5th Offer On REO Accepted, Sold to 1st buyer!

your perseverance has paid off once again... and you are blessed!

Keep banging them out Michael, love hearing the deals. Working on our organization, right now it stinks, committed to have it fixed asap. I remember you had a post one time about how you handle your paperwork to stay organized with offers, do you know which forum that was under or could you report here? THANKS

Thanks Val!

Jack,

My system is old school and very simple. My wife and my 18 year old computer wiz daughter keep telling me to do some fancy spreadsheet stuff. But by the time I do my stuff I would still be entering data!

So what I do is this. I have a 31 day file. Every REO offer or offer I make through my agents has a POF attached to it. Every offer I make directly with a seller has a 1 page purchase contract. I simply put those papers in my file 3 days to 2 weeks from the offer date depending on the deal. When the deal comes up I note the status on the POF letter or the contract and place them back in the file for review in 3 days to 2 weeks. I go through this process until the property sells or we get the deal.

I just looked in my file. I have 276 active deals that have had one or more offers rejected!! Average time in the file? 9 weeks!

Hope that helps you.

Hope all is well with you guys,

Michael

Ha, 276 active deals, your killing me! No wonder when you post out here its about another closed deal. I need to get to work! THANKS for the info on your process, I am a manual kinds guy but its not organized, so I either need to get organized like you or get my techy skills going and automate it.

you guys are ROCKIN'. you need to rub some of that off on us lol.
keep moving forward, rob

Now that's what I'm talkin'bout Michael, I really enjoy your posts here and when you make them I know I will learn a very "valuable" bit of Info! It's simple as that!!

QUESTION= When you happend upon a deal that is going through foreclosure and the Bank has not foreclosed on the seller? what would be the thing to do here?
Let it go through foreclosure and then make offer when it is an REO?

I found a deal that is in the Pre-Foreclosure status the bank will foreclose at the end of the month. They owe about 5 months in payments and needs a good amount of repairs....

ARV= 155,559.00 Sold Comparables
Seller Owes= 128,800 (P/O from bank prorated)
Repairs include=Carpet throughout 2126sqft
Paint throughout, bath update vanites,lights,kitchen cabinets ligh fixtures
HAS= New Roof in 2012 (8mons ago)

The sellers do not want to make anything just paid off per their bank advising them they must sell it for what is owed AS IS was their add FSBO

My thoughts= The bank must be kidding! Any possibilities on this one?
I have a partner who walked it and reported that there were NO utilities on and hard to see without light on every detail but just needs a remodel job.

PUSH= Persever Until Something Happens--Dean Quote

We work directly with unlisted homeowners in pre foreclosure. That way WE control the offer and what kind of deal we structure. The only info we need from the sellers lender is the payoff and the cure amount. What it will take to buy or what it will take to stop the foreclosure. Then we determine the exit strategy based on the situation. When dealing through an agent on a listed property that is headed towards auction you are kind of at the mercy of the agent and the lender.

The deal you list above clearly is not a wholesale deal or a good fix/flip. It could be a good L/O deal if the cure amount is not too high.

Usually when in the pre foreclosure stages the lender will NOT take less than the seller owes IF the sellers have equity. Of course a short sale situation is also a different story.

I have bought properties that had little equity, went to auction, no one bid on them, they went back to the lender and we then offered less than what the seller owed and the offer was accepted!?! Sometimes these banks make no sense. The BPOs they get I think are done by agents driving past the property at 100MPH!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Actually the owner was trying to sell it on his own and I found his add and called him to find out his situation it was not listed. I could help him by making him an offer and one that would make a good assignment. The equity he has is 26,759.00 However, the repairs needed may chop away at that equity for an end buyer so yeah not a good wholesale deal.

I figured that since he didnt want to make a profit from it, he was trying to do his part and find a buyer to buy his mess at 128,800.00 I am wondering what the insentive was for the seller since he had filed bankruptcy anyway and really didnt care about keeping a foreclosure off his credit. Also, he didnt live in the house and had rented it to a handyman that was supposed to do the remodeling, but up and left the house 5 mons. ago...

So this maybe a good one to keep on my "radar"...

Thanks for the golden nuggets!

PUSH=Persever Until Something Happens--Deans Quote

L/O would need to catch up 5 mortgage payments(1300) and put in about 10-15k in repairs...So I just need the seller to fill out the mortgage release of information I emailed him, whithout it, it's a gonner! Who else can I check the status on it? Only when it's listed through an agent as a BPO?

PUSH=Persever Until Something Happens--Dean's quote

Don't forget the selling costs that get deducted from that equity! Commissions, closing costs, utilities, taxes, insurance, About 10%, so take away about $15000 of the "equity" and then of course there is your fee. Nothing is left! Not a wholesale deal.

So I think you are headed in the right direction pursuing the L/O.

Michael

It all comes down to multiple offers! With out a property you have ZERO chance of making money!

Thanks Again!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLc

Congrats again Michael! I also love hearing your stories

Thanks! How is that little one doing?

Michael

Thank you for your posts, I enjoy following your success and progress. You are always involved with amazing deals. I love seeing even superstars doing wholesaling. I teach it to students all day longs and having great examples like yours helps to give motivation to get out there and make these deals happen.

Thank you again,

I starting out thinking I would just wholesale to build up some capital and then do some fix/flips and buy/holds. But I will always wholesale. Besides, I use other peoples money when I fix/flip. I never use my own money anyway! I do L/Os as far as my buy and hold strategy so I don't use my own money there either!! So that wholesale money goes right in my pocket!! I net around $16,000 a month wholesaling. I would have to have 47 houses that cash flowed $350 a month each to make that money. What a pain in the rear that would be. No Thanks!! That is just me, there are plenty of people that do quite well being a landlord. All sounds like to much work to me. I know they will reap the benefits of appreciation and mortgage pay down but again, just not for me. I am in and out with cash in hand and no leaky toilets or vacancies etc etc etc.
As far as holding, for me L/Os are the way to go!!

Don't you just love REI!!! So many ways to make money. What ever your preference.

Michael