almost got my flip, need advice - Posted by Matt B

Posted by Matt B on January 11, 1999 at 22:00:28:

I advertised as a seller. Your advice matches everybody else’s that I am being given. I will wait to call the buyers. I need to discuss this deal with you some more, but I’m up WAY past my bedtime since I was in the chatroom. I needed an answer desparately right now. I will post again in the morning.

almost got my flip, need advice - Posted by Matt B

Posted by Matt B on January 11, 1999 at 18:21:33:

I’m almost there. I’m so close I can taste it. I can see the light at the end of the tunnel. I got it in high gear and I… OK, we get the idea! I ran an ad this weekend advertising a “handyperson special duplex”. I got about 45 calls. Got a couple of very interesting responses, also. Any way, I just called one of the duplexes that I comped for $39,000 after repaired value. I used a safer figure of $32,000 that a friend of mine who has done a few real estate transactions recommmended. The maximum allowable offer was $11,000 according to Ron LeGrand’s formula. This means after deducting $5,000 for me, I could offer $6,000. I sat for about 25 minutes with the phone in my hand wondering what to say. (How about “wanna sell?” (duh!)) Well, with minimal talking on my part, the owner said he would love to get rid of it. He would sell for $5,000! I had trouble remembering what to say next, so I said, “Uh, great!” (Forgot to ask Ron’s next question of “If I were to offer you all cash, and close quickly, what would be the LEAST that you could accept?”)

Now the question. He said he will meet with me on Saturday to sign the contract. I plan on doing a simultaneous closing a la LeGrand. I have 45 people to call. Do I give them the address without having it under contract yet? I really do not want to make a real investor wait. Am I getting ahead of myself? Suggestions, please. I want to make the calls, but don’t want to be vague or have to wait until the weekend to get the wheels turning. Is it advisable to give the address out and get the investors checking it out so that I can make the flip faster?

Another related question… is a simultaneous close best here? I have read Jackie’s articles and posts, and she always metions assigning the contract instead of a simultaneous close. What are the advantages/disadvantages of either method? I have been doing my best to stick to Ron LeGrand’s formula for my first few deals to avoid a screw-up on my part. I would appreciate any and all help.

Re: almost got my flip, need advice - Posted by Tom in NE

Posted by Tom in NE on January 12, 1999 at 10:29:17:

This is not advice. I’m a fellow novice putting out an idea just to see if I have a grip on things.
Put down $50 or $100 (ernest money?) If seller is that eger $10 might do it? Set closeing for the end of the month to give yourself plenty of time to get buyer lined up. Tell seller you need partners approval so you can show the place yourself.
If I’m off base here please let me know.

Re: almost got my flip, need advice - Posted by Jim IL

Posted by Jim IL on January 11, 1999 at 23:23:27:

After just having completed the “simultaneous” close type of deal, all I can say is “DON’T”!
Unless you have no way to assign this.
The simultaneous close for me has been a nightmare.
Getting everyone coordinated was a pain. Between 3 lawyers, my buyers lender, the Bank that owned my REO and the RE agents involved, we closed 3 weeks later than expected.
But, then again, if I had to do it all over again?..YES I WOULD! Because the money I made was well worth the hassles.
Good Luck, and GREAT DEALS ahead.
Sounds like your on your way,

Re: almost got my flip, need advice - Posted by Jackie in Dallas

Posted by Jackie in Dallas on January 11, 1999 at 21:51:36:

DO NOT - under any circumstances give out the address until you have the contract tied up. Perhaps even record a Memorandum of Option.

I’m sure you’ve heard the expression - you can’t steal in SLOW motion - why wait til Saturday - too many thing can happen between now and then. Try to get the deal signed up NOW!

If I’m making less than $5,000 I do a simply assignment - if I’m making more I do a double close ala LeGrand style. Some Investors have unusually LARGE greed glands - you don’t want them to get activated.

I’m confused - did you run an ad looking for duplexes to buy or did you see an ad for a duplex for sale?

If it is the latter - the seller is probably getting plenty of other calls and someone could easily get that deal under contract before Saturday - better hurry!

What’s the exit strategy?

Re: almost got my flip, need advice - Posted by Phil Akers

Posted by Phil Akers on January 11, 1999 at 21:31:08:

What ad did you run? A “handyperson special duplex” ad?

I am not sure how that works. Could you please explain?

Thanks and good luck.