 Paging: Ken (NY) (by Roy [AL]) Aug 11, 2021 8:30 AM
 Paging: Ken (NY) (by Dan [NY]) Aug 11, 2021 9:07 AM
Paging: Ken (NY) (by Roy [AL]) Aug 11, 2021 9:18 AM
Paging: Ken (NY) (by LTD [AZ]) Aug 11, 2021 9:55 AM
Paging: Ken (NY) (by RB [MI]) Aug 11, 2021 10:05 AM
Paging: Ken (NY) (by Roy [AL]) Aug 11, 2021 10:10 AM
Paging: Ken (NY) (by Sisco [MO]) Aug 11, 2021 10:50 AM
Paging: Ken (NY) (by S i d [MO]) Aug 11, 2021 11:19 AM
Paging: Ken (NY) (by Ken [NY]) Aug 11, 2021 11:27 AM
Paging: Ken (NY) (by WMH [NC]) Aug 11, 2021 12:10 PM
Paging: Ken (NY) (by Roy [AL]) Aug 11, 2021 12:11 PM
Paging: Ken (NY) (by Ray-N-Pa [PA]) Aug 11, 2021 12:17 PM
Paging: Ken (NY) (by Ken [NY]) Aug 11, 2021 12:36 PM
Paging: Ken (NY) (by MAP [NY]) Aug 11, 2021 2:34 PM
Paging: Ken (NY) (by Roy [AL]) Aug 11, 2021 2:41 PM
Paging: Ken (NY) (by myob [GA]) Aug 11, 2021 2:47 PM
Paging: Ken (NY) (by Ken [NY]) Aug 11, 2021 2:52 PM
Paging: Ken (NY) (by Homer [TX]) Aug 11, 2021 3:02 PM
Paging: Ken (NY) (by Dan [NY]) Aug 11, 2021 3:09 PM
Paging: Ken (NY) (by Ken [NY]) Aug 11, 2021 3:18 PM
Paging: Ken (NY) (by Roy [AL]) Aug 11, 2021 3:24 PM
Paging: Ken (NY) (by Ken [NY]) Aug 11, 2021 4:36 PM
Paging: Ken (NY) (by Ken [NY]) Aug 11, 2021 4:51 PM
Paging: Ken (NY) (by 6x6 [TN]) Aug 11, 2021 5:16 PM
Paging: Ken (NY) (by BRAD 20,000 [IN]) Aug 13, 2021 1:20 AM
Paging: Ken (NY) (by BRAD 20,000 [IN]) Aug 13, 2021 1:22 AM
Paging: Ken (NY) (by Roy [AL]) Aug 13, 2021 8:09 AM
Paging: Ken (NY) (by Ken [NY]) Aug 13, 2021 11:03 AM
Paging: Ken (NY) (by Roy [AL]) Aug 13, 2021 5:08 PM
Paging: Ken (NY) (by Ken [NY]) Aug 13, 2021 5:36 PM
Paging: Ken (NY) (by Roy [AL]) Aug 13, 2021 6:33 PM
Paging: Ken (NY) (by Ken [NY]) Aug 13, 2021 11:16 PM
Paging: Ken (NY) (by Roy [AL]) Aug 14, 2021 10:18 AM
Paging: Ken (NY) (by 6x6 [TN]) Aug 14, 2021 1:52 PM
Paging: Ken (NY) (by Ken [NY]) Aug 14, 2021 7:26 PM
Paging: Ken (NY) (by Roy [AL]) Posted on: Aug 11, 2021 8:30 AM
Message:
On Zillow yesterday, I saw a house for sale in a neighborhood where I have several rental houses. I assumed this was an FSBO until I called the number. Turns out the seller here is not the homeowner but a wholesaler in another state. The wholesaler has this house 'under contract' and he says in his Ad he intends to 'assign the contract'.
Ken - I am going to make an attempt to 'deal with this wholesaler' and just see if I can negotiate a fair deal with him. I may need your assistance on this since you seem to understand how wholesalers operate. Sometime today I will get to see the inside of this house and meet the tenant who pays rent there.
What I really need to know is what amount the wholesaler has this house under contract for. His asking price in his Zillow Ad was $49K but I would never pay that amount. Once I see the inside of the house today, I can then calculate my first offer on the house. I did talk with the wholesaler on the phone yesterday and I can tell he is 'eager' to get this deal to the closing table. I can also tell he is an amateur and has not been wholesaling for very long.
