OfflineAs the under $50,000 SFR's are getting snatched up by local heavy hitters and out of town investors here in Vegas it's getting harder and harder to get deep discounts, but I got another one!
I put it out to my "more retail" rehabber first-- if they decline, I'll go to my "more retail" landlord and then to one of my heavy hitters, a buy n' hold guy doing high volume-- I have 7 days due diligence, so I'll let you know when it's "sold".
Specs & Details:
Motivated Owner (not an REO, but listed)
3X2, 1270sf, built 1964
Listed in 12/11 at $58,900, reduced to $55K in February.
My first offer of $41,400 was countered at $54K. When I asked what the owner needed to make the deal work, they said $44K cash and a carry back of $10K. I passed. That was 2/29. Watching my open offers, I re-offered $41,400 on 4/9. Seller countered at $48,000 and with this up-tick in sales I did not want to lose it, so I went back with $45. It was accepted.
The comp is $63,500, so the spread isn't optimal, so it's better for a buy/hold client. It should rent for $850. Even at only $800 that's 13% to costs.
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
Great job! my question is are you assigning this deal can you tell us what your plan of sale is? Are you buying it cash? or are you wholesaling it to another investor and how much profit will you get? Thank you.
Hi Allan,
Yes, I am essentially assigning. Notice I said in the next 7 days I will have it "sold"? I did not however write in "/and/or assigns" on my contract because 99.9% of my deals are REO's which cannot usually be assigned, soooo
I write in "/exact entity TBD" after my name (LLC, really). That allows me to do a few things in NV (all states are different, and all counties are different so you need to find out from your Title Co., RE Atty, Realtor, and/or County Recorder what you can do in your locale):
- I may be able to substitute my LLC for "my buyer's", per negotiation with the seller
- I may be able to add a buyer, per negotiation with the seller
- I may be able to assign the contract, per negotiation with the seller
- or I may do what I most often do: use my buyer's money to fund closing by way of a 3rd Party Wire agreement through Title, or with a simple side agreement with my buyer where they wire funds to my LLC bank and I wire the funds to Title, then after closing I Quit Claim the property to my buyer and rightful ownership is recognized by the County Auditor and recorded.
In any case I will have negotiated my fee with my buyer and with a side agreement I get my check at the time of negotiation or upon handing over the keys, prior to recording the deed.
In simple terms, I'm wholesaling.
If I went into too much detail, please forgive me for TMI. The detail is for anyone new getting into wholesaling -)
Take care.
-Tina
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
Way to go and keep us posted!
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
I know what you mean about not getting those discounted properties...Its even getting hard to get good deals from the bank....Keep up the good job
Thank you Thomas and Tammy!
Allan, I think I forgot to say-- yes, my deals are cash.
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
Cycle completed:
Verbal acceptance 4/13, locked-up 4/16, I showed this one to two buyers. Had to renegotiate on my fee, but it's all good!
My price- $45,000
My buyers price- $49,000
Profit- $4,000 less closing costs
(should net $2,800)
Buyer will wire funds directly to escrow tomorrow, it closes Thursday. I'll be in Scottsdale for the Edge!
It's a double-good day!
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
Verbal acceptance 4/13, locked-up 4/16, I showed this one to two buyers. Had to renegotiate on my fee, but it's all good!
My price- $45,000
My buyers price- $49,000
Profit- $4,000 less closing costs
(should net $2,800)
Buyer will wire funds directly to escrow tomorrow, it closes Thursday. I'll be in Scottsdale for the Edge!
It's a double-good day!
Nice job Tina! So in essence, this deal pays for your EDGE trip (at least most of it anyways
)
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
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Yes! It does, I worked off my EDGE costs. Good math Mark.
Ring the bell!
Verbal acceptance 4/13, locked-up 4/16, I showed this one to two buyers. Had to renegotiate on my fee, but it's all good!
My price- $45,000
My buyers price- $49,000
Profit- $4,000 less closing costs
(should net $2,800)
Buyer will wire funds directly to escrow tomorrow, it closes Thursday. I'll be in Scottsdale for the Edge!
It's a double-good day!
Nice job Tina! So in essence, this deal pays for your EDGE trip (at least most of it anyways
)
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
When the HUD1 came in I was surprised to get a discount for closing with the same title company and the CC were lower than I thought. My buyers generally pay the closing costs on top of what I sell it them for, but on this one the negotiation was "all-in" at $49,000, so I took the closing costs.
Anyhow, I'm up a little more than I thought. Deal closed today. My agent will take the keys to the buyers and I will Quit Claim next week. Done deal!
Yeah!
We had a minor hiccup, just questions on the disclosures I received from the seller and had passed to my buyers-- I had to get a letter from the seller real quick explaining it and it all worked. I had my breath for just a second.
I have some REALLY BIG NEWS coming that I will report on tomorrow. Don't want to jinx it -)
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176