as a beginning RE investor, i wanted to start out wholesaling.
i went on listsource to get a mialing list. i did my whole state and got about 98k people. when i put the criteria to search for absentee owners owning the house for more than 12 years it went down to 1.
either i am doing something wrong or there is only 1 person?
First year mortgage from 5/5/1900 to 11/5/1999
should i go to 10 yeras? i did 2003 and i only got 103.
what should i do?
Sometimes they don't have the data. When you put a closed range, it will exclude all those records.
I would probably not do the whole state at first too. Pick a big zipcode, test your waters on that list first.
For example new jersey is pretty easy to get mortgage information, but on some states you can't.
Maybe set really big ranges (like 1984-2014) and see if it returns any results. If it doesnt, than it means they don't have that data for your state.
ya i did that and it brought me back up to something like 40k .
so is the equity important? should i bring it to like 2005 or something?
i did the same thing for a bunch of places in Maine. i got 40k. i set the date from 1900- 2005 and it only got me 2 out of the 40k for a first year mortgage. do you know what i am doing wrong?
Lets analyse this way:
If you got a call from someone that has negative equity, would you be able to make a deal out of it?
If you got a call from someone that has 0 equity at the ARV, would you be able to make a deal out of it?
If so, to these two questions, equity doesnt matter. If not, it matters.
It looks like it might be your first mailing batch, correct?
What is your strategy once your phone rings? Are you willing to work with any problems the seller has?
I started doing driving for dollars, so then I could narrow down the problems to houses that needed work, or houses that might be from old people.
I don't know what is wrong, but I suggest contacting listsource support. They actually have a pretty decent support/sales team. They will get it sorted out for you.
@Rafael Floresta i have no idea, i thought equity was just how much they paid in to the house and what the house is valued at.
this is my first mailing list. i have never even done a deal before.
i tried calling listsource they didnt answer. hopefully they can answer.
i guess i am just confused as to why equity is so important when wholesaling a house
Equity is important because in most deals determine how much "discount" you can get.
If I own a property worth 100k, and owe 80k, I have 80% LTV, 20% equity.
That means I can only sell my house to you for at least 80k, without doing a shortsale or bringing cash into the table. (You can do subject to, but that is another story).
If I have 0 equity, owe the bank 100k for a 100k house, it is bad for the wholesaler because there is not way he can get a discount, because me as the seller will want "retail" so I dont damage my credit with a short sale.
If I have negative equity, I am motivated to get rid of the property, and it doest matter how much it sells for, as long the bank approves.
I am simplifying things, but that is why equity matters.
If this is your first time I highly encourage you to do driving for dollars first.
thank you.out of all the things ive read you simplified it x10
Not a problem! Feel free to PM me or @ me if you need further help. I am no pro, but I am glad I could help.
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