Real Estate Investing Forums

Real Estate Investing => Bird Dogs, Wholesaling => Topic started by: ericmedem on December 24, 2006, 10:47:59 am

Title: Finding buyers lesson (part 1)
Post by: ericmedem on December 24, 2006, 10:47:59 am
I get email virtually every day from people who want to know where to find buyers for their wholesale deals.  I see countless posts on here of people asking where to find buyers. So I figured I would put together most of the ideas that I have used or have seen used for finding buyers into a single post.

I am sure there are countless other places and ways to find buyers beyond what I am mentioning, so I will leave it up to other people to fill in the blanks that I have missed.

Keep in mind these are ways that I or my clients have actually used, so I know that they work because I have done it.  

1. We Buy Houses Signs I call every single one of these signs that I see, I actually keep a note book full of numbers and info that I find out about these companies when I call.

I usually ask them whether they are still buying, what they are looking for, what percentage up FMV they are typically paying, and what areas of town they want to buy in.

While I have them on the phone I also ask them if they wholesale out any of their homes, if they do then I ask them to call me when they have something good.  I tell them that if the deal is right I can close in less than 2 weeks with cash.(I can do this because I have other buyers already in place to buy their deals, sometimes these buyers could be other cash for your house buyers)

Here is a sample of a deal that I put together using this.

1. I called a we buy houses sign
2. Found out where they were looking
3. Put a home under contract for $52k in that area
4. Called them and let them know.
5. I signed a 6 month lease option with them for $64k
6. I closed the home.
7. The lease option started
8. He sold the home
9. We close this week, I make about $12,000 (I also made commission when I bought the house, because im a realtor)
10. He makes around $12k.
11. Were all happy.

2. Call realtors I call realtors and find out if they have any cash buyers that are looking to buy some wholesale deals.  It varies on what I offer to pay them but typically I offer 10%-20% of my profit, or a flat 2-3% fee, each time the buyer they have given me buys a home.  It creates a win- win, I get a buyer and they get paid whenever their buyer buys a home.  

I offer the continuous pay because a realtors worst fear is that they give you a buyer and he buys from you,  then when they  have a good property to show their buyers they cant buy because they have already purchased from you.

If the realtors dont have cash buyers, I tell them that if they bump into any great deals, they should call me and if the deals good enough we can buy with cash and close in less than 2 weeks.( Often times you can use other realtors buyers to buy another realtors house and you can make money setting the two up)

An example of one of my clients deals that he ran this way.

1. I called my client about a great HUD deal
2. He liked the deal and put the home under contract for $115k (I made a $4800 commission on the home when it closed so I was happy)
3. We had 60 days to close the HUD home so he started calling realtors
4. He found a realtor with a cash buyer that was willing to pay $122,000
5. We assigned the contract (this is a secret)
6. We went to closing and his buyer brought $122,000 cashiers check.
7. My buyer left with a check for $7,000 ( he used none of his own money, and I found him the house so he was happy)
8. I left with my $4800 commission
9. The realtor who brought the buyer took no commission but got a commitment from his buyer that he would list the home with him when he sold it.

3. Newspaper ads I dont personally use this one, I have clients who have had great success with it though.  They simply place a small classified ad that reads "Looking for buyers to purchase homes at 50-70% of true value"

I have picked up endless buyers with this ad though "Free List of 45 foreclosed/distressed homes" call or visit www.$$$.com.  The reason that I have had so much success with this ad is because anyone thinking of buying real estate would much rather get a free list of 45 then have to call each individual ad.  You can have a local realtor put together a list of properties for you and email them to you if you cant find your own.  Then take the list that they send you and email it out to people that respond to your ad. Keep in mind you dont really care about the list that you send, you care about getting the name, phone number, and buying qualifications of responding buyers.

A real life example.
1. I placed my free list ad
2. I got about 30 responses for the month
3. Found one buyer who has paid me over $75,000 in commisions over the next 3 years on deals I brought him.

These were realtor commissions, but if you can find a buyer who is taking the kind of action he was you could seriously line your pockets wholesaling to him.

4. HUD homes this is my own technique that I started using to get buyers just for my realtor purposes.  Watch for a great deal on a HUD home or any great deal for that matter, then park outside for a few hours and talk to the people going to check out the home.  Most of the areas investors will find there way to the property and you can give them your card and be sure to get there info.  Tell them that you run into alot of deals and ask them if they would like you to give them a call when you run into something decent.

A personal example.

1. I went to look at a good HUD home that I was going to buy myself.
2. The neighbor came over and wanted to see the home while I was there.
3. I showed him the home and he ended up buying it from me.
4. I ended up making $2500 in commission on it.

If I were not a realtor, I would have simply talked to him and found out what he was willing to pay, then wrote up a wholesale contract, then put the home under contract with HUD, then played the spread.

This was my most recent deal, but I have picked up endless buyers for other homes while parked outside of HUD homes. I call it hunting for buyers. Its kind of like deer hunting with a bait pile.  The home is the bait pile and the buyers are all coming to eat.

4.  Talk to your current buyers buyer typically know other buyers, ask your buyers if they know of anyone else who is buying (let them know you will only call the referal if they are passing on the property).  You also might offer to pay your buyer for a referall fee if one of there people end up buying a house from you.  This technique also works great if you have a buyer that only wants to buy in a certain area, then you can call their referall if you have a home outside that area.

