, and then I will go with a lower offer if I have to.

There is an auction coming to Tampa in February, and my sans-ID buyer offered to “give me his checkbook” to bid on properties at this auction. We haven’t ironed out the details yet, but he is essentially offering up his cash (500k), to purchase properties for himself (he can’t bid on them personally because he does not have an ID), and also to bid on properties for us to wholesale.

I was planning on going to this auction anyway, as I have a few friends who have done very well with this company in the last few months, but I only have the resources to bid on one, or maybe 2 properties…. If I have 500k to play with, well, that changes things completely. Like I said, we are still ironing out the details, but it is looking pretty good at this point (I will explain more of the details later). Even if the auction doesn’t work out, it’s always nice to know that you have someone with 500k liquid cash (although I think he has much more than that), who trusts you with their checkbook- ya know?

And, finally- look what I found in the mailbox yesterday..

Wooohooo!

Countdown to Costa Rica.…. T-minus 30 days!

12/3/2008

This is really unbelievable.

Just lost another deal.

This is the one where I said I knew it would never close because the guy who I am working the deal with (Murphy) and I are cursed. All of our deals that we try to work together always fall apart.

This one, though, I think is my favorite.

This one was supposed to close on the 24th of last month, and we have been waiting for the bank to sign an extension. Well, they just came back today and said they are not signing it because they are selling this house to someone else as part of a package deal. WHAT THE FUCK? You’ve GOT TO BE KIDDING ME.

Now I get to call my new buyer and try to explain this to him, and he is not going to be happy.

I am so ticked off right now I feel like punching someone in the face. Preferably an asset manger/ bank title agent/ etc.

12/2/2008

So, I was supposed to have a closing today. Everything was ready to go- the bank’s title company sent the HUD and title commitment out yesterday, and we were all set to close today. 2pm I get to my title company. My buyer is there with his cashier’s check in hand. Sweet.

And then I get the news that my title company just received an email from the bank’s title company, and OOPS, they aren’t really ready to close after all.

Apparently they forgot to get the bank to sign the addendum which changes the buyer’s name on the contract from my personal name to one of my LLCs.

Oopsie!

The addendum is probably buried underneath a ham sandwich on someone’s desk somewhere…

Who knows how long it will take them to get it signed and prepare a new title commitment and get the new HUD ready. This could take weeks. Months even. And the not funny part about it is I specifically remember thinking to myself when I drew up that addendum (3 weeks ago), that I better make sure to follow up/babysit with the closing agent to make sure it got signed. Of course, I forgot.

This is what happens when you don’t babysit your deal every step of the way. You can never assume that people are actually going to DO THEIR JOB CORRECTLY, because it rarely ever happens.

And then there’s the deal that just fell apart yesterday. The one that was supposed to close in 2 weeks, and now, 2 months later the lien search is still not in. I’m not even kidding. How can it possibly take 2 freaking months to get a lien search back?

Anybody?

The buyer for this deal already had a tenant lined up for this house, and they had to find a new place by yesterday because their lease was up on their other house. They ended up having to move elsewhere, and my buyer got sick of waiting and pulled the plug. I am out of contract with the bank on this deal, and also out of contract with my buyer, so we will both get our deposits back, but there goes 5 grand right out the window thanks again to the stupid ass banks and their stupid ass, incompetent title companies.

So, yeah, I’m kind of frustrated at the moment..

Well, at least I have Phoenix to look forward to this weekend. Woohoo!

Peace out, homeys.

11/26/2008

Well, it looks like out of the 4 deals that are supposed to close this week, not a single one is going to close on time.

Dang.

Should have kept my big mouth shut, huh?

All four are being held up by the banks and/or their title companies.

I have a feeling that one of them is not going to close at all. This is a deal that I am working with another wholesaler (Murphy), and together, we are cursed. Every single deal we work on together ends up falling apart for one reason or another. It’s the strangest thing.

He was involved in the Shady deal, and we have worked on 4 or 5 deals since then, and none of them have panned out. This one was supposed to close Monday, but we do not have clear title yet, and I have a sneaking suspicion that there is going to be some sort of title problem that can’t be resolved easily/quickly. Just a hunch I have, and have had it since the day we signed the contract. The buyer is a cash buyer and really wants the house, so there are no worries on that end. Which is good, provided we can get clear title.

Apparently everyone in the industry is taking this week off except me……I can’t get a phone call returned to save my life. I called 4 realtors yesterday for lock box codes, and as of this morning, have not heard back from any of them. I got in the houses anyway, but that’s beside the point. Hehe.

That’s all I’ve got for today.

Happy Turkey Eve!