"newbie"
I am in the front stages of learning how to become an investor of buying wholesale sfh. I will work the Sacramento, CA markets.
I think I will birddog my first couple of deals in order to save some money for the soft costs involved in buying and holding sfh's while they are being refurbished and sold to the end user. For example, I was told that my mortgage payment for a $100,000 loan would be several hundred dollars. The way the Sacramento market is going, I should be able to avoid keeping properties on the market for too long. From what I hear, I should be able to refurbish and sell a property within 2 months from the time that I purchase it.
I spoke to a women last night who is an investor in Sacramento markets and she said that there are too many defaulting homes in this market. Everyone should be able to get their share and make money. From her experience, she will find one out of twenty owners that she contacts who will sell their house to her. That's not a bad ratio. If those averages work for me, that means that I should be able to go under contract or birddog one deal every couple of months.
What do you guys think?
I think you have an excellent plan. However, My understanding of Wholesaling would involve selling to another investor. This would not require you to wait until the house is refurbished. Give them the keys, when you get paid.
Good Luck,
Jeff[ Edited by jeff12002 on Date 09/18/2003 ]