Double closed REO. Made $12,000

I know people working in Southern California and they are offering 80% to 85% of ARV minus repairs to get deals accepted. Remember, Dean teaches that if your offers are not getting accepted to come up a couple of % on the offers until you get one accepted. OR if your offers are all getting accepted than go down on your offer price.

In other words, what works in Detroit DOES NOT work in California. You have to adjust the offer formula to work within YOUR marketplace.

Good Luck!

Michael

Mike, was this a different no money down deal?

If all of your offers are being rejected as too low, perhaps you need to make sure that you are starting with an After Repair Value (ARV) that is correct. Too often individuals start with the wrong ARV and this results in too low of an offer. If you need help let someone at the advisory line help you.

I am looking for direction... I have been finding propts by drive-by in my area. They are empty. One house the owners walked away and used mold infestation as reason. On county tax site, it went from value of $185k down to land only value of about $30k. I haven't been in it yet so don't know how bad it is but think if I could buy it, or get it under contract for $20-30k, I could flip it to a rehabber for $40-50k. ?? What contract do you use if you don't want to double close & incur cap gains? Any other advice? Thanks, Ken

Ken, I hope this helps you. Mold is usually a fixable problem. You need to ACT if you are going to get money coming in. You can assign the contract if you don't want to double close. Without knowing all of the details however, I do not know the best way to handle the transaction. Using the number you have you ought to consder a double close before an assignment. If you are going to assign, get it under contract and then use the assignment contract you can find on this site under docs and forms.

Roy, Thanks for your note. I will try to contact the lender and owner (since they still appear on the tax bill). From the neighbors I know, the owner discovered some mold and instead of going to the expense of repairing it they tried to sue previous owners (no luck) then they bought another house, and just walked away from this one. It reportedly has foundation issues as well. Curious: why the double close? And by ACTing, do you mean lining buyer up 1st? I don't think I want to tackle a fixer-upper like this for my first deal. Thanks again. Ken

You have shown again that persistence pays off. Thanks.

Joe

Hi I started searching REOs and found a few; i have a site giving me the market value and other info about the homes. How did your offers begin? what did you do? Do you know a good buyers/sellers site list that u recomened? what questons did you ask?

thanks nick

Do not use a website to base a buying decision on is my advise.
My offers start with "This is what I will offer"
I determined the ARV and the rehab/remodel costs. Then I have the accurate numbers I need to make the offer.
Enter buyers list under Dean's chin and you should have all the info on how to build a buyers list.
Sellers can be banks (REOs off the MLS) Individual listed and unlisted motivated sellers. You must market for them. Once again, all the info is already posted here. You just have to take the time and effort to do the research.
You can also find what questions to ask agents, buyers, sellers etc. right here. Read through the threads and posts.

Michael

this is what its all about great job here!!

this is what its all about great job here!!

I appreciate your advices; i will work hard on my success.
See i was in a car acident about a month ago. I broke my left my leg in three so for now im researching at home online trying to get my team going and with your help and everyones help here it will all be ok.

Congratulations on your success

P.S it wasnt clear when you said "under dean's chin"...that was funny

Thank you

dont forget that if your offer is being rejected you might need to bump it up

If the listing is for 90,000 and you use 0.7% times that 90,000 you would offer 63,000 if that offer is rejected then increase the percent another 0.05% or 1% until they accept; in addition, maybe that offer was to low make a bit higher. Now dont forget like michaelmangham said keep up with your follow up system.

also remember what type of considitions the house is, the area, if it is AS IS, has it had a price reduction, is it vacant a home.

nick

Michael, do you print the letter and use it for filing manually or do you file it on your computer. You said old school so I'm thinking filing manually?
Shirley

Carol,

I have wholesaled a couple of short sales that had a very strict 90 day resale provision. This strategy will work on ANY seasoning or resale issue. (In Texas you will have to use a different vehicle) Sell on a lease option between the b and c. The buyer MUST be a cash buyer. Your buyer functions as a private lender and funds the A closing. You make your fee. You give your buyer a deed of trust and put a deed in escrow with the closing agent. In 91 days your buyer exercises the option. Your buyer has a lien and a deed in escrow as security in the meantime.
This works with seasoned buyers, if you have the killer deal they won't care. They can start the rehab right away and sell to the end buyer in 91 days!!

Donna, Nick,

Thanks guys, hope all is well.

Shirley,

Yes, I am truly old school. I have a hand written paper filing system. I find I can make my notes and work the file faster than entering the data into my fancy spreadsheets. That's just me!

Michael