Please help me put this deal together with buyer! - Posted by James_GA

Posted by Phil Pav on August 09, 2001 at 12:59:04:

My name is Phil Pav and I am the Manager at Nation-Wide Real Estate Discounters® Corp. If you have not yet been to our website: http://www.RenovateAmerica.com I would encourage you to do so and take the guided tour. The website contains dozens of testimonials, references, verifiable properties with actual copies of the deeds that the company has completed with our Associates in the field.

The Resources section of the site will also provide you with information about our nationwide network of Realtors, Contractors and independent Investors.

After you have visited the website, please contact me personally and I will gladly answer any remaining questions about Nation-Wide or the Renovate America® Program.

I look forward of hearing from you.

Thank You,

Phil Pav
Phil_Pav@RenovateAmerica.com
(941) 985-2700

Please help me put this deal together with buyer! - Posted by James_GA

Posted by James_GA on July 06, 2001 at 21:23:35:

Here is the situation I am in.
I am currently under contract to purchase 3 properties from the same seller ?tired landlord?

House #1 (2/1 approximately 900 sf.)
ARV-22,500
Repairs ?6500
Purchase price 4800. (With seller paying 300 in closing cost)

House #2 (2/1 approximately 900 sf.)
ARV-22,500
Repairs-1500
Purchase price 9200. (With seller paying 300 in closing cost)

House #3 (3/2 approx. 1440 sf. Brick home.)
ARV-41,000
Repairs 2000
Purchase Price 24,700. (With seller paying 1,000 in closing cost)

When I contracted the properties my original intent was to retail these after rehab. House number 1 is the only major rehab the cost is minimal because the square footage is around 900sf. My problem arose because all of the hard money lenders I contacted would loan on that low of prices. So I decided to wholesale flip all 3 houses to another local investor) The investor showed up at the home with his contractor on Friday. His contractor thoroughly inspected all 3 properties. The investor called back on Tuesday as he stated he would and made an offer a little lower than what I had the properties under contract for. He was only off by a few hundred dollars on each property which told me he was using close to the same formula for calculating his offer prices as I was. ( I usually add a couple hundred dollars to get it to a number that I like) I explained to the investor that I couldn?t possibly except those offers but that they were close enough I felt like we could definitely work out a deal. I explained to him that if I flipped all 3 to him and could walk away with 2k then I would do the deal.

He said he could fund the deal in 30 days, and explained that he worked for a company called ?Nation Wide? and explained that he gets 10% of the sales price for purchasing the properties with there funds for them. Or that he could wait until the company ?retailed? the property and get 40% of the sale. Seemed like a ?No Brainer? to me I would definitely go for the 40%. But he said he is taking the 10%. He stated that Nation Wide would pay closing cost and it really didn?t count for much that the closing costs were worked into my contract. So my intial thoughts were to work with him and Nation Wide on renegotiating a contract with the seller without the closing costs worked into the price. I asked to raise the price to compensate for seller paying closing costs. And we raised each property as noted above. A total of 1600 which puts us closer to my 2k profit. So thinking this was a done deal I presented this to the investor. He seemed optimistic that Nation Wide would work with this being as their offers wont have to be increased but about 200 dollars per property with me renegotiating the contracts to a lower price with no closing costs to be paid by the seller.
He was going to check with Nation Wide on their policy regarding Assignments. He called me back and told me that they wouldn?t do an assignment from me to him, and them him to them because it would be too complicated (Huh?). I am out of ideas to make this work. I could do a simultaneous closing but then I am sure ?Nation Wide? would have a problem with paying my closing costs as well so I couldn?t renegotiate the contracts for the lower price. Or I would be paying closing cost which one make the deal so skinny it would be a miracle if come out profitable after paying closing costs and figuring in taxes. So does anyone have any other ideas to make this deal fly? Or maybe ideas of how to fund a deal like this using private money so I can just go for the retail? And what exactly is Nation Wide and how do they operate anyone have any info?
Thanks for your time.
James_GA

Forget Nationwide - Posted by phil fernandez

Posted by phil fernandez on July 07, 2001 at 12:42:58:

Go to the archives and check up on Nationwide. Ask them to show you paperwork on deals they have funded and closed on. They can’t because no one has ever heard of them closing on a deal. What they thrive on is taking beginner investors money upfront. They will constantly find reasons to not do a deal as you are now seeing from your recent experience.

