New Real Estate Investor in Sacramento, CA
Investor · Vacaville, CA · Member since 2017 · 8 posts · 4 votes
New Real Estate Investor in Sacramento, CA
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Real Estate Agent · Phoenix, AZ · Member since 2016 · 738 posts · 1k+ votes
9yHi @Justin Swindle! Welcome to Bigger Pockets!
Right now the fix-n-flip market in Sacramento is STARVING for deals, so if you can find a deal you'll have no problem locating an end-buyer. You can read more about the state of fixer uppers in the area in my post here:
Here's the top 3 strategies I would recommend for a wholesaler in today's market:
Preforeclosures: There are roughly 200 preforeclosures per month in Sacramento County. This gives you more leads than you can likely handle, especially if you go back and pull all the people who defaulted last month and the month before that. Go straight to the owner's house and knock on the door. Foreclosure usually happens because of death, illness, job loss or divorce and cripples the homeowner's ability to make mortgage payments. They might be in a tight bind and be willing to sell the property below market value, and you can make your money in between.
Vacant/Non-Owner Occupied: If a home is sitting vacant the owner may be willing to sell it quickly just to get rid of it. They could have moved away, inherited, or just not care about it anymore or aren't willing to rent it. You can door knock with these too (but you'll have to do it at the tax mailing address) or you could simply send a letter. At that point it's merely a numbers game. Talk to enough homeowners and you'll soon find someone willing to sell at a wholesale price, especially if the owner lives out of state.
Driving for Dollars: The last method is to simply drive around and look for homes in disrepair... things like uncut grass, broken down cars in the driveway, or properties that could really use a fresh coat of paint. These indicate that the owner doesn't have the money to fix these problems, and that might mean they are in a situation where selling their home might solve a lot of money problems for them. You can either send them a letter, or go up and knock.
Now, you may or may not have been aware of all these strategies, but what's really important is that the point I'm emphasizing is HUSTLE. Not that you aren't doing that already, I don't know, but what I do know is that doing the above activities 40 hours a week will practically guarantee you success.
While other wholesalers are relaxing at home and waiting for a deal to fall into their lap, you'll be out making things happen. I'm a firm believer that if you want success, you have to go out and get it, and the only real way I see having success with wholesaling nowadays is to get out their and meet property seller's face-to-face.
And as a side note, thank you for your service! Once you're ready to take advantage of the VA financing offered to you, I'd recommend reaching out to Chris Mason here on Bigger Pockets. He's a service member himself and wrote a killer post about VA financing you can read more about here:
12 Replies
- 9yMichael S.Pro MemberBiggerpockets Support · Las Pinas, Metro Manila · Member since 2015 · 7k+ posts · 1k+ votes
Welcome to BP Justin and all the best in your investing.
- Real Estate Agent · Phoenix, AZ · Member since 2016 · 738 posts · 1k+ votes9y
Hi @Justin Swindle! Welcome to Bigger Pockets!
Right now the fix-n-flip market in Sacramento is STARVING for deals, so if you can find a deal you'll have no problem locating an end-buyer. You can read more about the state of fixer uppers in the area in my post here:
Here's the top 3 strategies I would recommend for a wholesaler in today's market:
Preforeclosures: There are roughly 200 preforeclosures per month in Sacramento County. This gives you more leads than you can likely handle, especially if you go back and pull all the people who defaulted last month and the month before that. Go straight to the owner's house and knock on the door. Foreclosure usually happens because of death, illness, job loss or divorce and cripples the homeowner's ability to make mortgage payments. They might be in a tight bind and be willing to sell the property below market value, and you can make your money in between.
Vacant/Non-Owner Occupied: If a home is sitting vacant the owner may be willing to sell it quickly just to get rid of it. They could have moved away, inherited, or just not care about it anymore or aren't willing to rent it. You can door knock with these too (but you'll have to do it at the tax mailing address) or you could simply send a letter. At that point it's merely a numbers game. Talk to enough homeowners and you'll soon find someone willing to sell at a wholesale price, especially if the owner lives out of state.
Driving for Dollars: The last method is to simply drive around and look for homes in disrepair... things like uncut grass, broken down cars in the driveway, or properties that could really use a fresh coat of paint. These indicate that the owner doesn't have the money to fix these problems, and that might mean they are in a situation where selling their home might solve a lot of money problems for them. You can either send them a letter, or go up and knock.
Now, you may or may not have been aware of all these strategies, but what's really important is that the point I'm emphasizing is HUSTLE. Not that you aren't doing that already, I don't know, but what I do know is that doing the above activities 40 hours a week will practically guarantee you success.
