another look at wholesaling
DESCRIPTION
Wholesale real estate marketing info for energy wise home renovators.TRANSCRIPT
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Another Look At Wholesaling
They may or may not make seller aware that they will be searching for another buyer. Escrow with company and agent familiar with wholesaling
and concurrent closings.
Definition: Buyer #1 finds a good deal and secures it,
usually with sale or option
documents and an open escrow (30-60 days)
1
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Another Look At Wholesaling2. Buyer #1 Markets the property. Time for
creativity.
3. Buyer #2 is found and agrees on price and terms.
4. Escrows close at the same time, from Seller to #1 And from #1 to #2,Allowing wholesaler to earn the
difference in prices.
2
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Benefits Of Wholesaling
For The Wholesaler:
1. Opportunity to get started in Real Estate Investing with
ZERO capital.
2. Opportunity to continue to earn extra money.* Once the wholesale marketing machine is set up, it will
continue to run.
*Would 1 deal per month at $5K each be OK?
3
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Benefits Of Wholesaling 2
For The Buyer:1. Wholesaler does all the time consuming work of finding the good deals
2. Wholesaler deals with the broken dreams andhard parts of life.
3. Buyer can focus on other parts of the business.
4
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Wholesaling Notes to BuyersWholesalers can earn their fees
and they do if:
They have secured a truly great deal and are not trying to get
rich on this one deal.
Problems arise if the deal wasn’t that good or the wholesaler
tries to make too much..
If everyone thinks Win-Win, this can lead to a long term
partnership.
5
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
1810 Norris Dr . E . F resno, Ca 93703 $56,000
!"#$%&'()$"*+,%,)"*-,,&,-*%,.)'/.,*/0(*"$(*10'%'"(,,-2*%,3%,4,"('()$"4*'%,*'33%$5)&'(,2*)"-)6)-0'.*6,%)#)7'()$"*%,7$&&,"-,-8*
Contact - Sam Okenyi Jr. / 559.394.9505 / [email protected]
!
Property Specifics:
This property is just North of McKinley ave in between 1st and Millbrook ave in Fresno in the Mayfair
district. The home is in a quiet neighborhood and is close to shopping, dining and the 41 Freeway. This
Home is a great investment opportunity, from what we have seen there is a lot of investor activity in the
area that is driving up home values in the immediate area.
After repairs your net investment should be approximately $99,500. This would position your investment
around 73% of the ARV, leaving you a net margin of 27% ($35,500). The average sale of a comparable
non-REO, general listing (private seller) in a move in ready condition within 1 mile is $133,680.While the
average sales price of an REO property within a mile of the subject $72,600.
Bedrooms: 3 Bathrooms: 1.75 Total rooms: 8
No. of stories: 1 Year Built: 1951 Garage: Attached 1 car
Pool: No Square Feet: 1,618 Sqft Lot size: 6,900 Sqft.
6
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
1810 Norris Dr . E . F resno, Ca 93703
$56,000
!"#$%&'()$"*+,%,)"*-,,&,-*%,.)'/.,*/0(*"$(*10'%'"(,,-2*%,3%,4,"('()$"4*'%,*'33%$5)&'(,2*)"-)6)-0'.*6,%)#)7'()$"*%,7$&&,"-,-8*
Contact - Sam Okenyi Jr. / 559.394.9505 / [email protected]
Investment Breakdown
Investment Details
Purchase Price: $56,000
Cost per Sq. F t. $34.61
Estimated Repairs: $35,000 *See Recommended Repair L ist
Total Projected Investment: $91,000
Estimated A R V (After Repair Value): $143,000 *See attached mar ket breakdown
Estimated Profits: $43,420(after 6% listing fee)/ $52,000(FSB O)
Investment margin including repair costs 64% of the A R V
Market Analysis
Average Private S/P within 1 mile: $133,680
Average Sq F t: 1,503
Average Pr/ Sq F t: $88.94
Average Dom: 42 Days
Average R E O S/P within 1 mile: $ 72,600
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
Comparable Sales
High
Low
Average
7
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
1810 Norris Dr . E . F resno, Ca 93703
$56,000
!"#$%&'()$"*+,%,)"*-,,&,-*%,.)'/.,*/0(*"$(*10'%'"(,,-2*%,3%,4,"('()$"4*'%,*'33%$5)&'(,2*)"-)6)-0'.*6,%)#)7'()$"*%,7$&&,"-,-8*
Contact - Sam Okenyi Jr. / 559.394.9505 / [email protected]
My Opinion: The property needs a lot of work, mostly cosmetic. But has a lot of potential and is
in a good location, especially for FHA buyers. There has been a lot of investor activity in the
immediate area, driving up the After Repair Values. The house is one of the larger models in the
area, and has an open layout. Based off of the average comparables price per Sq Ft sold ($88.94)
the home could potentially sell for $143,000. And if you were to remodel this property in such a
way that it would comp at the top of the market in the area ($96/Sq Ft) you could potentially sell
for $155,328. With the struggling labor force out there people are willing to do work for
anything right now, and I am talking about qualified professionals in their craft, this just means
you can get a lot of the work done well without spending a fortune , I can provide a list of
people.
