BiggerPockets

I'm reading up on how to start doing Probate deals and I'm super stoked b/c there's a lot of good information on this site so thanks for that everyone. I did have one question though. I see a lot of the time that I should tell the executor that I can make a cash offer and close in a couple of days, getting them excited about getting rid of the property.

Well there's a reason I'm wholesaling: I have no money of my own. Any yes, I have a somewhat small buyers list but I'm not sure how many of them are "cash buyers". Should I start asking thise individuals who want to be on my buyers list how they purchase their proerties and do they have access to funds? Also, Let's say I find a property that I THINK a few of my buyers might be interested in. Should I settle on a price with the executor and THEN market to my buyers or should I settle on a price and then market to the vast number of networking site that are out there. Unfortuanately, I'm one of those people who want to know EVERYTHING up front. Pretty impossible, I know, but I want to try and arm myself with as much knowledge before hand.

Please let me know what you think. Thank you!!!!

Kim

Great stuff Charles, thanks for the link.

Kim,

Probates have been the type of deal that have made me the biggest checks. The way I go about finding them is using an absentee owners list. You not only get probate deals, you also get tired land lords, divorce cases, and folks that want to get rid of their vacation property. I get a list of absentee owners that currently own property in my county. Everyone that has a last sale date of 20 years or greater are my targeted sellers. All the folks with a last sale date of 6 months ago to today are my BUYERS. So basically all you need is one list for sellers and buyers. The absentee owners that have purchased a home within the last 6 months will typically be a land lord or a rehabber. Make sure to contact them by mail or phone if possible. Send up a smoke signal, you get the idea. All you need is a handful of cash buyers my friend and you'll be well on your way. I definitely ask as many questions as possible about their buying criteria and get all their contact info. also. A couple other quick ways to get cash buyers is go to the for rent section of craigslist and ask if they need more houses for their portfolio. While your at it ask them about their friends needs as well. I always ask if they have any houses to sell or if their friends have any to sell also. I also find cash buyers from the section 8 list, those guys are land lords so get a hold of them and ask your questions then get these guys some houses.

Hope this helps...

Thanks for the help, Joe

You've added valuable info to this forum!

Kudos Joe,
I actually use those same practices you speak of and its been working like a charm. As for building a buyers list i actually have used bandit signs as well. I put something like


Really Cheap
Home 4 Sale
$.30cent On The Dollar
Must Sell Now
Call
( untraceable #)

Once Investors start calling in, simply let them know that unfortunately the property has sold hrs after putting up the signs but if you could ask him/her a few q's you would be more than happy to put them on your special buyers list. By doing so you will let them know 24hrs in advance about a property before marketing to the public. With this practice I've been able to pick up some extremely solid cash buyers. Works like a charm.

P.S I got this idea from our own Andrew Massaro

Kim,
To answer your ?s. You always want to get everything under contract first so to not lose the deal. You never want to market something you cant deliver to you investor in the end. Its a quick way to lose your credibility and your buyers. Once i get a property under contract I run it buy my investors via email. Whosoever interested will then contact me and it eliminates me trying to hunt down and bother people. If that doesn't work you always have the option to hit websites, newspapers and if you must, Bandit signs. Always remember its a lot harder finding deals than buyers, if you get a good enough deal your investors should be all over it.

Any q's or concerns feel free to shoot me an email or PM. I would be more than happy to answer any Q's and help you out as best i can. Good luck Kim

Rian.

I would like to know where the absentee list is available as well?

All I can say is that I we fully second Joe's approach!

Pursuing absentee/out of state owner lists is an approach we've been practicing to bide our time and keep a pulse in the midst of this 'dry' spell before the levy breaks.

I think that one of the best advantages is that approach draws leads from so many situations.

Having a clearly defined buyers list turns the absentee owner list into gold and can save a great deal of marketing costs as you can filter for properties in areas and price ranges dictated by the requests of your buyers list.

When something clicks and the phone rings your operation of funneling deals to the proper channels will seal the deal!

But I'm cautiously optimistic about the coming wave of inventory, and am ready to be wrong. If I'm wrong it's probate and absentee wholesaling into buy and hold. On the other hand if the flood happens having a sturdy buyers list of the best cash buyers with the quickest turn around is going to be leveraged advantage!

Buy/Hold isn't in my cards yet, the operations/procedures are in the works, but the fact that there is the real chance of an impending flood of inventory; This tells me to hold off so I can pick up long term properties at the lower price where every dollar I can invest will go that much further.

Some may say we've hit the bottom, but both Mike Jacka and I hold the belief that shadow inventory exists unsustainably. This is growing larger until reality grinds the shadow barrier releasing the inventory that's been withheld all this time.

With these properties spending more time in the shadows they are literally rotting from neglect and jilted homeowners wear 'n tear.

I'd love to see some more probate discussion because that will be one technique that will be relevant no matter what the environment because of the unique characteristics of probate situations.

People will pass away no matter what the market and probate pain relief will always be in demand.

This is why you tell the sellers upfront what your intentions are.

Me: "I'm going to try and resell this property to one of my cash investors for a profit"

Seller: "Sounds great I cant wait to sell"

thats all there is to it... NO LYING INVOLVED

sometimes the homeowner doesn't want you to lock up their property in a contract so you can just add a special clause along these lines-

"if XYZ company does not find the end buyer this contract is void"

Whatever it takes to give the seller peace of mind that you wont try to dominate them if they find their own buyer

It almost never works in real life though. If the seller thinks there is more value there they are going to want to capture it themselves. Johnny and James, how many deals have you wholesaled with that line?

The few who want to hold that property, clean it and market it will do exactly that. Most want to move on past it and appreciate the help of wholesalers.

As long as the wholesaler is doing everything legally and honestly, I don't see how helping someone sell their property is a bad thing?

I meant what I tell my SELLERS.