He is the siutation. I have been trying to get started wholesaling and bird dogging. My town is strict on bandit signs so I can only put them up in yard and family members yards. I am ordering car signs, mailing my whole market, and finding out what cout office to get information on houses that go into foreclosure and how to get them.
What I have been doing is calling FSBO’s and ask how much they want. I know my market enough to know when they are asking more than 70% of the market value so I thank them for there time and end the conversation. Am I giving up to fast? Should I get details on why they are selling?
Am I handling calling a fsbo correctly? How can I improve my technique?
Yes, I think that you are handling it right. I usually tell them about what I could pay if the property were in good condition and tell them to call me if they change their mind. You’d be surprised at how many people will call you after thinking about that money for a little while.
In my opinion, it is a waste of time to do much more with retail sellers.
No add in the paper. Does that usually generate many leads? What have you found to be the most lead generating form of marketing?
I go to the local REI club meetings but to be honest the investors there, for the most part, do not follow any of the rules that are posted here.
Last time I was there this young couple to me seemed nieve said to me " we are not concerned what percent of the ARV we are paying. We are looking for a fair deal for both us and the seller". Their strategy is to buy at market value and hold because a race way is SUPPOSED to be built in the area. BTW, the market is stalled here, houses are not moving. They make make out but I would rather buy at 75% of the market value just incase the raceway did not do what they are hopeing it does.
I talked to another guy who was very happy he got an offer accepted for 219k on a 230k duplex. I think he said he was going to put somewhere between 20-40k down. I know the area. It is stalling and the rents in a very nice duplex may be $2200 gross.
I talked to a seller last night of a FSBO, he bought for 75k, (market value was 85-95k) and is rehabbing and trying to sell for 159k. Nothing in this area has moved for that much when the market was hot. I bought a rehabbed house that is the same but with a bigger yard for 95k that was worth 125k, for my personal residence. There are bigger houses with two car garages for 155k. This guy is not going to move that house for that much. There is a house on the next street for sale by an investor I know and he just can’t move it due to the slow market.
That is how all of these new “investors” are “investing” in my area. They are paying higher prices than I would so I see a chance to make money here. I just have to find the deals before they do.
I am rambling now, but figured if you know my exact situation you may be able to offer advice.
I am putting my signs up in an industrial park that has thousands of jobs in it. I am strategicaly placing them so you can not get into the area without driving past my signs.
I do not concentrate on any one method for obtaining properties. In my area, you could not generate enough deals with one or two methods to build a good rental business. I have found that a small newspaper ad will generate 2 or 3 deals each year. That’s not a lot, but at $100 per month for the ad, even one deal will pay for this advertising many times over.
I think that you are on the right track. Keep it up and your business will do fine. Just don’t give in to temptation and pay too much for property.