This is a continuation of the Flip2Freedom podcast with Sean Terry. In this episode, Sean interviews Robinson Aries and finds out how wholesaling took him from bankruptcy to making bank.
Sean: You put the contracts, you download the addendum, then, you upload it to Fannie or the HomePath. What’s the response time you typically get?
Robinson: You know, that will depend on the other realtor. Of course, it goes into the system. They have to check both. The realtor, the listing agent, and also somebody from HUD is going to review the offer. So, they will tell the listing agent if they are going to reject or counter the offer. They have communication together. So, the response is going to be between 48 to 72 hours.
Sean: Oh, that’s pretty quick. That’s not bad.
Robinson: It’s quite fast. What I suggest, is to call the realtor and try to push them to get an answer; because at that same time they are probably going to receive another offer. If they receive another offer, they still have to go through the system. All the offers have to be put in the system. So, now, if they have a multiple offer situation, they will notify you that they have a multiple offer situation. You don’t want to be in a multiple offers situation, because otherwise you’re going to lose the property. Because there’s not too many people that knows bids. As an investor, you want to go with your number, with what you believe you can sell it for later on. So, basically, you want to make sure that the realtor moves fast on this, and push them. You know what I do? I offer them the full commission. That way to give them incentive for this deal. I say, “you keep the commissions. You represent me. Just make the deal. I want this property for the contract I sent you.” So they keep the commission. I don’t care.
Sean: Yeah. They keep the total 6%, right? They represent you.
Robinson: Yeah, they keep 6%. That way they’re going to work on the deal. They’re going to push the deal. They’re going to be more motivated. So for me, I don’t care about the commission, because at the end, I know I’m going to settle for more than that.
Sean: Yeah. You want the deal anyway.
Sean: And for earnest money, it’s 10%, right?
Robinson: It’s 10%. That’s not a good thing. Because 10% of $100,000 property is $10,000. That’s a lot of money, you know.
Sean: But still, how many places do you know that you can put $10,000 down and turn it into $10,000? You know. So, it works great on the smaller $20,000, $40,000, $50,000 properties which are cool.
Robinson: Yes. That is actually a fee that I pay. I bought a property for $80,000 and I sold it for $35,000 net. So, 30% was 36, so I made $5,000 right there. Cash. Boom. We close it. And the beauty is that you get to choose the title company, as long as you have control of the deal.
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