Flip This Wholesaler

5/1/2008

My friend Lee sent me a text yesterday telling me he just got 6 REOs under contract (yes, 6), and asked if I wanted to help him sell them. They are all good deals, and I need to pick up some new buyers (advertising good deals=finding new buyers), so I have been busy trying to get some of them sold. It’s funny (actually, not really), that, of the 6 properties he has under contract, 3 of them were on my “to do” list of houses I was going to make offers on. You snooze, you lose….

One of the guys who responded to a Craigslist ad I posted today, is supposedly working with an investor (from New York, of course), who has 5 mil that he wants to dump into good deals in the Tampa market. I say supposedly, because this is probably the 5th guy who has told me the same story, and then turns out to be a complete waste of my time. Lately, everybody and their Mom claims to have this phantom investor from either NY or California with “deep pockets” who wants to buy ten billion dollars of real estate. Blah, blah, blah, blah. Put your money where your mouth is, pal. I sent him over a list of properties earlier today, and I bet you ten billion dollars that I never hear back from him. Just a hunch.

1/23/2008

Still waiting to hear what the verdict is on the REO I was talking about yesterday. The banks like to take their sweet old time. I’d rip my hair out of my head if I was doing short sales.

Tomorrow, I am having lunch with one of the investors that I have been working with over the last year.

He’s the guy I wholesaled my first deal to (he saw my ad on Craigslist), and we have done 2 other deals together since then. I call him all the time with stupid questions that I should probably already know the answers to, but don’t- questions such as “How do you tell if the electric has been upgraded?” or, “What the hell is a gravel roof?” He’s also saved my ass (more times than I’d like to admit) from putting shitty deals under contract.

In one instance, I was about to pull the trigger on an REO for 75k, but decided to give him a call and get his opinion first. He went out and looked at it and told me it needed to be torn down and was only worth the lot value (like 30k or so). Anyway, I took his advice, but I remember wondering if he really knew what he was talking about. Didn’t seem like a tear down to me (in all of my infinite rehabbing wisdom). Last time I checked the property was still on the market (5 months later) with a list price of $51,500. Good thing I listened.

I’ve decided that I need to find some more active cash buyers, so I am going to hit up the auctions on the courthouse steps starting next week. I always say that I’m going to, but then I never do. This time I’m doing it.

1/7/2008

Man, this year is sure starting out good. I got a letter in the mail today from National Claims Recovery Services telling me that the state of Florida has unclaimed funds in my name in the amount of $1400. I thought it was a scam at first, but after making some phone calls, and then checking with the State of FL Bureau of Unclaimed Property, it turns out that the money is indeed mine. Sweet. It came from an insurance policy from a long time ago, and I don’t really understand why it’s mine, but it is, and I’m not about to argue. I’ll take my free money and go straight to Costa Rica with it. Woohoo. I also found out that I can file the claim myself and save the 15% fee that NCRS charges. I’m sending out the paperwork tomorrow, and should have my cashola within 90 days.

When it rains, it poors, huh?

I’m currently marketing 4 properties for other investors, so my phone has been ringing off the hook. If Craigslist ever starts charging for real estate ads, I’m screwed. To show my appreciation, I bought one of these today:

That Craig, he’s a smart guy.

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.

The offer that I put in last week on my realtor’s listing countered @ 200k. The house was listed for 229k, worth around 260k. My offer was 177k. I think my realtor wasn’t too happy that I didn’t take it @ 200k. I again explained to him that my MAX purchase price is 70% of value minus repairs. I will keep my eye on it and put in another offer in a month or so if it hasn’t sold.

Yesterday I went to look @ a townhome that I saw listed on Craigslist. The owners have relocated to Atlanta (actually they’ve been there since June), and the house has been vacant all the while. It needs updating throughout, paint, and carpet. Listed @ 124k, ARV 130k. My offer was $80,225. I haven’t yet heard back.

I also sent out a bunch more postcards yesterday and today. I have about 100 out there that I’ve recently sent (within the last week), so I expect my phone to start ringing in the next day or so. Hopefully.

Today I checked out another home I saw listed on Craigslist. It’s been vacant for about 3 months. ARV 240-245. Asking price 230k obo. Owners have moved into another property and are motivated. I have an appointment to see it tomorrow @ 10am. Going to offer 163k.

Still no luck selling the townhouse I’m living in. Haven’t had any showings in 2 weeks or so. Hopefully it will sell by the end of the year. With the market the way it is though, who knows.