Personal example.

1. One of my buyers had too many homes and could not buy.
2. I asked him if he knew anyone else who might be interested.
3. He gave me the number to a cousin who was an even bigger investor
4. I ended up selling 3 homes to his cousin this year, and paid him a referal for each one.

5. Local REI meetings If you have a local investor club join it, if you dont then start one.  It kind of speaks for itself that this is where many great buyers will be.  Just be sure you know a fair bit about what you are doing before talking to very many people about potential deals.  The last thing you want to do is burn alot of bridges by showing your new found buyers a bunch of crap.

6. Birddogs for buyers  Outside of having bird dogs look for homes for you, you can also have them look for buyers for you.  Give them your cards and have them hand them out to people they might meet that are looking to get into real estate investing.

7. Brochure Boxes  Just like realtors use brochure boxes you can use them to.  If you have a property to move leave a brochure box that talks minimally about the property that it is left at, always be sure to leave out pertitant info like price, sqft, or bed/baths.  If you give all the info away then people will never call you about the property.  Focus the brochure mainly on other potential deals in the area or say that you are looking for buyers for properties at 50-70%FMV.

8. Out of towner and landlords  Many people sell themselves short when they are dialing for dollars.  Typically people call or mail out of town owners and other landlords to see if they want to sell.  The funny part is if they dont want to sell then there is a chance that they want to buy, so ask them if they arent selling, then would they like to buy some more, or if your mailing then include buying info on your mailer as well.

I gotta go now, the wifes ready for shopping, I will add to the post with some of my other ways but this should be a start. Hopefully the big dogs can come in and fill in the blanks.  

Eric Medemar
Title: Re:Finding buyers lesson (part 1)
Post by: ericmedem on December 29, 2006, 02:42:38 pm
Watch the HUD solds and find out who is buying them, then  call them down the road and find out if they are looking for more deals.  A great way to pick up buyers that are actually doing something.

Eric Medemar
Title: Re:Finding buyers lesson (part 1)
Post by: klproperties on December 29, 2006, 03:00:35 pm
Thanks for all the info all info helps. I am new to this site and must say I do thank it is great. This is like another one for home inspectors that I get on as well. All keep up the great work.
Title: How about finding wholesalers??
Post by: butlersw3 on December 29, 2006, 10:35:02 pm
I am on the other side of the coin from you.  I am an active investor, a cash buyer, and I have multiple business LOCs ready to pull the trigger on good deals.  The problem I am facing is finding those honest and ethical people (like your seem to be) that are capable of brining me the deals.  Do you have any suggestions for going in the opposite direction??  It seems much harder to find the wholesalers (or bird dogs) than the buyers.  Now, there are plenty of people that can bring me underestimated repair numbers and over inflated ARVs and claim they are great deals
Title: Re:Finding buyers lesson (part 1)
Post by: RenoNvTony on January 01, 2007, 04:15:43 pm
I am just in the infant stages of my wholesaling RE venture and I was wondering about pr they whoesalers them selvesoperties that I have aquired through assingment contracts

I dont think they have a franchise in Reno/Tahoe/Carson City, but if I called a place like Home Vestors, do the work with wholesalers or are they also in the same business.

If I do contact a realator...who should I call? Assis2Sell, GMAC, Ferarri-Lund, ERA, etc.

How long do you have to flip the property to a cash buyer on average? and what do others tell the current home residents about the process.

Thanks for any assistance you may provide
Title: Re:Finding buyers lesson (part 1)
Post by: ericmedem on January 02, 2007, 06:44:34 am
I have worked with Homevestors on a couple of deals that I have bought from them, they are in the wholesale business, but they do offer deals that would be good enough to wholesale onto somebody else. I ended up buying 2 from them and then doing flips with them.  If you find any great deals you might also think about wholesaling over to them.

Eric medemar
Title: Re:Finding buyers lesson (part 1)
Post by: brucekwb on January 04, 2007, 09:26:58 pm
look for recent sells of homes papers. look thru them each week, watch names are repeted often. also llc. inc. co & sign's may be investers make the calls
Title: Re:Finding buyers lesson (part 1)
Post by: ericmedem on January 07, 2007, 03:40:26 pm
I have had great success this sunday running a wanted to buy ad with a specific timeline.
Title: Re:How about finding wholesalers??
Post by: Allen Properties on January 13, 2007, 09:01:57 pm
I am on the other side of the coin from you.  I am an active investor, a cash buyer, and I have multiple business LOCs ready to pull the trigger on good deals.  The problem I am facing is finding those honest and ethical people (like your seem to be) that are capable of brining me the deals.  Do you have any suggestions for going in the opposite direction??  It seems much harder to find the wholesalers (or bird dogs) than the buyers.  Now, there are plenty of people that can bring me underestimated repair numbers and over inflated ARVs and claim they are great deals
I am an investor as well. You can also call the "We Buy Houses" numbers and they often have good deals for me. Call a few Hard Money Lenders. They deal with all kinds of investors. I found an incredibly good Wholesaler that way and as a wholesaler, you can find out from the HML's which investors are the most active.
Title: Re:Finding buyers lesson (part 1)
Post by: crystalsalton on January 13, 2007, 10:51:50 pm
Eric, is it possible to assign a Hud Contract, for I thought not.........
Title: Re:Finding buyers lesson (part 1)
Post by: ericmedem on January 15, 2007, 04:22:07 am
It is, I have been to quite a few closings where the buyer has walked away with 6k-12k using the assign a HUD technique.

