KATWholesales Journal

Talk about biting your nails...my downfall is eating sweets when I'm stressed out! For dinner tonight, I had Blue Bell ice cream! I better get a deal soon before I balloon up like Santa Claus!

Hold on tight cause it's a roller coaster ride!! Especially with your emotions...I'm down one minute and up the next.

BTW I have a few deals in the works in your neck of the woods but only one buyer local and hope to get some from the big city next door. I have a local bird dog there not sure if she has tired already but got some good prospects, sending them mailers and have heard from some one was "insulted" by my offer well sorry but you shoulda seen his house, needs a full paint job on the outside and that alone could be a good 5k. But If I get one lets partner on the deal and make some $$$Money and of course help some people sell their houses!
Yes BIG roller coaster ride, but once you get going you are riding the WAVE and WE are!

Call me today if you can. I'm home. I'd love to partner w/you!

Well, gave it another try on my quest to pick up some "local" Cash Buyers, END Buyers--PLEEEASE may the almighty powers that be, help me find some!!

County Court House in my city seems like the regulars really like it! I've only been there a handful of times and I see the same familiar faces. The difference is I get now who the ones are that actually buy and bid! Seems like it's top SECRET, WhY? What's the big deal, just BID already (thoughts going through my head...) talk to a few hanging back they are prospecting like me, probably...

Anyway, I picked up THREE new Buyers, two were Brokers/Agents who have fancy cards and fancy websites,,,, the works. (sigh) I got the look up and down from some when I walked up to them and introduced myself (scared as heck) and told them I market to distressed sellers and find deals 65% off ARV that are NOT listed on MLS or at the county courthouse steps...."Great Doug, give her one of our cards!" one guy says to the other they walk away, I go to the next one and he is desperately on his phone, as soon as he gets off I go up to him with my hand extended and smiling and greet him with a "HI" because he looks like he could use some good news, say the same to him about my deals, he gives me his card and says we also lend money! okay great!

Auction is over and I sit down next to a friendly face guy with torn jeans and dusty tennis shoes, some guy is spoon-feeding him deals from his ipad...(must be an agent--no offense to anyone, but he looks a little desperate.) He shows him a couple deals on houses and taps a button and up comes his priced opinion, and the 'friendly' face I'm sitting next to chimes in ooooh,aaah, and the desperate agent says to him I have it wanna buy it? The friendly guy says why don't YOU keep it? The agent says, I do, I have it, it's ours. Do you want to buy it? friendly face laughs him off etc,,,he notices I'm paying attention, so I ask the friendly face guy why everyone is still hanging around? "oh, he replys, "some probates pop up every now and then", holding his tablet close to him. I say how did you do today? He says not too bad bought a deal, I thought it was time since I hadn't bought one since January. Oh, do you buy often? I ask. Not often enough but I would like to. So, yes give him my pich,etc,, we hit it off and gives me his info, no fancy card, just a good ol' boy

OKay, now to put them to the test and get some deals to assign to them!! My guess, friendly face- guy gets the worm. I have partnered with another wholesaler gotta get the marketing out for the loooong Fourth weekend! Times a wasting!

Today I am driving my neighborhood in my new town in Texas. Hubby and I moved from west texas to Dallas tx. Still got my partner in west texas to help with deals there.

Started the 25:1 with my new realtor (still in west TX), picked about 5 to make offers on that had some details that showed motivation as Matt teaches. My realtor didn't send all the 40 listings as he suggests to get, she sent other active listings that had no details on the page or other listings with all pretty words on details page that sold that house "decked out to the nines", not what I was looking for!

Called a craigslist add here in the metroplex and spoke to the seller, another wholesaler, after talking with him, he had it under contract with the seller and was trying to wholesale the deal for 85k----ARV=132k and needed about 22k in repairs (foundation/drainage problem= 9k estimate to fix) I suggested to co-wholesale the deal with him and I would bring the buyer to him, how much time did he have? and we would split 50-50 the assignment fee
OR

I asked if he had some room on his asking price? He said if I sold for 85k that would be ideal. I suggested I sell at 87,500 and he could still get his "acquisition-fee" as he referred to it, he agreed. I began to call my realtor to do my homework on the deal, 10 minutes later, he calls me back and says he doesn't want me to go do "allot of work" on it after all because he only has till this Friday before his contract with seller is over! Plus he had someone going to see it tonight, it's Wednesday. Okay??? I introduced myself to him and suggested we could partner on a deal in the future then, sounds like a nice guy anyway. He said that the seller had someone else ready to buy her house after Friday if he couldn't. Not sure where that went?

