Potential First Deal - Posted by Jay D. Ellington


#1

Posted by Doris - Va. on January 15, 1999 at 20:19:22:

Sorry -I said “Sandy” but I meant “Stacy - AZ”

Doris - Va.


#2

Potential First Deal - Posted by Jay D. Ellington

Posted by Jay D. Ellington on January 14, 1999 at 13:20:19:

I’m excited about all the concepts I’ve been learning here
on the site and I’m a little nervous, but excited and
waiting that first deal. I have serveral leads coming
together and I live in a good market for rehabs, Lonnie deals, quick flips, all the things discussed here.
However since I’m a beginner I’m a little neverous and
scared because of my ignorance, but I’m determined.
I talked with an owner today that has a lot of properties for sale. He said that he just sold 50 of his properties and that he had 200 more for sale and I know there is a
creative deal in it for me. I have scheduled to talk with
him tonight about 2 rehab properties on my mother street.
The homes were rented, but the tenants had to move because
the homes did not meet city inspections. I have also talked with 3 rehab investors, who were interested if I found the
right homes. I know its something here, I just want to
make the right moves tonight and not make costly mistakes when I talk to the seller. Any advice since this is a
motivated seller with plenty of properties for sale? I
would love to do a quick flip like how Jackie talks about with those 2 homes I mentioned.


#3

Re: Potential First Deal - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on January 14, 1999 at 14:40:04:

I definitely would NOT mention any numbers to the seller tonight.
You need to get an idea from your rehab investors what these properties are worth to them before you negotiate with the seller.
Talk to the seller tonight, get to know him, ask questions. If he is a generally nice guy, he should allow you to look over the properties. When you do, bring your rehab investors (as many as possible).

Make sure you have your ducks in a row before you talk money. Remember, this guy has over 200 properties. He has the experience advantage.

Good luck and get back to us if you make a deal !


#4

Re: Potential First Deal - Posted by JPiper

Posted by JPiper on January 14, 1999 at 14:31:22:

Make sure you get accurate estimates of the market value after fix-up, and the cost of repairs. These are typical problem areas for newbies.

Also understand that somewhat who owns 250 houses is not an unsophisticated investor. Whether he is all that motivated or not remains to be seen.

Work the numbers. That’s where you start.

JPiper


#5

Re: Potential First Deal - Posted by Jay

Posted by Jay on January 14, 1999 at 15:07:22:

Hey Tim, would I be jeopardizing myself as the middle
man if bring along my rehab investors?


#6

Re: Potential First Deal - Posted by Doris - Va.

Posted by Doris - Va. on January 15, 1999 at 19:41:40:

Jay - the investor who has available funds and can
do a fast closing for you is expecting you to
have a good contract ready to go. He is paying you your assignment fee of several thousand dollars
because YOU did the finding and the contract
negotiations. You got the right house at the right price and left enough on the table for him to see
it as a profitable deal for him.

What you are describing sounds more like just being a BIRDDOG where you just locate the property and
turn the lead over to the investor for a quick fee
or a slightly larger one if the deal goes through.
He does not want to do your work for you and pay
you the big money too. Sandy is right. Get a local contractor or handyman carpenter etc. to check for
repairs etc.

Then do the numbers and come up with that offer and get the contract you need.

Good luck. You can do it.

Doris - Va.


#7

Re: Yes - Posted by Stacy (AZ)

Posted by Stacy (AZ) on January 15, 1999 at 12:09:33:

Don’t bring in your potential assignees until and unless you have a property under contract. Certainly, if you need some help assessing repair costs, bring an independent contractor, or handyman to assist.

Stacy