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wildwestinvest! last won the day on May 30 2013

wildwestinvest! had the most liked content!

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About wildwestinvest!

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  1. And then a man calls to unload 9 rentals on me. June 1 is everything I suppose.... Anyone interested in rentals capitalizating above 10% in the Wild West?
  2. Yes the last 2 weeks have been cold around here. I expect things to pick up soonish with the coming of Summer. I was hot on seller leads for a month there, but things have died down significantly. Can't say I've added to my marketing arsenal either though.... too busy having fun in the sun. Schools just let out though..... time for people to move.
  3. What advantage is there to accepting a fee from someone to have to split your profits later?
  4. Agreed. Good deals sell themselves. With my lifestyle, I do better waiting out the good deals. So here's the specifics of my closing process. 1. recognize that this is probably going to be a new things for everyone involved, so be a good, confident teacher and it'll all work out 2. I take a deposit. This deposit is called the deposit for assignment and it's an agreement that states I have taken a non-refundable deposit towards the assignment of my option. Then it includes a part where the assignee promises to pay me the rest by a certain date. I like this. If they drop the ball, I still got an agreement where they promise to pay me out. In essence, what this document does is clouds my option so buyer and seller can get busy. 3. then I wrote my own sales and purchase for the seller and buyer to use. I referenced the Hidden Secrets of a Real Estate Technician to make sure I didn't miss anything, then used a pile of legalese available in MC's contracts. It generated a rather fair and simple purchase contract that protects me as the preparer. 4. Then I used the option release agreement provided on these forums by Jack Johnson between me and Seller which spells out they are going to pay me out to release my option. I REALLY like this. Technically the seller is agreeing to pay you out regardless of expiration of the option. KINDA COOL! And banks like it this way. The longer story: on my first deal like this I was dumb enough to say this to my assignee: "Ya sure, get a lawyer to prepare the documents and I'll split the cost with you." This is after I handed him an option release agreement. So ya, what do you know? Lawyer costs us $1200 total. $600 to add a sentence to the option release agreement. $600 for a Sales and Purchase agreement. Mother *********. Can you say "ripped off?" If this assignee wasn't a personal friend.... Before I even went to that closing I lined up another deal where I wrote all the documents myself. I just made sure to be very clear with everyone that I wasn't provided them with legal advice or anything like that. "I'm trying to make a buck and the only way for that to happen is if you nitwits use a contract, and this one is free so do whatever you want." I'm realizing that I am smarter in options than any of our local lawyers that I know of.
  5. Thought I should stop in a confirm things. Cha-ching on the quick flip. $7400 in hand (how i lost $600 is another story) The 2br house ended up needing a renegotiation but I still profitted $2k off it. I actually picked up another smoking deal and the home-owner ended up paying me out to cancel my contract: some $500. That deal was bank, but I had little choice.... she played my soft heart and I wasn't going to get much done without her compliance. $240,000 house with $50k in repairs for $66k. The deals are out there. Profits to be made. Get 'em.
  6. They are calling me me through my marketing. 3 of them are unoccupied, 2 occupied. You can check out my website at webuywy.com The brand is solid. The marketing is committed. Here's what I've learned over the last week: the closing process is all about the experts you work with. The "smooth, automated closing process" is something that is designed by the people doing the closing. I can't stay up all night writing legal documents and thinking deep when the whole goal is to get someone else to do it. Instead I have made phone calls to pros and they are telling me the way they want to do it in a simple matter. YA! That's what the answer is, as our first two responses indicated. Crucial thanks for the direction. In reference to my previous post, I'm actually going to toss most of the options I have now because they are junk. Too much hustle for too little buck.
