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.