If you are waiting for your buyer to get a deal done through Nationwide, forget it. It won’t happen.

I don’t know your credit situation. If it’s ok why not mortgage the properties. If your evaluation of FMV and repair costs are correct you have the makings of 3 great deals. Why sell all 3 for only $2,000.

If you have credit issues that makes borrowing the funds difficult, I would consider getting a partner to put up both the downpayment and his credit so you qualify for the mortgages. You’ll make alot more money this way than just basically given them away.

Re: Please help… - Posted by Paul_MA

Posted by Paul_MA on July 07, 2001 at 01:39:41:

Hi James.

Good job locating the deals!

As far as Nation-Wide goes, I, like Lawrence, received their brochure in the mail. At $950? , I pitched it.

As for funding, you can find lenders that will loan those small amounts. There aren’t many, but they are out there. Keep searching. You do not need hard money.

Then afterward, owner finance them and have a nice residule income.

If worse comes to worse, there are many web sites where you can advertise your need for money.

Hope this helps.

Paul MA

Info on Nation-Wide Real Estate Discounters - Posted by Lawrence Tourangeau (Oh)

Posted by Lawrence Tourangeau (Oh) on July 07, 2001 at 24:08:05:

Don’t know if this helps but just today I received information from Nation-Wide Real Estate Discounters Corporation in the mail. I was going to pitch it but had a feeling I better hold on to it for some reason. Their brochure says that they are located in Fort Myers, Florida. No web-site address which always scares me for some reason.

To summarize their FAQs brochure, they say that they are ‘a nationally recognized company dedicated to showing people like you how to make big profits from locating distressed residential property.’ They claim to have been active in the acquisition, rehabilitation and liquidation of distressed properties since 1960.

You can make money by assigning your deal to one of their investors for 10% of the purchase price OR they will purchase the property for ‘all cash’, make the renovations and give you net 40% of the net profits OR you can use their funding sources and keep 100% of the profit for yourself.

Their training if you become an Associate includes a 250 page manual, consultants and their forms and contracts ‘very essential’ to your success. The brochure says that ‘You are never required to use any of your own money on an approved joint-venture or assignment of contract. This includes property acquisition and resale costs, renovation expenses, appraisal costs, legal fees, etc.’

Lastly, my favourite Q and A in its entirety:
Q. What does Nation-Wide expect from an Associate?
A. A COMMITMENT! Many people who respond to this opportunity tend to be more curious that serious, making it very difficult to determine the commitment level of those who express interest. Nation-Wide and your Advisory Team spend a great deal of time, effort, and financial resources educating you on acquisition strategies, techniques and procedures. Therefore, you must be willing to demonstrate a commitment to your future if you truly expect to become a financially distressed property locator.

James, I know this doesn’t give you any of the ‘oh you need to do this’ answers you’re looking for right now but I hope it helps in some manner to know about the company giving your buyer a difficult time. I don’t know if they do what they claim to or how great a company they are but I hope this info tidbit helped.

Best of luck.
Lawrence Tourangeau (Ohio)

Re: Please help - Posted by Carey_PA

Posted by Carey_PA on July 06, 2001 at 21:53:40:

James,

I know the other 2 people that posted were asking about Nationwide and I think basically what they are trying to say is that Nationwide has a bad rep and your investor won’t ever close SO find a new investor to flip to!

CAREY

Re: This is too familiar - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on July 06, 2001 at 21:42:42:

Do a search on this “nation wide”. You will most likely find that nation wide is only part of the name. That they charge an upfront fee to be “part of thier team”. That they operate completely on the funds of you the seller. Probably will find them in Florida (or New Jersey this week). Most likely will find that the company is owned or controlled by more than one person and at least one of them has a sizable judgement against them in connection with the business.

Or you might find something different. I could be mixing this outfit up with another company. Perhaps someone else knows more about it.