I am sure some of the experts in here could teach you how
Title: Re:Finding buyers lesson (part 1)
Post by: crystalsalton on January 15, 2007, 05:50:25 pm
How about yourself,  could you give me a brief description how?

Thanks in Advance.
Title: Re:Finding buyers lesson (part 1)
Post by: gatorgirl on January 17, 2007, 07:27:09 am
Finding real buyers is the problem.  We deal with luxury homeowners who want to sell their estates quickly, at 20-40% below appraisal.  We order current appraisals and title searches to make sure the deal is golden.

There are so many imposters out there pretending to be buyers.  All they want to do is to take the property, mark it up significantly and send it out all over the internet.  While I know networking is important, adding $400,000 onto a good deal is greedy and slows the rate to which the house can be purchased--which doesn't serve the homeowner.

Or they will sign a NDNC and then go straight to the homeowner and try to haggle them down even more.  If a homeowner is willing to sell their 3 million dollar estate for 1.6 and it is in a hot area and needs no repairs, why would you want to beat them down even more, when the numbers are good?

Oh the stories I get from "serious" buyers.  They always say they can make a decision quickly, but after you release the details of the property, they vanish.  I've now had to become an investigator when first contacted by a "high-end buyer".  If they refuse to give me their telephone number, or their number is a cheaper cell phone service (ie: cricket) they probably can't afford to buy a 2 million dollar home.  We tell them they need earnest money, just to weed out the fakes.  I've had them put fake names and numbers on the NDNC, so their contact with the homeowner won't be traced.

The funniest was the other day when a "buyer" with a Metro PCS phone emailed and wanted his in-house counsel to review "any and all appraisals we had on current properties".  When I told him I wanted to chat with him first over the phone, he told me he was on a film production site and wasn't available to talk!  LOL  Sorry if that was you, Steven Spielberg!
Title: Re:How about finding wholesalers??
Post by: dsandlin on January 19, 2007, 10:08:04 am
I am on the other side of the coin from you.  I am an active investor, a cash buyer, and I have multiple business LOCs ready to pull the trigger on good deals.  The problem I am facing is finding those honest and ethical people (like your seem to be) that are capable of brining me the deals.  Do you have any suggestions for going in the opposite direction??  It seems much harder to find the wholesalers (or bird dogs) than the buyers.  Now, there are plenty of people that can bring me underestimated repair numbers and over inflated ARVs and claim they are great deals
Title: Re:Finding buyers lesson (part 1)
Post by: dsandlin on January 19, 2007, 10:13:09 am
woops screwed that one up. Ive been dealing with reo asset managers for many of the large banking establishments and have found home sthrough them on average 60% below retail all the way down to 8%. I actually purchased a home valued at 90K for 2500 becasue they didnt want to deal with the home anymore. Either way a good reo asset amanager can do wonders for you, the ones i dela with find me these delas on average every few days and can have info across the USA in the same amount of time. They work above and beyond any real estate salesman ive ever dealt with. Going to courthouse steps can work but i prefer getting information about homes that have dropped in price considerably.
Title: Re:Finding buyers lesson (part 1)
Post by: ericmedem on January 23, 2007, 06:02:58 am
woops screwed that one up. Ive been dealing with reo asset managers for many of the large banking establishments and have found home sthrough them on average 60% below retail all the way down to 8%. I actually purchased a home valued at 90K for 2500 becasue they didnt want to deal with the home anymore. Either way a good reo asset amanager can do wonders for you, the ones i dela with find me these delas on average every few days and can have info across the USA in the same amount of time. They work above and beyond any real estate salesman ive ever dealt with. Going to courthouse steps can work but i prefer getting information about homes that have dropped in price considerably.

Two of the three homes I bought last week were from realtors who let me know that the asset managers wanted the properties off of their books. I didnt do as well as $2500 on 90k, but I did get one that got foreclosed on at $108k for $29,500.

Eric Medemar
Title: Re:Finding buyers lesson (part 1)
Post by: richardsasahara on January 23, 2007, 11:07:53 pm
Would it be a violation if we paid a realtor a certain amount to find a client?

I'm a bit confused about that. As a loan officer/asipiring investor I find your post very intriging, but I want to be sure I'm not violating any RESPA laws or anything.

Can I find a property, line up a buyer, and give a comission to a realtor for helping in between? Am I able to write up their loans as well?

