Denver, CO · Member since 2017 · 20 posts · 0 votes
I am just starting out and I am finding that locating and qualifying buyers is not as easy as they made it sound. I am currently sitting on about 10 bandit signs that are ready to put up, and contemplating whether to do that or something else... any suggestions?
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
9y
Finding the deals is hard. Finding buyers is easy.
Find a deal, you'll find a buyer. Promise. Don't let lack of a "buyer list" stop you from starting your campaign.
I would take the deals you have to a local REIA group. Networking with other wholesalers and "birddogs" is a great way to find buyers, exchange deals, etc.
Fund Manager · Wayne, PA · Member since 2009 · 1k+ posts · 1k+ votes
9y
I'd also suggest networking with rehabbers and contractors. Also talking to people who own multiple properties. So say I find a deal and want to flip the contract, I'd call a "We Buy Houses" type renovator/wholesaler with it.
Also Hard Money Lenders are a good source of buyers. And much like my suggestions above, many of these types of people could be found at a local REIA.
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
9y
Finding the deals is hard. Finding buyers is easy.
Find a deal, you'll find a buyer. Promise. Don't let lack of a "buyer list" stop you from starting your campaign.
Investor / Wholesaler · Nashville, TN · Member since 2014 · 1k+ posts · 667 votes
9y
Put out the signs, ads on craigslist, local REIA meeting. Great way to start building a buyers list. The best way really is to find a great deal and market it. The buyers will find you then.
Denver, CO · Member since 2017 · 20 posts · 0 votes
9y
@William Allen - I am not confident enough to trust myself if this is a good deal - would you be willing to go over numbers with me? This one is a fixnflip, but I also have another that is a development project... I think both are going to be great deals, but I am not confident in my calculations yet...
Investor · Reading, PA · Member since 2015 · 102 posts · 119 votes
9y
@Sandra Bivin in my area when we put out bandit signs that is ALL we get are calls from cash buyers. If you want a short cut to finding your serious cash buyers- go to your local sheriff sale or tax sale or attend some local auctions. Get the business card of everyone that buys. Boom. Buyers list done. THEN.. build it some more at REIA meetings in your area. Maybe ask how many deals they have done in the past to nail down your more serious buyers.
Specialist · Sibley, LA · Member since 2014 · 1k+ posts · 190 votes
9y
@Sandra Bivin bandit signs are great if your city is not crazy about flea market of signs on every corner. Some places have tolerance, but some just are too strict on this form of marketing. It's a great way to build a list if you not only include your number but a website also to get people to opt-in for something.
Denver, CO · Member since 2017 · 20 posts · 0 votes
9y
This property is listed at $270K, plans are already drawn up to cost between $130-170K rehab (it has extensive fire damage and will be expanded from a 548sqft 2/1 house to an 1800sqft 3/3 trilevel. Comps show it could go for somewhere between $575k and $625k ARV. I want to offer $250 (up to $260K) I want to sell for $275 (no less than $270k)
the training program taught us to use .8 for buyers margin - but in this case, i assumed it would take a bit longer to complete reno - so I changed to .75 - giving them a little more room to breathe... I also used the midrange ARV amount. I believe that the only reason this house has sat on the market for 5 months is because of the holding costs... but I can't figure out how to move forward..
The RE agent I am working with told me that they don't broker owner will accept an offer from an LLC and/or its assignees, so they said I should either do a double close or buy with my llc and sell my llc...
I AM DESPERATELY SEEKING ADVISE FROM EVERYONE WHO READS THIS - PLEASE HELP ME!
This property is listed at $270K, plans are already drawn up to cost between $130-170K rehab (it has extensive fire damage and will be expanded from a 548sqft 2/1 house to an 1800sqft 3/3 trilevel. Comps show it could go for somewhere between $575k and $625k ARV. I want to offer $250 (up to $260K) I want to sell for $275 (no less than $270k)
the training program taught us to use .8 for buyers margin - but in this case, i assumed it would take a bit longer to complete reno - so I changed to .75 - giving them a little more room to breathe... I also used the midrange ARV amount. I believe that the only reason this house has sat on the market for 5 months is because of the holding costs... but I can't figure out how to move forward..
The RE agent I am working with told me that they don't broker owner will accept an offer from an LLC and/or its assignees, so they said I should either do a double close or buy with my llc and sell my llc...
I AM DESPERATELY SEEKING ADVISE FROM EVERYONE WHO READS THIS - PLEASE HELP ME!
I don't know your market but the fact that it has not been picked up rapidly is a dead giveaway that this is probably not that much of a crazy deal that you think it is. You are going to resell it at 250/260K, you don't think any cash buyer has offered that already in 5 months when its been listed at 270K?
Like honestly stop and ask yourself if the property sat on the market for 270K for 5 months, what are you adding to the property that you feel you can sell it for the same price in a 30 days or less?
A property that needs an extensive rehab that cost upwards of 70K needs much more thought out calculations and your 75% formula will not suffice. You really need to read the book on flipping houses by J Scott and understand the perspective of a flipper if you really want to provide value to them.
This is all the things my calculator puts into perspective for my own flips. My numbers, especially interest, may not replicate that of your investor pool so find out what people in your area are paying for interest, commission, etc.
Feel free to reach out for any other questions. Happy Investing!
I think @Gabriel Amedee hit a very good point about how you could flip the house for $270k when its been sitting on the MLS for 5 months at that price.
Now if you could pick it up for low 200s then that is another story, there might be some meat on the bone for you.
I'm in Denver and would be glad to give you my assessment of the property and ARV. Just pm me.
Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
9y
What are you trying to do with the home? Wholesale it?? You are not going to find "deals" on the MLS as a newbie. If it hasn't sold at $270K, what makes you think you can sell it for $275k??
Quit wasting your time on the MLS. Put up those signs, drive for dollars, and find your own deals. If you find something, I can help run the quick numbers. I've got enough buyers to handle any real deal you find.
Denver, CO · Member since 2017 · 20 posts · 0 votes
9y
I have so many questions I dont know where to start... one thing I cant figure out is why these "good deals" arent good deals... all the numbers work on this, and its still not a good deal? I just dont get it... what am ai missing> Can you share your spreadsheet so I can use it to move forward?
Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
9y
There are 100s of investors combing the MLS every day looking for a home to keep their crews busy or money in play. If they can make $10k or even less, they will buy it. For me anyways, it just isn't worth my time competing as I look for deals with significantly more meat on the bone. The last flip I looked at on the MLS got bid up $100k over ask. I was $25k over.
Lean on your agent to help you. If he or she won't, find someone who will.