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Author Topic: He Luvs Direct Mail  (Read 27207 times)

Offline Randoskie

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Re: He Luvs Direct Mail
« Reply #150 on: July 07, 2019, 12:11:18 pm »
It's been over a week since I sent the new purchase contract to Doug and we havnt heard a thing. Bob and I and buyers are climbing the walls. We are demanding an inspection and a refundable earnest if wells dont pass inspection or if sellers back out. I'm thinking there may be something wrong with the 2 wells, and I was told we better check septic systems also.
Bob actually called Doug and the dragon lady answered after she was suppose to be going back to Los Angeles, and he hangs up, I told him that he was a bigger wuss than me.
Not sure what is going on but I've got some serious concerns, our buyer is txting, Bob is txting, I'm trying to hold down the fort and get them to be patient.
It's possible they got another buyer, or they decided to not sell now. or they don't like the terms, we better get off the can and rustle up some new deals.

Offline Randoskie

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Re: He Luvs Direct Mail
« Reply #151 on: July 18, 2019, 02:36:47 pm »
My plan to make the seller sweat backfired. Bob had called and not sure if the seller Doug or the dragon lady sister told him it was sold. I'm depressed and Bob is angry, our buyer is disappointed.
Bob wanted to call the seller up and plead and beg and crawl on his belly, I told him to just use that anger to find some more fixers.
I just sent another offer for 300K, that shud get them thinking and we hope the other buyer gets hit by a truck.
Time to find some more fixer properties, and this time we need motivated and distressed sellers.

Offline Randoskie

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Re: He Luvs Direct Mail
« Reply #152 on: July 22, 2019, 04:45:20 pm »
I sometimes get some interesting deals coming across my plate. My buddy Rich, he's a bird dog turned partner tells me he has a line on an 18,000 SF warehouse zoned for cannabis cultivation. He tells me there is a realtor involved that says the average price of this kind of structure is 180 buks a SF.
He also says the current lease/tenant is to be out in 180 days and owner wants to sell and is looking for an offer.
Wudnt this be fun to find a start up company or established one that wants to expand and put this deal together?
This sits in a small town called Farmersville, it is out in the boonies between Fresno and Bakersfield I believe, this town is looking for the tax revenue to boost their struggling one horse economy. It's smack dab in the prime growing belt of the San Joaquin Valley with zillions of acres of cotton and fruit trees and hay and grapes ect.
Now to work on an offer for seller, get this mo fo on contract and start advertising the hell out of it. Gona be fun.

Offline Randoskie

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Re: He Luvs Direct Mail
« Reply #153 on: July 23, 2019, 02:42:42 pm »
I tell my buddy Rich that we need more info, we need to find out how motivated seller is. The pie in the sky realtor says a similar warehouse sold for 180 buks a SF, which equates to 3.24 mil, well I'm thinking that might have happened in the nearby city of Visalia, but not in frikin Farmersville where the biggest excitement is the new Dollar Tree. Looking over the google map photos it shows a huge tin building that sits in a nice commercial area w paved parking and a Mcdonalds and Taco bell across the street. The building does look low key but wudnt these buyers want a concrete bloc building that looks more modern and secure with a traditional roof, these corrugated tin buildings can reach the core temps of the sun on these 104 degree California days. Some cannabis investors are  spending the money, we got high demand here, pun intended. And these investors will prob do their own upgrades if the price and location is right.
A cannabis company wud need to have an insulated building with a security fence and gate ect. right? It sits on almost 2 acres.
Rich says the seller owns a window business in the building and is not distressed at all. I'm thinking, a window business out in the boonies? this guy hired a realtor, I get the gut feeling he wud cut his losses and run.
I'm thinking of offering 800K seller is asking for an offer, might be a starting point.