I don't mean to pick at your knowledge, but I'm starting out as a loan officer and want to make sure everything is okay. Thansk.
Title: Re:Finding buyers lesson (part 1)
Post by: dpinnick on January 24, 2007, 10:06:58 am
Where do you find the asset managers who can tell you of the deals? Newbie here. :-\
Title: Re:Finding buyers lesson (part 1)
Post by: IC0317 on January 24, 2007, 11:29:54 am
Hi, I dont really have trouble finding buyers, I just post an ad on different forums and I get a nice amount of PB(potential buyers), then I send out my preference sheet and add them to my files. My thing is finding the deals to take to the buyers.
Title: Re:Finding buyers lesson (part 1)
Post by: klproperties on January 24, 2007, 02:03:09 pm
There is an investor up here in the Sonoma county area of Ca. that pays about a 5K finders fee to realtors for houses they close on. But does not always list with them.
Title: Re:Finding buyers lesson (part 1)
Post by: dsandlin on January 25, 2007, 10:38:27 am
You can find asset managers with a little bit of work. Not all real estate companies know where to find an asset manager, the best way is to ask. If they never heard of an reo asset manager then they probably do not have one in the office. Keep asking around and you will find one.  Depending upon the area im finding some like to be wined and dined, i personally will not do this. Im here buying a house they have so im actually helping them out. The only downside for them is its a minimal amout they get from the bank. Sometimes 1500 to 2500 which is really low. But if you are buying a 25,000 house then 2500 isnt too bad to me. The guy i deal with has access to the entire US through 8 of the major banks. If you need help getting started let me know ill be happy to get you started.
Title: Re:Finding buyers lesson (part 1)
Post by: klproperties on January 26, 2007, 09:39:39 am
dsandlin, I am a new investor looking for that first deal is it possible for you to assist me with the assest manager that you mentioned. I am looking in the santa rosa ca and the dallas dfw area texas areas. Thanks in advance. Kelly   Email me please
Title: Re:Finding buyers lesson (part 1)
Post by: Jaffman on January 26, 2007, 09:19:13 pm
dsandlin
I too would appreciate any assistance you could provide to me on REO Asset Managers.
Thanks
Title: Re:Finding buyers lesson (part 1)
Post by: ericmedem on February 05, 2007, 11:04:36 am
Would it be a violation if we paid a realtor a certain amount to find a client?

I'm a bit confused about that. As a loan officer/asipiring investor I find your post very intriging, but I want to be sure I'm not violating any RESPA laws or anything.

Can I find a property, line up a buyer, and give a comission to a realtor for helping in between? Am I able to write up their loans as well?

I don't mean to pick at your knowledge, but I'm starting out as a loan officer and want to make sure everything is okay. Thansk.

I know in my state you are perfectly allowed to pay a realtor for any service, you would just need to pay the realor through his broker.

Eric Medemar
Title: Re: Finding buyers lesson (part 1)
Post by: realpro on March 18, 2007, 09:49:26 pm
Hi Dsandlin,

Would it be possible for you to turn me onto your REO asset manager?  I won't waste his/her time.  Thanks in advance. 
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on March 23, 2007, 08:01:54 pm
What are you looking to get ahold of asset managers for? You can often get ahold of asset managers simply by calling the banks and asking for them.

Eric Medemar
Title: Re: Finding buyers lesson (part 1)
Post by: pdxloan on March 25, 2007, 07:15:34 pm
Eric:  great answer on where to find out contact info of asset managers.  Pretty simple...just call and ask for one! LOL

On a general note, as far as finding buyers, as a mortgage consultant, I was wondering, is it always a wholesale buyer people are asking about getting?

What about actual owner-occupied buyers?

Would access to finding buyers like this be a question to ask also?

Just a thought, as the sub-prime mortgage lenders dry up, alternatives for people to buy a home may be drying up for a while.

I have a buyer, while qualified income-wise and asset-wise, her credit is far from stellar.

It's because her loving husband of 13 years decided to leave her and divorce her for someone else, and in the process of divorce, ruined her credit by not paying on the mortgage on time for the past 15 months.  Now not every month, but enough 30 and 60 day lates to cause her credit score to drop.  As well as consumer lates on credit cards.

Anyway, I arranged for her to lease-to-own a property from an investor/realtor in my area, so that she can have a place to live for her and her children.  She'll be able to refinance the property into her own name probably in 12-24 months and the term on the lease is 36 months.

Incidentally, I know advanced investors will know this technique; it is being done through a Revocable Land Trust, so that this mother of 3 will be able to take a tax deduction on the interest paid on the mortgage, as well as the property tax portion.  Such a lovely vehicle for real estate investing..the Illinois Land Trust!

So, back to original question:  Do investors here (from newbies to experienced and all levels in between) also seek out sources for end-buyers?

If you do, than look into contacting as many loan officer and mortgage planners possible and see if they have any situation you can help their client's with in terms of buying a home now.

Looking for any thoughts; I certainly don't pretend to have all the answers. LOL  :biggrin

Your humble Mortgage Planning Consultant,

Ed Bisquera

P.S. Yes, I did receive a referral fee for finding a tenant-buyer and suggest anyone do the same.  If we (the loan consultant) can't make money immediately from doing a loan, than at least we can make a small fee for finding a solution.  Not much, mind you, since the intent is to get the loan business when the tenant-buyer eventually needs a conventional loan later down the road.  EB
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on March 30, 2007, 06:04:47 am
You can also use the "Safe Land Contract" if she wants all of the tax benefits of homeownership.  Essentially you do a lease option of your choosing on the home, then ad your buyer onto the deed.  Right after you have the buyer sign the quit claim deed adding them on you have them sign another takiing them off.  You file the deed adding them on then save the deed taking them off.  If the buyer decided to stop paying you go and file the quit claim taking them off.  I have never had to use the second deed, because the fear of me having that has always kept the buyer paying, or they are just good buyers.
Title: Re: Finding buyers lesson (part 1)
Post by: lovetoknow on April 05, 2007, 08:00:38 pm
 :biggrin
Title: Re:Finding buyers lesson (part 1)
Post by: lovetoknow on April 05, 2007, 08:04:35 pm
You can find asset managers with a little bit of work. Not all real estate companies know where to find an asset manager, the best way is to ask. If they never heard of an reo asset manager then they probably do not have one in the office. Keep asking around and you will find one.  Depending upon the area im finding some like to be wined and dined, i personally will not do this. Im here buying a house they have so im actually helping them out. The only downside for them is its a minimal amout they get from the bank. Sometimes 1500 to 2500 which is really low. But if you are buying a 25,000 house then 2500 isnt too bad to me. The guy i deal with has access to the entire US through 8 of the major banks. If you need help getting started let me know ill be happy to get you started.