Anyway, I know I cant allow myself to think negatively about that...so I won't dwell...NOW Time to put out the BANDITS!!

West TX, NEXT: DALLAS then HOUSTON!!!

I'm WALT. I really enjoyed reading your journal & wish you the best. Much continued success. I drive my mom to Houston every three months to go to M D Anderson cancer center. If your ever there maybe my mom and I can meet you and talk real estate.

HAVE A GREAT DAY,
WALT

I Found my original Journal and now cant find the Part II I started earlier this year, so I will continue on the original here!

LATEST DEAL: I wholesaled this one in a new market for me, HOUSTON, and marketed and found a buyer, as much as I would have liked to have Partnered with someone for the life of me I couldnt get that to happen, so I rolled up my sleeves and did it by myself, either that or Loose the Deal completely!

I market as many ways as possible to find deals, this one was on a "Share Latter" on Facebook, I posted my ad and website a few times and by the next day I had a couple of responses, they actually called me right away, this showed me that they were motivated sellers for sure. One of them was in Indiana, and the other was in Texas, the offers were made to both and the one in Houston took my offer right away. She was trying to sell her mothers home and it was in a Pre-Foreclosure status, the house was rebuilt in
in 2009 it was a 2bd 1ba 909sqft she owed the bank:

BOA= 23,537.41
ARV= 18K
Purchase and Sale Agreeement= locked it on contract for 25k
SOLD TO CASH BUYER= 27,537.41
MY FEE 2,000
IN MY PJ'S FROM MY COMPUTER NEVER SET FOOT IN HOUSTON

NO REPAIRS were needed the house was in great shape and on a 7,000sqft lot so they could add another bedroom if needed. Also, the seller had a friend of her husbands that was renting it for 650.00 AND the average area rents were 612.00

The seller did not want to sell as a subject to, as she had already been approached by another investor. So when she called me she wanted to know if I could buy it out right, so I made the attempt to lock it below what Zillow had it zestimated for which was 52k. I locked it at 25k to pay off BOA and give her 1462.59 from that amount she would have to pay her takes fro the year at closing, she was okay with that and allowed me more time, as I had to renegotiate the date on the contract, she was desperate and really had no other option than to let the bank foreclose on it and that she did not want! Her mother passed away about 18mons ago, she changed the deed to her and her sister right away and put the tenant into it. She lost her job and began using the rent to take the place of her income, she owed the bank 4months plus the current month. Because I established a good relationship with her, she was willing to give me the time I needed to find a buyer, realtor, and title company to get this out from under her. I found a realtor who sent me comps, the comps did not work because I had it locked higher than it was comping at. I thought I would have to let this one take its course and break the bad news to the seller, I tried to tell her, she insisted she would wait! Really? Wow, I needed to help her! I put ads everywhere I could think of, had lots of low ball offers and tire kcikers come and go. As a one last attempt I put a cheep ad on the Houston Greensheet, a few more tire kickers called needed to get financing, my time was close and financing would take much longer than what I had.
So I decided to look on Zillow for houses for Rent and called the owners who were listed as LTD or LLC because I knew they were investors, alot were managed by management companies except this one guy who had at least 3 rentals in his own name, so I called him right away, his office girl answered, I ask to speak to him, she said he was not in, asked if he would be in later, she said, "we are never sure when he will be in, he will just walk in randomly." we both laughed. So I spilled the beans to her that I had a Great Deal he needed to see with a tenant already in place paying 650.00 and NO REPAIRS! Selling CHEAP! I stressed, she said she would get him the message right away. He called me within the hour, it was done! Now I have added him to my buyer's list in HOUSTON/BEAUMONT, TX

Seller was HAPPY, Buyer WAS HAPPY, I AM HAPPY! BTW, the buyer asked me how did you find me? I told him from your for rent ads on Zillow! HE was in awe! He said you couldnt have found me at a better time, because my last deal I had, I got stuck holding the bag on a probate waiting to close in the mean time I'm owing taxes, and it wont pay off until years end. I am glad you did what you had to to sell me your deal, find me more and I will buy them cash up to 500k no cap on rehab and if I have to get financing I will! The way I see it is yes I could have gotten my 5k, but at the end of the day making it a deal for your end buyer brings you a bigger pay off in the end!

