Wholesaling TO landlords?

Question

Hey guys.  I have been getting quite a few calls from motivated sellers that have properties in great shape w/ little or no repairs needed.  These are usually single family homes that could be great for a landlord to rent out.   How big of a discount do I need to get them to be an easy cash sell to a buy and hold guy?  I'm guessing it doesn't have to be a 70% or less deal because the properties are in good shape.  Any help would be awesome.

Jerry Poon · Answer

@Ryan Mellon Oh man that is above my price range...

Ryan Mellon · Answer

Thanks guys.

Its a great area and nice neighborhood.  He has been trying to sell it on the market for 8 months now at 190k (no luck) .  Rents in that are for that type of a house would be between 1400-1600 a month.

@Jerry Poon

Jerry Poon · Answer

@Ryan Mellon What's the price range? How's the area?

JPaul Mills · Answer

also another rule of thumb is the 1-2% rule. If a landlord can rent it out for at least that per month of their all in price they are making a good return. For example... They buy a 3/2 for 80k and there isn't mich repairs maybe paint and light work like that so thier all in the house for 82k. They want to be able to rent that out for at least 850+ each month in my market a typical 3/2 in a decent neighborhood will rent for at least 1000 or more so they would be well above the 1%. So if you have a guy looking for buy and holds you need to see what his criteria is and what price he will spend. I have a few that I have as buyers so if I have a house like that one you are describing I know what my top dollar needs to be to sell it to him. So KNOW YOUR BUYERS.

Jeremy Tillotson · Answer

if you can get them to finance it and pass that on to the buyer you may be able to work a jv which would be so much better, ie cashflow