I need help getting started....
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on June 14, 2007, 09:25:52 pm
Eric:  great answer on where to find out contact info of asset managers.  Pretty simple...just call and ask for one! LOL

On a general note, as far as finding buyers, as a mortgage consultant, I was wondering, is it always a wholesale buyer people are asking about getting?

What about actual owner-occupied buyers?

Would access to finding buyers like this be a question to ask also?

Just a thought, as the sub-prime mortgage lenders dry up, alternatives for people to buy a home may be drying up for a while.

I have a buyer, while qualified income-wise and asset-wise, her credit is far from stellar.

It's because her loving husband of 13 years decided to leave her and divorce her for someone else, and in the process of divorce, ruined her credit by not paying on the mortgage on time for the past 15 months.  Now not every month, but enough 30 and 60 day lates to cause her credit score to drop.  As well as consumer lates on credit cards.

Anyway, I arranged for her to lease-to-own a property from an investor/realtor in my area, so that she can have a place to live for her and her children.  She'll be able to refinance the property into her own name probably in 12-24 months and the term on the lease is 36 months.

Incidentally, I know advanced investors will know this technique; it is being done through a Revocable Land Trust, so that this mother of 3 will be able to take a tax deduction on the interest paid on the mortgage, as well as the property tax portion.  Such a lovely vehicle for real estate investing..the Illinois Land Trust!

So, back to original question:  Do investors here (from newbies to experienced and all levels in between) also seek out sources for end-buyers?

If you do, than look into contacting as many loan officer and mortgage planners possible and see if they have any situation you can help their client's with in terms of buying a home now.

Looking for any thoughts; I certainly don't pretend to have all the answers. LOL  :biggrin

Your humble Mortgage Planning Consultant,

Ed Bisquera

P.S. Yes, I did receive a referral fee for finding a tenant-buyer and suggest anyone do the same.  If we (the loan consultant) can't make money immediately from doing a loan, than at least we can make a small fee for finding a solution.  Not much, mind you, since the intent is to get the loan business when the tenant-buyer eventually needs a conventional loan later down the road.  EB
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on June 14, 2007, 09:28:48 pm
I screwed that up, I have found a decent amount of end buyers from contacting loan officers, they are usually pretty happy because I can provide their buyers with great deals, which ad values back to them
Title: Re: Finding buyers lesson (part 1)
Post by: Peter114 on June 15, 2007, 02:07:29 pm
Ericmedem, Pdxloan and all. Thank you for the great information!

As the sub-prime mortgages dry up, how can we assist these buyers to purchase homes? Thanks in advance!

What's the best process after getting a house under contract to then  sell (probably an investor below FMV) and then arrange for the house to be L/O or placed on land contract to help first time homebuyers or credit challenged buyers?

 1. How would you advertise to get the investor?
 2. After you set-up the L/O or land contract deal for the investor with
     buyer, you would then be out of the deal?
 3. Your profit would only come from the profit you made when you 
     sold the house to the investor?
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on June 21, 2007, 08:01:34 am
there are a vast number of ways to structure deals with investors, end users and yourself using lease options and L/C.

They all depend on what type of financing you are able to get.  I have done 2 deals this year that I found and put under contract, then held the financing for 6 months with 10 percents down.  I have sold these properties to other investors.  I got these investors from running short classified ads using my website, which allows a low contact entry point.  one of the investors I got from calling cash for you house signs that he has all over town.  My profit came in 6 months when they sold to the end user.  I also profit along the way by playing the rate spread between what I pay and what I charge them, along with the price difference I by for 52k sell for 64k so I am paying 8% on 52k and selling for 64k at 10%.

This is just one way to make money, I could go on and on, when I get time I will.

Eric Medemar
Title: Re: Finding buyers lesson (part 1)
Post by: timandlisa1208 on July 12, 2007, 07:09:15 am
eric,
how would you handle wholesaling a property that is tenant occupied?
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on July 16, 2007, 07:03:13 am
I would get copies of the leases and find out how long the leases run. If they are non long term then you could sell to an owner occ or a landlord. If they are long term then you can sell them to other landlords.  It is really no diff than any other deal. 

Check leasing laws in your area and be sure to get the tenants to sign off that the lease that the owner gave you was the original lease. other wise you could be hurtin for certin
Title: Re: Finding buyers lesson (part 1)
Post by: timandlisa1208 on July 16, 2007, 07:21:57 am
thanks eric, they are actually on a month to month with no signed lease.
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on July 20, 2007, 06:46:33 am
I would still get the tenants to sign off that their is no lease, if you listen to the owner or the tenants, and then after close they produce a lease you could get screwed pretty royally.
Title: Re: Finding buyers lesson (part 1)
Post by: Deaf Ceo on July 24, 2007, 09:11:47 am
Howdy... do I need a RE License in order to get pay at the first closing?

