A few months ago, a Realtor calls me up about a property that I should take a peek at. I’ll not go into the details of the deal itself, but I decided to make an offer on the property. The house was a Fannie Mae foreclosure. So, we write up the contract as usual and submitted the offer to the listing agent. The next day my agent calls me to inform me that before my offer is submitted, I’d have to sign off on some new addendums.

OK…

Apparently, Fannie Mae is trying to crack down on some of the fraudulent flippers.

So, the addendum was a deed restriction that would prevent the buyer from selling the property within a 90-day period from the closing date. This restriction would be placed in the deed, therefore there’s no way around it.

I was pretty surprised by this, but go figure.

Heck, instead of enforcing the laws we already have to cut down on mortgage fraud and illegal flips, let’s create some new ones!

Now, for those of you that are wholesalers, this hurts in a major way because the first 90 days are make it or break it, so consider offering less to figure in your holding costs.

Gotta go meet a seller and send a short sale offer,

Talk soon
Derek Pierce

Ok, you’ve heard all the hoopla about flipping houses. Flipping Houses has become some “buzzword” that everyone seems to want to get involved with. The fact is five years ago, if you’d said flipping to anyone outside of the real estate investing community, they’d looked at you like you were crazy. Now, it’s become a household phrase. The funny thing is – even sellers know about flipping houses as a seller asked me point blank – “are you planning to flip it?”. But everyone’s idea seems to be that you’ve got to fix then flip the house. In other words, you’ve got to make the repairs to the house to get it sold.

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Just wanted to drop you a line with an update for this rehab we’ve got going
on. This past week, we’ve had the floors jacked up, new subfloors installed,
completed the remainder of the demolition phase, removed a couple of trees and
fencing, had a new roof installed, plus all new plumbing and a electrical breaker
box. The plumbing was an expense that I wasn’t expecting, however we’re rocking
right along. Plus, I’ve decided to have the brick painted to give this a house
a new look. Check out the progress thus far:

This picture above was taken after the new roof was installed
and my plumber was doin’ a little dance for the camera… Personally, I think
he should stay under the house covered in shit…

Here’s the house after the painter finished the first coat on
the brick. Now imagine what this will look like with a new door and white trim.
Below are more of the progress of the inside:

Next, we’ll start putting this junker back together and makin’
it look like a home. I’ll shoot you an update in a few days.

Take care and talk soon,

Derek Pierce

“No one will ever deed the property to me!”

Does this Sound familiar?

Is this your thought process?

Do you have believe that no one in their right mind would deed the property over to you, someone they hardly know?

I remember back in the year 2000, after I attended my first real estate convention; my wife had the same thoughts. And after months of struggling and beating my head against the wall with no deeds, I began to buy into this line of thinking myself – that no one in their right mind would do such a thing.

Well, buying properties subject to is not that complicated.

I decided to stop making such a big deal about getting the deed and the paperwork and started acting like it was just part of the process. In other words, I acted more confident. I took the bull by the horns and led them to what they should do and would eventually close a good percentage of the sellers I spoke with. Plus, I started focusing on my seller and targeted my marketing to attract highly motivated sellers.

Now, if you’re dealing with just someone that wants to sell their house, then its going to be a battle to get them to just deed the property over to you. And in all honesty, probably will not happen. However, as an investor you’ve got to be on the prowl for the seller with motivation. In many cases, the seller with motivation, has either some personal issues that’s causing him to sell or there may be some issues with the actual property. Either way, if there’s no motivation for the seller, then chances are the seller will sit tight until they get the offer they’re looking for.

So, in order to flip a house, buy a property subject to, or even get a deal for a deep discount, you’ve got to start looking for and find motivated sellers.

Take care and we’ll talk soon,

Derek Pierce