:help I am SO new to this, have been educating myself and researching for over a month now. Last night I posted an “I buy houses” ad on Craigslist and woke up to 3 responses. All 3 looks like possible good deals. I’ve contacted all of them back and told them I would be crunching numbers and get back to them with an offer. NOW, what do I do? I don’t have a title company found yet that can does assignments, I have a negative income balance this week (basically, I didn’t make enough from my J.O.B. to make the rent and pay electric and cable/internet bill that’s due). I’m scared to death of making a mistake, but my wonderful husband says, don’t be afraid, that’s how you learn! Anyone around who wants to hold my hand through this?
What is your plan going into this biz? What is it you’re trying to do? How will you be buying these properties?
My plan is wholesale/assignment of contract. Right now, I’m trying to determine if these are good deals, put them under contract, then try to find a buyer. I have to work my J.O.B. this weekend (I work every weekend), 12 hour shifts, so I will have no time to do any research, unless our census is low in the hospital and I have some down time. I’m taking my laptop with me, so I can research on my lunch break and be ready to make an offer by Monday. One of the properties is about a 2 hour drive, so I will need to take a day just to look at that one. The owner send me pictures, it does look move in ready and the title appears (per the owner) to be free and clear.
First, do not bother to drive all over your county in response to a homeowner telling you he might be interested. You’ll quickly grow frustrated as you waste time and gas looking at houses.
Make your offer sight unseen, contingent upon your inspection. And you can use an option to get your price and assign it for a profit.
Thanks for that advise. The owner sent pictures and it looks really good. I did plan on making the offer on Monday after I look up comps for the area and the county tax/appraisal. Any other tips or advise is very welcome!
Shouldn’t you create a buyers list before making deals? Unless your contract is contingent on finding them?
Have you had time to do some due diligence? If so, what are all the numbers on these deals?
- Asking prices
- After repaired values
- Amounts owed (underlying loans, if applicable)
- Estimated repair costs
Also may I ask what section in Craigslist did you post your ad? I used to have up to a dozen I Buy Houses type ads all over CL and couldn’t get a darn thing.
I recommend that you use the craigslist for actually finding cash buyers. Go ahead and get you a batch of signs, find you some good qualified sellers screen them out, and use your buyers to close up on the deal. :brow
Don’t be scared to make a mistake because in this business you will make a couple mistakes. Learn from them and move on. :cool
grats on geting started, and that anxiety you feel is that of a new business owner… cheer up. As seems to be usual I agree with NSU, what are the numbers you are working with? Did you fill out a property information sheet as you spoke with the sellers?
Also, if they are move-in ready are you sure these will be wholesale deals? Any seller will sell for retail, you need to find motivated ones who just want out. DO NOT drive out 2hrs until you have crunched your numbers, and you know that you have a motivated seller as opposed to a “tire-kicker”.
When I go out to a house I have all my information except for the repairs and I get that as I look around and inspect the place. When I see the place I punch in the repair estimates and i can make an offer.
LOl seems like I am saying this more and more, to all newbies I would suggest JOIN A REI Club in your area.
You will find attorneys to close, contracts, buyers, mentors, etc…
Hey Bivs, we are “here” pointing 2 fingers back and forth from my eyes