Recommended Repair L ist
! Interior Paint $1,000
! Exterior Stucco $1,500
! Interior F looring $6,000
! Kitchen remodel $6,000
! Bathroom remodel $1,500
! Windows $3,500
! Roof $8,000
! Dry wall work $500
! Landscape $1,500
! HVAC $3,500
! Kitchen Ceiling repair $100
! Light/electrical socket covers $48
! Interior light fixtures $400
! Blinds $450
! Front Door $300
! New Interior Doors $550
! Thermostat $35
Estimated Cost of repairs $34,883
!
"#$$!%&'()*'(+,&!(,!-*$.%!*/%!0*&%1!+22!+2!3*$%&!+2!4+)%&!(,!'4%!*/%*5!6%7*.&%!+2!'4%!+-%/*$$!7+,1('(+,!8%!*/%!7+)9*/(,:!+./!&.0;%7'!9/+9%/'<!'+!
7+)9*/*0$%!!"#$%&'(&)*+&,-+,&)*,)&.+-+&%/01&,%&,&2,%*&%,0+&,(1&'(&34=>?!7+,1('(+,&!*,1!*$$!8%/%!(,!,%%1!+2!)*;+/!/%4*00(,:5!!
"#$$!)*'%/(*$!>'%)&!2+/!/%9*(/&!8%/%!9/(7%1!'4/+.:4!@+8%&!*,1!@*0+/!8*&!7*$7.$*'%1!*'!ABCD4/5!
"!E4%!#FG!(&!0*&%1!+22!+2!'4%!?+,=FHIJ!K/(-*'%!&*$%&!(,!'4%!*/%*5!E4%!4+)%&!8%/%!*$$!(,!:++1!)+-%!(,!/%*1<!7+,1('(+,J!,%%1(,:!)(,+/!7+&)%'(7&5!!
54++&,)),2*+1&0'%)&6-/7&)*+&)')0+&2/78,(9&,00&8-':,)+&%,0+%&,-+&;(1+-0'(+1<&,(1&,00&!"#$%&,-+&0,=+$%15!
"!#FG!L#2'%/!F%9*(/!G*$.%M!
"!3DK!L3*$%&!K/(7%M
8
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
1810 Norris Dr . E . F resno, Ca 93703 $56,000
!"#$%&'()$"*+,%,)"*-,,&,-*%,.)'/.,*/0(*"$(*10'%'"(,,-2*%,3%,4,"('()$"4*'%,*'33%$5)&'(,2*)"-)6)-0'.*6,%)#)7'()$"*%,7$&&,"-,-8*
Contact - Sam Okenyi Jr. / 559.394.9505 / [email protected]
Property Images!
Back Yard
Living Room
9
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
1810 Norris Dr . E . F resno, Ca 93703 $56,000
!"#$%&'()$"*+,%,)"*-,,&,-*%,.)'/.,*/0(*"$(*10'%'"(,,-2*%,3%,4,"('()$"4*'%,*'33%$5)&'(,2*)"-)6)-0'.*6,%)#)7'()$"*%,7$&&,"-,-8*
Contact - Sam Okenyi Jr. / 559.394.9505 / [email protected]
Kitchen
Main Bath Room
10
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
1810 Norris Dr . E . F resno, Ca 93703 $56,000
!"#$%&'()$"*+,%,)"*-,,&,-*%,.)'/.,*/0(*"$(*10'%'"(,,-2*%,3%,4,"('()$"4*'%,*'33%$5)&'(,2*)"-)6)-0'.*6,%)#)7'()$"*%,7$&&,"-,-8*
Contact - Sam Okenyi Jr. / 559.394.9505 / [email protected]
MLS Sales within 1 mile
!
