Hello All, This is my first time blogging ever. I am a new investor reading and buying different courses. I need help, I did some advertising(signs) got a few call trying to set up a buyers list. I did not have a property at the time so I had nothing to show. I am concerned about putting a house under contract and then I have no buyer. Please point me in the right direction…would like to try wholesaling. Thanks :banghead :help
Don’t worry about not having a buyer ready at the helm. I don’t know what tactic you are using to secure the house, but get it under contract, whether with a lease option, straight option etc., then you have to go to work marketing it.
That’s the natural progression of things, so don’t be concerned about moving forward without a buyer.
I am concerned about putting a house under contract and then I have no buyer. Please point me in the right direction..You should be concerned. The last thing you want to do is derail your career right out of the blocks. Wholesaling isn't all that for the new investor. It comes with some risks that might not be acceptable to you. Take a look at options and lease options, specifically cooperative assignments. You'll find lots of good info over at The Naked Investor. Good luck.
It seems you probably need to take a step back and read some books, go to a few seminars and learn more about the business.
It is hard to explain all the ins and outs, pros and cons in a Forum Post :biggrin.
Certainly read this forum, but also take the time to study on your own and possibly find a mentor you can work with in the beginning. It will save you a lot of time and costly mistakes.
I totally agree with lauraalamery. Get your self a mentor that will answer complex questions and guide you towards success. A mentor can help you get rid of costly mistake.
In a recent survey, 10 out of 10 REI mentors suggested newbies hire a mentor to avoid making costly mistakes.
To avoid scam and fraud incident firsst step to get good advise from any legal person before investing.
I think she is referring to a RE lawyer. :smashpc
It is good to build you buyer’s list if that what you feel more comfortable start but if you have a good deal, you will always find the buyer!
Remember, you don’t have to buy just because someone want to sell. The key is buying it at the right price for its conditions etc.
You are right to be concerned about not having a buyer for your property. You don’t want to contract on a house, and then have to back out of the deal, because you can’t find a buyer. You might lose your earnest deposit…or have to close on the property in the meantime.
You’ve had several suggestions to get the deal first. I think that’s wise. However, not just any deal will do. You have to have an actual deal. The ONLY way to know if you have an actual deal is to first know your market.
If you know your market, you won’t be overly concerned about finding a buyer, because you won’t contract on an iffy deal in the first place.
How do you know your market?
First map out your farm area. What’s a farm? It’s the region/city/zip code/street boundary that you are going to know like the back of your hand. It’s the area you’re going to cultivate deals from.
As a practical matter, you need to understand how to interpret comps in your farm. You need at least three closed transactions within the last 90 days, or you don’t have enough comps, and if you buy anyway, you’re now a gambler, not a wholesaler.
So, what are good comps?
Properties that fall within 10% of the living space and lot size of the subject property; all sold within the last 90 days; and have the same number of beds/baths/garage…for starters. Then you need to be inside all the houses for sale in your farm area, taking notes of asking prices, amenities, upgrades, final sale prices, the days on the market, and perhaps how many times the house was listed/relisted before it sold. The last one is tricky since some agents will take advantage of the loopholes in the MLS, and get a buyer lined up, then list the house, and ostensibly show it was five days on the market! “Holy market velocity, Batman! Houses are selling fast!”
Meantime, all the rest takes work in building a foundation for your wholesaling business.
However, if you’ve been dong the proper leg work in your farm, nobody will recognize a deal faster than you…or know why it’s a deal, better than you will.
So, the secret of not having to build a buyer list first, is to first know your farm, recognize the actual deals, get the actual deals under contract, and then start advertising your actual deal (and/or send information to the cash buyers in your pipeline).
Wholesalers with actual deals don’t have them more than a few days. I think that alone defines an ‘actual deal.’
Hope this helps. Do your homework first, so you don’t have to work at this twice.
There are some steps for entrepreneur that improve their success. The most critical step to obtaining investor is incorporating your business.
In order to minimize the risk of real estate investments the first step should be partnering with a local real estate agent. Real Estate investing is al about getting access to information quickly. The good properties are often under contract with hours of being listed so it is important to select the right real estate agent to help get that information to you. The second important step is to gather a buyers list. The buyers list will help you narrow your real estate search while also giving you a listening audience. Once you have created the buyers list the next step is to find the properties. Search for properties based on what the buyers are interested in purchasing. If there is a property that you are sure you have a qualified buyer for the best thing to do is to but the property under contract. Consult with a local attorney to determine how to best structure the contract in order to limit your risk.