Typical Hold Time For SubTo Homes??
I recently received $Cash$'s SubTo Course and have one lingering question.........How long does it typically take to get a buyer? Days, weeks, months?
I know there is no definite answer, but your experience would help me at least get an idea of the time frame.
Thanks,
Susan
I would like to hear an answer for this also. Just got $Cash$'s book in the mail the other day and am VERY impressed with it. C'mon you other SUB-To'ers out there, what is the average turn-around time you've experienced on your deals?
It usually only takes a few weeks, sometimes days. One thing you need to do is build up a buyers list. That means every time someone calls asking about your house take down their info and store it somewhere, that way when you get another house you can start calling those people and try and unload it that way. I held my first sub2 for almost four months. I wasn't too worried about it. Since I legally owned the home I just took out an equity loan that would give me enough money to hold it for 6 months. When I did sell it, I sold it for the entire cost of the equity loan (about 6K) but a little for me. Basically, that first deal I made about 2K off the down, $350 per month cashflow, and I have a backend of about 15K. Since it was my first deal I see that I marketed it wrong, priced it wrong, blah, blah, blah, but since then I've been able to unload them in about a month or so. I haven't made a payment on a single one since then so there you go.
I guess it just boils down to your market area. If home sales are strong, it might take a few days, if they are weak, you might have to hold it, but you can always get your money back from your buyers. Let me tell you this though, you are about to enter into the real world. The books (including Johns) all make it seem like you are going to be rich overnight. At least, that's what the newbies mind get out of the book. The truth is it might take you 6 months before you find your first deal. When you find that first deal, you might actually have to hold it for a while before you sell it. So you've got to prepare for these things. Buy smart, not stupid. Make sure you can afford to hold it if you have to. But in the end that doesn't matter. Because the more you do it, the better you'll get, and the more money you will make.
Peace,
Mitchell
[ Edited by kingmonkey on Date 03/23/2004 ]
kingmonkey -
Thanks for the honest info; it helps a lot. You're right that in a newbie's mind it seems that once you get the subto house it's a cash cakewalk from there.
I assumed that it would probably be much harder to get the houses than to sell them, but I wanted to cover the bases. My market is not strong, but not weak. About average, I guess. It's a small town which could be good
- - but too, one never knows 'til one tries!
Thanks again for your response - I appreciate it.
Susan[ Edited by sefrede on Date 06/26/2004 ]
Yeah, that's one thing I learned quick! It's stupid hard to find sellers than it is to find buyers. Buyers are every where, even in a "bad" market. There is always someone looking for a house, especially if they don't have to qualify to get into it. Sellers suck to find. I've spent a ton of money to find them, made it back and then some but I've just about given up in my area. I'm looking to get into other things like tax liens, commerical rental property and cheap mobiles. As well as some other forms of investing. I like the challenge investing brings with it...you've always got to keep on your toes to get paid...fun fun fun!
Peace and don't die,
Mitchell
It will take some time even if you advertise heavily. Most sellers are skeptical. I do not even use the word "lease options". Most peopple do not understand those words and are actually scared of it especially Realtors.
Another way of swinging a deal is to help the seller pay for the minor repairs (cosmetics only) and use that money as your option premium. There is a reason why the house was not selling and it can be as simple as curb appeal, carpet need replacement, painting, poor landscaping, etc..Some you can fix, some you can't so be prepared to walk away if needed.
Most important, do not fall in love with the property. make sure you will make money even if some things go wrong.