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Real Estate Investing Forums | Real Estate Investing | Bird Dogs, Wholesaling, Flipping Properties Forum (Moderators: $Cash$, Bluemoon06, kdhastedt, Mdhaas) | Topic: A $12,500 House in California.
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Randoskie
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« on: July 16, 2017, 08:07:08 PM »

A bird dog sent me this distressed house that I negotiated down to $12,500
It's in California, its a 3/1 1,000 SF ranch fixer, but wait,
It's out in this godforsaken desert hell hole town called Trona, I had never heard of it.
It's a cute small town with gorgeous mountains nearby with spectacular views.
Zillow gives a zestimate of $10,843 But the rent estimate is for $925
Now the thinking gears are in motion, design an asskicking ad to run on Craig's List in nearby cities, like Los Angeles. I bet there is some 40 something urbanites with wife and kids that wud luv to get out of that concrete and traffic city hell hole.
This is fun, even if I only make a few buks or cant sell it, the process of looking the deal over and the negotiations and sending the contracts and the chance of making some serious green, it's a rush.
Let's make some Money
Rando
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davewindsor
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« Reply #1 on: July 19, 2017, 12:28:08 PM »

A bird dog sent me this distressed house that I negotiated down to $12,500
It's in California, its a 3/1 1,000 SF ranch fixer, but wait,
It's out in this godforsaken desert hell hole town called Trona, I had never heard of it.
It's a cute small town with gorgeous mountains nearby with spectacular views.
Zillow gives a zestimate of $10,843 But the rent estimate is for $925
Now the thinking gears are in motion, design an asskicking ad to run on Craig's List in nearby cities, like Los Angeles. I bet there is some 40 something urbanites with wife and kids that wud luv to get out of that concrete and traffic city hell hole.
This is fun, even if I only make a few buks or cant sell it, the process of looking the deal over and the negotiations and sending the contracts and the chance of making some serious green, it's a rush.
Let's make some Money
Rando

Rando, why don't you just throw your money in the fireplace? 

Never pay more than the zillow estimate unless you plan retiring in it.

You can buy liveable houses in Detroit on realtor.com or trulia for a few grand in one area while people are paying a million for houses in another area of Detroit.  You can also find people paying the same section 8 subsized rents too.   Doesn't mean the house for a few grand is worth a million like it's selling for at the other end of the city.  And, it could probably be decades before those cheap areas gentrify.

When I google Trona, it says the population declined from 6,000 to 1,900 in the past several decades.   That's over two thirds of the population that was lost.  Big red flag right there.

The distance to LA is 160 miles or a three hour drive.

In Metro Detroit, I can find you houses in subdivisions that sell for $20m within a 20 minute drive.

I hope you're joking, but just in case you're not, I repeat, don't throw your money away like that.  If you want a "rush" from doubling your money, go to Vegas and put it all on red at the roulette table.  Your odds are probably a lot better there too.

Dave
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Randoskie
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« Reply #2 on: July 19, 2017, 04:10:20 PM »

Haha, my friend, the beauty of wholesaling real estate is,,,, I don't risk a nickel.
If I get a house on contract for x amount and it don't sell, and the seller is unwilling to re negotiate a lower price, I cancel the contract and I walk away.
How simple and easy is that?
I recently sold one of my sport planes, sold it to a cop from Oregon. Of course he asked what I did, I told him, I sell houses I don't own to buyers I've never met.
He says that sounds illegal. I laughed and told him, yea it does.
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Randoskie
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« Reply #3 on: July 21, 2017, 01:16:34 AM »

That deal fell apart, but just signed an assignment with another wholesaler on a 4/1 out in the country for $37,500 It's a 1400 SF 2 story ranch style home that sits on a 1/4 acre and had a big tree fall on it. It is worth about 120K after repairs.
I just sent it out to my buyers for 47K The bird dog got the other wholesaler to pay him $1,000 to find him a buyer and I agreed to pay him 2K for each deal, grasshopper learns fast.
See what happens, I've sold worse for more.
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Randoskie
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« Reply #4 on: July 21, 2017, 08:48:04 PM »

I sold this deal in less than 24 hours, most I sell in 2 hours or less. I was worried, none of my other buyers wanted it cuz it's an hour drive out in the county and it has a friking huge tree in the roof.
I sold it for my asking price or 47K I was perfectly happy to sell it for 45 but at the last second I decided to make it 47K
Now I'm wondering if I cuda got 49 or 51. But then, Who is that guru that says "pigs get fed and hogs get slaughtered"?
I got this deal because I put a $25 ad on Craigs List for property finders.
This is some exciting s__t, what a rush to put a deal together while I'm gardening and swimming and barbequing ribs.
It's insane.
Let's make some Money.....
Rando
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Randoskie
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« Reply #5 on: July 22, 2017, 05:56:24 PM »

It's an interesting story on this house. 3 beginning investors purchased it for a rental.
Looks like the house has been empty for months, vandals pulling sheetrock. Somebody was pulling out the old kitchen cabinets.
Well what ever happened, this place was never rehabbed and or rented, and now this Huge tree falls into it.
It was time to bail. These 3 sellers dumped it cheap at a loss.
Somehow or other, this wholesaler named Bill gets it on contract for $30,500

Bill the wholesaler has had it on contract for 3 or 4 months. He could't sell it.
Somehow my new bird dog Luis, finds Bill, and with the promise of $1,000 to help him sell it, Luis then sends me the deal.
My finders get $2,000

Purchase price was $30,500
Bill hands it to me for $37,500
My buyer Steve wants it at $47,000
We are getting a $16,500 assignment fee.

That breaks down to $6,000 for Bill  Wholesaler 1
And the wild Bird dog Luis, gets $3,000
And keep your shorts on, Rando is running for the hills with $7,500

So it seems were going to start escrow Monday.
Now, I'm worried cuz it's going to easy, too smooth.

Let's make some Money
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Randoskie
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« Reply #6 on: July 22, 2017, 06:52:07 PM »

OK, I was expecting something, but not this.
Throw a sleezy wholesaler into the mix and wala,,, The drama and the problems begin.

From wholesaler 1

Randy
I've been working on this property for over 2 months. Luis agreed to 1,000 fee. I think it would be fair to 7,500 for me, 7500 for you and 1,500 for Luis. What do you think?

My reply

Luis has seen the assignment, without him we got nothin.
Let's run it thru as its written, that's fair, what you agreed to, full disclosure, keep your word yada yda, more deals coming, I got the buyers.
Were ready to start escrow Monday.
 

Holy crap, this sleezz ball wholesaler Bill cudnt sell this tree fell into it vandalized vacant hell hole for months,  but now he suddenly gets greedy and wants me to cheat my bird dog so he can feel all warm and fuzzy and I don't make more than him whaaa
I cud go on and on, but, it's too aggravating.

.
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Randoskie
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« Reply #7 on: July 22, 2017, 08:48:06 PM »

Well now, it seems the sleezy wholesaler 1 is ready to do it as its written. Just play a little guilt trip on him and the chance of losing this deal & prospect of doing future deals he folds. Haha, he's agreed to move forward as planned w original agreement.
Judge Judy would love this guy.
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Real Estate Investing Forums | Real Estate Investing | Bird Dogs, Wholesaling, Flipping Properties Forum (Moderators: $Cash$, Bluemoon06, kdhastedt, Mdhaas) | Topic: A $12,500 House in California.
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