  7. I'm going with the flow. It's hard to collect lease options here. The problem is when people move away from here, they all go 1000 miles away and I'm just not having luck finding the people who want to do a lease purchase. And if they're not going 1000 miles away, then they just don't have the motivation it would take to stuff a tenant/buyer in there. I'm actively looking for lease purchase possibilities. We've also got people totally fed up with Realtors and listings. It's like the Great American Option Round-Up over here or something. People come to me and I haggle for days before finally paying a dollar to control their property at a decent price. Now, I'm wondering what luck I can have from wrapping up a pile of properties, then listing them with Realtors. I've been getting options for 60 days, plus 60 day extensions. I've got another one for half a year. It's just like, people are going to offer a decent price, and they are going to offer it to me during the heat of the housing season..... so it feels wrong not taking the chance for a dollar. As I get better at wrapping up properties, I can then find other people to sell them. If I have a slick system where I can get offers ON PAPER. Then who gives a hoot what the option price says? If the homeowner is truly motivated, and I present an offer to them that I've had, they could be very willing to accept that offer and release my option for $2000 or something. It's a weird situation but I feel like I need to capitalize off this warm Spring/Summer market. I feel like I need to be ultra creative and exploit what opportunities I've offered. Let's hear your thoughts on this scheme.....
  8. I picked up 3 options today, making my current count 5. Y'all are right, I must enlist the aid of professionals!!!! I'll let you know what I come up with! check out what the guy over at phoenixwholesalehomes.com does. I think I need that but I gotta talk to an attorney to make sure I'm doing it right in my state. Ive been watching that fellow for over a year now. He wholesales a pile of property.....
  9. Sorry I'm making this sound more complicated than it is. I basically have no process to work with buyer w conventional financing. Working with cash-buyers is easy: assign the option, collect the fee, big easy. But when I have an assignment fee closer to $10 or $20k a conventional financing buyer wants this financed as well. What I'm looking for is this: what's a simple way to flip an option to a buyer w conventional financing. And when I say buyer, let's talk about a person who barely knows anything about real estate (your typically SFH buyer). You know, the type of people who will probably purchase through a Realtor and pay top dollar because the Realtor will hold their hand through the process. How can I emulate that? How can I get the oil workers to spend all their money on my discounted properties that they like? What sort of agreement do I need that will accept a deposit, provide an S&P that the buyer can use with their bank, and promise me an option release fee paid by the seller at closing? How do I make this convenient for me and the buyer? Iv'e literally spent the last 2 weeks trying to find a solution for 2 different buyers for 2 different properties I have, both bringing conventional financing. It's a ******* mess and I'm burning time trying to figure this out. I need a smooth process so I can sign up 4 more options this week (not boasting) and 4 more the next week. My brand is HOT right now and I need to keep picking up these properties, but I need my paperwork together so I can work smoothly with conventional financing buyers. Ideas???? Please???? Thank you!!!
  10. Hey, I've had tremendous luck collecting options on properties that are below market and finding buyers. Great! However, if I want to increase business I need a smooth, automated closing process. I can't handle being an investor and re agent and closing agent. Anyone have a system they use that would resemble something like: "If it's something that can work for you, here's the paperwork you need to make an offer, give it to my closing agent w/ your deposit and we'll go from there." I need something confidence inspiring, and something that takes all the pressure off me. I need something that result in an S&P between buyer and seller plus an agreement that states I'm getting paid at closing. I I've had Buyers who like the property, dug on the price, but the process is what kept them from picking it up. Argh. Any input on putting together a smooth, automated closing process for an investor with options would be mega-appreciated. Please, experiences of how to make a business out of discounted properties from a good investor would be invaluable. **I've took a look into the option release contract. This could work but it doesn't solve the 'hands-off' part of the issue. Nor does it make a convenient process for taking a deposit, etc.
  11. If I'm reading it correctly, even if my option expires I am due the payment at closing? It's quite specific about being paid if they sign the agreement. This could have made me $12,000 2 months ago...... at least it will make me $8,000 now!!!!!!!!
