Possibly my FIRST deal today!!!

Kai,

I hope everything works out for you. How did you find your buyers?

I've found most of my buyers from Craigslist.com by posting adds for rehabbers and investors, and some just by their posts like "I buy houses" Thats where most of my buyers came from.

Kai

My fingers and toes are crossed. I wish you all the best, God speed.

Sandra

well so I found a property with lots of potential profit. I went down and looked at it today and there, in a nice neighborhood was the house. It had No Trespassing signs on the garage and a Posted... sign in the window. So I went and dropped off my letter on his doorstep and I noticed that there was not door knob on the door. Hmm... I don't know what that means. I was thinking that maybe he just up and left but, the NDF has only been up for a few days. I think I am just going to have to call him tomorrow and see what this is all about. Is there anything else that you guys think I should do or what? Let me know! Thanks

Kai

Hey Kai,

You were saying that you have found a few potential buyers on craigslist. Can you explain that a little more, as far as what kind of deals you're working out with them. Do you just find properties for them, and if the price is right, and the property is something that they would be intersted in, they buy it? Do you plan on buying the property before they agree to buy it?

-Cory

Well what I do is wholesaling. Its really easy if you are able to find and talk with the homeowners. It's like bird dogging but it's more reliable and you make more. Basically I find people that have just defaulted on their mortgage, then it becomes publically known. I get the list of Defaults every week from my title company. Then I find a property that has a good amount of LTV or equity, then I call or send a letter to that residence to see if they are willing to sell. With a good deal (them getting some money to move) I sign a contract. Then I find people on craigslist "we buy houses" or just "investors looking for properties" and call them and set a day for everyone I have called to come take a look at the place, then take the first reasonable offer. This way you don't have to ask for a fee, you make one for yourself depending on how much equity you are dealing with.

For example, if a house is worth 200K and the guy owes 80K and the house needs some repair, I figure for someone to buy it from me I'd have to sell around 140K so they have money to fix it up and make profit themselves. I would buy it from the owners for say 110K. That way its almost a for sure deal because hes making WAY more then he would if he got foreclosed on and I'm still making 30+ K. I make it work so everyone gets a good amount of money. If I can swing that. Basically what I'm saying is you have FULL control of the situation. If you have more questions then let me know.

Kai

Kai you rock man. That helped out quit a bit. Quick question, how do you figure out what the equity owed on one of your properties is? I know its personal information and all, so do you just have to ask the seller how much he/she owes on that property? Do you go to your county records for that kind of information?

Anyways, get back to me when you get a chance. I appreciate all the info you've given me. I've got a few houses and lots that I'm currently looking at right now with an investor ready to buy anything that I can get her a deal on. I just want to make sure I cover my own hide so that I dont get myself in a sticky situation that I cant get myself out of! Plus, I dont want to look like a numb skull infront of my investors or anything like that as well!

Thanks a bunch!
Cory

Well my process is this:

1)Look on the recent foreclosure list that is sent to me via email from my Broker and Title company and find properties that owe less than their original loan, usually by about $6-20,000 (that just shows that they are responsible aren't going to owe but a few month payments).

2)Then I go onto the county website under Public Trustees and type in the address under "property info" and everything you need to know comes up like past sales dates, 2008 value of the property and then all of the other stuff like bedrooms and baths, square footage, heat type. From the "2008 value" you can determine if there will be a good enough amount of equity to do a deal with them that leaves enough money in it for everyone.

3) Then I look on the same site under Public Trustess and type in the address under "Property Sales" and that gives the latest sales in that neighborhood so that way you can find comps.

4) After I've found all the info and made note of it I will try and find their number by looking through the yellow pages and then I call them to see if they would be interested in getting rid of the property, if they are, then I ask all the questions about the property to make sure what I found online is accurate. I also ask them how much they owe, and how much they think their house is worth, just to see what they have to say. Then I set a day to go meet with them at their house, Look through it and figure out a price that leaves them some money to move with, you some money to make and then money left over so the rehabber can make a profit after repairs.

5) If their number is unavailable or I can't find it then I will write them a letter explaining what I do and as them to call me for further detail. Then send it.

That is basically my daily routine. I try to get out as much info as I can so it makes it that much easier when deciding a sales price. And also that way you know a ton so you can answer questions and not look like a "numbskull" haha. Hope that answers your questions.

Good luck

Kai

Thanks man,

Thats exactly what I wanted to know. I'm meeting with a realtor on Saturday whos got an unlimited database of Foreclosed properties which he's wholesaling to investors as well. He's going to show me about 10 or 11 different properties, with comps, rehab costs, and just about everything else you need to take into consideration when purchasing.

We'll see how that goes. Like I said, I have one investor lined up who is ready to starting buying anything a under FMV, and can close with in 30 days. My agent is claiming that every one of the properties that he's goning to show me has at least 20-40 percent equity. One thing that will help me out a bit is the fact that they take into consideration the comps, value, rehab, equity etc.. and present it to you. I will still be conducting my own analysis of course, but I think this will help out quit a bit as well

What do you think? They wholesale these foreclosures .50 - .60 cents on the dollar, which if I passed my fourth grade math class, seems like a worthy deal.. haha

Cory

That sounds good. Honestly if there can be money made, anywhere from $1,000-$50,000 and doing little work yourself, is totally worth it to me. I hope to hear you made a few deals out of those 11 that he's showing you. Keep me informed man! Good luck!

Kai

Thanks Kai,

As soon as I get back, you all will be the first ones I run too! None of this could have happend with out all of you!

Cory

Hello Kai,

Can I ask you a question? Where do I get that list of defaults? Should I ask my agent? I know that my agents best-friend works for a title company 10mins. from my home. My agent is really busy, I kinda want to get them on my free time because I feel like when I get home from work I am constantly waiting for her update on contracts. I too am hoping to land my first deal, I just submitted 30 contracts with her over this weekend and am waiting for a bite. So far the update was No response at all this morning I am soo bummed. Oh well back to square one. Tell me how many days of default do you wait in pre-foreclosure before you send them a letter?

Best Regards,

Lily