Aurora, CO · Member since 2015 · 9 posts · 0 votes
I am doing a DM campaign to out of state absentee owners. What do you do when you get a lead for a house that is immaculate condition, so this is not fix and flip. Do you market to a retail buyer on my buyers list or some other strategy. My intent is to wholesale the properties I get with this campaign, but I am not sure how to handle when the properties are not distressed. How would you handle it?
It all depends on the price that you can get the house under contract for. Ideally, all properties that a wholesaler will buy will be in perfect condition, and at a massive discount. The better condition a property is in will make it that much easier to flip to a buyer. Also, depending on the type of financing you can get (ie. seller financing, or a sub2 purchase), you can even wholetale the property and make way more money than on a wholesale. The best properties to wholetale are the ones in great condition.
@Jean Lowry You can market it to your retail buyers but what I have learned is it is not worth it. At retail pricing you aren't really adding much value.
Okay. Thank You. I know that marketing to absentee owners is something they say people new to wholesaling should try, but I am just trying to figure out what type of lead I am hoping to find.
It all depends on the price that you can get the house under contract for. Ideally, all properties that a wholesaler will buy will be in perfect condition, and at a massive discount. The better condition a property is in will make it that much easier to flip to a buyer. Also, depending on the type of financing you can get (ie. seller financing, or a sub2 purchase), you can even wholetale the property and make way more money than on a wholesale. The best properties to wholetale are the ones in great condition.
Find out why they want or need to sell. Find out what the property would go for at retail, then ask the owner what price they are looking to sell it for. These numbers and their motivation to sell can help give you an indication at what price you can try to negotiate for and the price you can try to resell it for. Even at excellent condition, their urgency to sell can give you an opportunity to create a spread if you can solve their problem.