Hi - I've been wholesaling for a few months now. This week, I had a call about a turnkey Section 8 rental. It's in a rough area of town, so the return would be better than average due to the location.
I'm curious, what would you say is a good gross return as an investor? With her asking price, it's at nearly 25%. I haven't done the inspection yet, but she says it's in good shape with a good tenant in place. I have asked a couple of my investors for feedback but thought I'd throw it out here as well.
@Nancy Brook being in a bad section of town you might have a lesser pool of interested buyers. The return on paper for a bad area is often higher than the actual return due to higher expenses.
Thanks for your reply. I personally do not invest in the more challenged areas. However, I found someone who likes this area.
This weekend, I posted an ad on Craigslist saying I buy houses for cash and got a call from another wholesaler/real estate agent. He told me that he buys houses for someone in FRANCE and the guy wants to purchase five Section 8 houses in this neighborhood every month. He got back to me after posting and he's very interested. Just waiting on the seller to return the contract.
If it works out, we'll split the wholesale fee.
I'm wondering if there's a way to market wholesale deals to out-of-country investors more directly. But I'm good sharing a fee to get the sale done.
I wonder if the out of country investors really know what they're getting themselves into.
I'm going to have to talk to my wholesale contact sometime and ask. I'm very curious about a Frenchman investing so much in Florida.