More help on Carols Topic

Thanks for starting this thread Mr-Real-Deal.
Carol was great. Her nervousness didn't really show through

I know she didn't answer all the questions because not all the questions were asked by the moderator. My question pertains more to wholesaling REOs. There are plenty of "GURUS" out there saying you can but is this a wise move for a new investor?
Anybody got an opinion?

Andy sager
DG's AndyS

I would advise against trying to wholesale a REO. Banks don't like it because the end buyers name isn't on the PA.

Tonight you talked about researching your area. I found with my cash solds list that the 3 hottest zip codes are all in bad areas. Should I still stay away from those areas?

For example

zip 1: 115 sold
zip 2: 106 sold
zip 3: 79 sold

The nicer areas with good schools and new road construction are all in the 50's and 60's.

What would you advise?

CAROL
ON YOUR BAD CAMDEN DEAL THAT YOU SPOKE ABOUT AND ANY DEAL FOR THAT MATTER THAT WHAT DO YOU WRITE IN YOUR CONTRACTS TO USE AS AN EXIT???

ALSO, HOW DO YOU FORM YOUR OUT OF STATE TEAMS?

THANKS
DONNA

Carol was just great tonight. I'm a newbee and I don't understand how to use the assignment clause in NJ. I know sometimes distressed sellers can't afford to use an attorney but when they do, most all NJ attorneys will knock out the assignment clause. Also, banks when selling REO's will not accept the assignment clause either. So how do we use the assignment clause in NJ? Please help if you can. Jersey Jer at the Jersey shore

Hello Donna,

I am not carol but I can tell you what I use with sellers. I use what is called a Flex Option Contract. I let my sellers know up front that I work with a list of investors and that I will be selling the house to them. In the time of 30days if I do not have the house sold we have the option to renew for another 30 days. After that the flex option and the purchase and sale agreement are void if it is not sold.

Thank you. This I think is the answer to my question to Carol when she was
speaking about the 30-day contracts with the seller. If you don't get the
house sold in the 30-day timeframe, what might happen at that point?

Is this contract form standard? Can we get it on this site?

This was a very excellent mentoring session for those who have not gotten
going yet.

rieke

OK I am gonna join in here if I may

Yes you can wholesale REOs, I do about 10 a month, but no you cannot use an assignment. You must get paid a separate fee from your buyer. Ex. My buyer pays the bank a fee and pays me a separate fee not on the MFA AKA a finder's fee. I will cover more of this over the next couple of weeks so keep listening in.

I believe the way out of this is to do a double closing. You may need to use "transactional funding" to buy the property and close the second sale the same day which pays back the funder or you pay the funder. This takes a good title company so you need to check with your title company (or closing company depending on where you are) if they will do double closings before you move forward.

Hope this helps

Andy Sager
DG's AndyS

Rieke,

I got the flex option contract from another wholesaler that I work with in my area. They actually introduced it to me. I meet them at my local REI club. I have not seen one on this site. However the Purchase and Sale agreement I use is from this site with a couple of my own additions.

I also have problems with the questions. System's not working.

Carol, when you get the list of cash buyers from Realtor's they don't have the owners name. Now is you go to the corresponding county to look for them, some don't show up.
Is there a way the realtor can get you the names of owners?

Thank you

Ok I'm no expert, far from it, but my OPINION would be to follow the money, abo****ely. I'm from Detroit and there are plenty of bad neighborhoods; granted lots of investors stay away, however, there are always local investors. Normal everyday people who grew up (and sometimes still) live in those areas who arn't afraid of the area or the people. Also, it has been my experience foreign investors don't really mind, they are all about the numbers. I remember a few years back, I lived on a really bad block in a horrible neighborhood. I'd say at least 75% of ther houses on the block were abandoned, vacant, burnt down, or spots (drug houses). Well one day a foreign investor came and bought THE WHOLE BLOCK, every vacant, abandoned or burnt down house on the block and hired half the neighborhood to do the labor. Now they were only making about $5 an hour but that had to have been great for the investor. He did hire some contractors as well to do the major repairs, but from the outside looking in, he appeared to have leveraged his money very well. By the way, he did have a gun on both hips at all times. The houses were all destroyed again within a year or so, but I'm sure he had them insured. Heck, that might have been his plan all along. I wouldn't be surprised if he actuall hired someone from the neighborhood to burn them down. So anyway just thought I'd share that. Now, of course, don't take it and run with it, always continue to do your own digging until you uncover the answers that you are comfortable will work for you.

Am so very new and friends of DG family,
I need every help i can get to make this happen
It has to work,right now iam so overwhelmed.
Carol this wholesaling is the strategy and road i need to take now
Thank you again.
BK milka

Does anyone know when the replay will be available? Carol- thank you to you and the other mentors for all you are doing!

How did you get the list of cash buyers. In my state agents do not have this option as a search field. I have asked multtiple agents and they all said teh same thing.

The agent has to manually add the cash sales search option, for it to work. I read that in a post somewhere the other day. If I find it again, I'll post it here.

Yes, you can wholesale REO's. You just have to think smarter & get creative. You tell the banks title company you want to do a courtesy closing at your title company & that you will sign all the paperwork there. (Don't tell them any details other than that) Then you setup the transaction with your buyer at your title company, so it's ready to go. Once your title co. gets all the paperwork from the banks title co., you'll sign everything & your title co. will use the funds from the buyer to close on your transaction with the bank, and pay you your assign fee. At that point, your title co. will send everything back to the banks title co., and you are good to go.

Yes, you are correct there was a step by step instruction that soemone posted. I explained the process to them but still did not work.

We have to remember that "bad neighborhoods" is in the eye of the beholder sometimes. Due diligence is what is important. We have a little rent house in a neighborhood that one realtor told us was very bad and she didn't know if we could sell it or even rent it. However, we had checked and the crime rate for this neighborhood was no different than for the entire city. Just remember, that people have to live where they can afford to live. We fixed it up, made it one of the best looking houses on the block and rented it to a nice well qualified couple using our property management team before it was finished. In fact, several of the neighbors helped my husband clean up the yard, cut down a tree, and pull the vines off of the house. They were pleased that the house was being fixed up. It has a great positive cash flow. That is what all investors are looking for--the numbers. So don't throw out a neighborhood because it is consider "bad".

You need to see "WHY" these cash buyers are buying in these areas. My opinion is they are buying and holding, not flipping. These areas bring great "TRASH CASH" as Investors are able to get good section * tenants.

Remember I said find the WHY? The cash buyers that are going to rehab and flip will do so in good areas, the ones that are buy and hold dont mind the bad areas... do your research

You don't need their name to research an area. You just want to see WHAT they purchased, WHERE they purchased etc... to get a good feel for the market that is most active for Investors.

You will learn how to find and contact them on another call. Last night's call was about researching the area... you guys are jumping ahead of me...lol