Do I find motivated sellers or buyers/investors first in the wholesale process ? Is calling the ads in the newspaper that advertise "will buy houses cash" an idea for finding investors to wholesale propery to?
It's my opinion that the thing that holds most of us back more than anything else, is not having enough great deals. Therefore, I believe that you are in a much better position to make money if you have a house or two in inventory. If you attempt to talk to the investors before you have anything happening, you will be just another newbie taking up time. They may be polite, or they may not talk to you at all. Since you are asking this in the wholesaling forum, you should know some of the guidelines that investors look at when deciding to do a deal or not.
First and foremost, you need to give them enough room to make money on the deal. Generally you are looking at an acquisition cost of around 70% below the After repaired value. Minus repair costs, and holding costs. If you call investors with deals like these, they will not only be excited to talk to you, They may start calling you just to make sure that you haven't lost their phone number.
If you find the deals first, finding investors will be no problem at all.
Good luck,
Jeff
What I did was call the ads in the paper so I could meet the people that say "they buy houses". What I wanted to do was find out what they would be interested in buying and if they had any tips that I could use to find the good deals. Some investors are really friendly and they love to talk shop, if you let them know that you are new to the business you'll be suprized how much information they'll like to share with you, especially if you're a go getter. So, I suggest look for the deals but also get to know the people you want to flip the deal to. Good luck, and happy hunting.
It's my opinion that the thing that holds most of us back more than anything else, is not having enough great deals. Therefore, I believe that you are in a much better position to make money if you have a house or two in inventory. If you attempt to talk to the investors before you have anything happening, you will be just another newbie taking up time. They may be polite, or they may not talk to you at all. Since you are asking this in the wholesaling forum, you should know some of the guidelines that investors look at when deciding to do a deal or not.
First and foremost, you need to give them enough room to make money on the deal. Generally you are looking at an acquisition cost of around 70% below the After repaired value. Minus repair costs, and holding costs. If you call investors with deals like these, they will not only be excited to talk to you, They may start calling you just to make sure that you haven't lost their phone number.
If you find the deals first, finding investors will be no problem at all.
Good luck,
Jeff
thanks Jeff! you saved me and made things alot more clear!
What I did was call the ads in the paper so I could meet the people that say "they buy houses". What I wanted to do was find out what they would be interested in buying and if they had any tips that I could use to find the good deals. Some investors are really friendly and they love to talk shop, if you let them know that you are new to the business you'll be suprized how much information they'll like to share with you, especially if you're a go getter. So, I suggest look for the deals but also get to know the people you want to flip the deal to. Good luck, and happy hunting.