finding buyers are harder then i thought it was going to be, realtors ignore my emails i send them about sending me a list of foreclosed housed and handyman specials so i can do the reverse MLS, local newspaper doesnt have any good real estate section. craglist only have a couple buyers but there only buying to assign to other investors.
Getting a assignment done in 45 days is gona be harder then i thought
find the landlords. You can find them on craigslist, just call the for rent ads that if you read them close enough could not possibly be anything but an investor. Look for names that appear multiple times.
You can also go to www.gosection8.com and call the for rent ads. Many of the ads on this site have the name of the person who is running the ad and on several occasions it will be an investors company. If not even the people who have their regular name will often times be investors.
There’s also www.showmetherent.com
Run an ad in the paper for a cheap handyman special that needs repairs and take down the names, and all other information of the investors that call you.
Don’t think so much into doing deals before you build the buyers list. Eric Medemar told me this and I believe it’s good advice.
You can find many buyers online if you are diligent.
Many of the landlords aren’t even that familiar with flipping enough to do it for themselves. You must be calling the I Buy Houses type guys. They are more familiar with creative type stuff in my experience.
thanks man, helps alot, trying to do my best to keep at it
Even the I Buy Houses guys who want to flip your deal can be of service to you because they will often times have a bigger buyers list than you. If you get the deal priced right then they may be able to contract for your asking price and still have room to flip to their investors. You have to give them a flex option on your deal to be able to do this. A flex option will allow you to still be able to shop your deal, but give the investor who you gave the option to the ability to find a buyer before you do.
This technique allows you to use other peoples buyers lists.
basically start with low assignment fee for first few deals, maybe 2k or 3k, so if i only have one buyer they might keep buying from me
I have a good grasp on different concepts in real estate because my father has been an investor for a long time and he gives me his advice at times, but like you I am in the process of getting my first deal done as well.
If I were you( and I say this because this is what I’m doing) I would focus on building that buyers list beyond 1 person. Finding out what your buyers want, location, whether they are buying cash or need financing, type of rehab they can handle, how many bedrooms and bath, whether they want an all brick house or another specific type, particular neighborhoods they like to buy in and how quick they can close are things that you want to have a good understanding of before you go out and start looking for deals.
This way when you start looking for houses you are looking for what they want instead of getting a house under contract, shooting your buyers list an email and no one wants it. I just made this mistake myself. I got a house that was built in the 1900s and it was too old. I bought it at the right price as far as the prices my buyers were looking for, but it was the wrong price for a old house like that. I did however have 2 people inquire about it. One made me an offer but it was for less than what I paid for it. I just went back to the Realtor to see if I can renegotiate and pay $4000 for it and flip back to the investor who offered me $8000.
This would not have happened if I spent more time learning what my buyers wanted and what they did not. But different from you I have a buyers list of about 20 investors and growing.
Also if you are buying bank owned properties you will not be able to assign those deals because bank owned contracts are Non Assignable.
However there is a way around it. I just learned this technique from Preston Ely and a guy he had on one of his audio replays however I have not tried it yet. Ask Eric Medemar and he can probably verify if it works.
When I listened to Preston Elys audio replay he had a guy on there named Lee Kerney who is called the REO Rockstar.
To make it short Lee Kerney was beating the banks non-assignablility issue by simply adding the buyers name to the purchase and sales agreement he had with the bank. He would then do an assignment for a fee with his buyer. Once the closing came the closing agent would put Lee Kerney and his buyer on the deed. Once this happened, Lee Kerney would do a quit claim deed and have his name taken off of the deed. This would leave only the buyers name on the deed as the sole owner of the property.
yea thats what im trying to do now just build the buyers list. Can i ask at what age you started
I got started actually trying to buy houses about 6 years ago when I was 26, but everything was just not clear to me coupled with the fact that I was working full time and just didn’t know how to juggle both things so I ended up quitting. I can tell you from experience just be patient. If you can learn how to be an effective wholesaler you will be way ahead of the other people who enter real estate doing it some of the other ways people teach that require them to get their start buying and holding properties and taking loans out.
Once you learn how to construct flip deals you will be able to operate in any market at just about any time. This is something I just don’t see taking a very long time to learn. I just want to be a wholesaler/flipper in real estate. I’m not real interested in holding properties at all unless it be for a rehab with the intent to resale in the near future. I want to purchase cheap properties for cash with some of my flip profits and sell them to sweat equity buyers who will fix the properties themselves and cash out. Either Owner Financing or short Lease Purchase. I may hold some of the O. F. houses long term if the buyers are paying and in good standing because I won’t have to fix anything or be a landlord.
I am interested in passive cashflow, but for myself I don’t really want to hold a bunch of properties long term. I actually like internet marketing as a vehicle to build long term cashflow. Flipping houses will help me in this arena.
My clients and I have been doing the “ROckstar” method for ages with HUD homes.
- Buy the home.
- Add a buyer later
- Deed yourself off.
That’s about as “rockstar” as my left [obscenity removed].
Anyway…I swear these guys are just cracking my info from 5 years ago…
Yeah Eric I believe I remeber you saying something like that in one of your YouTube Videos I watched.
Tell em to stop stealing from you!
I suspect the hardest part about finding buyers is finding really good deals that buyers want. “Deals” with little profit or that won’t cashflow will be tough to sell in a high risk market, and in my opinion, that’s what we’re operating in.
Deals with good profit potential or good cashflow located in good neighborhoods are few and far between, at least in my local market.
jmd_forest
3. Deed yourself off.
Via a Quit Claim?
That's about as "rockstar" as my left nut.Too funny! :beer
I am pretty sure the whole Rockstar thing is being done by a double closing. All you do is line up your buyer to close on the same day as you are purchasing the property and execute two separate closings with two separate HUDS.
The best way to wholesale properties is to get 2 or 3 buyers and sell the bulk of your properties to them. That way they know exactly what is going on and if you need to do a double close or whatever they are flexible and will do what it takes to close the deal.
The Rockstar method is not a double closing. The buyers name is added to the P and S agreement you have with the bank. You do an assignment, your buyer gives you your fee and you quit claim your name off of the deed at closing leaving your buyer as the owner of the house. It’s a single closing
I just read that you cant quit claim on HUD homes.
"Method #1 – Add to Contract, Then Quit Claim "
“Here are the negatives that come with this method. A) This does NOT work for HUD properties because HUD does not allow any changes to the parties that are on the original offer”
True or Untrue??
http://www.premierrealestateinvesting.com/how-to-wholesale-bank-owned-reo-foreclosure-properties/
Once you find the money you have to find the deals. You can put out signs, send letters, place ads, knock on doors, and the list goes on. As long as you have more than one source for your leads then you will be ok.
if so then double close. don’t get so caught up in trying to assign deals that if you cant do a quit claim type transaction then you don’t do the deal.
If you can’t quit claim, then double close.
Plain and simple
Ask Eric Medemar how he handles his Hud Transactions. You’ve got plenty of time to figure out what to do on a Hud house because the closing takes 60 days.
Also with the lower dollar properties Hud only requires $500 earnest money, so you may even be able to put this dollar amount up yourself.
So how do you quit claim yourself off a HUD property??
Eric
Not to rain on your parade but I was given the rock-star method by an investor in 1961. So the Mother Goose rhyme of nothing new under the sun appears to hold up.
In 1966 I was doing a deal with attorney co-buyer and he suggested I write the contracts using the “John Smith, et al. Vesting to be determined in escrow” method which would allow me in the future to change the buyers at any time prior to close of escrow.