You must be logged in to reply to this topic.
-
Using public records and/or list brokers to identify longstanding property owners in a particular area that would be motivated to sell quickly due to death, divorce, out of state relocation, etc. The contracts would then be flipped to cash-buying investors seeking rental-ready properties for their cash flow portfolios.
Assuming the homes need little to no major work done (not rehabs), would the pricing estimation as given in “RE Profits on Steroids” become market value – 30% – my profit? Is helping the seller move their house FAST for all cash at no cost to them enough of an “angle” for them to take 65% FMV?
I would appreciate any further thoughts one could share about this method.
Thanks!
— S.
There is a lot of bank REO and short sale competition for CASH BUYERS.
You will need to get an option on these nice houses at closer to 50% -60% of real market value. Then expect to sell at 65% of market value.
No cash buyer will pay retail.
But finding sellers who will take that big of a discount on a house in good condition will be tough.
The Real Estate Profits on Steroids books says look for VACANT, RUN DOWN properties. Those you can get at bigger discounts.
For the nice houses your better chance of doing a deal would be to buy with seller financing, then sell with seller financing. Or get an option, then do a highest bidder sale. or — for the least amount of risk….. MASTER LEASE.
Thank you again ,Jackie, always the voice of reason. I guess I’m just not looking hard enough but fixer-uppers seem to be really scarce where I am (without driving out an hour+ and still being in marketable areas anyhow). Even the houses in lower-priced areas are mostly updated within the last couple years and “pretty” outside— or at least not in bad enough condition to be substantially discounted.
Maybe I need to pursue something other than wholesaling . . . I haven’t finished the lessons on master leasing and seller financing yet but maybe that’s something more doable for my situation. I would like to do a Lonnie deal too but am not clear enough on how I would pull that off with my current meager resources. Apparently there is a mobile home park somewhere around here that is pretty nasty by the sounds of the customer complaints I’ve come across (poorly managed, little to no amenities, over-priced for the lack of quality, drug dealers setting up shop, etc. A couple even went so far as to say it should be bulldozed completely). Don’t know about the location but I wouldn’t even want to go near it if it is half as bad as all that.
Back to the drawing board—
— S.
That is the same area I worked for 16 years. East plano, east allen and most of richardson have plenty of wholesale deals. You won’t find many west of 75. Garland is not that far away and it is full of wholesale deals. So are Sachse and Wylie – both 30 minutes away.
You don’t even need to go in to Dallas to find plenty of deals… but if you do, there are many many more there.
There are also some good mobile home parks for Lonnie Deals.
Take a week to drive neighborhoods. Needs to be the lower price range to find wholesale deals
You must be logged in to reply to this topic.