Wholesaling is very much alive.... I am scheduled to close 39 deals in the next 30 days!

Following in your footsteps Carol!

I saw you on my tv screen at 3:30 am when I was broke and desperate for change! Now I'm three deals in and getting faster and better daily!

Wholesaling is alive and well!

Get it done everybody!

That's amazing. To see what you been working on.
2012 is my year.
Thanks and Congrats on your success.

Chris

"I found the deals through social networking and sold them through my buyer's list and I never stepped out of my PJs."

I would love to learn anything anyone has to share on this. I've just started really hitting the pavement as I finally have a solid agent working with me. I have learned everything I could to estimate repairs, ARV, etc. I am very confident in my future. I however would love to learn a way to solidify my ARV without having to drive by the comps in my CMA like you have said here in the quot above. If you or anyone else could share how to do this I would be most grateful!

p.s. I also believe I am coming up with my ARV property using sold comps minimum of 3 (if possible) I add the 3 properties prices and then divide that by their combined sq/ft to come up with my average ARV sq/ft price. Next I multiply that sq/ft number by my target locations sq/ft to come up with my ARV. If I am doing this incorrectly please someone let me know! Thank you!

Everything is estimated and kept VERY conservative.

I use the sold comps from Trulia.com and Zillow.com (Do not use the Zestimate)

Average the price per sqft and take 90% of it. That is how I get my ARV.

For repairs I estimate those on the high side as well.

Figure out what it costs per square foot to rehab a property in your area.

In my area its anywhere from $12/sqft (light rehab) to $20/sqft (heavy rehab)

The key to this whole thing is finding EXTREMELY MOTIVATED sellers.

The last deal I did, the seller answered the phone and said..."I own this property free and clear and I need CASH NOW!"

You need that kind of motivation and it is out there trust me. 1 out of 25 will be a motivated seller.

So...take your ARV x 65% - Estimated repairs - your fee = offer price.

I NEVER go look at a property unless I KNOW the seller is EXTREMELY motivated to sell.

Do not waste your time going to look at every house that calls you.

You have to turn over a lot of stones to find the GOLD!

I can't use Trulia.com and Zillow.com or any of the other online sites. I live in Texas and it sucks! We are a no-disclosure state so none of the sites are allowed to post the sold prices, only listing, and that is not very accurate if you don't use the sold prices. You don't even look at the properties? You just trust the pictures or how do you do that?

Sorry misread that you only look at properties that are very motivated. So you don't view the comps you just trust what you see online? This just worries me as I know that like most of google.com's displays are from 2008 and in 4 years (very soon) that is chancy as people may have rehabed those comp properties since then. Or do you get a full report from your agent with new photos from when they were listed? Just thought about that. It might work quite well that way...have him run CMA's on all 14 properties we will be viewing and check the comps now. What do you think?

No CMA's no MLS verification.

Take the SOLD properties on Zillow and Trulia and verify the info on your local county assessors records.

Thats all I do, be conservative with your numbers and find motivated sellers.

I just locked up a 5/1 2 car garage that comped out at $75k from what I got from Trulia and Zillow (SOLD COMPS) not the Zestimate (That is CRAP).

High end repairs are $20k and the property really only needs about $12k-$15k in work. So here is how I came up with my offer.

$75,000 x 65% = $48,750 - $20,000 = $28,750 minus my $5,000 fee = $23,750.

I knew I could pay a little more because the house didn't need that much work so I just offered $25k and they took it without even counter offering.

The sellers original asking price was $40,000 but she needed FAST CASH and the property was FREE AND CLEAR (EXTREME MOTIVATION)

Like I said, don't ever go look at a house unless you know the seller is EXTREMELY MOTIVATED.

If they say they are just LOOKING TO SELL or THINKING ABOUT SELLING, I thank them for their time and end the phone call, move on to the next lead.

You have to find the people that NEED TO SELL NOW! Those are where you can make money.

P.S. The seller was MORE THAN HAPPY to sell for $25,000 and my offer was FAIR based on repairs, I did not lowball her, I could have offered her $10,000 and she probably would have accepted it but that is just wrong and imoral on my part.

Hope this helps.

in the ballpark, they do not have to be exact.

Be conservative, Estimate your ARV on the low side and your repairs on the high side.

The motivated seller does not care how much work the house needs or how much the house is worth, they just want MONEY NOW!

When you get the house at a price that is 67% less than what it would appraise for, you have an awesome deal!

MOTIVATED SELLERS ARE THE KEY TO THIS WHOLE BUSINESS!

WITHOUT THEM YOUR ARE DEAD!

I guess you don't understand on the CMA's agents give us part. That is the ONLY way to get sold comps in non-disclosure states like Texas. Zillow and the others just say it sold then in price it says n/a. I have looked at every site on the net that everyone has suggested. Even redfine that uses MLS is not allowed to post the sold comps price only the real estate agents have that information here. It sucks and those of us in these states have to suffer through it. That is why I want to make sure I am using the correct method for coming up with my ARV and I think you said I was? I just didn't know how those with more experience that I don't have are able to do everything without leaving their houses at all! I am seeking to learn

Not sure if this helps you but I got the following information from HomeInsight

http://www.homeinsight.com/faq12.asp?GCID=Direct

What are non-disclosure states?

