Wholesaling and rehabbing in central Florida?

Question

I would like to get in to both of these ventures. Is it a good or bad market to do so in? I've done a lot of research. Are these ventures generally successful in a buyer's market and not as successful in the sellers market that I believe we are in? How do I analyze the market to know what position it is in? Could I possibly have more success by just going to another location? And how would I know what that location is?

John Thedford · Answer

I looked at five houses yesterday that are excellent candidates for purchase. Had one owner let me in and we built a good report. Right now he thinks he can accept 10% under market. I suspect it can be bought for at least 20% under if not more. I truly feel sorry for the owner. Imagine:

1. no a/c--it broke two years ago and no money to fix2. no car---uses bike to get groceries, etc3. not old enough for SS4. no steady employment5. no insurance on house--maybe a couple of different reasons but cash is certainly one of them

This is a perfect candidate for either buy and hold, or buy, rehab, flip. I have at least four others...and one the owner wants me to bring an offer. None of these are listed! There are deals to be had if you get out and look. Why am I not writing contracts on all of these? Not enough cash to close.

Why not just sign the contracts and try to assign? Because I DON'T have enough cash to buy all of them, I refuse to lie to the sellers and raise their hopes, and there is a legal aspect called FRAUD BY INDUCEMENT.

The key to building a portfolio is OPM.

John Thedford · Answer

If you can't buy right then don't buy. Wait till the right one comes along. It will.

Patrick Philip · Answer

The problem is that people aren't wanting to SELL at that price. That's what went wrong with my last campaign.

Andrew Davis · Answer

Hey @Patrick Philip,

How many mailings have you sent out?  How many doors have you knocked on?  Have you split tested your campaigns to see which are most effective?  Tweaked your criteria?  Drove for dollars?

There are deals out there, don't get discouraged, just keep at it.

John Thedford · Answer

It doesn't matter where you operate. You have to MAKE deals. This means buying well under market. You need to take all your costs into account including rehab costs, financing costs, holding costs, marketing, costs of sale, etc.

James Barnhart · Answer

And, check the county records to find pre foreclosures, divorces, probate cases, out of the area owners, etc.  Then, contact those people.  They may be glad you called to help them out.  Do that, and not swoop in to take advantage of them, and you will do fine.

Andrew Davis · Answer

@Patrick Philip, trying different types of postcards, mailers, whatever, to see which is more effective amongst a given mailing list.  If you spend some time on the BP forums, podcasts and books on wholesaling, you'll find plenty of discussion and info about it.

Patrick Philip · Answer

What is split testing?

Michael Plante · Answer

Thank you for your post

I am not familiar with that

Could you point me in the direction of where to find more info on doing that please

Wholesaling and rehabbing in central Florida?

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