BiggerPockets

Ive seen alot of empty houses that have these big bright orange/yellow stickers on the door or window...not sure what they say but what does that mean? do they have some type of code violation or something against them? are these a good idea when it comes to wholesaling?

First step to know what they mean is to go and read just what they say.

Some may be REO's with bank or "asset managers" contact numbers and the building enforcement of the city/county dept wont know anything about that.

The sticker will also give you some indication of why it is there. It could also be an auction notice.

Several possibilities here, go read the sticker and find out what it says.

I understood that Uwe, just felt the need to point out that there may not be any code violations at all but something else entirely.

One needs to only read sometimes to understand something. Or at least where to go for more information.

You definitely need to get out and read signs or stickers posted, if the neighborhood is not comfortable enough to get out of the car you don't want to buy there anyway.

The sticker might be one of those "winterized" stickers notifying everyone not to run water or use any appliances. Those are posted on every REO in my area and probably anywhere else in the country with cold winters.

If it's a code violation like Uwe suggested you can just call and see what was in violation. Some inspectors will give out violations and post a sign that says "This building is not safe to occupy" even if everything is ok. I see a lot of these signs in my area just because someone built an addition without pulling a permit and then got turned in by a neighbor.

Either way you need to write down addresses of places like that and go online to your counties tax assessor website to see who owns that property.

Jeff

You've got to look at those homes in a case by case basis. Sometimes it will require a MAJOR demolition, other times you may just need to remove the sheet rock so an inspector can make sure the work is up to code. Step one would be to call Building and Safety (usually who posts those signs) and see why they put the sign up...if it sounds minor you could move forward and see about putting the home under contract.

Either way, as long as the numbers work and the problem is repairable...taking total repair costs into account you should be able to make the deal work. But like I said, step one would be to figure out WHY the sign was put up in the first place.

Jeff

I don't think you should ever be intimidated or apprehensive to talk to anyone. Be confident and treat him like he's equal to you, not above you. I'd call him, introduce yourself and let him know what you do. I'd also ask him what type of deals he's looking for...some rehabbers don't want any 2 bedrooms or want to stay away from anything more then a simple flip, etc. Also ask if there is a certain area that he likes to buy in.

Don't tell him your new but don't lie and tell him your wholesaling tons of deals either. Just make sure you hustle to find deals after calling him. It's hard to build rapport with someone when they don't hear from you for a few months after your initial call, kind of like starting over. Just have to hustle, hustle, hustle.

Jeff

Don't be nervous, your bringing him $$ by finding great deals. I recommend anyone that is nervous about cold calling to work a part time sales job, preferably outside sales. Make 10 or more calls a day and you'll get over your nerves real quick.

Jeff

Call sellers out of the newspaper too, even if it's not a deal...that will give you some practice talking RE and asking questions about property. Just stay confident and you'll be fine.

Jeff