North Las Vegas, NV · Member since 2016 · 35 posts · 9 votes
Just sharing my experience and I hope to get some insight.. So we found some boarded up 4-plexes during our drive around in the weekend and I just attempted to call the owner since they had a "for sale" sign! I was so nervous and didn't get much information, because her voice intimated me lol This is all I got.. 16 4-plexes some remodeled, some are not. Two have already been sold for 240k and two for 250k, so that's her going price. She is not planning on going lower for the ones not remodeled. That's all I got, because I got nervous.. I think I did horribly, but it was worth a try! Is there anything else I could've said/asked that would've made this conversation more effective? or was she not a good candidate to begin with?
Fort Worth, TX · Member since 2015 · 121 posts · 28 votes
10y
First of all, Congrats! I applaud you for taking action and getting started!
I think that with the information that you have you can probably figure out how much you would need to remodel them yourself and try and see what the difference would be between buying one that's already been remodeled and then having that get rented out fairly quickly vs one of the ones that hasn't been and then needing to do it yourself and waiting however long for the remodel before you can get tenants in. What kind of rents do those properties go for in the areas that they're in? Do the numbers work out? Maybe use the rental property calculator and print it out and call her again and ask her to view one of the properties that has been remodeled and one that hasn't and then bring the sheet with you along with what the going rents in the area are and show her that you've done your research and then make an offer. She may say that she won't go lower but the worst she can say is no! Or maybe see if she will carry the note and you just handle the tenants?
Again, awesome job on making the phone call! Everyone messes up a little bit but if you learn from each time you mess up then you'll be an expert in no time and it won't be intimidating at all! Keep it up!
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
10y
@Cindy Lamug Congrats - a ton of 'investors' never make it to the point you did. I think you gained a lot of valuable information. It seems apparent that the seller knows market value and isn't in a huge hurry to sell. One thing I would have asked is how much she would sell the whole lot of them for in a single cash deal. That might make her more eager to listen to you, even if you had no intentions or ability to do it. It might also give you some insight to how long she's willing to hold on to them.
Real Estate Investor · New York , NY · Member since 2016 · 44 posts · 4 votes
10y
Hi,
@Cindy Lamug great job getting out there. With wholesale, I think getting the discount price is important. There's got to be room for your reasonable fee and the incentive for a buyer to actually take on your assignment. If she's selling at 250K because another sold for 240K she doesn't sound motivated enough to me, especially if that is near/close to market price. Do you have a number for rehab costs? That should factor into your Maximum offer. I might have missed something in your post.
Still I'm so happy that you're making calls. As we both know that is the hard part at first, when you feel so out of your element. You're doing great.
Flipper/Rehabber · El Paso, TX · Member since 2015 · 379 posts · 201 votes
10y
Great job @Cindy Lamug. With the more phone calls you make the more comfortable you will become with the situation. Always remember to think in the mind of the end buyer. Find out bottom line figures, condition of the property and the real motivation behind selling it. Then use all of those things during negotiations.
North Las Vegas, NV · Member since 2016 · 35 posts · 9 votes
10y
Hi guys! Thanks so much for the positive feedback and I will definitely keep in mind all your advice. I just heard in a podcast that it's good to practice on the sellers that you don't care much about, so when the right one comes, it won't be so difficult! We're going to keep looking and keep contacting! Thanks again!