Flip This Wholesaler

6/3/2009

So far so good with my Power of Less Challenge. It’s day 3, and I’ve been up at 6am all 3 days, and in the pool swimming laps by 6:30. I wasn’t aware of it until yesterday, but apparently Michael Phelps lives in my building, and trains in the pool on the 8th floor. OK, not really, but there’s a guy who looks just like him who was at the pool the same time as I was yesterday, and he was swimming up a storm and making me feel like a total jackass. I may as well have been dog paddling… he was swimming 2.5 laps to every one that I swam. It was quite embarrassing, but I ended up getting a phenomenal workout because I was trying extra hard to keep up with him. I can barely move my arms today, which is a good thing…

On the real estate front, things are going well. For the most part. The short sale that I got under contract a few weeks ago is scheduled to close next Friday. The deal that has now been extended 3 times looks like it is going to crash and burn. The new extension goes until the 10th (next Wednesday), but I don’t have any confidence in the bank signing the closing documents. DB is the buyer on this one, and he said that if it isn’t ready to go by the 10th, he is going to pass, and I can’t say I blame him. It’s been over six weeks now since we signed the initial contract. Also, there is a leak in the roof of this property, and after all of the rain we got these past few weeks, there is quite a bit more damage (and mold) than there was a month ago. The bank actually sent someone out to cover the roof with a tarp last week (after I called and complained), but the damage has already been done. I tried to get them to knock off a few grand to compensate, but, being the ignorant assholes that they are, they wouldn’t budge.

I sent an email off yesterday to both the listing agent and the title company letting them know that I am going to pass on this deal if it doesn’t get closed on or before the 10th. Both of them forwarded it to the bank’s asset manager, who, apparently doesn’t give a crap. If they aren’t able to get it done by the 10th, I’m going to try one more time to get them to knock several grand off the purchase price. If they say no, I’m going to have to walk. Nothing like having a payday flushed down the toilet because of someone else’s incompetence. Yay!

Other than that, I’ve been busy making offers and looking for buyers. Gotta keep the funnel full..

Gotta run- later alligators!

5/14/2009

Well, it looks like one of the deals with DB (the one where I’m making the most money), is going to close later today, or first thing in the morning. We are just waiting on a final HUD from the bank’s title company. They screwed up the commission on the first HUD, so now we have to wait for them to fix it. Normally this would only take an hour or so, but we’re dealing with Watson Title here, so you know how that goes. If they don’t have it done by the end of the day, they will be hearing from me bright and early tomorrow..

The lien search finally came back on the other DB deal, and it looks like that one is going to close Monday or Tuesday. DB already has a contractor lined up for this property (I know this because the contractor also does work for a rehabber friend of mine, and he told him he was going to be doing the rehab on this house). So that’s good.

I may be getting another JV deal signed up with Lee today. Hopefully. I’m still negotiating with my buyer (McHotterson), but I’m pretty sure he is going to take it. I’m just waiting on his call…

I also found a new buyer today (he called on one of my signs) who is looking to park his cash into some cheap rentals, so I’m going to be meeting with him this weekend to get a better idea of what he’s looking for.

So, anywho, things are going pretty well over here…

Gotta run. Later alligators!

P.S.
Happy Birthday Brett!

P.P.S
In case you missed the REO Rockstar webinar last night (or in case you couldn’t hear what was being said because of all of the background noise on the line), Lee is doing another one tonight @ 9pm).

5/11/09

Well, turns out I couldn’t keep my mouth shut an entire two weeks, and me and DB ended up having it out on Thursday. It was pretty much a huge waste of my time and energy. He has so many lies made up he can’t keep them all straight. According to him, he hasn’t actually sold the Pine property (the one he screwed me on), and is still trying to “make things right.” I know this is a bunch of bs, and the only reason he’s saying it is because he doesn’t want me to pull the other 2 deals from him. I heard through the grapevine that he already has retail buyers lined up for both of them, so he would be losing out on a lot of cashola if I was able to screw him on these deals somehow. If I wanted to risk getting sued, I could tell him to take a hike and then find another buyer, but I really don’t think that would be in my best interest. Both deals have been extended until the 20th (next week), but I’m going to do everything I can to get them closed this week so I can be done with this guy…

Let’s see, what else?

I kind of slacked off on the goals I set for myself  last Monday….. I only ran 3 days the entire week, and only made 11 offers, which is pathetic. I was able to get another deal under contract, though. It’s another JV deal with a wholesaler friend of mine. It’s not a lot of money, but I have zero risk, and zero cash into the deal, and almost zero work. Can’t beat that with a stick.