Any advice for me moving forward with this wholesaler? --68.63.xxx.xxx |
Paging: Ken (NY) (by Dan [NY]) Posted on: Aug 11, 2021 9:07 AM
Message:
Should I come a cross a house on Long Island for 49k that would be the day. What is the rent for this house? --107.242.xxx.xx |
Paging: Ken (NY) (by Roy [AL]) Posted on: Aug 11, 2021 9:18 AM
Message:
Dan,
The zillow Ad said the rent was $825.00, however, for this neighborhood that number is way on the high side. If I get to meet the tenant today, I will find out what the true rent actually is. Usually when I buy a house, I prefer the house to be vacant since my worse tenants of all time have been the few that I inherited from another LL. I prefer a clean slate and to choose my own tenants. --68.63.xxx.xxx |
Paging: Ken (NY) (by LTD [AZ]) Posted on: Aug 11, 2021 9:55 AM
Message:
Roy - good luck on a deal, sounds like another "wheel spinner" to me. I've never had any luck with middlemen. They just drive the cost up. Sounds like he's trying to flip the contract, probably has a 60 day escrow or something and hopes the feeding frenzy will provide a sucker before he has to pay out.
--47.216.xx.xxx |
Paging: Ken (NY) (by RB [MI]) Posted on: Aug 11, 2021 10:05 AM
Message:
5 Bucks says your deal don't happen. --199.192.xxx.xxx |
Paging: Ken (NY) (by Roy [AL]) Posted on: Aug 11, 2021 10:10 AM
Message:
LTD,
The few wholesalers I have dealt with in the past have all had a sleazy nature to them. Now, I am willing to allow any wholesaler the opportunity to make a small profit on his deal but not a large profit. It is like dealing with a new car salesman and the MSRP on this new car is just way too high. It all comes down to how much over dealer cost am I willing to pay? You have to know what the dealer paid though before you can negotiate like this.
I have another house that is a true FSBO (my favorite) that listed for $25K and I already have that seller down to $10K. The big question now is,...can I get it at $5K? I have set the hook and now I am trying to reel him in. --68.63.xxx.xxx |
Paging: Ken (NY) (by Sisco [MO]) Posted on: Aug 11, 2021 10:50 AM
Message:
The sales contract between Mr. Sleazy Inc. (buyer) and Homer Jones (Seller) and any Authorized Agent of Mr. Sleazy Inc for the purchase of 12955 Fairview Drive Gadsden AL dated June 27, 2021 is herby assigned to Roy AL.
--149.76.xxx.xxx |
Paging: Ken (NY) (by S i d [MO]) Posted on: Aug 11, 2021 11:19 AM
Message:
Roy...if he's overpriced (as you say), then just wait for his deal to fall thru. He won't be able to sell it. Look up the owner's info on tax records or talk to the tenant and get it. Then swoop in with your offer directly.
I've only bought 2 houses from wholesalers, and they were legit guys like the "We Buy Homes" folks. I picked up their scraps a few days before they were set to lose the deals for lack of sale by the time required, so the assignment fee was very low and didn't cut into my margins in any meaningful way. I'm happy to pay someone $500 - $1000 to find me a deal....and that's what these ended up being.
Most, as noted above, are newbies who don't know what they're doing fresh out of a "guru" seminar thinking they can get a $30,000 house under contract for $20,000 then sell it to you or me for $28,950. Nope... I can get 20% any day by myself. No need for a middle man to jack up the costs. Now if they bring me that deal for $21,000... I'll probably go for it because it saves me hours ot time driving around to save a grubby grand.
That's what I'd do IF I were still buying residential, which I'm not. Commercial only at this point. I'm finding deals where no one else is looking. Many investors never look past residential and that's fine by me. I have yet to find a wholesaler on the commercial side. Far less competition. Makes my life easier and my wallet thicker. (*Grins) --108.230.xxx.xx |
Paging: Ken (NY) (by Ken [NY]) Posted on: Aug 11, 2021 11:27 AM
Message:
Roy,The real problem with most wholesalers is they dont have any clue what they are doing and they want to make a killing on every deal.If he knew what he was doing he would just make a couple of calls and have it sold to someone he knows.I dont make an offer like most people do,i approach it from a standpoint of i will help you get out of this problem. call and find out the owners name,find out how much back taxes are owed. is your county clerks office office online? find out if they have a mortgage,is it in foreclosure? estimate how much is owed,any judgments? that will give you an idea of where to start.$49000 means nothing like you said,he could have a contract for $10000 although if it was that amount he should close it and sell the house itself.I would tell him i need to see his contract? he will probably say no then i ask you want to sell mr a contract but you wont let me see it? i need to know how long till it is supposed to close,does the contract even allow for a title search etc.I would then tell him that i am very experienced and i can maybe buy this house and get you out of this problem you created and you might make a few $ and you will learn something along the way but i am not buying this deal without knowing what i am getting myself into.If he says no i would tell him to have a nice day.I would mail my usual letter to the owner offering to buy the house,when this guy stops returning there calls they might call you.If you want call me 518-365-nine,four,two,eight --72.231.xxx.xxx |
Paging: Ken (NY) (by WMH [NC]) Posted on: Aug 11, 2021 12:10 PM
Message:
I was somehow on a wholesaling FB group once, and some of the group was yelling at some of the other members for their sleazy tactics. Kind of funny.
