Now with the housing market taking a dive what are your buyer list investors looking for in a deal that you bring to them? There are a ton of REO’s and Preforeclosures out there now, alot are at some good prices. How are you all able to wholesale with this market looking like this?
If you’re going to wholesale in this market, you need to find the successful investors who are still buying and determine their criteria. Obviously, these successful investors can pick up a REO or preforeclosure just as easily as you can. So, the bottom line is that you’ll have to find KILLER DEALS!
Good Luck,
Mike
What is an example of a killer deal?
50% ARV…
A killer deal is any deal that can be put under contract for less than what investors in your market are willing to pay.
The funny thing about most wholesale deals is that they are figured on a 70% and under of Fair Market Value. But you need to consider that in many markets the Fair market value is already figured into the price.
So old homes that may have been worth say $100,000 would have need to be bought for 70k and under.
That same home might be for sale now for 90,000 so with all things being held equal 63k would be the price.
It just depends on if your market prices have caught up to the slump.