OMG. I was told work hard and these strategies are GOLD. OK so if this is so, why is it I have made a mile of phone calls, miles of calling agents to send me contracts on their listings, have a buyers list - and they're waiting, waiting..... why - the agents will not send the contracts??? And if they do, they won't present the offers?????? and then they tell me actually I think these are good deals for myself.....??????? What the???? I'm seriously confused and am not happy. I am ready to do deals and can't find agents that want to be paid a commission for selling houses! Dear fellow investors, what am I to do? How can I spend my cash and get a decent return for my efforts? How can I set up a website for my fellow Aussies with cash who want to buy houses????? etc etc. am looking for advice, not mentoring. am focusing on Kansas City, MO area. Cheers from Tropical North Queensland.
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Sounds like someone sold you a course/mentoring/bill of goods. Wholesaling off the MLS is usually a fruitless endeavor, much less from a far. You generally have to have sucker buyers, willing to overpay. As an agent, I can smell a wholesaler a mile (or a country) away. No, their offers don't get accepted. The last thing in the world I'd do is let a seller sign a contract with a wholesaler from out of country. Yes, most agents will see dealing with you as a complete waste of time.
You have to partner up with people boots on the ground (I so love that phrase and over use it) in the markets you want to be in. No other way to do it.....I have rescued a good bunch of aussie investors in the metro atlanta market so please be careful what you buy and take a look at some other markets.
@Linda Jeffrey I did a deal with a gentleman from Australia. He had the property under contract and had a colleague here on the ground in Atlanta. I brought the buyer to the table he and his colleague did everything they needed to make sure the transaction went smoothly. It is absolutely possible to wholesale from out of the country. I wouldn't go the route of wholesaling from the MLS. I know some wholesalers do it however it takes away from what makes you "special". Getting off market properties is what makes a wholesaler worth anything to the end buyer. If I were in your shoes I would absolutely team up with a property manager or a wholesaler on the ground in Kansas City. Structure a deal with that person so when a property is successfully sold every party wins. Go the direct mail route if you can. Get properties directly from the source. It may cost some upfront money but 1 or 2 deals will/should make it all worth it. This way you bypass the agents, your dealing directly with the owner of the property and your of value because you are actually getting off market properties. Skip the frustration of dealing with an agent who is trying to double end that particular listing your going after. Plus, at the end of the day I don't think its ethical to tie up an agents listing in hopes of you finding a buyer. I'd much rather deal directly with the owner of the property. Hope this helps! Good luck to you and don't get frustrated just keep working and tweaking the process until you have a system that runs smoothly!
@Linda Jeffrey, what you need to do as @Andy Luick says, is partner with somebody on the ground with plenty of experience. It takes time and effort to find someone worthy of your trust. Sorry to tell you, but we're hardcore hands on Investors and that means if we can't control the deal all the way, we're just not doing it and that includes J.V.s. which we do a lot of.
I really think the question you should be asking is what kind of a return you can get for your money subject to a 100% asset backed security in the form of real estate and the further you move away from that point, the less secure your investment becomes.
At least you're in the right place to get a good answer, there are some great people on here as well as some outstanding information and guides for everything. Make it your business to get to know who's who and you'll be just fine and dandy!
Welcome to BP, the ultimate All-American, hard working and honest investment resource!
As a Wholesaler, it is important to find the deals that are not on the MLS. Anytime I get a new buyer added to my list, the first question they ask me during the interview process is "Are your deals listed on MLS?" There is nothing wrong with working with a realtor, just know that their commission is part of the deal. 6% doesn't sound like a lot, but it could be the difference between getting a buyer, or not. Keep the total cost around 60 - 70% ARV and you should be fine.
You will have to do your own marketing directly to homeowners in the area that you want to focus on. You can also team up with someone like me who is finding properties not on mls and we split the wholesale fee. As an example I am finding houses in Kansas city for 20k that rent for 600 per month. I have another one for 35k that will rent for 800 to 900 per month.
I market directly to sellers then I have a property manager go to the house to make sure the place is not falling down.
Andy is right, when investing out-of-state (or country), you really need to partner with someone (or work closely with someone) in that local area. At least in my opinion. If the realtors/contractors aren't getting back to you, you need to find new ones. It's not easy investing out-of-state and I would be very careful when doing it.
These are precisely why I emailed you & talked about how I work with investors & whole sellers. My work ethic is to be honest & up front. Not taking advantage of anyone, I've seen it done & have helped investors to the very best of my ability to get out of a fudged up mess!!! I promise, my clients always come first, I get paid when its completed. No worries!
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