I still don't understand the process. --50.82.xxx.xxx |
Paging: Ken (NY) (by Roy [AL]) Posted on: Aug 11, 2021 12:11 PM
Message:
Thanks Ken!!! I knew I was paging the right person here. You definitely know the wholesalers and the crap they try to pull. I agree with everything you said (and Sid too).
I am going to ask this wholesaler for the contract he wants to assign. He will most likely say no but I will tell him he has nothing to lose by dealing with me in good faith. If he still refuses, I will make him a low offer and just leave it at that.
My best guess is, he has this house under contract in the low 30's and he is trying to clear at least $10K profit on it. I know this neighborhood much better than he does and in a normal market, the ARV of this small 2/1 house would be about $55K. --68.63.xxx.xxx |
Paging: Ken (NY) (by Ray-N-Pa [PA]) Posted on: Aug 11, 2021 12:17 PM
Message:
Last whole saler I dealt with that was out of the area had a place listed at about $35,000 over the price it should have been IMO. The group was from over by NE, but from a large city area so they didn't have a clue about local market conditions.
It doesn't take much to whole sale a property. On your next contract have Buyer: Roy (Al) or assignee listed. Then add another $15,000 to your sales price on your contract.
Then it is only a matter of gathering a list of cash buyers at your next REIA gathering. Simply go to the person running the meeting and introduce yourself....then ask them to ID three cash buyers in the group.
Introduce yourself to those three people - get there card and what they are looking for and ask them for three other cash buyers in the group. In three hours you should have 9 solid buyers in the group and what product they specialize in --24.101.xxx.xxx |
Paging: Ken (NY) (by Ken [NY]) Posted on: Aug 11, 2021 12:36 PM
Message:
Gurus push wholesaling as the place to start because they say you need no experience and no cash,problem is you screw up someones life if you mess it up.The reality is you need a lot of experience to do it well,you have to get a place so cheap you can call someone like me and get me to pay more than the wholesaler paid which is pretty arrogent to think that they can get a better price than someone who is experienced at it.I get a couple calls a month,get the basic info on the house,ask the price then i end up telling them i am not even driving down the street for that price and i never hear from them again.Roy,let us know what happens --72.231.xxx.xxx |
Paging: Ken (NY) (by MAP [NY]) Posted on: Aug 11, 2021 2:34 PM
Message:
Interesting. I just "bought out" a rent to own agreement. the former tenant wanted to be bought out of his RTO agreement to enable him to move out of state so purchased a circa 1840 large 3 bedroom 1.5 bath SFH for 11K + closing costs.
Had an abstract done and he's bye bye. he was somewhat problematic in that he was running a clip shop on the front lawn as well as being a felon for burglary. The code enforcer, a former police officer, couldn't stand him or the original weasel owner. Similar house next door with cosmetics done is listed for 89K with contingency offer.
The hood is much quieter now (C+/B-) House is in rough shape cosmetically but has good bones. one half of the roof has been replaced; we'll be doing the other half shortly. Some ceiling leak damage. --174.208.x.xx |
Paging: Ken (NY) (by Roy [AL]) Posted on: Aug 11, 2021 2:41 PM
Message:
Ken,
I drove by the house this morning and I noticed this house looks a little different than what the photos on Zillow show. I hope to be going inside this house this afternoon. I need to make sure this house is not a 'pig with lipstick on it' since there is no shortage of pigs in my town. I can spot a pig just by walking thorough it.
I will let you know what happens next, especially when I start negotiating with the wholesaler. I did check the tax records and the actual owner of this house is in AL but in a city that is 200 miles away. I assume he is a burned-out LL that hopes to get rid of this house quickly via a wholesaler.
