Ill get straight to it. I totally understand the 70% -(repairs) model, but I would love to know if there are certain repairs you would stray from, if a property needed it? The reason why I've asked is because I have talked to an investor of mine, who expressed to me that he wants properties that are closer to move in ready... as if too much rehab, is a deterrent for him.
I have another investor who says they are looking for properties that fall along the 60% as far as the deal is concerned, and so I'm guessing this means he isn't looking to do any major rehab either.
I have been driving for houses down here and have found some really messed up ones in pretty okay neighborhoods, but have passed them by because they seem to need so much work.
So I wonder, How much work is too much work for an investor? What type of property would be ideal for you guys? Or is the 70%-repairs model all that matter?
thank you in advanced!
Your newest Wholesaler, Shannon Webb
If you can find property at 70% or below FMV that doesn't need much work, keep it for yourself! Sounds like you need some new buyers!
Thanks for replying!
I would definitely look into doing that, I I had enough experience to get a hard money lender behind me. But as of now, I'm taking this wholesaling route to get my feet wet, and learn the ropes!
Sure @Shannon Webb . I have a lot of respect for good wholesalers. To me, they must do and understand the whole package of RE investing. The marketing for lead generation, the market itself to ID a good deal, the knowledge of repair costs, the hand-holding for the sellers in all different situations. Gotta have the right buyers and know their niche. Seems like a whole lot of skilled experience and knowledge to get a small payday that's taxed at a high rate. I hope your buyers respect what you are doing!
The name of the game is branding and I want to give my investors something to respect. So as I walk out her into this world I'm taking my time to be diligent and efficient. I don't want to make a habit of finding any old properties to show investors because I want them to take me seriously. That's why I asking these questions because once i hit an investor's email with a property under contract, I want them to be excited to hear from me!
While it is important to make sure the seller is happy with what I offer them, I believe its even more important to please the investors, and so here I am! lol
you really don't want to guess the second investor doesn't want to do heavy repairs. The bigger paydays can come from total rehabs. Sell for below land value. Think fire damage; total gut; tear downs etc.
thanks for replying! i will totally consider it! more properties to look at now! thanks!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing