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You need to make the big increments at leaslt $3000 to help you get to your retail price. If the increments are too low, it takes forever to get the price up and some people lose interest
That would be great Nick. Thanks for the help. I’m thinking June 13th and 14th, if I can get everything finished this week. Thanks for the $3k advice Jackie. I was thinking $1,000 as a minimum so I didn’t scare anyone away, but it would take forever at that increment.
Most of the time, when you do an analysis between doing a quick wholesale flip vs. doing a rehab, you will find that you can make more money doing the quick wholesale flip. Especially if you use a HBS to get it sold.
Five months of your time and money being tied up is too long.
Several years ago, I got a contract on a property that I considered rehabbing. But the time and money involved was more than I wanted to tackle, so I wholesaled it to make a quick $30,000. The rehabber friend who bought it spent 6 long months dealing with contractors, city permits, tracking down materials and doing heavy duty marketing to get it sold. All his time was tied up in this one property. He made $40,000 for all his efforts.
In that 6 months, I did many more wholesale flips. I usually get paid within 7 days of getting a contract on the property.
I’ll take $30,000 for 2 hours of work vs. $40,000 for 6 months of work!
Today, I honestly think it is NOT a good idea to do rehabs because the housing market is changing. This year I think there could be another housing crash like we had in 2007. That $240,000 house could be worth $199,000 overnight if there is another housing crash. Interest rates are creeping up which means the buyer pool for retail properties is shrinking.
Avoid retail sales. Go for the wholesale flip deals.
Flip Deals… as in wholesale flips… as in sold as is where is.. are better.
Jackie – Thanks again. My mortgage broker says he also has some properties he is interested in selling, so I may have some other deals after this one.
Nick – Feel free to email me. Do you still have my email after David Tilney’s seminar?
What is your email address again? I would have to go through my business cards to find it.
Nick – My apologies – email@example.com. We have pretty much finished the inside and are doing the landscaping this week.
Home inspector comes on Friday.
One question for everyone. My mortgage broker said he will try to be there for some of the time, but can be available for the whole time on the phone or internet if I have someone that needs qualifying.
Will that work or does the mortgage broker need to be physically present all the time during the open houses?
People do internet and telephone qualifying all the time now. It is now the norm not the exception.
That’s what I figured. Just wanted to make sure.
NOPE — You really need the mortgage broker to be there the whole time.
He needs to have print outs of various loan programs available, price variations.
You will lose the enthusian of people if the mortgage broker is not there. He really needs to be there the whole time for the HBS or find someone else
Is getting 100s of potential loans not a good enough reason for him to be there with this much advance notice? Can he send an associate?
It will kill your deal if the mortgage broker is not there full time
Ok good to know. I may have to delay the HBS by a week then if he won’t be there, so I can find another one. I’m going to put ads on Craigslist, Backpage and Postlets. I will have a sign up in my yard for the week too. Anyone else have any thoughts on other sites to post on?
Do a search to see if there are any free classified sites in your area. Some sites are area specific.
Kijiji.com may be good for there. Don’t know
Remember PRESS RELEASES!. You can get at Fiverr.com to write it and distribute it for you.
Send to local tv and radio stations when you get the press release
is there a school or office buildings close to the house? Post flyers there too.
Walmart close by? post on their bullentin board
Update: Ok I’m embarrassed but my realtor brought a buyer with close to a full price offer and discounted his commission to get the deal done. So I took the easy way out. But I’ve got the signs and still want to do this. I will look for another house – but this time I will NOT buy it and rehab it. Stay tuned…
Sorry for letting you down Jackie..
certainly not letting me down.
the objective is to sell the house as fast as possible and that is exactly what you did.
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