Good way to find buyers...?

[investinAK]

One of my worries about wholesaling homes and flipping them, is that I will not be able to find buyers...One idea I had, was to put an ad in the major newspaper, saying something along the lines of...."Investor downsizing...must sell, fixer upper...etc....and then when the prospective buyers call, tell them that it has recently sold but take their info and tell them I should have more in the future and I can call them...will this sort of thing work? or will a sophisticated investor see right through the ad?

[REIaddicted]

One of my worries about wholesaling homes and flipping them, is that I will not be able to find buyers...One idea I had, was to put an ad in the major newspaper, saying something along the lines of...."Investor downsizing...must sell, fixer upper...etc....and then when the prospective buyers call, tell them that it has recently sold but take their info and tell them I should have more in the future and I can call them...will this sort of thing work? or will a sophisticated investor see right through the ad?

You don't want or care about the sophistigated investor!
That type of add will work in adding to your data base. After you tell them it is sold, tel them you have several more coming up soon. Ask pertinate ? Add them to your database.

I placed an add
" handyman special, must sell, owner will finace" 417-xxx-xxx-xxxx
I had call coming out the ying yang.

When they called, I told them it was sold but had several more in the near future, I asked

1. what price range
2. how they wante to fince
3. what type they were looking for
4. how much they had to put down
5. contact info

[investinAK]

Ya, I really want to build a database, so that in the future, I get a property under contract, go home and look on the computer and say "oh look, Lisa is looking for EXACTLY what I have! I think I will call her!" and have a house sold before I even have time to worry about whether or not I will sell it! :) Maybe this is not reality in the world of wholesalers...but I will make it one! :)

[REIaddicted]

Ya, I really want to build a database, so that in the future, I get a property under contract, go home and look on the computer and say "oh look, Lisa is looking for EXACTLY what I have! I think I will call her!" and have a house sold before I even have time to worry about whether or not I will sell it! :) Maybe this is not reality in the world of wholesalers...but I will make it one! :)

Have you NOT heard about the open title close?
There is a post here.. but this is the just

You place the add
You get call
You KNOW there is equaty in the house
Put it under contract ( no $ down)
Go to your database
Dial for $
they want it
Contact the title company and simply explain " I have a house I want to buy, but I also have a perso that what's to buy it. Can we do an open title close?"

Meet with the buyer first, get his check
Meet with the seller second... Hand him a check
The title CO gives you a check for the difference. Who cares if it is only $3000.... You made $ with NO $ down !

[investinAK]

Yes, I have heard of it, and if I have things my way, that is how most of my deals will work. I think that there will be more of a profit margin (in my opinion) this way, as the buyer doesnt just pay the assignment fee upfront. I actually just read the thread too! :) Is it really as easy as it sounds?

[REIaddicted]

Yes, I have heard of it, and if I have things my way, that is how most of my deals will work. I think that there will be more of a profit margin (in my opinion) this way, as the buyer doesnt just pay the assignment fee upfront. I actually just read the thread too! :) Is it really as easy as it sounds?

It is that easy.... I do FSBO and have had good luck... I wished the market would pick up here. Yo would think we here in MO are not used to the cold weather!!!!!!

[investinAK]

that is GREAT news! :) I have been kind of sheltered when it comes to "creative" stuff as far as real estate investing, as my stepdad has always done things by the book....i.e. pays cash for almost everything, goes through realtors, etc....He has been starting to think a little more outside the box lately though! :) He must be doing something right...he has made about $2million in the last three years on ONE project...but my mom hates the amount of time he has spent making that money! :)

[REIaddicted]

that is GREAT news! :) I have been kind of sheltered when it comes to "creative" stuff as far as real estate investing, as my stepdad has always done things by the book....i.e. pays cash for almost everything, goes through realtors, etc....He has been starting to think a little more outside the box lately though! :) He must be doing something right...he has made about $2million in the last three years on ONE project...but my mom hates the amount of time he has spent making that money! :)

Could he be your private lender with a secured first?

