What Works the Best in this Market

Question

So this has been a sticking point for me lately, I read tons of info on wholesaling and have realized that there are many ways to get a deal done.  My question is what techniques are working for all of the "successful" investors right now.  I am new, have never done a deal, but I am looking for the best avenue to get started.

Nicholas . · Answer

Wholesaling is definitely the fastest, easiest way to make money in real estate. And you can do it without risking any money or credit.

Just drive around (or have a family member who could use some extra money drive around), and find houses in good neighborhoods that need repairs. Have them bring you back the address and some pictures of the place (whether it says it's for sale or not).

Find the phone number through online tax records or white pages or whatever. Call them and find out what they want for it. Never name a price. Let them name theirs. When they tell you, say something like "is that the best you can do?" You'll usually get them to come down several thousand with that question alone.

Do some due dilligence and make sure their's enough room in the deal for you and someone who wants to rehab to make some profit. I recommend 70% of the after repaired value minus the cost of repairs minus about 10K for your profit.

So if the house is worth 100K fixed up, and needed about 15K in repairs, I wouldn't pay more than 45K. And that shouldn't be hard to find in this market.

So you take out a contract on the house (with around a $10 earnest money deposit just to make it binding). Then you put an ad on craigslist or the newspaper for a handyman special. You name the price (about $55K). That's a great deal for the person who wants to fix it up, and you've left plenty of profit in the deal for them, and you walk away with $10K.

Easy.

Brian P. · Answer

T.G.

The deal determines the method.

What your going to be doing is looking for people with real estate problems that want them solved, or motivated sellers. That is your real job.

To solve their problem you need to have the right tool, and like any other repairman you want a fee for fixing the problem. Not every problem can be fixed with a hammer.

So your job is to find motivated sellers and determine what their problem is and then decide what the best tool to fix it is.

The archives are full of possible tools you should put in your toolbox for use when you need them.

By the way, you don't need the $10 to make a contract binding. Only make sure you put up a buck when getting an option because an option is only considered to be an offer by the optionor without consideration from the optionee per the courts and and can be withdrawn at any time.

T.G, Holt · Answer

This is for "internic99".  In response to your post regarding wholesaling listed on 03/06/09.  Where can I get more info on this? You're post makes it sound very easy.  Especially the part about offering $10 in "earnest" to make it legal.  How can that be? Wholesaling doesn't apply to property owners with a mortgage, right?

What Works the Best in this Market

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