And can somebody expalin what a double closing?

Excellent advice on creating a buyer's list

I would also like to add to that list ~ via networking events and happy hours

but my favorite is open house. Dropping cards/flyers on people car and creating a contact with the open house agent.

Megachurches are good source of buyers.  :shocked
Title: Re: Finding buyers lesson (part 1)
Post by: FaceyInvestmentGroup on July 24, 2007, 01:50:57 pm
Hello Eric,

Thanks for all of this usefull (and free) info. that you have posted!  Most of us beginners can really benefit from this. 

I want to take one of your ideas to action and place an ad in the paper:

***ATTN:CASH/HARD $$ BUYERS!***
FREE list of 45 Foreclosed & Distress Properties in **** County
Call me today for you FREE list!
xxx-xxx-xxxx

One question on this strategy, since I'm not a licensed agent yet, do you think I could be accused of recruiting buyers without a licence? 

Any advise from you or anyone would be greatly appreciated.
Thanks,
Lety 
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on August 17, 2007, 02:01:30 pm
I would befriend a realtor that you will be using on many of your deals.  Have the leads forwarded onto them.  They can send out the list of homes for you, and you can have a good buyers list getting built up.  Be sure that the realtor is very trustworthy because they will be sharing your list with you.  In exchange for use of your list, perhaps you could get them to lower their commission for you on some future deals.

I hope this helps
Title: Re: Finding buyers lesson (part 1)
Post by: leasepurchase on December 14, 2007, 04:51:04 pm
You can find buyers at the local sheriff sale or tax auctions.  Make up a flyer and/or business card to hand out at the auction.  Be the first person there and greet each investor as they come in the door.  Have a clipboard in your hand and ask them to sign up for email updates so you can send them details about properties you come across.

My favorite way to find buyers is to use a rent-to-own strategy.  I usually get flooded with phone calls within the first week of placing a newspaper ad. 

Even if the property is in very poor condition, you can advertise it as a "Handy Man's Special."  If gotten a few tenant-buyers into some houses in need of major TLC.

Title: Re: Finding buyers lesson (part 1)
Post by: BRITT REED on December 20, 2007, 10:58:09 pm
thanks for  the info.... :beer
Title: Re: Finding buyers lesson (part 1)
Post by: Mohegan on February 19, 2008, 08:29:36 pm
Kool Got any other stratigies for fellow Realtors.. How to make money in creative Real Estate, Options, Short Sales, etc.. Appreciate your comments.. I want to take it to the next level as an agent taking advantage of all the deals or Motivated seller i encounter.. Hopefully by investing there will be a larger profit then a commission of 2-2.5% for one sided deals..
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on February 28, 2008, 06:15:36 am
Another great strategy to ad to the list is finding a hard money lender in your area and seeing if they have a database or a newsletter that goes out to clients.  If they do find out if you can advertise in their newsletter or you can put together a folder of valuable tips and insights for real estate investing that they give away as a free gift at closing to their clients.
Title: Re: Finding buyers lesson (part 1)
Post by: dkclark on February 29, 2008, 08:51:11 am
Hi Eric,
This is all great info!  Is there a "Part 2" to this "Finding Buyer's Lesson"?
Title: Re: Finding buyers lesson (part 1)
Post by: Auriane on February 29, 2008, 12:56:27 pm
Eric,

How do you wholesale REO? Do you have to pay cash for the property yourself and then flip it or can you assign the deal? If you can assign it, what do you say to the bank or property manager? Because you need to be able to have potential buyers looking at the property.

I don't know if my questions make sens, I am a newbie.

Thanks,
Auriane
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on March 08, 2008, 06:35:41 am
Eric,

How do you wholesale REO? Do you have to pay cash for the property yourself and then flip it or can you assign the deal? If you can assign it, what do you say to the bank or property manager? Because you need to be able to have potential buyers looking at the property.

I don't know if my questions make sens, I am a newbie.

Thanks,
Auriane

I would recommend starting 3-4 pocket llc's, these are llc's that you keep that are ready to put homes under contract with, then instead of assigning the contract (which most banks won't allow) you can sell the llc that the home is under.  The banks won't have a clue that you have shifted the contract to someone else because they are still dealing with the same entity, it is now just under different ownership.

I hope that helps
Title: Re: Finding buyers lesson (part 1)
Post by: JasonG916 on March 08, 2008, 09:25:26 pm
can you do that with a corporation?  I have a C-Corp that I haven't done anything with....
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on March 15, 2008, 06:54:22 am
I am not sure on that one, I can't see that it would be a big issue because corporations can be sold just like any other business, If you are serious why not just set up a few inexpensive llc's ahead of time?
Title: Re: Finding buyers lesson (part 1)
Post by: Hedonos on May 03, 2008, 12:27:26 am
Thanks for the wonderful post.  I don't have any experience.  I really want to get into the real estate game and I heard that locating deals for investors is a good way to go.  Thanks

Gabriel Romero
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on July 07, 2008, 03:29:31 am
There are 2 ways you can make good money bird dogging either:

1. Locate properties for other investors
2. Locate investors for other properties

both of these ways can be extremely profitable. 
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on November 28, 2008, 06:10:46 pm
Hi Eric,
This is all great info!  Is there a "Part 2" to this "Finding Buyer's Lesson"?


