First off, I don’t know if I’m in the right forum or not (so Tim, please take that account before shuffling me off somewhere).
I looked all through the “wholesaling” forum, but didn’t find what I needed.
I’m trying to find qualified cash buyers for distressed properties I’m looking to wholesale, and have been told repeatedly to run ads … well, I’ve done that for 4 weeks, no calls. I’ve been told also to call the “We Buy Houses” signs - I’ve found 7 different people, only 1 is interested.
OK, what else can I do? Any advice? Something obvious I’m not thinking of?
Thanks,
Jimmy D
2 things that worked for me, but the area may have something to do with the effectiveness of certain strategies.
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I called all of the “We buy houses” ads and struck up a conversation with them such as…sometimes I have too many houses that I am currently working on and if that is the case I wholesale them to other rehabbers…"Would you be interested in being on my rehabber list in case I put something under contract and can not get to it right away? Also, let them know that you would be interested in some of their properties if they have too much going on.
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I placed an ad for one of my friend’s houses that worked like a champ. We were going to do a partnership and take the roof off, add a level to the house and resell and split the profit over and above a certain point. It was my friends personal residence. Our goal was to make an additional $40K profit each by the arrangement. I had enough going on that I came up with a better idea for them.
He was going to list the house for $349K and I thought it was worth over $380K to an investor. So I said, “why bother with the hassles of the renovation, to make the extra money?, let’s just sell it quick.” I told them that I did not need a cut of that profit and they could just buy me dinner. They wanted to sell because they found another house that they really wanted to purchase, but needed to sell their current house first.
I placed an ad that had all of the numbers in it for the rehabber. Purchase Price $390K, renovation costs 100K, back-end sales price $685K. Estimated profit =$120K +.
I placed the ad in the Sunday paper and had the contract ratified by 4PM that day at more than full price. I think the key is that the rehabbers knew that the numbers for the construction costs and for the back-end sales price were accurate…actually conservative.
I wish I had that ad, but that was 2 computers ago.