**"When your working hard in the kitchen, your chopping broccoli"---I always say

congratulations sure does help to here people having success it really does get you motivated.....

a side note on your journal part 2 go to your profile page and at the top click on TRACK and it will show you every post you have ever visited here on DG.com - on second thought i went and got it for you.

>> http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...

have a great day,
WALT

congratulations sure does help to here people having success it really does get you motivated.....

a side note on your journal part 2 go to your profile page and at the top click on TRACK and it will show you every post you have ever visited here on DG.com - on second thought i went and got it for you.

>> http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...

have a great day,
WALT

Great Thank YOU WALT! I sure hope that this post is helpful in some way to someone, I'm glad I was able to inspire you and maybe others. I know that I need motivation on a daily basis and it definitely inspires me into taking action. NOW time to take MASSIVE ACTION! I just need to DO IT!

Also, thank you kindly for getting my PART II Journal for me. and the how to, too!

HAVE AN AWESOME DAY!

What's on the flip side of faillure? Success! Even when you dont know it at the time!

Had a deal in my area locked on contract for 95k This one was a real BullDozer! :0

Literally, I knew it would be tough to wholesale this deal to my end cash buyer because the house was gutted inside and needed at least 30k (probably more) to rehab and Flip no equity. Sold comps came after I locked it for what the motivated seller owed the bank, the ARV was at 125,000 But trying to make it work, I added a comp that was over the SqFt by 700 that would make ARV= 137,000 Still with all the rehab not a good Flip, because the buyer would have to buy it at 99k what I was wholesaling it at and not to mention the closing costs, the rehab he may have been able to do it for 20k with his sub-contractors.

The alternative was doing a Creative Purchase such as a "Subject-To" Where the end buyer takes over the payments and puts some money down for his equitable interest or "skin-in-the-game" that the motivated seller will agree to... My end buyer would make the payments and down payment to seller and make the repairs, the seller keeps the loan in his name and the end buyer acquires the deed. **Should the end buyer ever default then the seller gets back his house with all the repairs done thus far.
End buyer will do all rehab required and but in a tenant who will take over the payments.

However, since these types of creative purchases work out better when the seller is behind on mortgage payments, this was not the case with my seller.

Story: I found this house while farming an area my buyers like, the house had high grass and over grown bushes, falling back fence etc...I couldnt find the owner on Central appraisal district website, the name didnt make sense and no forwarding address was included after a few yellow letters returned, so I moved on to other deals. I was in the area again a month later and found the house in its same state, so I got off and talked with the neighbor (a few) the next door lady gave me the scoop and asked her to give seller my card if she sees him again! She was motivated to get the house up to looking better. A couple weeks later the seller calls me, I purpose a way out for him and we make an appointment to meet and make my offer! I did my homework on the property only using Zillow, Total View (here on this site) and Prop-T
to come up with an estimate ARV for now.

Met Seller and saw the inside of the house, it was demoed throughout, needed drywall, floors (the were stripped down to the sub-floor) bath room fixtures, toilets, EVERYTHING! The house was in the name of the Father, Wife, and Two sons. Father bought the house for his two sons who were attending the local University and wanted to make them responsible so he added their names on the mortgage, he had alot at stake if he defaulted on the loan, ruining all their credit ratings... As soon as his sons were done with school they moved out and the father began doing his work to remodel and resell the house, pulling off wall paper in the kitchen he noticed some termite damage in the beams and decided he would redo the walls with new drywall, one room lead to another room with more damage that he had expected until he had done all the house, stripped it to joist and studs, he was a one man team as his sons began their own families. So his motivation is be done with it, sell as is and get his mortgage off his shoulders and save future credit of his sons and wifes....

I put out sever adds on Zillow, Craigslist, ebay classifieds, I called several For Rent Ads in the local area, showed the house and presented to buyers over and over again. I had a tough sell for buyers who wanted to flip but had one who offered the Subject-To terms. I held the contract for 45 days, the amount of time the seller gave me, however, no deal was made, seller continued to work on his house, I still offered the subject to idea to him and said he would consider it. His motivation was not fully there yet because he was not behind on his mortgage, although I established a good relationship with him that he may just reconsider later....