While other wholesalers are relaxing at home and waiting for a deal to fall into their lap, you'll be out making things happen. I'm a firm believer that if you want success, you have to go out and get it, and the only real way I see having success with wholesaling nowadays is to get out their and meet property seller's face-to-face.
And as a side note, thank you for your service! Once you're ready to take advantage of the VA financing offered to you, I'd recommend reaching out to Chris Mason here on Bigger Pockets. He's a service member himself and wrote a killer post about VA financing you can read more about here:
- Investor · Vacaville, CA · Member since 2017 · 8 posts · 4 votes9y
@Michael S. I have just mailed out my first round of mailers to a targeted list and I will also be working on some other marketing methods as well. After I can land some deals, I know that in this market it should not be too difficult to unload to an end-buyer. I really do appreciate all your advice.
While I am definitely aware of the strategies you identified, I still appreciate your input on them as it is a nice to get the perspective of someone who has a good pulse on the local market. I appreciate the offer on the VA financing, but I have definitely already taken advantage of that benefit.
I enjoyed reading your post on the state of fixer uppers in the present market. Do you regularly attend the Roseville Meetups? Are there any other local meet ups that you attend/have attended or is Roseville the recommended meet up in this area?
- Attorney · Sacramento, CA · Member since 2014 · 300 posts · 172 votes9y
Capitol City Wealth Builders is tomorrow in Arden. It looks like a good one. Please see below:
"Tomorrow, on Wednesday, January 18th learn how three Sacramento Superstars built their businesses from an idea to locally recognized names.
Through careful branding, systematization, team management, and crafting their business culture, they’ve managed to adjust their businesses to current markets and grow them.
We're going to be hearing from Mike Gobbi (who has seen and survived multiple market cycles), the team at Grounded (formerly known as the Oak Park Team specializing in flipping), and Max Boyko of Hybrid Brokers Realty - Sacramento (who's new brokerage is growing in leaps and bounds). These investor! s have all done incredible business here in Sacramento. They are involved with flipping, buy and holds, lending money and they have all built ancillary businesses around Real Estate.
Come learn from the pros to help you form your own plans and make it a breakout year! Be sure to come early and network with the other highly motivated like-minded people!
"One year from tomorrow will you be in the same place that you are today? Would you be at a different place? Would that be by design or by default ? Goals are the pathway to decisions . It is in your moments of decision that your destiny is shaped." - Tony Robbins
About this Meeting...
Sacramento Real Estate and Investment club Meetings follow the same general format each month:
- 6:30-7:30 pm: Come early for NETWORKING
- 7:30-9:30 pm: MAIN MEETING (including market updates, live investor profiles, a one-hour speaker presentation, and much more)
- 9:30 pm – On: Stay after for MORE NETWORKING
As always we meet at the:
Sacramento Doubletree Hotel
2001 Point West Way, Sacramento, CA
(across from the Arden Fair Mall)
Meeting cost is $20.00"
- Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes9y
You have come to the right place to connect with the wide array of real estate professionals and investors. Make sure to view the Bigger Pockets book store: https://www.biggerpockets.com/store
- 9yEric GiovannucciBusiness MemberInvestor · Boise, ID · Member since 2014 · 172 posts · 99 votes
Nice to see other local vets on here. I am new to investing in this particular area and would be interested in networking and potentially attending some of these meetings if you'd like to join.
- 9yKuba F.Pro MemberReal Estate Investor · Los Angeles, CA · Member since 2013 · 2k+ posts · 694 votes
Welcome @Justin Swindle Getting your marketing right is definitely going to be key, and you'll find lots of help and strategies here. As a buyer, the advice I can give you is to make sure you present good numbers to your buyers list, or it'll churn like crazy as you lose credibility. This is especially true where you are, where it's frustratingly hard to find a deal and so tempting to try to market a bad deal. Cheers!
- 9yGordon CuffePro MemberInvestor · Roseville, CA · Member since 2009 · 1k+ posts · 587 votes
@Justin SwindleThe Roseville meetup is always crowded and the meeting is usually at the Whitney Oaks Gold Course. The toughest part about wholesaling is finding the deal so spend most of your time marketing. You can learn a lot here on bp. good luck in your search.
@Justin Swindle thank you for your service! Welcome to the BP! You're in the right place. Definitely check out some of the meet ups, to reiterate what everybody else is saying learn your numbers, hustle like hell to find deals, and you shouldn't have an issue finding end buyers. Look forward to possibly network working with you and/or seeing you around at the meet ups.
- Investor · Vacaville, CA · Member since 2017 · 8 posts · 4 votes9y
@Account Closed Thank you sir for the welcome. Yes, marketing is my main focus right now to get some leads generated. I understand the importance of presenting good numbers and the fact that it is crucial to not only moving your deals, but also to gain credibility. Thanks for your advice!
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