Finding buyers lesson (part 1)

[ericmedem]

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 

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

[ericmedem]

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

[Peter114]

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?

[ericmedem]

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

[timandlisa1208]

eric,
how would you handle wholesaling a property that is tenant occupied?

[ericmedem]

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

[timandlisa1208]

thanks eric, they are actually on a month to month with no signed lease.

[ericmedem]

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.

[Deaf Ceo]

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. 

[FaceyInvestmentGroup]

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 

[ericmedem]

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

[leasepurchase]

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.

[BRITT REED]

thanks for  the info....

[Mohegan]

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..

[ericmedem]

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.