Offline Randoskie

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Re: He Luvs Direct Mail
« Reply #154 on: July 25, 2019, 10:35:11 am »
I forgot how difficult it is to work with Rich. He txts me and asks if I have any interested buyers for this warehouse. I tell him no, we need to get a price and it on contract b4 I start advertising. He says you got a price, the comp of one that sold recently for 184 buks a SF. I txt back that that warehouse is more modern with offices and has concrete block walls and multiple air con units on top with window awnings and covered parking, and our building is just a huge corrugated tin shed.
He started getting testy, saying he wasn't going to offer my 800K cuz it wud piss off the seller, and I said maybe but its a good starting point.
He tells me if I dont find a buyer he's going to find one and I relinquish my 50%.
I tell him let's talk to seller, listen to his life story, become his friends, ask what he wants, negotiate, get photos, then get it on contract and then we got something to work with.
But Rich wasn't having it. I tried to giv an example of how ludicrous his position was.
 I got this house for sale, I got address. How much? No price yet. How much wud you pay? Wats the condition?  Don't know? Is it under contract,  no I got nothin, only a comp of another house that was much nicer an more modern, well call me if u ever get ur sh-t together.

Offline javipa

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Re: He Luvs Direct Mail
« Reply #155 on: July 25, 2019, 11:20:51 am »
Sounds to me like your 'partner' is a more of a liability, instead of an asset.

So, far it seems, that he's just there to screw up deals, create drama, and waste your time...???

I ask, "Why push a chain?"

What's really maddening is his insistence that somehow you advertise a deal you don't have a contract on. 

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If I wanted someone to do the legwork, I would want an understanding about 'how' the legwork was carried out, and that wouldn't include dragging anyone around by the collar, to get the legwork done the way I wanted it done.  Hmmm
"149 Ways (Plus One) To Find Motivated Sellers..!"  -Free Report-
>>> Click: http://sub2marketdomination.com/how-to-find-motivated-sellers-2/

Offline Randoskie

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Re: He Luvs Direct Mail
« Reply #156 on: July 30, 2019, 07:42:25 pm »
I txted my testy friend Rich that I was going to write a letter directly to the warehouse owner and listen to this guys story and bond and negotiate. and I tell Rich he will still get 50% even with his stubbornness and misdirection, cuz,he found it.
If there's a chance Rando can get a deal happening. The owner actually calls, seems like I just sent the frikin letter a few days ago, he tells me he's already got rid of 2 realtors and sent info to a potential buyer in OR. He's asks if I'm looking for a grow operation or a dispensary, I feel like I'm in the middle of a drug deal, I reply just a grow operation, he say oh ok cuz there is a dispensary going in next door and that might make a difference. I'm not sure if that's good or bad.
The owner is Todd, he tells me there are offices and a showroom for his windows business, he has a secretary, it must be a happening business.
I tell Rich I want to offer 3 Million and we put up 5K each and we get it on contract for 6 months, and we lose our money or we score. I'm thinking, I can put ads in some of these big cannabis mags like High times and these magazine ads can take a few months to publish. While still running Craig's List ads in the big cities.
They have worldwide readerships. And I'm seeing on you tube the big operations springing up, There are millions to be made. I'm drooling right now.

Got to the lake yesterday at about 10 am, gorgeous, and the weather was insanely perfect. Jim an I took those Kayaks and we went all over the frikin lake, and stopped on islands and sandy beaches and climbed boulders smoked weed and went swimming 3 times. We paddled across the lake and followed the shore to the dam. Out in the open water had some wind and speed & party boats going by, the frikn water was rough w som serious waves, but they wer rolling waves and the kayak just went right thru them and dam it was fun. I had my go pro mounted to my hat and got 2 hrs of amazing video. We took Jim's 1972 1/2 ton Chevy 4/4, he's got it all cherried out w big engine and huge tires, sits up high & its a bitch getting in. He's got an extra kayak, I cudnt get any of my old buddies to go. I'm only 68.

Offline Randoskie

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Re: He Luvs Direct Mail
« Reply #157 on: August 01, 2019, 02:23:55 pm »
I wrote up a contract last night and finished it up this morning for 2.5 Mil and just mailed it off to Todd, our property owner. My wild and impatient partner Rich informed me that he dont got no $5,000 or even $500 for his half of the earnest deposit.
Rich told me last year that he just purchased a Bobcat tractor with rubber tracts to do junk removal and concrete work. I said that must have cost you 60 grand, he says try 80K and 120 with all the attachments. I said holy crap, your going to be stuck doing construction for the rest of your life and your children's lives if you can ever find a woman to put up with the insanity.
Rich is in his late 50's and never married. But he has that good looking tractor to sleep with.
Anyways, it's going to be interesting when Todd gets my proposal Saturday or Monday, I'm sure he's got pie in the sky profits in mind and who can blame him? He's sitting on an 18,000 SF warehouse zoned for cannabis production. He's got all these money hungry investors salivating like rabid dogs.