  12. Annnnnnnd.... it paid. Collected a $500 nonrefundable deposit toward the $8000 assignment fee of an option I own. Hoping to see the rest in 45 days at closing, possibly as many as 60. My contract with the homeowner is still good for 90. It took me 7 days to find a buyer, it was a friend whom Ive done some rock climbing with who is an appraiser. I got it to him without setting up the marketing for it. I made a colorful 7 page handout for the property. I included about 30 pictures and did a pro-forma at goodmortgage.com (look for their investment one) and had a description page. And a page with my name and number. People want the bow. Gold watch? meh. Gold watch in a pretty box with a bow??? yeeaaaa! If the numbers are real, investment grade gets bought up quickly.... hopefully we see it close! itll be their 4th townhouse if it does!
  13. I try really hard and I don't give up. Im big on branding and positioning. It sounds like you are strictly minimarketing. maximarket for 6 months straight with a good ad and the phone will start ringing. you must be commited. you must be commited.
  14. Forget dealing with agents. They are a world of their own. As with a rock in a river, the water pauses for a moment before it builds up enough power to go over and around the rock. On the topic of less listings, etc. We can't be focused on Realtor's and their situation. We have to realize Realtors are the problem. When Steve mentioned disinterest in business, the most well known business to real estate is Realtors®. We need to position ourselves against Realtors. I maximarket hard and I have a very specific image that has been building a lot of energy this year: solutions (old idea), fast (old idea), and definitely NOT agents. The response I'm getting from telling people I want to buy their house directly from them and I'm NOT an agent is fascinating. It as if, the world is crying out that they need solutions. Did you know, that something like 25% of people between the ages of 25 and 35 move every year? Every single day a pile of people suddenly need to move. Attract them with your expertise, convenience, and friendliness. Control their property.
  15. Long time no update..... things have been busy. The pure option on the 4BR turned out......almost. Well the good news is I almost know how to line up a deal worth 17k, the bad news is I somehow had my head stuck in the idea that I HAD to sign an option for 30 days. *******! I found a buyer and everything and they basically went right around me because I couldn't get the deal done in just 30. Should have signed that contract for 60 plus 60 day extension and I would be 17k richer right now. *sigh* The other deal ended up with a pile more repairs than originally identified. HOWEVER, I did renegotiate this one with the homeowner to take 3k off the top. I have received offers at 41k, I'm going to try to milk someone for 43k so I get something worthwhile out of this deal. It's still a good price but things are SLEEPY in Feb/March around here. In the meantime, I have been rather consistent and committed with my marketing. Big ups to FB marketing. I'm currently on a streak of 10 leads in 10 days, one of them turning into a pure option at about 66% of ARV. I think the figure look something like option at 80k, need 10k repairs, ARV 120k. I'm going to talk to an appraiser friend tomorrow whose also an investor to see if I really got anything on this one. But like I said, leads are piling up. Tomorrow I will go see 2 houses owned by a motivated seller in a small town. It already sounds like I can get this very cheap, the issue is that I do not know what they are worth. Such a tiny town that there is nothing but completely worthless sales data. So.... what I did before in a situation like this, is I went off of rent figures, trying to keep the gross rent multiplier below 115 (sales price / gross monthly rent) so I attract investors. Then I have another decent sounding lead on a 4BR motivated seller in a nearby town. Again, sounds like a unglorified Realtor flip. Anyway, let's wrap this thread up with some quality lessons learned. 1. Flexibility and creativity are why we excel as investors. You don't NEED to sign a contract for 30 days. At the last moment, when they tell you they want 227 instead of 225, then you say, alright, well I want 2 more weeks then. You can sign it for as many as you can get the other person to sign it for. Don't sell yourself short. 2. Marketing does provide results fast when it's done right. However, marketing is more about commitment than anything. The results I am getting from being back in the game for 2 months is profound. People will look at your ad 20 times before they build up the confidence to call. 3. There's advertising, then there's marketing. Learning the difference will take a lot of practice and a lot of reading. Once you learn to market, your game goes viral. 4. Stay creative. Like MC said, make sure there's a plan B in place. Oh ya, that was lesson one. Anyway, I still have a goal of $60k profit by July. I plan to stay intensely busy. An absolutely beautiful girl is coming to visit in July and I'm taking the whole month off (not my marketing, just me). I love this $#!^. Booyah!
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