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Mine is time! But I’m doing things to fix that – letting some things go so I can make more room for the things I really want to do.
So, what are your challenges in 2017? What’s holding you back from getting your business going full speed ahead or taking it to the next level?
My plan is to help you solve those problems so you are unstoppable! But before I can do that, I need to know what your biggest challenges are.
My biggest challenge is finding motivated sellers in my hometown, New York
Shyla – what are you currently doing to find motivated sellers and what kind of sellers are you looking for? What kind of deals do you want to do? That will help me give you advice on how to find the type of deals you want to do.
Wholesale flips? Master Leases? Subject-to deals? Seller Finance?
I’m trying to do wholesale flips. I’ve been sending out postcards to absentee owners, posting on social media, and handing out flyers, etc; but haven’t received any responses. I contacted the courthouse and requested a list of condemned house and was told they can’t give me that information. My next step is to out up bandit signs, but I’m told it’s illegal here.
Absentee owners is not a bad angle however, it is not honed in on a specific problem. Not all landlords don’t want to be landlords. Now a vacant house that is another matter. I am pretty sure no one wants to be setting on a vacant house. If not you then someone should drive the neighborhood where you want to do deals. Get a map and highlight ever street you have driven until you have driven the entire area. Myself I look for all vacant houses. I even write down FSBO, for rent, and Realtors if they are vacant because I love to do a variety of deals. For your wholesale flips you would want just vacant homes. Get the address where the tax bill is sent and start sending post cards. To do flips you would not want to be in the best areas of town. You would want to be in the median price range or below.
P.S. It’s Martin Luther King Day what do I do on almost every holiday? I drive the neighborhoods. I am leaving in about 15 minutes.
Thanks Don. I’ve been looking for vacant houses and have asked family and friends to do the same; but it was random. I will now be more specific with a particular area until I’ve scoped it all out and then move on to the next. I’ll definitely write down the numbers for FSBO and rent and see if I can pick up some deals that way. Thanks for the advice. I appreciate it.
If you are going to bother with the FSBO and For Rent you might as well include the for sale by Realtors. You have a very motivated seller if his home has been sitting on the MLS for 6 months or more. Just focus on the vacant homes. Don’t be afraid to go up to the house and look in the windows if you are not sure. I have done this for a long time and never been confronted by anyone. One thing I do is I give a little wave to anyone who is watching me drive the streets.
Okay. Thanks. How does it work with assigning a house that’s listed with a realtor? The New York realtor contracts has a statement that assignments can’t be done.
If you do run across a property that is listed with a Realtor there are many things you can still do.
Get an option to buy on the property that exceeds the time of the listing and carry over times. You could buy yourself. You can sell your option. You can do a highest bidder sale now and pay the Realtors commission out of the proceeds. You could do a highest bidder sale after the listing expires.
You can have the Seller ask if the Realtor will release their listing.
You could approach the Seller to Master Lease the property.
All of these ideas are predicated on the idea that the numbers on the deal work. Find the deal give us the numbers and we can come up with a possible deal.
I assume you want to do wholesale flips because you don’t need to put up much cash to get the option, don’t need to buy the house, and don’t need to do any repairs – YET, you can get paid fast.
But sometimes, in certain towns, wholesale opportunities are harder to find because there just are not many old, run down properties. Is that the case where you are?
If there are plenty of old, run down looking houses, that is what you need to go after. Stop wasting money on marketing to out of town owners (it rarely pays off).
Don’s right that you need to be looking for VACANT houses. Those are the most motivated sellers on the planet.
If you can’t drive around looking for them, you can recruit other people to do it for you. The mail deliver people are out there in the neighborhoods every day. They see vacant houses. Recruit them. The FedEx drivers, UPS drivers, pizza delivery people all see old run down houses. They all need to know that you will pay them $500 if they give you addresses for these houses then you are able to buy it later.
You can also use the techniques in the MEGA Lead Generator report to recruit people on craigslist to go look for properties for you. The report is free for premium members.
Do you have a car? Does it have magnetic signs on the sides telling the world that you buy houses? This is cheap advertising. You’re a moving billboard. Do you have friends who would put magnetic signs on their cars too?
I don’t work with listed properties. Many of the properties you’d want would be bank owned homes or HUD and they have restrictions on assignments or double closing. Real estate agents are not so easy to work with unless you are the buyer. It’s better to work with the owner directly.
Hand out business cards or pens that say “I Solve Real Estate Problems” with your name, phone number and email.
And don’t limit yourself to wholesale flips. There could be other great opportunities right under your nose but you don’t see them because you are so focused on doing a wholesale flip.
Find all the FSBO sites in your area – like fsbo.com forsalebyowner.com — look for houses that have no furniture or very little furniture. These are potential Highest Bidder Sales (wholesale flip on steroids) or a master lease opportunity.
You really do have to spend time out there driving the neighborhoods to find deals.
Thank you both. Yes, Jackie, my area doesn’t have a lot of old run down houses. I’ll recruit the mail workers to find vacant houses as well as utilize Craigslist and the magnet signs. I’ll also study more on the other options other than wholesaling. When I find a property, I’ll post asking your opinion on the options I should take. Thanks again.
If there are not many run down houses where you live, then you need to switch strategies. Highest Bidder Sales make huge profits, you don’t need to buy the house or get loans or fix up anything. That may be a better fit for your area.
A Highest Bidder Sale works with wholesale type properties or nice pretty houses too, even luxury homes and land!
Oh wow, this is great. I must switch strategies. I’ll post for more advice when I find a motivated seller. Thanks Jackie!
There are not many old run down properties in my area as well.
So with the HBS on nice pretty houses, wouldn’t most of the end-buyers be retail buyers needing a mortgage instead of cash buyers since the cash buyers usually want properties at 65% of ARV?
What are your thoughts on wholesaling lease options for getting in and out fast and getting chucks of cash without a lot of risk. I was thinking with the SLO I may be on the hook for unpaid rent and repairs by the tenant-buyer. Thanks.
You will have some cash buyers. However you are correct most will need bank finance. That is why you need to have a mortgage broker there to pre-qualify your bidders.
I am sorry I do not quite understand your question on wholesaling lease options could you elaborate a little bit more
Here’s a scenario:
If the ARV is $700,000 and the owner owes $300,000 in mortgage, what should be the offer price? What should be the starting bid? Should I then split anything above the amount we agreed to sell the house for? Thanks.
Never give a number you would buy at. Have the seller name the price first for all cash. Then ask them is that the best that they can due. Is that their rock bottom price. Also maybe they would like monthly income and collect payments.
My biggest challenge is to run this as a business. I want to work on creative ways to grow the business instead of working in the business. I know the mechanics, but get bogged down by the prospect of finding leads. I think that is my Achilles heel.
To run it as a business I want to build a team that looks for prospective properties( driving for $s, bird dogs, word of mouth, bandit sign posters, car magnetic sign), an acquisition team, a disposition team, a title company that does not need hand holding, and resolves its own issues without constant push from me, along with VAs to do the repetitive data research and data entry work.
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