Larry Niskey
Active 4 years, 4 months agoForum Replies Created
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Hi Jackie,
The investor told me that he didn’t sign my contract because he will buy the property and sell it the same day directly to the end-buyer (double closing and no assignments). The only way that I can think of for me to get paid is to have a JV agreement with investor stating amount of payment to me, if property closes with end-buyer that I introduced to the deal.
In my area most homeowner’s sell with a Realtor, there are very few FSBOs and very few that will sell at discount. On Craigslist in my area most of the homes for sale are by Realtors or investors/wholesalers. I’ve been trying for two years with no success yet, so I’ve been trying to help sell other wholesaler’s inventory. The investors that I hear are successful are mailing 5,000 to 10,000 yellow letters a month. Since I have no money I’ve been contacting sellers online such as Craigslist or Zillow and in other states where there seems to be more wholesaling activity,
Thanks
NickHi Jackie,
I provided a signed contract to the wholesaler to purchase the property but he did not sign and return it. He said that he wants to deal only with the the end-buyer. I thought that I had to get a property under contract first before presenting it to an end-buyer. So how can I do a deal and get paid with no contract and equitable interest on the property? Thanks, Nick
Hi 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.Hey Mike…I made 1 offer in the last 30 days. The seller (investor) told me that if I was not buying the property myself, she would not do the deal. She did not want me to assign the property. The only “good deals” that I saw were offered by other wholesalers.
Most of the properties on Craigslist are listed my agents (need POF, EMD, or pre-approval letters before they will do biz with you.)
The other properties are listed by wholesalers/investors and the few remaining by FSBO’s selling for retail and full price and cash. It’s very rare there is a deeply discounted good deal in this area on Craigslist by FSBOs.
The people that I hear that are successful are sending 6,000 -10,000 letter/postcards a month to absentee owners. My budget is not in a position to handle the cost of that kind of marketing right now.
I was thinking of getting a hard money lender to take down some of the deeply discounted properties from the wholesalers and re-sell them but the high cost rates, holding costs and fees would eat me alive. I don’t have a private lender or partner.
I’m thinking since a lot of FSBO’s are looking for retail prices, that I can work on the lease option, seller financing, sub2 strategy and assign the deal. Since I have a low budget, I don’t want to be in the middle with master lease option and on the hook for payments and repairs. But on the other hand, I know that most sellers in this area will not entertain doing seller financing.
Hey Wally…Yes, but remember what Einstein said …doing the same thing over and over again and expecting different results is insanity. Like Kenny Rodgers said… you got to know when to hold and when to fold. Many advise if you have a low budget and to start out doing deals fast is to work with other wholesalers that already have available inventory and cash buyers that are looking for good deals. It seems that the successful people in my market are the ones buying fixer uppers from the wholesalers for ALL CASH to fix and flip. I don’t have cash and I don’t know anything about rehabbing so I will see if I can be a bird dog for this guy that has the biggest fix and flip business in the area, so that I can learn the biz. You mentioned the probate route. I heard about this guy in Philadelphia and he said he’s doing VERY WELL with probates. He claims that he nets $50 – $60k on a lot of his deals.
Hi All!
I’ve been working in the Baltimore, Md and Washington DC area (median price range $446,000) at wholesaling and also networking with other wholesalers to do deals. I used the formula ARV X .65 – repairs – wholesale fee = MAO for deals.
I’ve been contacting “We Buy Houses” ads from Google and Craigslist; contacting them and letting them know that I have access to discount properties; then contacting “handyman special” and “investor special” type ads from Google and Craigslist and asking to get on their buyer’s list for their inventory to sell to my cash buyers.
I’ve heard that some wholesalers are doing several deals a month, but they said they are mailing out at least 6,000 postcards and letters a month to absentee owners. My budget is not in a position to do that now.
The FSBO’s on Craigslist mostly want full price or advertised by realtors or other wholesalers.
I started advertising my motivated seller website last month to do some internet marketing for leads but received no leads yet.
I would like to find my own leads. I was thinking of doing a direct mail out to 250 /month to absentee owners, but some say this may not be enough and a waste of time.
It’s been difficult to find “real” serious cash buyers and “real” wholesalers without daisy chains or require POF letters or $2,500 EMD.
Since there are many more “pretty” houses in the area, I’m thinking of maybe working at lease option assignments. Also there is a major player that said he will put up the financing for a fix an flip and do the rehab and share the profit. So maybe I’ll just look for fix and flips for him. Thanks.
Actually I have a lot of buyers that want to buy ‘wholesale property’ that will do a JV deal with me. The problem is finding all these discounted wholesale properties for these buyers.
I’m on a tight budget and doing marketing in the local area on Craigslist, but it seems that all the advertised wholesale properties are being offered by other wholesale investors. I’ve heard that some markets are better for wholesaling than others.
I’m looking to market virtually in another area for discounted wholesale properties. How would one have to change the business operation to successfully do wholesale flips virtually?
Thanks,
NickHi Don,
Thanks for your response. I was reading the ebook “Flip Deals” and my goal is to use the strategies to get an option on an “ugly” house for a cash investor buyer or “pretty” house for a retail buyer that may get a loan or use the seller’s existing financing.
I guess I was not clear on how to approach the seller and what to say to the seller to get an option for an “ugly” house or for a “pretty” house.
So you suggest not using a non-exclusive option, right? My thinking was since I’m new to this, that using a non-exclusive option, if the deal some how did not go through, the seller would not be upset with time lost while his property was off the market.
So you suggest using the HBS instead of just assigning the deal may be better? I guess with the HBS one would not really need a buyer’s list since the HBS marketing should pull in the buyers, right?
Thanks
NickI read that wholesale flips and options are a good way to start. I am trying to get a “terms” type deal to assign to a retail buyer.
I’ve haven’t had any success yet in finding a motivated that will entertain a “terms” type deal or owner financing. They want cash or either 20% down.
Since I’m on a very tight budget I’ve been contacting FSBO’s on Craigslist and on-line websites for several months now with no success. I also placed ads on Craigslist to get motivated sellers to contact me but got no responses. With no leads there is no business.
This one “real estate expert” said that 8 out of 10 people will say no. Another “real estate expert” claims that 36% will say yes. From my experience and market about 99% say no. I’m thinking maybe this market is not a good market (Wash DC /Baltimore) to be doing creative real estate and “terms” deals.
I was talking with this one fellow and he gets some many leads coming in but he said that he spends $18,000/month on marketing.
Is there a way for someone on a tight budget to get leads coming in or does it really take a lot of money to get these leads coming in ? Any help and thoughts on this would be greatly appreciated. Thanks!
