I need investors to purchase properties (wholesale)
Hello, I have sellers, but I need investors who can write solid offers. Could you email me your criteria and contact info? No offers sight unseen please. All of Greater Tampa Bay Area
what do you mean write solid offers ?
Yes we are investors and are looking for properties in FL,
either creatively or creatively. Thats our criteria if you have any, would love to take a look !
Hello, I'm new to working with investors, but I didn't know if was unreasonable to ask for solid offers. Meaning, you (or a representative) go out to the site before making an offer vs "site unseen".
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
- 5,506
- Votes |
- 9,861
- Posts
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
We all would like that, if you're willing to discount investors will make you offers.
Quote from @Jennifer Brown:
Hello, I have sellers, but I need investors who can write solid offers. Could you email me your criteria and contact info? No offers sight unseen please. All of Greater Tampa Bay Area
Hi Jennifer,
I see you are listed as a broker. Welcome to the crazy world of real estate investing. Not sure what you have read or know, so will give some basics. (for anyone who reads this)
Cash Buyers, (investors) are the end buyer and will buy a property at a steep discount, fix it up, then resell it at retail. The discount is because of the risk, costs, and work involved.
Wholesalers, find properties that because of circumstances are available to be bought at steep discounts. They add a % or flat fee on top of what the homeowner(s) will sell it for.
Depending on the market, the discount investors are looking for can be 15-30%+ of the after repaired value, - repair and holding costs. (less on more expensive, more on less expensive)
e. g. 200k retail house. Needs approx. 30k work. 200k - 30% (buying/selling costs, unforseen repairs, holding costs, profit) 140k - 30k (repairs) = 110k investor offer. (total)
This isn't appealing to many retail sellers. They see what finished properties are selling for, and don't see what repairs their property needs. They also don't see the buying and selling costs. (8-15% depending) or the risk or the cost of capital. Many sellers would want 200k - 30k repairs= 170k. That's unreasonable for investors, that's not what the seller will get no matter what. (as you know)
So if you are a broker/agent get your clients to prep the house for retail sale with their own capital. They should net ~180k less the repair costs.
If you are a wholesaler, then figure out ARV, the cost of repairs (estimated) your fee (~5k) and see if your can get sellers under contract (atleast open to) the investors price. (previous example 110k - your 5k finders fee, so 105k)
Then advertise your deal (specifics if you have a contract, otherwise don't list the address etc.)
If you haven't done the due diligence and work needed to prep a deal, then many/all won't bother. Get a partner to help if you think this is for you, unless you can estimate repairs and the rest.
If you have a deal, then by all means post it. If you want feedback on if it IS a deal, there is a forum here you can post to. Don't list address, just ARV, Repairs, selling price and ask. People will help you.
Good luck, Happy New Year!
Mark
Great feedback Mark! Thank You very much & duly noted.