Forgive me if I’m not replying to this correctly, but there is an investor who trademarked the phrase “we buy houses” & now he’s messing with a lot of other investors businesses if they use the words in their advertisements. They’ve been getting people’s ads taken down off craigslist, facebook, & a lot of other places too! If you search for it on youtube or facebook I’m sure you’ll find it. There’s even somebody trying to raise money through go fund me to help stop this from happening. I think it’s crazy being able to coin such a broad phrase in the 1st place! Just thought I’d warn you guys.
I didn’t say that YOU could sell houses to investors for up to 85% FMV. I said this happens in MY market.
Every market has its sweet spots and limits. I have no idea what investors will accept in your farm.
In the coastal market that I’m in, 70% ARV is rare. There’s just too much competition and lack of inventory to find that. However, we’re talking about houses that start at $400k, not $15k. As a result even slim percentages push off large dollar amount.
I don’t like the percentages where I’m at. The amount of money at risk, for the return, sucks. I can do better than that. That’s partly why I focus on flipping low-equity deals that don’t need rehabs. There’s more money, and I don’t have to wait months to get it.
Speaking of getting money faster, one of my ‘buddies’ bought and sold two houses sub2 the way I trained him, and came out with front-end profits of nearly $90,000. He had been in the rehabbing business before, but got high-centered during the bubble collapse, and lost everything, including his operating capital and his credit rating, and wanted a way to get back into that business. Of course, I suggested he do sub2 deals, but he wasn’t interested in doing that. However, after I showed him what I did, he started getting interested.
Anyway, long story short, he used his sub2 profits to relaunch his rehabbing business.
Success breeds success. In fact, he found one of those 1950’s houses you see on the major drags that had been converted into a dental office (or something). The thing had been gutted and sitting vacant for a long time. My buddy found the owner, and negotiated a pretty good price, and secured an HML loan to buy it. He used his sub2 profits to complete the rehab and make another $80,000 in less than six months.
Meantime, in less than a year (last year) he grossed $80k from his first rehab, and $90k from his two sub2 deals for a total of $170k. With the back-end profits from his first two deals, he’ll add in another $80k in pure profit.
I guess the moral here is that you can eventually do what you want, if you’re open to how you get there.
I got 5 calls in the past two days. Only two of them may work, but I’ve yet to get back in touch with the owners. At this, I’m trying to wholesale ANYTHING, not just rehabs.