Re: Please help me - Posted by Rob Harris

Posted by Rob Harris on July 06, 2001 at 21:37:09:

James would that happen to be Nation-Wide Real Estate Discounters. That your investor is relying on the funds for??

Re: Forget Nationwide - Posted by Phil Pav

Posted by Phil Pav on March 11, 2002 at 13:49:03:

My name is Phil Pav and I am the Manager at Nation-Wide Real Estate Discounters® Corp. If you have not yet been to our website: http://www.RenovateAmerica.com I would encourage you to do so and take the guided tour. The website contains dozens of testimonials, references, verifiable properties with actual copies of the deeds that the company has completed with our Associates in the field.
The Resources section of the site will also provide you with information about our nationwide network of Realtors, Contractors and independent Investors.
After you have visited the website, please contact me personally and I will gladly answer any remaining questions about Nation-Wide or the Renovate America® Program.
I look forward of hearing from you.

Thank You,
Phil Pav
Phil_Pav@RenovateAmerica.com
(941) 985-2700

Re: Info on Nation-Wide Real Estate Discounters - Posted by Phil Pav

Posted by Phil Pav on August 09, 2001 at 12:54:34:

My name is Phil Pav and I am the Manager at Nation-Wide Real Estate Discounters® Corp. If you have not yet been to our website: http://www.RenovateAmerica.com I would encourage you to do so and take the guided tour. The website contains dozens of testimonials, references, verifiable properties with actual copies of the deeds that the company has completed with our Associates in the field.

The Resources section of the site will also provide you with information about our nationwide network of Realtors, Contractors and independent Investors.

After you have visited the website, please contact me personally and I will gladly answer any remaining questions about Nation-Wide or the Renovate America® Program.

I look forward of hearing from you.

Thank You,

Phil Pav
Phil_Pav@RenovateAmerica.com
(941) 985-2700

Re: Info on Nation-Wide Real Estate Discounters - Posted by Charles K. Clarkson (TX)

Posted by Charles K. Clarkson (TX) on July 07, 2001 at 07:40:24:

Their website address is Looking for Benji? or http://www.nwred.com/. It seems the company moved from Trenton, NJ some time after 1995. They are a member of the FL BBB. If anyone has had a poor experience with them, please do all of us the service of reporting them at http://www.clearwater.bbb.org/report.html?compid=6073034&national=Y. There are no complaints at this time.

Re: Please help - Posted by James_GA

Posted by James_GA on July 06, 2001 at 22:04:47:

I actually looked at another property that he just closed on. Said that the funding was suppose to take 30 days and Nationwide was ready in 2 weeks. I hate to walk away from an able buyer over a problem that might be able to be ironed out. My clock is ticking on my contract to purchase so whatever I do I have to do it quick! Any ideas?

Re: Point Me To Actual Proof, Not Speculation!! - Posted by Bryan

Posted by Bryan on July 31, 2001 at 19:13:32:

Anybody out there who has actual documented proof of wrongdoing against Nation-Wide Real Estate Discounters, aka Renovate America? If not, the fact that any organization should require an up-front fee for information, whether or not they include contracts to close a deal, is more than fair. Information that could lead to profit should come at a price.

I’ll ask a question asked earlier…Has anyone out there actually done their Due Diligence, found a property in Default, at Trustee Sale, or already Foreclosed whereby they contacted Renovate America for counsel to close that deal? If so, what was your experience? Positive or negative, please be specific in your dealings.

AND…Is anyone in California (my home state) utilizing Renovate America’s service?

Please DO NOT RESPOND if: (1) You do not have documented proof or first-hand experience with Renovate America, or (2) You paid for the service BUT have NOT put forth the Due Diligence!!!

Thank you in advance for your reply.

Re: Point Me To Actual Proof, Not Speculation!! - Posted by keith

Posted by keith on November 07, 2002 at 16:26:17:

i am a realtor and just ate a bunch of bull and wasted 8 deals two in escrow …
my opion …the federal trade commission,BBB ,IRS…will be on it
BEWARE ,CAUTION ,FRAUD are the words of wisdom
rember if its too good to be true 99.9999999999999999999999999999% of the time it NOT!
this is one of those 99.99999999999999999999999999999% of the times ,.