BUT… how do I find properties?
Let me back up for a second. I live in a Chicagoland area and, since it’s huge, there is a huge deal of investors looking for deals.
Most of them simply say that ‘call me when you have a deal’.
So how do I find the deals?
BigV
fixNflip-
Stop trying to run your business with free advertising in the Discussion Forums. Do not network here!
Keith
Moderator
Big,
you’re going to have to get out there man!
drive around. learn about what’s on the market, what’s not. what can be?
make the deals happen!
One strategy you might try is cross marketing to different wholesalers. When your calling investors or people that offer “cash for your house ads” ask them if they wholesale out any of their deals, if they do, take some different buyers that you have picked up through other calls and connect the two of them. Be sure to ask the original wholesaler if he would mind paying you the difference between the $150k and what you tell your buyer. Also be sure to go to the showing and tell the 1st wholesaler the price that you told your buyer.
In instances like this I will find out what the original wholesaler has to have for the property and then analyze what type of margins are in the deal. Then I will make my way through my buyers list to find out which buyers will accept the least margins and connect the two.
Example
1st wholesaler 150,000 to make the deal happen
2nd find out that the home has $25,000 in margin
3rd call my buyer and say I found a deal for $158,000
4th they close and the first wholesaler pays me $8,000
Yes there are a million ways he could cut you out, but typically people will follow through on what they agree too. Just be sure to get the money at closing, people have a tendancy to get greedy once they have the money themselves.
This is just one way that I have used, I hope it helps
Eric Medemar
Good strategy by eric, but you may also try a trial subscription to a good foreclosure website.
You will definitely have to do alot of leg work and online research but it’s worth it.
Take aloolk at realinfo.net, this program allows you to locate foreclosures throughout Illinois.
I use it and make $$$ from the software finding distressed parcels.
I am just curious about the difference between using realinfo.net and just using your county tax records at a site like http://www.cookcountyassessor.com they seem to provide the same info. I could be wrong but it actually looks like realinfo.net just charges to do a free tax record search.
Eric Medemar
Eric there is a huge difference between the two sites. Realinfo allows you to find any deed that gets recorded and
actually view & print that document. It also does CMA’s for any property as well as gives extremely well organized
reports for any owner, pin, address, etc in a matter of seconds. It saves alot of time and gives you a great idea of what
property is worth. It lets you search for mortgage types in any city or county in Illinois (Arms,Fha,Va,Conv, 2nds) since I
am in the mortage business as well. It can print lables for marketing to these homeowners. It searches foreclosure
records, divorce records and bk info as well as many other criteria. Great system, a little pricey but has made me a ton of
$$$$. Definitely worth a 60 day trial IMO!!!
interesting, I was just wondering, I figured there must be something that I was missing.
Eric Medemar
By you being a Realtor then you have access to MLS which is darn good for researching property.
If you would like a sample of what the system can do shoot me an e-mail.
Eric, How often have you used this tactic? It seems like a good one to me. I been reading a lot of info on these boards as well as the internet and it seems to me there is a whole heck of a lot of ways to skin these cats! ;D
I have not been using it alot lately because I havent needed to. I have been putting my focus on the slow dime rather than the fast nickel. I am only doing it this way lately because of the massive capital gains bill and income tax bill that is coming. I have a couple of my clients who are using this technique 3 -6 times a month and are having great success with it. I would be using the same technique more often if not for capital gains and if I were pressed for money. I have a very good system set up for financing deals so I can carry as much debt as I need at any given time, and this enables to do just about any type of deal that I see fit.
The system above does work and works very well, just dont try to overcomplicate it.
Eric Medemar