Here is a part of part 2 how's that.

This strategy you won't in any re course, but it blows away many of the traditional buyer locating strategies

Some of you may kick yourselves if you haven't been doing it.  This is one of my favorites, I thought of it myself, a has been kicking a$$ for me.

Put together a nice looking pamphlet or brochure that describes your services.  If your a bird dog don't be an idiot and put "I'm a bird dog"

Put something to the effect of "I'm a discount property specialists who specializes working in (your area).

If your a wholesaler you can use virtually the same thing.

The goal is to design a brochure or pamphlet that banks or hard money lenders will include in their closing packets.  If you don't know what a closing packet is, it's the packet of info that banks and lenders give out at the end of closings. 

The really great part about this is that even if the buyers don't find your brochure immediately, when they go to sell their home in the future, they will open up the closing packet to review information and there you will be waiting.  I have had them call me to get rid of their homes and I have had them call to find them a home.  As you all know retail buyers are where the real money is at in wholesaling, so you cannot beat getting a call from retail buyers.

If you get into the hard money lenders packets, investors will be given your contact info, and I have picked up several fantastic investors from my closing packet insert.

Try it, if it works, you can email me a beer. lol.

good luck
Title: Re: Finding buyers lesson (part 1)
Post by: Mr Investor on November 29, 2008, 12:37:03 am
So is Homevestors a good place to network?
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on December 29, 2008, 09:05:24 am
Homevestors is not actually a place to network, they are people to network with.  Homevestors is a nationwide company that buys and sells houses, and I did pick up a couple of steals from them.

The last deal that I did with homevestors I ended up making like $18,000.  I think they made 6k when they wholesaled it to me.
Title: Re: Finding buyers lesson (part 1)
Post by: Icangetitdone on December 29, 2008, 02:16:55 pm
Eric,

How do you wholesale REO? Do you have to pay cash for the property yourself and then flip it or can you assign the deal? If you can assign it, what do you say to the bank or property manager? Because you need to be able to have potential buyers looking at the property.

I don't know if my questions make sens, I am a newbie.

Thanks,
Auriane



What paperwork is needed in sell an LLC to an investor?


Thanks in Advance
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on January 14, 2009, 01:02:12 pm
First off you need to have your llc done BEFORE making an offer.

Once you have the home put under contract in an llc then you can sell the llc simply by using the state regulated forms to pull yourself out of the llc and put the investor into the llc.

Your paper work will vary from state to state as with anything it is only as complicated as you make it.

Good luck
Title: Re: Finding buyers lesson (part 1)
Post by: CharlottePlayer on January 15, 2009, 05:21:33 pm
quote fro eric "You can also use the "Safe Land Contract" if she wants all of the tax benefits of homeownership.  Essentially you do a lease option of your choosing on the home, then ad your buyer onto the deed.  Right after you have the buyer sign the quit claim deed adding them on you have them sign another takiing them off.  You file the deed adding them on then save the deed taking them off.  If the buyer decided to stop paying you go and file the quit claim taking them off.  I have never had to use the second deed, because the fear of me having that has always kept the buyer paying, or they are just good buyers."

this is some horrible advice.  if a buyer can't qualify for a mortgage then no one should even think about putting them on the deed.  what happens in case the buyer doesn't pay a credit card and the cc company slaps a judgment on the property?  then the owner will have to pay off the lien before they can sell the property.  that happened once when i was buying a property from a lady that had an approved short sale, she placed her nephew on the deed and he didn't pay his bills and in order to close the cc company wanted $7k on a house that had an approval for $30k.  the deed didn't go through and she learned a valuable lesson.
Title: Re: Finding buyers lesson (part 1)
Post by: prevac on April 20, 2009, 05:49:40 pm
Thanks Eric for your lesson.  I'm also at a beginning of a new venture in a much anticipated RE investing career but don't know where to start after getting laid off recently by a company that Warren Buffet publicly announce his investment on.  I guess, the only response to Buffet & other investors was to cut job as an obligation.

Also, thanks for the rest of the supporting posts that I can glean on as I start my Bird Dog/Wholesale business for now since I too am on unemployment.

God bless everyone!

John
Title: Re: Finding buyers lesson (part 1)
Post by: kevinl on April 21, 2009, 06:20:06 pm
There are a couple free tools you can use to find buyers. I have been in real estate and have found many of my buyers online.... try Postlets.com. Create an ad with the tool, and it syndicates the ad across multiple venues aka Craigslist etc. Its pretty good. On the ad you can have a "call to action" to your phone, email address or website. Presto, buyers.

Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on May 06, 2009, 07:31:25 am
Hi Eric,
This is all great info!  Is there a "Part 2" to this "Finding Buyer's Lesson"?


Part 2 is on the way this morning.....I hope you enjoy
Title: Re: Finding buyers lesson (part 1)
Post by: Jeremy1113 on May 08, 2009, 08:26:59 pm
good stuff
Title: Re: Finding buyers lesson (part 1)
Post by: d2dotson on July 02, 2009, 06:36:14 pm
 :biggrin BUTLERSW3 WHAT AREAS ARE YOU LOOKING TO BUY?
Title: Re: Finding buyers lesson (part 1)
Post by: Mohegan on July 10, 2009, 07:09:43 am
My questions to this group are : How to tie up a contract with a HUD home..?
How much money EMD would be needed..? would you be using any escape clauses..?
How would assignment of contract work? I thought they didnt allow any changes in buyer/ closing name from original contract.. Please fill in the blanks..

also could these ideas somehow work with bank owned homes, or auction homes..?

