I found him on Craigslist and he basically is a buy and hold section 8 investor. He wants homes 10k to 50k and I’m trying to think about how to find him these homes. Bandit signs are a must for this I think because they will bring in some non retail homes like this, it’s a small city but I’m going to run a bird Dog ad to see if that might turn up a few abandoned homes, lastly I was thinking of sending letters to the tax sale list in the area. Pretty sure there are a few ugly homes there. Thats all I got though any ideas I’m missing?
Yes. You’ve got the cart backwards. Find the deal first, not the buyer. Buyers are a dime-a-dozen, if it’s half-way a deal. Meantime, you will not find this particular buyer a deal, much less at the price points he quoted you.
I tell you what, ask this buyer how many properties he currently owns. I’m betting he says something along the lines of ‘a few’ which means ‘none,’ and he’s not a player. Unless ‘a few’ means ten-plus properties in the last two, or three, years.
FWIW
Yeah I get that. He literally owns a couple properties. One with a land value of 29k and another with a land value of 20k. Appraisels are probably off 5 to 10k if the property is at retail value.
OK, so he’s got no track record of buying junk houses, just junk land. That’s not encouraging.
Of course, when you find any deal, you can pass it by him, and even if he doesn’t bite, you can use him to leverage another buyer into acting fast.
No, two houses sit on them. A 1960 2/1 with 644 sqf and a 1970 2/2 with 1558 sqf. Please don’t think I’m building myself around this one guy and I do appreciate your advice.
You said ‘literally property’ and I misinterpreted that to mean ‘literally land.’ My bad. I guess I was looking for ‘literally junk houses.’ LOL
I’m still ambivalent about this buyer, but I see you’re just updating us with the latest.
Yeah I could have totally worded it better. I was Flipping back and forth from tabs on my phone to give you more information and I left out some important stuff. This guy came out of a Craigslist test ad and to be honest he has been worth my time already lol. I have learned 3 new things with this conversation and honestly some marketing information as well.
All the courses I’ve purchased over the few yrs I’ve been doing this wholesaling, tells how you must find the buyers first.
I’ve done it bassackwards. Once I find some deals from bird dogs or direct mail, that’s when I started advertising on Craig’s List to find a buyer, if it’s a junk house at 30-40% of aftermarket value, you got to fight off these investor buyers with a cattle prod.
So, forget about buyers, concentrate on finding the frikin deals. Focus on that pilgrim.
Finding the deals is the hard part (not really if you know what you doing) once you find a good deal not just a house someone wants market value for. Finding and investor for the deal will be easy.