Running out of Time

Jeff,

I am working on flipping a home as well my first deal since July 2012. I was really excited and now the villian within seems to rear its ugly head every now and then. I am goign to reach out to you and ask how I can help you do you first deal and be happy. Working together as a family is very important we support each other and everyone wins.

What can I do from orlando to help you out?

Robin Close

Hi Robin,

You’re awesome and I appreciate you answering me. Well...to answer your question I either need to secure some quick funding or a buyer. That's what is frustrating, I thought I had a good buyers list and 2 of my buyers very interested and then different circumstances backed both out of the deal. It's a great property (4/2.5, 2584sq/ft) in a great neighborhood in Elkhart In. FMV is $155,000, it needs about $15-20K in repairs and upgrades, I have contract on it at $85,000. It is an REO so a cash deal with no restrictions (I can resell it right away) or Fix and Flip. I have been contacted by 5or6 people wanting to lease/option because of credit issues.
Closing is this Fri (11/9) I have been working on this for 3 weeks.

Look forward to hearing from you,

Jeff Middleditch

IF your numbers are correct(it is a good deal) and the property is in a good location with a low average DOM, you need to build your buyers list. Also, when buyers are looking don't let them waste your time. A good rehabber/buyer will know within 24 hours MAX if they want to buy. Then you lock the deal with a non refundable earnest money deposit from the buyer. From my experience, 95% of "buyers" never buy anything so never stop adding buyers.
What was the feed back you have received? Why did the buyers back out?
How much earnest is at stake? That is the worst case, you loose that earnest deposit. I have had earnest returned when I was past the inspection deadline because I communicated with the listing agent and apologized for the situation, took full responsibility for not preforming and was very surprised to get my earnest back even though they could have kept it.
Each deal or attempted deal is always a great learning experience!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Yeah I think it's a great deal one of the buyers who was very interested had another deal he was working on come in and that project was taking all his working capital, the other said he had a family emergency and couldn't continue, so I just thanked them without prying and said we would work on a project in the future. I have $1000 earnest down and have completed the inspection already. $1000 is a lot of money but I am more concerned with my reputation with everyone involved since I have been working these offers so hard and I don't want to be known as not being able to deliver.

Jeff

Reach out, maybe an Equity Partner will step up in time~I'm rooting for you.
Wholesalers should always have the "B" plan (fix n' flip) going into the deal.
This, I learned ONCE...the hard way.

PS. Jeff, Market the heck out of the property---run bandits signs all around the house for Handyman & Rehab Buyers!!!

please check my number see if it's right thanks

FMV: 100
repair: 10
Fee: 10
Proflie: 25
Max offer: $55K

look at a hard money lender. it sounds to me like you wanted to wholesale, but you have time on your hands. why not look at doing the rehab and sell it retail? or a little below retail . hmls' will generally loan up to 65% of arv. you'd be really close on the numbers,but if you could do some of the work yourself or trim the fat in some other way you could do this.
worst case you lose your emd. best worst case you learned something the hard way on what to not do again. always have your end buyer put down the (nonrefundable) emd, usually for a little more than is required. that way you made something for your time if they back out.
keep moving forward, rob

Yes, LIng that's what I calculate. $55K would be your maximum purchase price.
MPP is where you end, not where you start your offer bidding. It would be your "best and final" offer.

($100K X .70) - $10K = $60K Buyers PP
($100K X .65) - $10K = $55K Wholesalers MPP ---> Difference is your $5K Fee

$100K ARV - 60K Buyer's PP = $40K - $10K Repairs - $5K Fee
= $25K Profit (minus closing @ 3% + holding costs @ 12% on flip)

$25K - 1,800 = $23,200K Profit
---------------------------
Holding Costs for Flip:
3% Closing + 3% Holding + 6% Commissions (Resell) + 3% Misc. = 15%

should create your own thread to ask a separate question.

I hear ya. I have been working both angles at the same time. I posted on many websites and have been chasing private and hard money lenders. I actually am out of time, closing is this Fri (11/9), I have been working on this for 3 weeks, I know I am going to have to really build my buyers list since my go to's fell thru. I was listing it to sell wholesale and looking for funding to fix and flip (much more profit) and seem to keep coming up short. I am not as worried about the emd as my reputation, this being a smaller town.
I am willing to partner with anyone also to get this done. This being my 1st I just want to sell it, flip it, make a few bucks and move on to the next one. Their are many, many good deals around here right now.

Thanks,
Jeff

How have you tried to market the property? Craigs List, bandit signs, flyers?

Jeff were you able to sell your place?

Lynda Jean,
Thanks for asking, I'm still working on it, I did get one extension which was till today and with the holiday the wheels of lending move slowly. My realtor is trying to contact the seller (REO agent for the bank)with info supplied by one of the lenders I am working with requesting a couple more weeks.
I guess I will know today, because the lender wants an updated contract since this one is now expired. Always seems to be something. But we'll get there, either with this one or the next.
I have been working with about 5 different lending sources and when were done jumping thru all the hoops I should be in good shape for the next 1 or 2 or 3 or....

Jeff