--68.63.xxx.xxx |
Paging: Ken (NY) (by myob [GA]) Posted on: Aug 11, 2021 2:47 PM
Message:
KEN ny TRY MASTIC BEACH OR MASTIC. --99.103.xxx.xxx |
Paging: Ken (NY) (by Ken [NY]) Posted on: Aug 11, 2021 2:52 PM
Message:
Roy,I doubt the actual owner even knows that his supposed buyer is a wholesaler,he thinks he has a solid contract to sell it and it will be closing soon.That will only happen if you buy it and save the day --72.231.xxx.xxx |
Paging: Ken (NY) (by Homer [TX]) Posted on: Aug 11, 2021 3:02 PM
Message:
Roy, I rolled through your town again Sunday morning from 59 to Rome. I just love that river. I still can’t believe you can buy houses so cheap. In my town, the cheapest is around 225 currently. Every time I pass by, I wonder if one of those houses I can see from the road near the hospital belongs to Roy. :) --98.192.xx.xx |
Paging: Ken (NY) (by Dan [NY]) Posted on: Aug 11, 2021 3:09 PM
Message:
The Mastic or Mastic Beach area is no longer cheap. I know the area well and have one rental in the area. The market is certainly active on the Island. As an agent too, the sales have been very busy. --107.242.xxx.xx |
Paging: Ken (NY) (by Ken [NY]) Posted on: Aug 11, 2021 3:18 PM
Message:
MYOB,Dan i am 3 hours north of Long Island.My area is rural,i mean amish in the area rural,which is fine with me --72.231.xxx.xxx |
Paging: Ken (NY) (by Roy [AL]) Posted on: Aug 11, 2021 3:24 PM
Message:
Homer,
That river is called the Coosa and it's origin is actually up near Rome, GA. The Coosa river actually divides my city into 2 parts, East and West. All of my rental houses are on the East side of the river. I assume you took Hwy. 411 North to Rome, GA. Hwy 411 North is on the West side of the river.
Ken(NY): Just for assumption sake, if this deal were to make it to the closing table, would there be 2 closings scheduled back to back? And who pays closing cost here? --68.63.xxx.xxx |
Paging: Ken (NY) (by Ken [NY]) Posted on: Aug 11, 2021 4:36 PM
Message:
Roy Assuming it is a real wholesale deal which means he assigns the contract to you there will be 1 closing.By assigning the contract you take over his position and give him a check for the assignment fee.So if he is paying $20000 and you agree to $25000 he will get $5000 and the seller gets the $20000 with normal adjustments.This is part of why you want to see the contract, has he agreed in the original contract to pay the sellers closing costs? has he agreed to $100 penalty per day penalty for closing after a certain date and that date was 3 days ago? If he had the capacity and willingness to pay for the house with his money he could have a closing to buy it then sell it to you later at whatever price you agree to it.If he marks it up just a little bit an assignment is good because he wont have closing costs that would eat up the whole assignment fee but if he were buying for $20000 and selling it for $45000 he should have 2 closings so you dont know how much he is making --72.231.xxx.xxx |
Paging: Ken (NY) (by Ken [NY]) Posted on: Aug 11, 2021 4:51 PM
Message:
Roy Assuming it is a real wholesale deal which means he assigns the contract to you there will be 1 closing.By assigning the contract you take over his position and give him a check for the assignment fee.So if he is paying $20000 and you agree to $25000 he will get $5000 and the seller gets the $20000 with normal adjustments.This is part of why you want to see the contract, has he agreed in the original contract to pay the sellers closing costs? has he agreed to $100 penalty per day penalty for closing after a certain date and that date was 3 days ago? If he had the capacity and willingness to pay for the house with his money he could have a closing to buy it then sell it to you later at whatever price you agree to it.If he marks it up just a little bit an assignment is good because he wont have closing costs that would eat up the whole assignment fee but if he were buying for $20000 and selling it for $45000 he should have 2 closings so you dont know how much he is making --72.231.xxx.xxx |
Paging: Ken (NY) (by 6x6 [TN]) Posted on: Aug 11, 2021 5:16 PM
Message:
I need to follow this. I saw the name Ken. --73.120.xx.xxx |
Paging: Ken (NY) (by BRAD 20,000 [IN]) Posted on: Aug 13, 2021 1:20 AM
Message:
Roy,
My 2 cents…
One legit wholesaler I know says “Give me $xxxx and you can have this contract to buy at $yyyy.”
Another, I simple ask him how much he wants for himself and how much is the property.
One wholesaler just wants $1000 on each deal. He works on volume.
Another focuses on out of state buyers and charges $10-30,000 on $100-150,000 homes.
I’ll look at any offer but the problem I usually run in to is an impossible purchase. This is often a last ditch effort before a looming foreclosure, overloaded in debt, unpaid property taxes, realtors could not sell it, no equity, no margin…
In the end, just offer what you are willing to pay.