This week, I’m sticking with the same as last:

(1) Run 3.5 miles/ 5 days

(2) Make 25 offers

(3) Get another deal under contract

I hope you guys/gals did a better job than I did last week. How did you do?

Let’s hear your goals for this week…

P.S.
Congrats to Jodi on her 13k payday!!

5/7/09

Well, I finally heard back from DB.

He sent a text message on Tuesday in response to the text I sent on Saturday asking him if everything was still OK with the Pine deal. Here’s what his text said, “Star and 15th.”

Star and 15th are the two deals that he is buying from me, so, I guess that means that those two deals are still OK, and the other one is not. Or whatever. I have 4k in deposits from him, so I doubt he is going to walk away from these deals, but you never know. Unfortunately both deals have been extended until the 20th of this month (thanks Watson Title!), so I have to keep my mouth shut for another 2 weeks. Good times..

Let’s see..what else?

I’ve got a deal closing tomorrow that I am working with my friend Lee. It’s a small payday, but I have about 4 seconds of work into the deal, so I’ll take it and smile. :0)

That’s about all I’ve got for now.

Adios!

P.S.
I’m having some fun with the Sudanese scam artist. I’ll write a post about it after we go back and forth a few more times.

5/4/09

Hope everyone had a great weekend…

I spent mine plotting my revenge on a scumbag investor/wholesaler who just screwed me on a deal. It’s kind of a long story, but I’ll give you the condensed version….

About a month ago, this douche bag investor (I’ll just refer to him as DB from this point forward), called me up and told me about a deal he was about to get under contract. He knows that I do a lot of business in this neighborhood and wanted to see if I might have a buyer. If so, we would partner on the deal- split the deposit, and then split the profits. So, I go out to look at the house, and it’s a no-brainer at the price he said he was going to be getting it at (34k). I could sell this deal with my eyes closed. Which I did. Had the deal sold within a few hours for a 10k profit.

So, DB calls me up the next day and tells me to hold off on getting the contract signed with the buyer because he doesn’t know what the closing date is going to be yet. He tells me that it’s probably going to be a couple of weeks before we get the addenda back from the bank because they just got bought out by another bank and things are moving really slow. This has actually happened to me a few times before, so I didn’t think anything of it. I also checked the address in the mls just to make sure it was pending, and it was.

Since then, I’ve probably talked to DB 30 or 40 times, I’ve gone out to lunch with him, signed up 2 more deals (that he’s buying from me), and he keeps telling me that we should be getting the addenda back any day now. As a matter of fact, he called me on Wednesday of last week to tell me not to worry about this deal, and that he would be getting the addenda soon.

So, Friday night I went out to happy hour with another wholesaler friend and I almost fell off my chair when these words popped out of his mouth, “Hey, congratulations on finally getting Pine closed- I saw in the mls that it sold this week……..”

Even though this guy is a world class scumbag, I still gave him the benefit of the doubt, and instead of calling him up yelling and screaming right then and there, I decided to wait until the next day to get to the bottom of the situation.

I checked the mls the next morning, and sure enough, the house had sold on the 29th of April for 29k!

So, I sent DB a text (he didn’t answer his phone) that said, “hey, is everything still OK with Pine- it says it was sold in the mls..”

Crickets.

No response. That was Saturday, and he still hasn’t responded.

I ended up driving out to the house Saturday afternoon, and sure enough, there was a For Rent sign in the front yard, which I called, and found out that DB sold it to someone else.

Nice, huh?

He’s a worthless piece of trash, and as much as I want to call him up and tell him what a scumbag loser he is, I have to bite my tongue because I have 2 other deals going with him, and I’m afraid he will just bail on them if I go off on him like I want to. Bastard.

There’s also a lot more to the story that I can’t get into right now, but trust me when I tell you the shit is about to hit the fan here in Tampa.

So, ANYWAY, that’s how my weekend went. Good times..

On a lighter note….. I accomplished one of my goals that I set last week on Accountability Monday- I got the FAQ section written for the new website. The other goal I set was to get another deal locked up, which I did not do, but I’m pretty close on one and should find out today if it’s a go.

My goal for this week is to hire someone to beat the ever-loving shit out of DB.

Any takers?

Just kidding. Kind of.

This week my goal(s) are:

(1) Run 3.5 miles Monday-Friday.

(2) Make 25 offers

(3) Get another deal signed up

How did you guys/gals do?

Let’s hear your goals for the week…..