I am 4 1/2 weeks into my real estate career with no prior experience. I recived a few guidance marketing tips from one of the local REI MeetUp groups. The flyer that I was recommended to use states " I am prepared to buy home as-is even if it is in need of any repairs and can be flexible on the closing date and can even pay all of the closing cost for you. Anyone can sell if they have Little to No equity and if need be can even help you make your payments." I have no idea what type of deal this is or how to successfully complete? I don't know what question should I be prepared to as any seller who responds to the flyer? Can anyone help?
Hi @Stephen Manago ,
I highly suggest you do a bit more reading on the forums regardless of what kind of real estate you are trying to do.
One point to note, whether you are wholesaling, fix n flipping or buy and hold would determine whether or not you are actually financing your deals. Do you plan to do anything other than wholesaling? If so, you should really have knowledge on how you will pay for he house, whether it's a Hard Money Lender, Private Lender, Cash reserve etc.
On another note, you mentioned little to no equity. This is saying a lot as you are touching a lot of areas of real estate with this statement. (Let's assume you are wholesaling) Most wholesalers do at a minimum 30-50% equity. Without it, you have to be knowledgeable of other "creative financing" in order to pull a deal. Have you heard of Subject To? Lease Option?
Just so you don't get yourself in trouble, I suggest you find a niche and learn as much. About it as possible. You are off to a good start because BP is an amazing resource. Wish you well!
Thanks Brionne for the speedy response, answering my plea and the helpful nuggets. I should start with one niche then expand to others, and then gain additional knowledge on funding creative strategies got it. Is it possible for me to kill two birds with one stone? Meaning can I do profitable deals as a wholesaler while simultainously learing about different funding options? I do one day plan to master the buy and hold niche soon after earning some capital from wholesaling some properties. I am more interested in multifamily 4-50 units. You mentioned wholesaler's are normally interested in properties with 30-50% equity, how do I determined how much equity a property holds?
Anyone can be profitable in wholesaling. It's just hard work, as any other area of real estate niche. As far as "killing two birds" it would be a whole new learning curve especially if you are new to REI in general. Go to some of your local REIAs/Meetups and meet some seasoned investors, maybe you can partner with someone, or even better, develop a mentoring relationship.
As far as determining equity, you can get that info from a real estate agent, OR when you are pulling your list for marketing, you can filter by percentage of equity.
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