Investors Dream
I have a deal under contract. Lets just say its a gorgeous deal! I was going to keep it and lease it for about $2500.00 a month, but I don't have the resources to do so before the date set for closing. Therefore I need to find someone to assign it to, an investor with resources could profit about 20K on this one just from flipping. I priced low to sell fast to someone who could actually do something with it , I have about 3 weeks til closing. I can't seem to find any Investor though , I looked through the local newspaper and called the we buy houses ads, but they are taking to long to get back to me and I need a fast closing thats why its so cheap in the first place , and the online ads I post aren't getting anything either someone please guide me!! I haven't joined my local REI because they want a $160.00 fee , so do not use this suggestion.
Billijo 
How about giving us the numbers. We could give you better direction as how to market if we knew who would be the target market.
If the house will rent for 2500 it must be a house worth over 300k? I would want to make more than 20k if I had to take title to a 300k property.
How about an ad in the newspaper.
Brenda
Why not try putting the listing up on this site? It would go out in the weekly email newsletter which will be seen by all.
Larry Brusatori
What about going to some of the nicer apt. community's in the are and place flyers by their mail area. You never know who is looking for a house.
Where would I post it at? If properties tab, I did about 2 days ago. Thanks for the replies.
KimmyJack,
Could not resit this:
But if you were to place flyers in apartment communities ,first you would get is a warning from the apartment www.management.I may be wrong here but thats been my www.experience.They dont to lose any of their tenants you know.
Billiijo,
One of the things you do early in your Investing career is networking.
You need to start building a buyers list.
This is why it is so often recommended that you join a REI club in your area, even though that is not what you want to hear.
With every purchase you will have to make a worst case exit scenario.
It will vary per property.
It is often said that your profit is made when buying, but there's a moot understanding there that you know how and where your possibilities of selling are.
With 3 weeks left you must market like crazy among investors.
Send a factsheet to the Investors you contacted.
Offer it to a regional wholesaler and ask their advice.
Contact several HMLs in your area, and ask them if they know an Investor who "likes" your type of deal.
Call a few mortgage brokers and Title companies, and ask them the same question.
You've got to be creative to make this happen.
Good luck.
_________________
Luctor et Emergo [ Edited by Hawthorn on Date 02/11/2004 ]
Posting/Listing a property is a straight forward process:
1. Go to the Properties tab at the top.
2. Select your S"tate", then "Single Family Residence" and then choose "Contract for sale" and follow the rest of the steps through....
HTH
I will not be posting signs in apts. because I do not want to assign contract to buyers, I cannot be sure of my own profit if I do that. I only want investors so that I am secure in knowing that I will be compensated for my part in the deal. I have put up my posting on the site and made calls to the investor ads in the paper. Will the investor pay the owner cash or what kind of process is the buying of an assigned contract? How will I receive my portion? Does anyone have experience with this kind of wholesaling? If so how does it work for you? Are you satisfied with outcome?
If the numbers are good why not do it yourself using a hard money loan. Look up a hard money lender on this site or in your area. If it is no more than 65% LTV then is should be no problem and you will buy a little time to refinance or sell. Additionally there must be many RE clubs in TX that don't charge that kind of $$ I looked once and there were about 20 in the state.
Where is Cypress, TX? Why have you not given the #s? and Do you really think that $160.00 is too much to help get a deal done that may NET you several thousand dollars? The networking is worth more than 1k per year. When you know the movers and shakers you can get deals done with a couple of calls instead of worrying yourself to death.
Charge it, borrow it or write a check. This is the best advice that anyone will give you.
Billijo,Ask for an extension from the owner. Please give us some numbers on the deal? What is the purchase price,fmv,and repair cost? If the deal has a good profit for all parties try to profit 10% of fmv. Call some local mortgage brokers and ask if they have any preapproved buyers looking for houses in the area. Also ask if they have investors looking for houses in this area. If all this fails call some RE Brokers to see if they have investors looking for houses in this area.
Nice to meet you toodlebug,
When you (ilegaly) advertise a deal in the forums, use your chance to display the details of the deal such as price, location, etc. If you don't, your post might just get deleted. Let's start form the begining:
1) Home Price
2) Comps
3) location
4) House size
5) Lot size
6) Building material
Just to name the few...
Okay Here is what I'm working with,
FMV $115,000
1456 sqft. 3bd/2bth 1.5 story
sale $80,000
no work needed (remodeled)
owned free and clear of payments, etc.
the details of it are what make it worth so much its in upscale country club comm. with golf/pool/tennis access. Also it has alot of home improvements, owners had tons of equity in this house. The other houses being sold by agents in that sub-division are selling for 150-200K . I don't want to get a loan to keep myself, I just want to leave it up to the big fish who know what to do with this one. I wanted to make my little (that's an undestatement) profit and move to the next one. This would be my first deal so I'm just anxious to see it come through, and I don't feel the need to be greedy with the profit because lets face it, I'm not doing very much work for it. Also, I am new to all of this and I don't want to screw it up. "These we buy homes" ads people sure do take a long time to get back to me! I am not going to list location cuz I don't want to be jailed from an important site for me to have access to.
Hey,
Maybe I am too hard headed to get this one, but these numbers don't make sense to me.
Is $80k, the price you are selling at or the price you are buying it at?
The house has a FMV of $115k, but the other houses are selling for $150-200k???