Offline javipa

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Re: He Luvs Direct Mail
« Reply #158 on: August 01, 2019, 03:37:17 pm »
I'm not gonna second-guess your offer, but I write up offers that don't even include a line for an earnest deposit.

Otherwise, I ask "Why do that?"

Earnest Deposits aren't worth the ink used to write them.  And the bigger they are, the less they're worth.

I accepted an Earnest Deposit on a house I was selling, and the buyer blew past all the due diligence time lines, and then refused to close on the agreed date, and then wanted his ED back.

I refused.  I spelled out all the reasons why, based on the text of the real estate agreement.

The title company held the deposit, and was unable to return the deposit without agreement from all parties.

The buyer sued me.

I went to court.  I lost.  It didn't matter to the judge that the buyer was a flake and didn't abide by the terms of the purchase agreement. 

Meantime, I got my credit dinged for a judgment award in the amount of $2,500 ...which stayed on my credit report for three years.

After that learning experience, I routinely require a deposit made payable to me, outside of escrow, with a price that is correspondingly lower.  This way, if the deal doesn't close, I've still got the deposit, and it's not subject to a buyer's flakery.

However, that doesn't work, if I haven't also presented to the buyer a comprehensive list of defects (known and/or just imagined) that a buyer could use to back out of the deal.  That is, once my negotiations are done, it's just a matter of confirming everything I've told the buyers, and not an opportunity for the buyer to discover something unacceptable.

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One example of this, was with a house I sold in South Sacramento, that was a structural nightmare.  The floors felt like you were walking over a relief map of the Rocky Mountains.  The windows didn't close correctly.  There was a huge gap in the wall inside a closet with the exterior wall.  The rest looked cosmetically ready to occupy.  It was rentable ...to someone with extra-good balance and a large sweater collection. 

*** This guy drives up and asks if the house was for sale.  I said, it was for rent.  He said he had a buyer interested in it.  I said, I am willing to sell, if the buyer is ready to give me a non-refundable check, outside of escrow for $2,500.  (I was sure this would scare off this dreamer/looky-lou).

They guy asked how much I would take for the house. I told him.

The buyer's agent took a tour of the house, and said, those terms are fine, and the price is acceptable, I'll go get the buyer and give him a tour.   

While he went to get his buyer for another tour, I wrote up several pages of perceived and real defects that the buyer had to accept and initial, before I was willing to sign the purchase offer.  He did.  I hammered his $2,500 check.  We closed three weeks later.

Of course, the deal was, that I offered a good price, for a house in good condition, but was NOT a bargain considering the actual, effective repairs necessary to replace the foundations and interior floors; replace the windows; and repair all the cracks in the interior and exterior walls, etc. etc. 

I never asked what the buyer planned to do with the house, and didn't care.

The 'secret' was, I negotiated all the due-diligence out of the deal, before I was willing to sign the deal.  That's why I could get a non-refundable deposit in cash, in my hand.

Another thing I used to justify the non-refundable deposit, was the potential loss in rent, if the guy didn't perform, or didn't close ...for whatever reasons. 

So, I did my best to remove any reasons he could think of to back out of the deal.  Also, the buyer said he was a cash buyer, and wasn't depending on conventional financing to close the deal.  The fact was, he was using an HML, and there was a formal appraisal required, which came out exactly at the price we agreed. 

In this case, I was the 'unmotivated seller with options.'

So, there's 'that.'

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Finally, I make offers without offering an earnest deposit.  If a seller asks for it, I share my experience, and let him conclude that it's not necessary.  If he still wants an ED, then I weigh my options and abilities to perform, and go from there. 

Frankly, if the seller balks at not getting an earnest deposit, and I give in without some concession, than I've lost the initiative in the negotiations, and likely lose even more ground in the negotiations, since I've not insisted on a concession from the seller.   

ED's are as much of a negotiation gambit as anything.

That said, I've written earnest deposits that were only cash-able upon closing.  So, no closing?  No cashing. 

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*** Making offers through agents, and the ED issue becomes an issue.  All conventional PA's include a line for Earnest/Binder Deposits.  So, that's another reason I use my own contracts, or simply write 'n/a' on the line that lists the ED amount. 

