Buy rental properties directly from motivated sellers?
I am a foreign national. I search for deals, everyday, in MLS, both for multi family and single family homes.
The retail prices cut into cash flow.
The loans for national foreigners rates are also too high. They are between a 5.25% and 7% with a downpayment between 50% and 60%.
I am starting to feel that the only way to justify an out of country investment, including the stress of rehab and building a team, is to pay cash and then refinance after 12 months; buy from motivated sellers and skip the retail prices route.
The idea is to build my own marketing and approach motivated sellers and buy at discounted prices. (I know will have competition from wholesalers and not only from them)
Not simple, but at least will have significant cash flow if I manage to succeed with this plan.
At my company we are very experienced with digital marketing, social media and Leads. We already bring thousands of leads a month in different niches, including Real Estate in Europe.
We could try to adapt our approach to the US market. Some leads I can use for myself, others I can sell, and some leads wholesale.
Your thoughts?
If I go that way, and in the scenario where I buy for myself:
A) Does it work if we add contingencies in the agreement with the landlord or is it difficult with motivated sellers?
B) Do we have time to send an inspector?
C) What kind of contingencies do you usually add when/if you buy directly from a motivated seller?
Wholesaling:
A) When you buy from a wholesaler, is there time to send an inspector or constructor and can add contingencies to your offer?
Thanks