Finding Investors/Buyers To Wholesale With?
Althought I am knowledgeable and recently acquired my broker license, am running against a wall. My goal is to generate some quick cash to start with by assigning my contracts to purchase. I have unsuccessfully worked with some individuals who appeared serious at first, only to have them backout after I have tied up the property, not because the deal was bad... they just got cold feet!. Assignment sounds simple and should be as long as there are serious buyers in line. Is there anyone out there who can help me put this plan together. Expecting Success in Chicago!!! :-?
There are a ton of tire kickers out there. Do you have any companies in your area that purchase houses? We have a couple of "real estate investment" companies in my area that sell and provide financing to newbie investors. I kind of hate selling to them because they do not give the newbies a good deal, but they do come through and buy your properties.
Do you have any real estate investment groups in your area that let you put up flyers for properties. Have you run an ad in the newspaper? I ran a "Investor Special, 21k CASH, needs work" ad and got 150 email addresses to add to my list and I sold the house.
Are your properties geared towards rehabbers or landlords - they are two very different groups.
Keep at it and let me know if you find a good way to get your properties sold. I could always use some help.
Brenda
I am not sure what type of investment you are trying to assign, but for the investor, I need at least 25+% discount. I flip or wholesale my investments. Most investors are in that ball park. If you are trying to assign to a end user, they will require less discount. If you are at 10% discount there may not be a big enough incentive (emotions may come into play) for your deal. There are other deals out there.
So what kind of property are you fliping? In single family homes I would try to avoid assigning to an investor, I'd look for an end user. That means you need to qualify them as to ability to get financing, etc. In commercial deals one way to avoid this circumstance is to deal with seasoned people. So I guess my advice is in SFR you want people who want to live in the house. In commercial you want people who are clear about what they want to buy.
An ad in the paper will generate plenty of potential buyers (serious ones and the ones with cold feet). You'r job is, when they call pre-screen them. Ask about their financing, if they buy with cash, then ask them if they'd be willing to provide documentation to show you they have the money lined up if you had a deal that would work for them.
After you have them prescreened, and you have a deal that one of your potential buyers want....ask for a deposit (earnest money). If someone has money securing the property they're less likely to back out and give up their 500, 1000 dollar deposit and more likely to follow through. After you do a some deals with a few consistant buyers you can usually trust them that they'll follow through and stop asking for a deposit, but you can make it "your company policy" to get a deposit to secure the property for the investor.
As far as financing, if your buyer is new or doesn't work with a particular lender, you can also network with local brokers and hard money lenders and show your buyer to the money and show them "how easy it is" to make the deal happen.
Good luck
JB
[addsig]
I flip or wholesale Land, SFHs & Commercial (not a big emphasis in today’s market) primarily to other Investors. I find they know what they want and when it appears they will react. With end users emotions has a lot to play in their decisions. However, I have learned with the end user it not so much the sales price but can they afford it on a monthly basis (creative financing). If they can, they will normally buy.
my problem has been finding a whole saler who lets them go for a true 25% below fmv, same with the bird dog leads, very seldem true to the numbers :-x
If anyone finds a person willing to sell you a property for (After repair value - repairs) * .75 just fall to your feet and kiss his toes.
Brenda