I wanted to pose this question to the experienced members of this forum because it seems at least here in Houston that my regular investor buyers are slowly disappearing. With the new laws in place from Freddy Mac and Fanny May my regulars are having difficulties with financing. To my knowledge the new laws state: 1) 20% down payment 2) Maximum of 4 properties for portfolio lenders 3) 1.25% to 3.75% additional interest to prime. Typically I deal with All Cash Buyers but they eventually refinance their properties but are now having difficulties. How are the new laws affecting your business?
I’ve been wholesaling for about 6 months now and originally set a goal to be full time by December. I have just had the luxury of finding out that I might be laid off in December so it looks like my goal will become a reality. I completely understand that this business is totally a marketing business and if you market correctly sellers will call. I allocate a considerable amount monthly to marketing for leads but like I said I’m beginning to feel the pinch. So how is everyone closing these deals with in this market? Have you slowed down or has your business increased?
Off to try and find more buyers!!!
It’s all mental on your part and ours. I strongly believe that you get what you focus on. So if you focus on finding wholesale buyers then you’ll get them. It’s kinda hard for most investors I know here in Atlanta as well, however people are buying.
I agree! I believe that whatever you focus on you shall receive. Funny thing is that I attended a networking function last night and met some motivated buyers at the event. One guy called early this morning and made an offer on a property that I’ve had under contract for about a week. We close next week. WoHoo!! I cannot stress how important networking is for your business. Thanks for the feedback!
In light of all the current activity in the stock market, I think you’ll find real estate even easier to sell than it’s been in the past.
There are a lot of people with a lot of money - you just have position yourself to be out there finding them.
One thing I’ve done in the past six months to boost my buyer’s list is to network outside the traditional areas. In the past I only did networking at investor clubs.
In the past six months, I’ve joined my local chamber of commerce (which happens to have a weekly networking event), a LeTip chapter, several Meetup groups from meetup . com and am just getting out there in the community to offer a service. All this networking has produced some unexpected buyers.
One quick example…on Thursday as I left the chamber networking lunch walking to my car (with two leads in my hands of people who wanted more info), another guy stopped me in the parking lot letting me know he has $100k CASH to invest and wants to know how I can help him. We have an appointment next week to discuss further.
With these networking groups, it’s taken time…people need to get to know and trust you (and see that you’re interested in their businesses as well). But once that clicks, all sorts of business starts to flow.