While most information concerning property transactions is available for public access, some states (or counties within states) consider the sale value to be private and confidential information. However, they do provide property information and ownership transfers with loan amounts and / or mortgage transfer taxes. In these states, standard practice is to estimate the sale amount by applying a calculation to the mortgage value for sales (not refinances). This formula is based upon a careful study of millions of sales and the ratio of the purchase price to the mortgage amount.

The values that result from this calculation are estimates. While on average they differ only slightly from the actual sale amount, for any individual property the calculated value may differ substantially from the actual sale amount.
Which states are non-disclosure states?

Alaska
Idaho
Indiana
Kansas
Louisiana
Maine
Mississippi
Missouri
Montana
New Mexico
North Dakota
Texas
Utah
Wyoming

How is the sales amount calculated?

Where a loan amount is supplied on a new sale, depending on the type of mortgage, we multiply it by the following value:

Mortgage FHA Amount multiplied 1.01
Mortgage VA Amount multiplied by .98
Mortgage Conventional Amount multiplied by 1.33

On a $100,000 mortgage this would yield estimated transaction values of:

$101,000
$98,000
$133,000

Over time, as lending practices change, these calculations may change.
The definitions for the mortgage types are:

I learned everything about wholesaling in Dean's book "Be A Real Estate Millionaire" You can order this book in the product tab at the top of this page.

Thank you for your posts. It's nothing like logging in to this site, and yours is the first post I see!! Absolutely Awesome!! I am following you here in Jersey, and I am glad to see you are doing well. One of my goals this year after reading about you & seeing you in the DG videos, was to finally meet you but Life's been kickin' me in the butt this latter part of 2011. I've managed to stay on track just not as an REI as I initially planned to. So I'm going to regroup and make 2012 a banner year. And I'm hoping our paths will cross some way or another in 2012 as well. I will look forward to many more of your posts.

Best of success to you. Thank you again.

Happy Holidays!!

Kim

That's simply awesome. You are truly an inspiration. If you don't mind sharing, I'd love to know step by step exactly how you wholesale from home, getting your buyers into these properties in other states without them or other local wholesalers trying to leave you out of the deal, and make sure you get your fees at closing.

It is my desire to have your knowledge. I keep plugging away and enthusiastically and it is my dream in 2012 to make my first deal. Congratulations and Happy Holidays!

Carol,

Congratulations on your continued success! You are my idol! You have been where I am now, and you are now where I want to be. I'm just getting started, and would love the chance to pick your brain. Will you be attending The Edge event next year? THAT would be worth the price of admission! Merry Christmas, everyone.

Whhoohooo! NICELY done Carol!! Congrats girl!

Awesome, awesome stuff!! That just fires me up even more!! Sooo excited for you!!

U Da WOMAN! LOL!!

GREAT JOB!!

Merry Christmas to you and your family! May your cup overflow!
Wishing you a Very Happy, Health and Prosperous New Year!!

Jen

Your deals just get bigger and bigger...and the profit...MORE AND MORE!!!! You are ON FIRE!! way to go and thanks for the inspiration to take things to a higher level.EXCITED for you!!!
Jay

I own and have read this book and profit from real estate right now. I have sent you a pm with my the rest of my comments

Keep it going!

I had a deal in Philly a few months ago that I would have loved to partner with you on! Let me know if you would be interested in the future.

That is really great!! I know how you feel to have this security for your family. I know it has taken 4 years of very hard work, determination and persistence on your part to get to this point (even if you were wearing your PJs!) Again, congratulations and may God continue to bless you and your family.

Merry Christmas,

Michael Mangham
MD Home Acquisitions LLC

See guys don't be greedy. She is making $846.15 a property. It not always about a home-run. But how many runs you have at the end of the game. Great Job Carol.

Randy

Congratulations on your upcoming closings. Living proof that it CAN be done and done now. (Too bad more RE agents can't get that thought through their thick heads. {As the son of a former RE agent, I can say that!!!})

My goal is to duplicate what you're doing. It seems that recently, the steps are getting smaller and I'm on my way to my goal!

Happy holidays,

Andy Sager
DG's AndyS
(Former New Jerseyite, Exit 105 )

Where do the "full service" breakdown numbers come into play, when you apply it to each deal and/or presenting them to the buyers? (Agent commission, closing costs, holding costs, etc.) This has been one of my major holdups. The other has been fear, but if I can get passed the two, I'll be good. On a potential deal, I figured it out with the full service method, and the offer came out to about half the arv or 50% arv including my fee. Does that sound about right? What do you
think?

Thank you for your inspiring stories, and all that you give to us.

I knew you could get 'er done.

I do have one question for you....Are you doing all of this work (from home) by yourself or do you have someone helping you? I am looking to bring my husband in on the business on more of a full-time basis as opposed part-time. Seems as though you are cranking them out pretty swiftly. Just wondering what (if any) systems you may have in place? I have struggled with limiting the different systems that I use and was just wondering....

ARV x 65% Minus Repairs, Minus your fee will cover all of your costs of everything else. 50% is right in the ball park. The last two deals I did came out to 33% of ARV because there were so many repairs needed.

Hi Carol looking forward to working with you on some deals in the very near furtue, Happy Holidays to you and your family, and Happy New Year......John H.

Just wondering about your 65% I have had a few that wanted only ARV x 70% minus repairs, and fee. Any reason you do 65 over 70?

More wiggle room in price and assignment fee.

I have buyers that wil go up to 80% ARV minus repair but I stiil run my numbers at 65% Minus repair to bring them AMAZING deals like Dean says.