One visual 'trick' I learned from an agent, is to make sure no boxes/lines are left blank in a contract.  They all need to be 'marked' in some way.  Either with 'n/a' or 'none' or 'something.'  This tends to make the reader ignore them.
   
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Okay, that was a lot.
« Last Edit: August 01, 2019, 05:15:06 pm by javipa »
"149 Ways (Plus One) To Find Motivated Sellers..!"  -Free Report-
>>> Click: http://sub2marketdomination.com/how-to-find-motivated-sellers-2/

Offline Randoskie

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Re: He Luvs Direct Mail
« Reply #159 on: August 07, 2019, 01:18:54 pm »
I havnt heard from our warehouse seller, I'm sure my 2.5 Mil offer was too low.

My bird dog Kenny sent me an address of a house in a nice neighborhood, this property is the only one on the block that's in disrepair, dead bushes and overgrown, looks like it's never been painted since it was built, owned by same single lady for 40 yrs.
I told my buddy Ken to go look in the windows and see if there is any signs of life, and if there are any bad smells.
I got a letter going out today, not sure wat else we can do.

Getting ready for another Kayak trip, orderd a nice rack system for my Honda Accord with extra tie downs, can you imagine a 13' and 15' Kayaks on this small car? The plan is to ride in comfort and get up to lake and back on 7 buks of gas instead of the 40 buks Jim's truck takes.

Offline javipa

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Re: He Luvs Direct Mail
« Reply #160 on: August 07, 2019, 03:50:14 pm »
Did your offer on the warehouse have an expiration date?
"149 Ways (Plus One) To Find Motivated Sellers..!"  -Free Report-
>>> Click: http://sub2marketdomination.com/how-to-find-motivated-sellers-2/

Offline Randoskie

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Re: He Luvs Direct Mail
« Reply #161 on: August 07, 2019, 03:57:06 pm »
I've had this idea for awhile, it's kinda wild and maybe cheating, a method of finding fixers I've never heard before.
And its a fun way to find em. Google Maps Baby. The satellite photos and ground view cud be a year or more old but hey, accurate enuf to spot some houses in disrepair.
Here's how it works, I think I invented it, on google maps, zoom down to a neighborhood your interested in. For me, its 40-60 year old houses.
Zoom down to street view and start clicking down each street, stopping often to look left and right at the houses. soon you see them. old cars, overgrown weeds and shrubs, bad roof and a dead cow.
I found a nice prospect within 20 minutes, sent address in and found out its an absentee owner and in a trust in the owners name. Now I'm thinking if I did this a few hrs a day 2 or 3 times a week, probably have some deals cookin.

Offline Mdhaas

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Re: He Luvs Direct Mail
« Reply #162 on: August 07, 2019, 06:38:50 pm »
Great idea! Bing maps also has a street side option in some of the areas that Google may not show and may be a little newer than Google Maps in some cases..
If at first you don't succeed.....................skydiving is not for you

Offline Randoskie

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Re: He Luvs Direct Mail
« Reply #163 on: August 11, 2019, 02:33:35 pm »
It's amazing that my neighborhood houses are going for such high prices, this ordinary looking house down the street sold for bookoo bukz and I'm thinking holy shitsky, it be nice to sell and get the equity and move to a nicer area cuz wer drug infested over here. But hell, there seems to be a shortage of houses, and what's on the market is going for an arm and leg. I'm thinking, there's been not much building going on in my city in 10 years and the population is exploding.

Will these prices keep climbing, level out, or crash and burn again?

 Will the Universe expand forever into an endless expanse?

We got high demand and sellers are getting outrageous prices, even for fixers.
My wholesaling buddies and I need to figure out a strategy that works in this arena.




Offline Randoskie

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Re: He Luvs Direct Mail
« Reply #164 on: August 15, 2019, 12:29:58 pm »
It seems the stock market is experiencing some volatile times. Let's impose some crazy tariffs on Chinese goods and really screw with the worlds economy.
These homeowners with their overpriced fixers are asking for almost full value and it don't matter that it's going to take much more to fix them up than the frikin houses are worth.
I believe home values have increased so fast its not sustainable.
The rents in my city are outrageous also.
When the SHTF get ready to grab some pie.


 




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