wholesaling properties - Posted by Linda from CA

Posted by Heather_Tx on July 21, 2003 at 01:22:28:

Unless of course you are a flipper with an Excellent RE Agent! Not to disagree really, well maybe a tad LOL
I bought my second rehab I am currently renovating from a flipper that uses mainly the MLS for his deals here in Houston, house was on the market for 0 days numbers are as follows:

listed price 60K plus seller to help with closing and Title policy
Flipper offered 63K to get offer excepted fast and added 5K flip fee
I bought for 68K
Repairs 24,800
resell 135,000-140,000

I’m looking at about 33K profit in this deal and was VERY happy to pay that 5K flip, and have since started scouring the MLS more closely seeing as he is doing one flip every 45 days or so this way.

Just had to chime in :slight_smile:

Heather_Tx

wholesaling properties - Posted by Linda from CA

Posted by Linda from CA on July 18, 2003 at 01:22:11:

How do I put a house under contract without using my own money for a down payment? Do I get a motivated seller who’s selling their own home?(FSBO) I’ve found that if you try to put a house under contract, to flip, with a real estate agent they want a good faith deposit! Please HELP!

Re: wholesaling properties - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on July 18, 2003 at 06:48:20:

Linda–(CA)--------------

You can:
Give a note which is to be replaced with cash just before the close of escrow.
Give a check which is "To be held by the real estate brokerage until just before the close of escrow."
You borrow the money from some friend, relative, etc. Somebody who knows and trusts you. And you pay a high rate of interest on it. You also make sure your contract specifies that the money is to be refunded to you should the escrow not close.

But the main problem you have here, in my opinion, is that you are very unlikely to find a deal working with properties in the MLS that you can flip to somebody else. The only way this is likely to work, it seems to me, is if you are able to negotiate a great reduction in the purchase price compared to the listed asking price. Why should buyers go through you when they can buy directly from the owner. Most serious fixer buyers probably have at least one and probably several agents watching for good MLS deals to bring to the investor’s attention.

Good Investing***************Ron Starr************

Re: wholesaling properties - Posted by dell-ohio

Posted by dell-ohio on July 21, 2003 at 22:07:19:

I always enjoy reading your posts. Good insight and advise. I have a lot of respect for your expertise.

My viewpoints on a couple of your comments.

As a bit of background; We have purchased twelve rehab properties since Janurary, eleven of them listed on mls. Although we have not purchased from “flippers” half of these properties had enough money in them that we could have paid a flipper 3,000-5,000 if he had a contract on them.

> Why should buyers go through you when they can buy directly from the owner.

It basically comes down to the same as buying from FSBO. If you are willing to write offers significantly below listing price and get deals you can sell them just like fsbos. From reading the board I get the sense that most people are not willing to write “good” offers on mls listings.

>Most serious fixer buyers probably have at least one and probably several agents watching for good MLS deals to bring to the investor’s attention.

This is true, we have four in different areas. The situation in my experience is that most realtors, no matter how often you explain to them what you are looking for, still have a hard time “understanding” what you want.

All our realtors contact us with “deals”. Problem is they cant seem to see what I see. We have not purchased one property at this point from realtor originations.

I suspect a flipper could sit at a coffee shop, look through homes magazines, pull out all the fixer-uppers, handy man specials, needs TLC’ers, call his realtor for comps, drive the neighborhood. Look at comps, meet realtor to look at target properties, go back to coffee shop with realtor write low offers on all feasible ones and get a couple flippable deals though mls.

If I decided to flip properties this would be my strategy. Oh the other thing I would do is ask my realtor for all the bank owned properties, and write offers on each one. I would put them in a data base and keep writing on each property at least once a month until it sells. You are almost gaurenteed to purchase some properties.

Just have to share this … Today we got apprasials back on a couple rehab properties we purchased through MLS. The best one, a 12 unit “abandoned” apartment complex with 12,500 sq ft commercial space. Purchased it for 180,000 owner carried down payment. Renovation cost 90,000 (bank financed)it. Appraised value came in at 525,000. GOD THIS IS TOO MUCH FUN!!

my viewpoints

dell-ohio