BiggerPockets

To find the best deals for your investment portfolio; ignore the MLS.

Friday, November 27

Max Cash Flow Now: To find the best deals for your investment portfolio and increase rental property income, ignore the MLS.  That’s right, you may find some real gems by getting to know the wholesalers in your area.  So, what is a real estate wholesaler, you ask?  An unlicensed individual who primarily uses direct marketing techniques (mail campaigns) to find distressed sellers and match them up with buyers.  Distressed sellers come in a variety of flavors; it’s not just home owners facing foreclosure.  One successful wholesaler I know obtains information from probate cases and informs remaining family members that he purchases houses for cash.  This is most successful when family members are out of state and don’t know a local real estate agent in the area.  Another sends mail to couples involved in divorce and who may need to liquidate property.  And we’ve all seen cars with signs on them that proclaim “We Buy Houses,” not to mention bill boards and bandit signs (yard signs).

These wholesalers are looking for bargains, because they need to include their margin, normally anywhere from $5,000 to $10,000 and still be attractive to a buyer.

How do you find one?  The best way is to attend your local REIA (Real Estate Investors Association) where you can find a list clubs for your area at;http://www.nationalreia.com. Start by introducing yourself around and let anyone you meet know you’re a potential buyer that wants to meet wholesalers.  The regular members of that REIA Club will then introduce you to the wholesalers they know.   Wholesalers are eager to get to know you.  Their business model depends on a healthy list of sellers and buyers.  Once in the loop, you’ll get emails daily of potential deals you can now evaluate.

Once you have found the deal, what are you going to do with it?  Rehab and flip, or rehab and hold?  If your considering holding and building a real estate portfolio of rental properties don’t settle for a small monthly income while your waiting for real estate prices to rebound.  Instead, why not go for $1,000 month in net rental income per property?  Learn how we do it by downloading our free eBook at http://maxcashflownow.com

Comments

1. 

   Account Closed Reply
   about 2 years ago

   Good Article. Probates are most lucrative real estate leads. We offer Probate leads across US. Pl call us 218 585 8977 or atchut@judgmentscorner.com

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