Boy, I've had a lot going on lately. I've met with several investors who want to buy bulk REO packages. Some of them have almost unimaginable amounts of funds (not quite like the bailout, but you know, big...) and some want to buy one or two houses with the package. It's a pretty sweet deal. All we need is to get Letters of Intent and Proof of Funds from all of the willing participants and we'll be good to go.
And, I even know how I'm going to be paid. I'm going to get 1% of what my investors spend. The bigger investors so far have been introduced to me by this wonderful realtor - and he and I are going to split the 1% down the middle for the amount his investors purchase.
I've also spent three days looking at bank owned properties listed with Realtors. I have one amazing Realtor who sends me lists every day of properties with at least $15,000 in profit potential. We've looked at a dozen properties and made offers on four. I also worked with another Realtor who is investor friendly, but is not nearly as on-the-ball as the other. I'm going to make a couple of offers on properties with her as well.
Keep your fingers crossed for me. Our market in Denver is HOT right now. Houses under $200,000 are only on the market for an average of 44 days. There's a lot of competition - but it doesn't scare me. I just have to go out there and make the offers that make sense for me. I'll get one and another and another...
Once these offers get accepted, I will send them out to my buyers list that I've created by networking with other investors. I'm putting in offers low enough that I will have some wiggle room to wholesale the properties to the other investors and they will make the lion's share of the profits.
Oh yeah, I've also been listening to Ray Cooper's CDs on selling houses. I would recommend them to anyone at all who needs to price a house in any market. He's got it nailed on how to figure out the correct pricing to sell a house fast. Not to mention any and everything else you might need to know to sell a house. He's sold over 1500 in his 23 year career. The man knows what he's talking about.
So, on Thursday, we went on an ugly house bus tour in Colorado Spring with Michael Jake. I'm in his Platinum Mentoring Program - and it rocks! We looked at a whole bunch of houses and learned how to make an approximation of the repairs needed in about 20 minutes. It was very helpful to go through the houses and see what sort of house you should bid on and what you should pass on. The angry house was possibly the worst - it had frowny eyebrows. And really bad neighbors on both sides. And had been "remodeled" so it was horrible inside. Let's just say that one was a "pass."
Tomorrow, there's an REDC auction that I'd like to attend. Some of the properties have bids starting at $500. The valuations they list in their auction catalog are all high according my research. However, I want to go in order to meet the people who are bidding on the houses. They'll be great additions to my buyers list.... It's an important thing to remember in this market. Build your buyer's list first! That way, you know that #1 you're looking for what they want and #2 you have a buyer when you get a property tied up under contract. And, if something's cheap enough, I might just buy one myself (you can't really go wrong with a $500 house)
I may need to bring the kids to the auction because my husband is playing in the state racquetball championships. That should be interesting...
Until next time.
I almost forgot to mention that my bus benches have finally gone up! Calls are not pouring in, but I have gotten a few. I'll keep you posted.