Tell us more!!
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on July 31, 2009, 02:41:55 pm
My questions to this group are : How to tie up a contract with a HUD home..?
How much money EMD would be needed..? would you be using any escape clauses..?
How would assignment of contract work? I thought they didnt allow any changes in buyer/ closing name from original contract.. Please fill in the blanks..

also could these ideas somehow work with bank owned homes, or auction homes..?

Tell us more!!

HUD homes require an agent to make an offer.....

BIG TAKEAWAY....Agents set there own commissions when they make your offer and they can take up to 5%.

Since HUD will choose to accept your offer based on the NET price, the more commission your agent takes, the more you will be required to pay...

I have seen agents lose deals because they charged there clients 5% on a 100,000 home meaning they were taking $5k...The lost to me even though I offered less because I only charged my clients 3%.

Deposits are $500 or $1000 depending on the price of the home.

They won't allow you to assign, but you can add a buyer on then deed yourself off or put the home in trust then sell the beneficiary position or sell the llc that the home is in.

Good luck

Title: Re: Finding buyers lesson (part 1)
Post by: Mohegan on July 31, 2009, 02:57:22 pm
I think - if they will accept a purchase in trust by trustee - then assign beneficial interest in trust and have trustee close for them - how would this effect funding the deal being in trust? ( putting in Trust - how would this be signed on P&S or Offer ) I like the idea but makes it hard with lender and funding or not..?
Please elaborate -

PS - Eric Saw your webinar great job.. was considering even let me know exactly what i would get by personal email.. i was having trouble understanding exactly..
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on August 22, 2009, 10:54:00 am
I think - if they will accept a purchase in trust by trustee - then assign beneficial interest in trust and have trustee close for them - how would this effect funding the deal being in trust? ( putting in Trust - how would this be signed on P&S or Offer ) I like the idea but makes it hard with lender and funding or not..?
Please elaborate -

PS - Eric Saw your webinar great job.. was considering even let me know exactly what i would get by personal email.. i was having trouble understanding exactly..


I offer email follow up to anyone after they have bought my course and once they've finished the wholesale training.

Often times this small bit of assistants helps push newbies over the edge...
Title: Re: Finding buyers lesson (part 1)
Post by: WeSellHomes2Fix on August 28, 2009, 08:34:36 am
Erics list is great.  One thing I recommend is make sure you have all your buyers email addresses and phone numbers.  Once you have more than 1000 buyers, you will not have time to call each one.  You will want use an opt-in email service for sending emails and a free txt messaging service to let them know you have properties.
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on September 15, 2009, 02:17:56 pm
I agree completely keep name, phone, and email of each new buyer.   

I use a system so I can just "globally broadcast" to my entire list of 2000+ with the click of a button....

If you're wondering about costs on something like that, I spend $20/mo for hosting and autoresponders...Which is insanely low, but doable.

Title: Re: Finding buyers lesson (part 1)
Post by: johnm04 on September 16, 2009, 10:29:51 pm
I like your post and it's informative. Question is how would you know the true potential client/investor and not being trapped by impostors. It's a waste of time dealing with this kind of people.
Title: Re: Finding buyers lesson (part 1)
Post by: ericmedem on July 08, 2010, 04:30:32 pm
You simply need to ask the right qualifying questions. 

How many deals have you done?

Are you paying cash or getting a loan?  and where?

Keep in mind you don't need to do this directly you can just point towards the topic in your questions then watch for congruency in their answers
Title: Re: Finding buyers lesson (part 1)
Post by: Delondon on July 13, 2010, 06:14:48 am
Keep it simple. They pretty much already know where they want to invest. Get the information goods and take action. Get a check.
Title: Re: Finding buyers lesson (part 1)
Post by: getrichinNC on July 18, 2010, 07:23:45 am
I've noticed a number of people referring to Craig's List for finding buyers or sellers.  I searched for some time now and haven't noticed any strong deals.  I know that most are cruising CL like I am (as a lurker so to speak).  Kind of like fishing.  I know the buyers are out there.  Just trying to catch 'em. 

How strong does your buyers list need to be before begining?  Do you find that you sell to the same investor mutilple times throughout the year or or multiple investors just once?

Thanks all!
Title: Re: Finding buyers lesson (part 1)
Post by: Delondon on July 18, 2010, 02:33:44 pm
Your buyers list has to be as strong as you want it to be. Some people are happy with having a list of 20 buyers. Some people will not start to take action until they have 50 buyers.

JUST BUILD YOUR LIST! EVEN IF YOU ONLY HAVE 1 BUYER ON YOUR BUYERS LIST, YOU HAVE A LIST!

Folks just take action.

About craigslist, heck no, I won't use this to find sellers. Buyers list only.  I don't want to find sellers, it takes up way to much time. That is why I spend a little time and money on marketing so that they can find me. How much on marketing money? $100 bucks will keep your phone ringing for a month. Ask me how...... :cool

Just take action folks.