!"##$%&$'()$*+%,)$*-.$+)#%/$0%12*3*+#)4$*3)$*,*5#*+#)$&%3$,)35&56*'5%-$%-$73)4-%$89:;$*-.$*3)$*##$6%125#).$%&$
!"#$%&'()*+,'(-./%&'0'1+23-,/'%-./%'42,)25',)/'.-%,'6'7*5,)%&'-58'-+/'-..'42,)25'-'9'72./'-58':1',*'-'72./'*;',)/'
4<+=)6'$23%2)3'>?$
*
11
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
1810 Norris Dr . E . F resno, Ca 93703 $56,000
!"#$%&'()$"*+,%,)"*-,,&,-*%,.)'/.,*/0(*"$(*10'%'"(,,-2*%,3%,4,"('()$"4*'%,*'33%$5)&'(,2*)"-)6)-0'.*6,%)#)7'()$"*%,7$&&,"-,-8*
Contact - Sam Okenyi Jr. / 559.394.9505 / [email protected]
M LS Sales within a ½ Mile
!
!!
Pending Sales
!
12
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
1810 Norris Dr . E . F resno, Ca 93703 $56,000
!"#$%&'()$"*+,%,)"*-,,&,-*%,.)'/.,*/0(*"$(*10'%'"(,,-2*%,3%,4,"('()$"4*'%,*'33%$5)&'(,2*)"-)6)-0'.*6,%)#)7'()$"*%,7$&&,"-,-8*
Contact - Sam Okenyi Jr. / 559.394.9505 / [email protected]
!"#$%&"'()$*(
+,+-(."//&0(1/2(3$0%(4/50'"6(7$(89:-9(
(
(
13
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Max had it good with the only dual panes on the property.
Burglar Fence has to go. Can
we sell it?
Stucco cracks require new dash coat
14
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Two Entry Doors from the Un-permitted
Duplex. 1 stays & the other goes.
Fireplace and Palm Tree will go. (budget allowing)
15
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 201016
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Huge window 8 ft x 7 ft. Big heat load on
East but covered by
patio roof. PW over XOX
17
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Water Heater’s gotta go. We
need the room and we dont
need the Carbon
Monoxide in the house.
18
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Keep the sink in the corner? Or
reconfigure?
Glass blocks are a nice touch and will be retained
19
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Fireplace:Remove?
20
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Open this area up to the kitchen.
21
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Entryway was wasted space even before.
Now that the entry is being
abandoned, the space will
become a walk in closet from the
adjacent bedroom.
22
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Lowered ceiling in hallway. It must go ...
But will we put it back after installing ducts for the Mini Split Heat Pump?
23
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 201024
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Q. Can those wood floors be refinished?
A. Check back here in future weeks to see our answer.
25
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 201026
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Doughboy Pool is in good
condition and will be retained.
27
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Mark on ceiling shows previous
duplex wall.
28
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
No main breaker. Will
need to add new service panel.
29
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
“Closet” was built on a porch.
30
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Home has 3 coolers and 3 window AC’sAll must go...
31
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Old wood shingle roof plus two comp roofs
= too many 32
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Neighbor’s 5 Ton Unit brings question:
How small can we go on our larger home after our
envelope renovation?
A. Of course it will depend on the
Heat Load Calculation done
with Manual J. Your HVAC
contractor does that doesn’t he?
33
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Palm TreeFireplace
Iron Fence How much to remove
$$$ ?34
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
What do you think?No Problem!
35
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Wholesalers InterviewedTo see the 3 part Interview
with Sam & Chris
Go to
GreenEarthEquities.comTable of Contents,
Left sidebar
How, When, Why, Where, of Successfully Wholesaling
Houses in a Down Economy
& Details on 1810 Norris
36
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Click PSU Tabel of Contents
37
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Select Part 1, 2 or 3
38