The seller has no mortgage and the house needs no work done to it, but it is being sold for $80k????
What is the $2.5k lease payments all about? Is that what you thought about leasing it out for??? If so, that would be a HUGE amount for a $115k house.
At $115k, 70% works out to exactly $80.5k, so the house sounds like it is priced right.
You said someone could make $20k; where is the misisng $34k ($115K - $80.5k)? Even if I factor in RE commission (which I don't think you would need to sell this house), there is still $8k missing.
What I am missing?
if your nervous then you really need to understand all our questions. it sounds too good to be true, so i'm a bit take by your conservative attitude. You're not being greedy by seeking the highest profit margin possibe. If you think small that's may end up cost you in the long run.
Anyway, my suggestion is contact your some local title companies and find out if you can do a double closing. Make sure they have done a few and have them explain it to you. Then advertise the property for $115k. Hire a lawyer and you should walk away from the deal with at least 25k.
Best wishes
2 thoughts....
If you truly have a great deal, usually buyers and money will find you if you do minimal advertising and hit your market right.
second, I can't help but think this. You're complaining about a $160.00 fee for a RE club, yet you're on the verge of loosing $20K + on this deal. How long can you run an add for $160? Make sure they've got a refund policy if you're not satisfied, go and start networking. You may be able to sell your house in one night. If I were wholesaleing a home in my area that is the FIRST place I would go. Additionally, you can talk with people who know homes, prices, markets. They can tell you what's wrong with the deal and why it doesn't interest them. That is advice that most of us cannot offer from here.
Good luck.
I use a quick rule:
If I don't know the game, I don't play ball.
Yes, it's good that you started, and got yourself this parcel, but if you're not sure how to do it, go back, do your homework, study up and get the next one.
just my 2cents
I agree Hibby,
Yeah it's $160, but what about all of the long term associates you'll meet??!!
It's possible that many of the people in the group are new( just as I am), but there is sure to be plenty of seasoned investors there.
I will have my first contract to assign by the end of this business day, and it's costing me $0, absolutely nothing at all. In addition to that the investor that's going to buy it is on the board of the REI group. So, in this case, I got the deal from someone in the group and I'm selling it to someone in the group. Is that worth $160..... I think so.
Just my opinion
Chris1220
( disclaimer; even though it says I'm a Veteran Investor, I am just going through my first deal now... so take that for what it's worth)
Yes 80K is my selling price. Yes I could sell for more, but I figured if I got lucky enought to find such a great deal and handed it off cheap to an investor then they would like my style, trust me and purchase other deals from me as well, which would be getting my foot in the door.
It was an elderly womans vacation home and she just wants a chunk of fast cash for it and be finished. She owned it free and clear from the start. Maybe won out of a settlement, or divorce,I don't know why she's selling so cheap. It was in newspaper.
Other houses are so pricey because of location and luxuries involved. Also the scenic view. The real estate agents around here price really high, then slowly lower price every week or two until its at the right actual FMV.
I said someone could profit 20K off this, because I know thats a sure amount, they might want to invest money in it or whatever, but 20k is a sure profit.
It could be leased for $2500/mth. because of the location and luxuries, again. Their are some currently being rented for that much, its upscale kind of older people vacation club, so everything is nice enough that it seems fair. Also, just the area its in, for example a regular 3bd/2bth apartment rents out at $1000 in our area. Everyone has $$ around here so its not unusual.
I'm just psyched to have found this great deal, luckily the seller is really nice and anxious to sell her home, I guess she just wants some fast cash and a sure sell instead of holding on to an unused home. I'd rather have money instead also.
So there are the answers to your questions.
Billijo
Hey,
Based off the number, the first "We Buy House" ad you called should have jumped all over this house. There must be some reason it did not happen that way.
What did the wholesale investors say?
How many did you call?
Why did you put a property under contract without first having an established list of buyers? That's the easiest way to lose big money very fast in this business. And if you can't come up with the cash, the contact's voided and no one will do business with you.
Never put yourself in a postion to receive the hot potato unless you have someone to toss it to. If you have an option on the contract you'll be in a little better postion with your contingencies, but the inablilty to close the deal will still hurt your reputation in future deals.
I hope you still find a way to toss the potato, but more importantly, I hope you learn from this experience.
I would call brokers in your area and see if they have anyone looking for that type of house
Lori
[addsig]
Ok Tootlebug, I am going to bail you out.
This is what I want you to do:
#1-Open up escrow as an "assignment".
#2-Put an ad in your local paper saying:
3 bedroom, 2 bath $30k below market
must sell, moving out of state.
#3-Your phone will start to blow up. Now
find an investor, collect your fee and
assign them your escrow and let
them close it. Simple as that!
Best Riches,
Jeff Adam
[addsig]
WOW JeffreyAdam , thats the simplest thing I've ever seen! Great advice, would have never thought of that myself. I will keep that in mind for furture, but great news.... I took a little of everyones advice, posted some ads, called some realtors and I found an Investor who buys houses in our area for cash and he really liked the deal, were getting together for closing soon and he said to please send all future findings his way! Thanks for the help everyone, This is a great forum!
Billijo
Team up with a realtor in your area who knows alot of investors. Tell him/her that you will give them a referral fee to find a buyer. If the deal is juicy enough, someone will bite.