Hello Bigger Pockets, ive done some research on this but i want to know. Is there any way to profit from FSBO? Maybe as an assignment deal or something? Any input is appreciated! Thanks.
Welcome to BP, Shalan.
FSBOs are tough to do most of the time as an investor if you're just buying. The seller is trying to save the commissions, usually a thin deal or the owner thinks they can pull it off themselves and save thousands. They are often overpriced to begin with.
Now, you can watch them over time, treat them as an expired listing in many ways, you can show why it's not selling, might be overpriced or it can be condition that keeps it from being financed.
Cure the problem. You can use installment sales, lease-options or options and even construction contracts to solve the problem, control the property, assign, lease or sell it.
If you can solve the problem you can profit.
If it's a nice home and the seller is stuck on his price and there is no real motivation or problem to solve, move on.
I know of a property that's been on the market, listed and as a FSBO for more than 5 years, nice home, very nice area, but the guy was an engineer and put in about a hundred grand in electrical generator systems and enough power to run a train station, he wants his money back, in his mind anyone in their right mind would want the same thing, but he's not really in his right mind. He has money so there's no motivation. In fact, he has raised the price to draw in wealthier like minded types.......nice looking home, agents list it to draw calls and then pull folks off to reality with other properties. LOL
Find motivated sellers and you can go from there. I'd say the skill level needed is higher in dealing with FSBOs, they can be slow to move, stubborn ones must be shown beyond doubt, thin deals can be tricky and risky, can have issues Realtors don't want to deal with. Good luck. :)
Hello thank you for the info there. i havent really given much attention to FSBO properties but one came across my local REI networking ring via email and wondered if there may be potential. Its not too close to my area either so ill just stay away from this one! Thanks again.
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