Flip This Wholesaler

1/3/2008

Well, I got my buyer added to my contract with no problem. I met him at Starbucks this morning to sign everything and get his deposit. I was all worried that the listing agent was going to pitch a fit about me adding another buyer to the contract, but he didn’t even care. Sweet.

Also, my buyer told me that he will be ready to buy another property in about a month, and then another, and then another, etc. He’s been doing this for 20 years (up until now, he was buying at auction), but if I can keep delivering him good deals, he will keep buying them from me. SWEET.

I need about 5 more buyers like this, and I will be sitting pretty. By the way, I found this guy by driving around the neighborhood where I had a deal I was trying to sell and calling all of the for rent signs to see if the landlords were looking for more properties. It took me a few hours to do, but it was definitely worth it.

Tomorrow I’ll be back to making offers. My goal is 100 offers a month, which is very doable if I stay focused.

1/2/2008

Well, what do you know- I got my first deal of the year today! One of my cash buyers called me while I was on vacation asking if I had any properties in the neighborhood where he bought the last one from me back in November. I didn’t, so first thing this morning, I sent out 4 offers on properties in the area he wanted, offering all cash, 7 day close, 3 day inspection. I knew I couldn’t get hurt at the prices I was offering, so I wasn’t worried if one of them got accepted right off the bat.

The offers went out around 9am, and at 9:30 I got a counter from one. This property is an REO, and has only been listed 28 days. The list price was $84,000, I offered $65,500. Their first counter was $74,000, which I was kinda shocked at.

So, I called my buyer and asked him what he would need to get it at. It just so happens that this property is right next door to the last property I wholesaled to him, so he was very familiar with it already.

He said he could pay $72,000 (I was thinking more along the lines of 76k-78k which is what he bought the last one for, and why I offered what I did). I went back and offered $69,000 (I could have offered less, but didn’t want to get greedy and lose it, especially since I knew this buyer was solid).

The bank came back at $70,500, I countered at $70,000, and they accepted. Not a big payday, but I’ll take 2k for doing 15 minutes of work any day! I haven’t even seen the inside of the property.

Since the spread is so small, and would get eaten up with the closing costs involved in a simultaneous close, I am adding my buyer onto my contract, and then once it is closed, quit claiming it back to him for a 2k fee.

Make sense?

I haven’t tried this yet, but know a few people who have. I was a little nervous running it by my buyer, but we have a pretty good rapport, and he was totally fine with it.

I’m SOOOOO happy to get my first REO out of the way! I know there will be many more to come- I plan on going after them with a vengeance.

Not a bad way to start the year off! Not bad at all…..