I started my real estate journey about 6 months ago. I have gained 0 properties and have made offers on 3 properties. No deals yet. I have have obtained my business license. I have tried direct mail marketing on vacant homeowners. I have tried obtaining PML’s. I have obtained my real estate agent, but for some reason I’m not been successful partly is due to that I’m in a rural area, but I have come across about 3 deals that I could wholesale, but I don’t contain confidence as well as financial stability. I’m just really confused in the real estate investing and was hoping someone could help me get a leg back up to get me going in the right direction. Thanks.
Why do you desire to wholesale? What are your real estate goals? Flips? Rentals?
Well considering my demographics; I have been picking up properties really cheap. But the downside Lenders do t like to fund small deals, so it leaves me with either wholesale or buy and hold, and since I don’t have proper funds at this time for buy and hold my only option is wholesale the deals.
@Jesse R. Confidence is so critical in this field. I discovered that as I became more knowledgable of the real estate jargon, gained experience speaking to sellers, and comping properties, that my confidence increased. I'm down in Charleston and invest in Columbia. I highly suggest shifting your focus to Richland county because there's more opportunity there and cash buyers typically don't purchase in rural locations. So you're in the completely wrong location to wholesale. If you're marketing to Clinton right now, you should stop immediately. I always qualify my zip codes to see where cash buyers are purchasing and then send out marketing to those locations. I like to see at least 30+ cash sales in the previous 6 months before I'd start marketing to a zip. Please let me know if you have any specific questions. Your motivation is there, but I just think you need to shift your focus a bit.
For properties you can lock up for $50K and under, consider selling them owner financed.
EX: Buy a property for $28K, say it needs $10K and your all in for $38K. Advertise it on craigslist as a seller financed deal selling to an owner occupier (not investor). Sell for market rate, say that's $55K in this area, and ask for 30-50% down and then structure payments for the remaining amount. Like $20K down from buyer, then finance the rest for 6 years. Principle payments of $486.11 + 15% interest on the remaining balance. No tenants to worry about, no repairs, no insurance, etc. Just a nice monthly cash flow that you get for only $18K out of pocket after you receive their DP. Research selling properties owner financed .
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