In addition to working with clients I was looking at buying with cash a few properties a month to resale to investors.
My thought with investors is they can pay all cash versus the red tape from home buyers.No underwriting or appraisal and waiting games.Decision to purchase from me is numbers based and not emotional.
With my multiple niches I would like to add another income stream but not have that one stream take up all my time.
Example if you can resale for cash 4 properties a month at a 10k profit that is 40k versus a flip in 90 days at maybe 25k in profit.
Ryan Pyles post in another topic intrigued me and I have been thinking on this type of transaction awhile.
"Got a call earlier this year from a guy who lived out of state. His dad died 2 years ago and left him a house here in Toledo. His dad had rehabbed the house to about 90% before he passed away. The house had been sitting vacant for 2 years and now he just wanted to be rid of it. I didn't really want it because it was a 2 bedroom which are hard for me to flip. So I made him a super lowball offer and he took it! On 1/24/12 we closed on the purchase for $14,000. I put $1,500 into cleaning it up and finishing the rehab, which amounted to installing the bathroom (all the materials were sitting in the house...just needed installed), and some other minor repairs. While my guys were rehabbing I called every Realtor I know asking if they had a landlord that was looking for an easy rental. As luck would have it, someone had a buyer for me. We closed 2/16/12 for $25,000. The Realtor only wanted $1,000 commission (even after I offered her $2,500). So, not a huge payday, but definitely an easy one!"
I really have no interest carrying paper and being the bank like some turn key places.
When I bought really low I would do some carpet and paint and get rent ready for an investor to buy from me.The only unknown would be the property management as I usually focus on sales.
Joel Owens, All World Realty | firstname.lastname@example.org | 678‑779‑2798 | http://www.AWcommercial.com