THE GOOD OUT COME WAS: I found 5 new local Cash Buyers, 3 Buy and Hold Guys and a Realtor who showed his buyer, Realtor is now working with me to find deals on the MLS! Leaned a bit more about Price per square foot on repairs and a couple new handyman who could give me free estimates for future deals!

I was a little down in the dumps, I felt bad for not being able to help my seller, after many meetings with him and listening to him he always managed to have a positive out look but I could sense his exhaustion at one time he just hung his head and repeated the words, :"just sell the house", he knew I am NOT a Realtor, Knows I am an investor with partners who would buy my contract from me for a fee! I knew that if he was really up "against the wall" he would have jumped on the "Creative Offer" just a s quickly as I mentioned it, he paused as if he may consider it later and thanked me for all I tried to do for him. The contract had ended but all not just "Grease at the bottom of the pan", I hadnt taken the time to add my buyers and knowledge I gained from this deal that wasnt a steel but gained me diamonds in the end!

Nothing but sweat Butter!

Kat, you wasted a lot of time on this property, a 5 minute analysis would have told me to pass, to run for the hills on that deal.
There is just no room for profit, did you ever mention what was owed on the property?
What I do is start with the ARV, let's say it's 120K My offer will start at 60K If it's in great shape with minimal repairs needed and is rented I will go up to 70K
If it's trashed or been taken down to the studs like this house has, I will offer 30K and may go up to 40K But no more.
If the seller owes a good chunk of change on the mortgage, at some point he will be more than ready to take any deal. But now that you have offered him 95K That's a price that will stick in his mind.
I say move forward, find better deals and don't waste time on these overpriced hellholes.
Rando

I have also gotten deals for too much under contract & I did learn a lot too & get buyers & realtors in the meantime so that is good. Sorry the deal didnt work out but congrats on your deal before this one 2k! whooohoow! way go go

I am still working on moving on to the next deal if it is overpriced I am better at it now but I am trying to add speculative buyerrs to my list, those that are paying over asking price on the MLS.

Wiill be working on it tomorrow actually. I iwill give you a call Kathy sometime this next wek ok.

Rando-I hear you man.

Lesson learned.

Although the seller was not actually selling it at the time I found it, he did however owe only the 95k which would have been a deal but since the work was excessive around 35k using a 20.00 per sqft estimate and 40k high estimate given by a contractor, that certainly was not a good flip!

Perhaps on the Creative side, could have been a good Subject to or Take Over paymnents as I got offered by one of my new buyers I got from advertising this deal. It didnt make me money but I learned how to Wholesale a subject to deal and a buyer who would pay me an assignment fee for it and he would do the work but let the seller hold the note for 10years. Seller wants to continue to try to finish fixing it himself and I am hoping he will call me if he gives up! So it fell out of contract on the Flipside but may have gained me a deal down the road, nothing ventured nothing gained, right?

My first Wholesale deal I did was one I made the offer on, seller said No to, 4wks later I checked back with him, this time was a desperate YES!
Made him very happy, he made 40k got the tax lien off his back and I made a 10k assignment fee and a new buyer who has bought a couple more deals from me since.

Working with new realtor getting him to do the sift and sort and sending me specific deals to look at, sure helps to cut the 40-70 props realtors just blast me and some are just time consuming to focus on, getting a little googly-eyed!

Made a couple offers thru him, we will see what he says tomorrow.

Went to Houston, 2 wks ago to check on my house and tenant (this was the first house my husband and I owned and raised our kiddos in) we move out 2008 and have had the same tenant in it since, pays on time every single month. We checked on the roof that was replaced last year and make sure all is good. May need to get a tree guy to cut some of the 50ft oaks in the yard. We are make cash flow on this one about 375.00 so helps with the maintenance and roof was redone thru insurance due to wind.

Dallas is a feeding frenzy on the MLS, sometimes I feel I cant compete, as my offers were most always turned down by listing agent and submitting thru my agent, she has had a family emergency take up her time recently so I have a couple more Realtors on the back burner. In the mean time, I am working on a few properties I found farming some areas here and a new one my friend in Houston told me about while I was there, went to see it and got an earful from the neighbor, I didnt even knock at her door she just came out and layed it on me. Ha, funny how some paint the impossible picutre of doom, she says, kidding, the house has some voodoo on it, because of couple failed attempts of the last buyers trying to do work on it...more to come, I found the owner!