These days in my market…
Finding good deals…Not hard at all
Finding Great deals…Not a problem
Finding serious buyers for your deals…not hard either
Getting these buyers financed… :banghead
These days it seems like my biggest problem is getting buyers financed. Ex. I recently had two wholesale deals lined up. Profit was $9,000.00 on one and $17,000 on the other deal. I got my buyers lined up and recieved $2,000.00 earnest money for each house only to have the buyers unable to get financed…Earnest money is cool, but thats not why I’m in the business.
It’s become harder and harder to refinance homes and as a result I’m getting wary of referring people to Hard Money Lenders because i know that they could very well get stuck in those high interest loans. What are you guys doing to combat this. Are you only selling to uber-experienced cash buyers or are you somehow getting people financed? Is your buyers list shrinking as a result?
Maybe it would be a good idea to add more lenders to “your team”…and bring your buyers right to someone you know can get them financed.
Chris
That’s good avdive Chris.
Find the mortgage broker/lender/bank who can do the loans that your clients need done and use them over and over. Learn a little about their programs so you can have a good idea whether something will work or not.
Where do you start looking? do you just start calling all lenders and ask them to help you?
I’m sure if you asked around at your local REIA meeting, you could easily get a referral for a good broker/bank that works with investors.
Not all brokers know how to work with investors and get their loans done, but they’ll all tell you they do. So it’s easiest to ask around and find guys who can get it done. I know some of the guys that answer in the financing forum seem to know their stuff.
Another option is to seek out the active cash buyers in your market.
The auction is a very good place to find them.
One of my buyers used to buy on the courthouse steps. Then I got a hold of him, and now he buys from me instead. :biggrin
Steph
Sadly you could try networking your a$$ off and it will still be very difficult to get bad credit buyers financed. With the tremendous amount of foreclosures banks all over the US have tightened their purse strings significantly.
The tightening is now hitting hardmoney lenders because the demand for their services has increased tremendously and since many hard money lenders are financed through private money that money is getting more and more scarce. With high demand and scarcity hard money lenders are now able to be more selective about who they choose to work with.
Stephs advice on going to the courthouse steps is good advice!
There are some other verrry good ways to find your way to cash buyers using the MLS and taxing authorities as well.
A buyers plus local banks= paydays! Viktor is right. Why are you getting all of these crappy buyers? Are you marketing towards subprime people? Are your houses in a low income area? Price range? These will factor into who are your potential buyers. We have PLENTY of A buyers all around us. Keep digging,
Nate-WI