Another Deal Closes on Thurs.

Great deal and job getting 'er done! Do you mind disclosing how you found this deal? I too am looking into working on probates and so far I have come up with Estate court records as a starting point...

We first check our county clerk's website, put in "probate" for the type of document, then put in desired dates(usually the past month, so as not to have too much research) & then check the documents to see who the petitioner is, copy the name, address & send a letter.

Thanks and much future success!

Do you typically deal in certain states?

Gary and Jill,

Did you double close on the property, assign, or buy and sell? Thanks!

Vincent

Nice job on another deal........you both earned another great vacation now

Everyone Can Make A Difference!
John A

We have only bought in our county, which is Citrus County, Fl. In fact, 98%
of our deals have been in our town of Beverly Hills.
We always buy outright with cash so far, then usually flip the property. We
are looking forward to wholesaling in the near future.
Thanks again John A, but we're in the middle of a rehab on another property.

Thats a sweet deal. Keep up the awesome work guys!

Jeremy

Thanks Jeremy, appreciate it.

I see people do the flips and my question is after taxes and closings how much are you profiting. If you bought it for 41k and put a grand or two in then sold it for low 50's isn't your tax eating up your profit? Or are you doing a 1031 exchange into the next property. My question is why not rent it out till the market turns then sell and collect big. I'm certainly not trying to degrade your success but rather learn your philosophy on rei.

Yes we bought it at $ 41,500.00 We put in $ 200.00 for mulch & paint & just cleaned up the property. Sold it for $ 54,500.00 The buyer paid all the closing costs(title insurance & doc stamps of ours) which resulted a profit of $ 12,800.00 We also do have rent to own/lease options that generate nice monthly positive cash flow of $ 400.00 When the tenant/buyer purchases that house in 2 yrs, we will receive a 61% return on our investment. The reason we flip this one & four others so far this year is for spending money ... we do not have jobs any longer, we retired 10 years ago so making $ 10,000.00 to $ 15,000.00 per flip is enough for part time work. We are not doing 1031 exchange into the next property. As for income taxes, that's the reason for our S-Corp & a good CPA ! Thanks, Gary/Jill

Even with all the closings we have done in the past, we still love RE closings. And of course the best part is walking away with a nice check ! On to the next one ...

how much you want to offer on a property? Do you base it on a percentage of what the area comps for, or do you just throw a number at them and see if they go for it. I have been putting in offers at 40-50% below arv, but none have been accepted as of yet, so I was thinking maybe my offering is off. Do you have any suggestions?

Good job on this deal.

Steve and Veronica.

Great stuff guys, you are an inspiration to us all.

-Martin

For rbailey1962, we don't use a set % below market; we take the individual property specs; location, size, beds, baths, etc. & comp accordingly. We go by
what's listed at what prices as well as what sold at what prices. Since we invest in the same area & have been doing these types of houses since 2001 here; we have a taste for what we have to buy & sell them for in order to make a minimum of 20% return on our investment.
The area plays the biggest factor on purchase & sales prices. Sometimes you have to pay a little more & make a little less. We buy paying cash(so sometimes do a 3 day closing which is a good incentive to the seller) then flip(sometimes rehabbing) to the end buyer so there's a bigger spread.
Whatever way you are doing deals, don't be greedy, a smaller profit with multiple deals is better than trying to hit a homerun on one.

Gary and Jill,

I saw your comment about taking "smaller bites" on your profits. I had just been thinking about this today. I'm looking to do assignments in Central Jersey and the buyers I have on my list are looking for $50K profits to take a deal. In your opinion, does that seem like a "home run" that they're looking for? As the middle man, that's going to hurt me in the long run, because it means fewer deals. Should I be looking for investors who will take smaller bites and more deals? Thanks!

Vincent

I think that too many people are just plain greedy ! If you're trying to wholesale & your buyer is also a wholesaler then 50K is probably going to kill the numbers so it won't be a good deal for the end buyer ... so the property won't get sold & nobody wins.
Now depending on the area & the cost of the properties will definitely affect the ability of making profit margin. The cheap houses we normally buy
surely don't have the amount of mark-up as a 250K, 500K, or 900K house. I'm sure that the buyers can make more than 50K on a 750K house.
Everything just has to be kept in the proper prospective. I know the houses
we bought in central N.J., when we lived there(prior to 2001) were priced differently.

Oh, you guys lived in Jersey? Cool! What town?

My buyers are contractors and rehabbers, not wholesalers themselves, but they're looking for this kind of profit on $200K-$300K homes. Your thoughts?

Vincent

Jill & I lived in Neschanic Station(Branchburg Twp), out by Flemmington.
I was from Maplewood, Jill from Martinsville. Our oil company served Somerset, Middlesex, Union, & parts of Essex Counties.
50K profit for a 300K house is fine, but you'll have to find houses around the 100K to 120K range; this way after rehab costs it will leave you with some mark up. Good Luck.

Kudos to you both. I love persistent people that are NOT willing to let this "economy" reckon with them!

Continued Success on Your Journey!

JJD

Thank you, it is greatly appreciated.

That will help me alot. I don't want to be greedy, just make some cash, any cash is fine with me

As long as it's a win win the deals should fall into place ... Good Luck !