[investinAK]

I have thought about asking him several times...just waiting for the right deal to come along I guess. I want to present a deal to him like I would any other lender...I don't think he thinks I can make a living by investing in real estate, and I would hate to give him something to hang over me. He is a very "you can't make money without money kinda guy." That is what he told me when I first moved out when I turned 18. Proved him wrong then, I am bound to do it again! :) I think he will definitely make a good asset to my business though, as well as his partner, who according to Wayne (my stepdad) is the largest private mortgage holder in the the state! :) My eyes are turning all Scrooge McDuck like!!! :)

[REIaddicted]

I have thought about asking him several times...just waiting for the right deal to come along I guess. I want to present a deal to him like I would any other lender...I don't think he thinks I can make a living by investing in real estate, and I would hate to give him something to hang over me. He is a very "you can't make money without money kinda guy." That is what he told me when I first moved out when I turned 18. Proved him wrong then, I am bound to do it again! :) I think he will definitely make a good asset to my business though, as well as his partner, who according to Wayne (my stepdad) is the largest private mortgage holder in the the state! :) My eyes are turning all Scrooge McDuck like!!! :)

My almost 20 yr old moved out... Had all the answers...... Moved back in,,,, still din't want to follow MY rules so hemoved back out... across the street.... BIG DEAL.... he is still here for meals and laundry.
Ya know what ? HE had the guts to move out.. try..... and stil trying. I have to respect him for that.

I say you need to give them the chance.... You CAN do this.... YOU WILL succeed.... I hear it in your post........

They will respect you no matter what.

[investinAK]

Thanks! I am going to research some HMLs tonight and in the morning, then when we go over there tomorrow night, I am going to present some ways for him to make some good money...fast! I definitely think that he grew some respect for me in the last couple of years...I moved out the day I turned 18...to OREGON! I had about $1500 to my name, and had to buy a car, I got a job within my first week there, lived there 2 years, without ever asking to borrow money, got married, moved to California for about 3 months, and then we moved back up here! :) So I think he definitely gets the fact that when I put my mind to something, there is nothing stopping me! :) Thanks for the encouragement, and the idea to use him as a lender in first position! I think I can encourage him to invest in something that I am controlling! I will offer him good odds on his money, and make it hard to refuse! :)

[REIaddicted]

Thanks! I am going to research some HMLs tonight and in the morning, then when we go over there tomorrow night, I am going to present some ways for him to make some good money...fast! I definitely think that he grew some respect for me in the last couple of years...I moved out the day I turned 18...to OREGON! I had about $1500 to my name, and had to buy a car, I got a job within my first week there, lived there 2 years, without ever asking to borrow money, got married, moved to California for about 3 months, and then we moved back up here! :) So I think he definitely gets the fact that when I put my mind to something, there is nothing stopping me! :) Thanks for the encouragement, and the idea to use him as a lender in first position! I think I can encourage him to invest in something that I am controlling! I will offer him good odds on his money, and make it hard to refuse! :)

I would definatly present the details on paper. Offering a nice % back and let him know the turn around tme you expect. ( make sure to detail the holding cost, ect and pad the holding time a bit as a "just in case") also detail the marketing to sale the house?
I wouldn't normaly do the marketing in the packet, but it is family, so you just want to show him you have all your angles covered.
Let us know how things go. :SM139:

[investinAK]

I ran some numbers last night...and I am going to type it all up and present it to him tonight, and tell him to present it to his partner as well...I figured 10% would be fair...? Less than HMLs, but higher than prime. I figured on rehabs, a 90-180 turn around time should be more than adequate, right? i will let you know what happens!

[REIaddicted]

I ran some numbers last night...and I am going to type it all up and present it to him tonight, and tell him to present it to his partner as well...I figured 10% would be fair...? Less than HMLs, but higher than prime. I figured on rehabs, a 90-180 turn around time should be more than adequate, right? i will let you know what happens!

If you can get him to go 10%m that would be great. Most PL like a higher return ( I have read 12-15 % )

depends on your profit, I guess. If they guy won't go for 10, you can always start inching it up until he agree's.
Dan, any thoughts on this?

Sounds like your turn around is more than safe :pa:

[investinAK]

Well here is what I figured...Now, I am not sure what HMLs do as far as early payoff, whether they just take the interest they have made off of the payments and the balance of the loan and call it even or what....SO what I figured I could do, since I don't plan on holding it for longer than I have to, is when I pay him off, give him 10% of the original loan amount (in profit), plus anything that has already been paid in interest. I don't know if this is too much/not enough/just right....It sounded enticing to me if I was a private lender, as who wouldnt want to make a 10% return in as little as 60-90 days?! :) Then he could just sit back and make his money, with a safe, secured investment. I would definitely be willing to go higher, but I believe in the adage "ask for more than you want, you may get it." :)