BRAD --73.102.xxx.xxx |
Paging: Ken (NY) (by BRAD 20,000 [IN]) Posted on: Aug 13, 2021 1:22 AM
Message:
BTW state laws vary, making SOME wholesale technics illegal. SOME require realtor licenses.
BRAD --73.102.xxx.xxx |
Paging: Ken (NY) (by Roy [AL]) Posted on: Aug 13, 2021 8:09 AM
Message:
Brad20K
Today at 3:oop.m. is when I finally get to see the inside of this house and meet the current tenant. If the house meets my min. standards of a house I would want in my inventory, then negotiations with the wholesaler will begin. If he refuses to e-mail me his 'contract', then there will not be much more to talk about. I will just move on to the next deal. This wholesaler needs me much more than I need him and I hope he understands that. --68.63.xxx.xxx |
Paging: Ken (NY) (by Ken [NY]) Posted on: Aug 13, 2021 11:03 AM
Message:
Roy,that is the right attitude,he needs you more than you need him. let us know what happens --72.231.xxx.xxx |
Paging: Ken (NY) (by Roy [AL]) Posted on: Aug 13, 2021 5:08 PM
Message:
Ken,
I toured the inside of the house and saw a typical run of the mill 2/1 rental house that would be worth about $25K-$30K.
I called the wholesaler and asked for his contract. Of course, he refused to e-mail it to me but he did tell me he had this house under contract at $40K and he was expecting to get a $6,000.00 assignment fee for a total contract of $46K. I told him the most I would pay (including closing and his assignment fee) would be $30K.
So that is where it stands. We are $16K apart and I doubt I will be buying this house unless either the homeowner/LL or the wholesaler gets hungry and wants to re-negotiate again. --68.63.xxx.xxx |
Paging: Ken (NY) (by Ken [NY]) Posted on: Aug 13, 2021 5:36 PM
Message:
He wayover paid but that is common with new wholesalers.Kind of amusing,i want to sell you a something,in this a case a contract but i wont let you see what i am trying to sell. --72.231.xxx.xxx |
Paging: Ken (NY) (by Roy [AL]) Posted on: Aug 13, 2021 6:33 PM
Message:
Ken,
I think this guy was B.S.ing me about his contract price. I have a feeling he will call me back in about 2 weeks with a new 'contract price'. Plus, with a tenant living in this house, that will cut down on the number of potential buyers he can sell this house to. Also, since mortgages are not available for any house that sells below $50K, that means he will have to have a cash buyer. --68.63.xxx.xxx |
Paging: Ken (NY) (by Ken [NY]) Posted on: Aug 13, 2021 11:16 PM
Message:
Roy,send a letter to the owner offering to buy the house,dont acknowledge the you know anything about a wholesaler.When he doesnt perform they might call you.I have no problem stealing it in a case like that where the wholesaler has no capacity to close --72.231.xxx.xxx |
Paging: Ken (NY) (by Roy [AL]) Posted on: Aug 14, 2021 10:18 AM
Message:
Ken,
I look at 20 houses before I begin to make offers. These days 99% of my offers are getting rejected because they are so many idiots out there running around with free stimulus money who are competing with me and they are willing to offer more than the asking price too!!
I lost one yesterday when a fixer-upper house (think major 3/1 dump in D hood) that I was going to offer $5K on, sold to someone else who was willing to pay $10K OVER THE ASKING PRICE of $15K! Un-believable! In all of my 15 years in this business, I never seen anything like what is going on now. Buyers (south of the border types with CASH) are offering insane amounts for crummy houses in crummy neighborhoods. It is definitely a seller's market right now. I am not sure whether I want to stay in this market or maybe just sit on the bench and wait for this absolute insanity to calm down a bit.
--68.63.xxx.xxx |
Paging: Ken (NY) (by 6x6 [TN]) Posted on: Aug 14, 2021 1:52 PM
Message:
Talk about insane, there is a sign about a house for sell near me. It is a flipper I believe. The guy has nothing to this house or yard. It is a complete dump with vines and everything else growing all over the house. The house will need everything. Small city lot, overgrown. It is a 3/2. The guy wants $198,700. --73.120.xx.xxx |
Paging: Ken (NY) (by Ken [NY]) Posted on: Aug 14, 2021 7:26 PM
Message:
Roy,I talk to a lot of people on the phone and dont even go look at most of them,when i actually go i get most of them since i make they are motivated before i leave the house.I have been doing pretty good lately advertising for free on facebook garage sale sites. --72.231.xxx.xxx |
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