Using Options To Wholesale New Constructions
Hello all,
My experience is mostly in sub2 deals. I recently conjured up this idea and would like to know what you all think about it.
I could get @ 10k discounts from buying high volume on newly contsructed homes in my area. I have the connections to get options to buy at this price.
My question is how I would sell the options?
How would I get people interested?
Finally, how would I get the $ (at the closing, at the sale of the paper...)?
I think that I could make a lot of money selling on volume using this method, but I do not know a lot about it.
Thank you for your time,
Wes Laney
Just wondering, why settle for 10K on a new house when you can make 20-30K or more on an old one. Less work as far as I'm concerned and priced to move, where as the new ones, you are pretty much dictated the price with little room to negotiate. But, the decision is ultimately up to you and what you want to do. Good luck.
money is money
this would not take up a lot of my time & it would be 100% Other Peoples Money
Wes, Good point!
You will need to figure how much you are going to sell the options for and then find investors to buy them at that rate. To interest them, you will have to make the deals lucrative to the buyer and then, you will have to network your area and wherever you plan to market these properties. I would suggest starting with a local REI club and then advertising in the local newspapers. You will have to decide if you are going to purchase option the properties and then if so, you would sell your option to your investors/owners. Let me know if this helps. Good luck!
Quote:
On 2003-12-27 17:12, sumtersc wrote:
Hello all,
My experience is mostly in sub2 deals. I recently conjured up this idea and would like to know what you all think about it.
I could get @ 10k discounts from buying high volume on newly contsructed homes in my area. I have the connections to get options to buy at this price.
My question is how I would sell the options?
How would I get people interested?
Finally, how would I get the $ (at the closing, at the sale of the paper...)?
I think that I could make a lot of money selling on volume using this method, but I do not know a lot about it.
Thank you for your time,
Wes Laney
here in Central NJ where the market is just booming some cleave fellows have done is buy at (preconstuction prices) then sell when the development is almost complete. (very smart easy way to turn a buck if you have capital)
typically returns are as much as 20% not bad for tying up your capital for 6-9 mo. its beats the 4% banks give on CD's