I live in Fort Worth, Texas. Bandit signs are illegal obviously, and I read an article that said that the city is pretending to be customers calling on signs, and then giving them a citation. Regarding yellow letters, ive read that you need to send out 2000 per month, but that costs $700 at .35¢ each. I thought about marketing online, but a quick search pulled up several established home buyers in my area. Auction.com looks great, but I can't afford the $2500 deposit needed in order to bid. How are the little guys getting deals? Please help!
Deals are out there, but it's a very competitive market. I spend a lot of money on marketing just to get about 1 wholesale deal per month. Just curious, if you can't afford a $2500 deposit, then how are you planning to pay for a real estate investment? Sellers aren't as motivated to do seller finance when there are so many cash buyers out there.
I'd be happy to put you on my wholesale buyers' list &/or help you bid on HUD homes (no upfront deposit req'd) if you'd like.
I am not looking to be a full time wholesaler, i am looking to do a couple of them to put a down payment on my next house. I had a down payment lined up and that fell through, so this is my next choice. Regarding not having the $2500, I don't plan on closing. I plan on assigning the contract. Since that would only net me probably 3-5k conservatively, it's hard for me to spend vast amounts of money to get one of those deals. My other choice here is to refi my house and pull out the down payment that way, but I don't want to reduce the cash flow when I rent it out by having a bigger mortgage payment.
I would be interested in learning about those hud homes, but those would be investment properties which would require 20% down, which I could only do on an 80k house if I refi. In other words, from what I understand, hud homes are not something i would want to move into. I may be wrong on that.
HUD homse almost always need at least some new flooring, but some can be desirable to live in while others may need a lot of work. Lots of gurus talk about low/no-money down investing, but DFW is a hot market w/ lots of cash buyers, so such opportunities aren't very prevalent. HUD homes generally require $1K escrow for homes over $50K. Give me a call if you'd like to find out more.
To wholesale, you're going to either need to spend money &/or time (driving for $, door knocking, etc.) to generate leads, there's no free ride.
That's good info, thanks. Of course I'm not looking for a free ride. I was trying to invest time instead of money, but I was discouraged by the fact that my wife and I drove around for 3 hours and didn't find a single potential deal that we recognized.
A lot of cash buyers around here is right! It's hard to believe all the cash changing hands in this area. There are deals to be had, but I haven't seen much wholesale level activity lately. Even motivated sellers that contact me are more suited for a retail sale these days. It's definitely a seller's market in this area, and to find "just a couple" deals like you're looking for, you might try the old Driving for Dollars route. It doesn't cost much other than time, gas, and a little postage, ink, and paper. Deals aren't guaranteed, but run down, vacant looking properties are always worth a letter or call in my opinion.
@Boyd Dixon I think there may be some research left to do :)
1. You cannot assign a contract on a HUD or any bank owned/short sale. (not that I have seen or even heard of)
2. Auction.com will not be a fast process, and if you are looking for deals like assignments that means quicker returns. Auction.com will require your deposit and you must close on the property in order to resell.
3. I order to get assignment deals, you must market (direct mail and otherwise). Driving for dollars aka driving around looking for vacant houses is a very good method, but takes a lot of time for little volume.
I'd start by reading up a bit more and starting to get your pieces in order. Then look to meet buyers.
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