Wholesaling / Rent to own
Hey everyone! Glad to see everyone is doing well. I keep telling myself im going to make my presence here felt and known more. Sometimes i think i get more caught up in thinking about things than doing them. Which i know is not good if i, in anyway, aspire to be like some of you.
So i have a question first with regard to wholesaling. So i came across some new software that take detail and numbers to a new level(for me anyway)!! I can create excessively detailed printouts for end buyers to help increase the likely hood of contracts. My thing is, does it make more sense to create the reports for possible end buyers to essentially "hook them" prior to contacting a possible seller? Does that make me seem thorough? Or should i be contacting the sellers first?
Would anyone here have any info of someone who has rent to own properties in the baltimore city area? Thanks for the advice.
#4 Wholesaling Contributor
- Wholesaler
- Austin TX
@Kasan Kelley You shouldnt be trying to “hook” buyers for properties that you cant actually offer them. You should only be talking with buyers about specific properties once you have them under contract. There are wholesalers who dont know what they are doing and want a buyer to tell them what they would pay for a property before they actually put that property under contract...IMO thats a wholesaler that doesnt know what they are doing. Also you shouldnt be relying on software to put some fancy package together for your buyers. This is what real buyers want to see:
1. What is the ARV of the property
2. What repairs need to be made and how much will those repairs cost to get to the ARV (including a contractors SOW is useful here and makes you look much more competent)
3. What are rental rates in the area
4. What is the cost of the repairs to get property rent ready
5. What is the ARV of the property after its been made rent ready (important for investors who want to pull their cash out after rehabbing and renting)
Thats essentially all the info you need to provide to an investor. Everything else is just fluff.
Thanks for this info @Lydia T. My i tention is not to "hook" anyone. It was a place filler for a word i just couldnt think of while typing this as the question was fresh in my mind.
I realize there are specific steps to take, and im not really tryna shirk on them. Just thinking of a ways to increase likelihood of having properties under contract. Maybe that kinda falls in the realm of "putting the cart before the horse"
Hey @Kasan Kelley,
Be careful what you do and say. It sounds like what you are talking about is what some people call reverse wholesaling. It can be a grey area and some states consider it flat out illegal. Without a license if you are hunting for buyers and getting them to give you a price they would pay for a house before you put it under contract, it walks and quacks like a duck and appears you are acting like a realtor.
Every state is different so just be careful and know your states laws.
Good luck and keep the deals flowing!
@Randy Thomason thanks for the heads up. Still pretty new,
@Kasan Kelley You should always have property you own or at least under contract before you start to market it. However while you are looking for deals you should also be looking for potential buyers.
There are a ton of ways to build a buyers list. There are some "Sticky " posts at the top of the wholesaling forum on how to find buyers.
Regarding the software; This is a people business not a software business. Nothing wrong with using software but it is not a magic bullet.
