Investors talking to homeowners...!!!

5 Replies

Hello BPers,

So after struggling for months trying to get a motivated seller under contract, I did just that...

Went on craigslist and started marketing the property and local investors went and told the owner that the house was for sale. Now the owner doesn't want anyone coming in.

What do I do?

@Andreina Marquez

 Did you market it with address? I have, but don't openly market any Wholesale properties for this reason..... You need to build a network of serious buyers that you can go to with properties. Do you have abilty to close on this property yourself? If so and the deal is strong enough - show the owner proof of funds or maybe a strong deposit and move forward - or explain that you are going to assign it for a small profit. If these methods are not accepted by seller, move on and chalk it up to a learning experience and steer clear of those investors that sold you out. 

Originally posted by @Bill R. :

@Andreina Marquez

 Did you market it with address? I have, but don't openly market any Wholesale properties for this reason..... You need to build a network of serious buyers that you can go to with properties. Do you have abilty to close on this property yourself? If so and the deal is strong enough - show the owner proof of funds or maybe a strong deposit and move forward - or explain that you are going to assign it for a small profit. If these methods are not accepted by seller, move on and chalk it up to a learning experience and steer clear of those investors that sold you out. 

 That's some good stuff there, Bill.  I totally agree.

I agree with Bill.

However, here's some advice for you to get serious investors that won't go behind your back, (even though it's under contract already and the seller has to sell to you or your assignee's by law)

Go to investor meetings shake a couple hands and tell them if they're ever interested in a property to give you a call because you have deals that are off the MLS. Homerun deals, shake hands and agree that you will be assigning them contracts. You can also find them at auctions, or by asking your RE attorney if they work with other investors that look for properties (you never know till you ask).

When you have your list, they should already know what the deal is. This helps for faster and smoother transactions. If for whatever reason, your seller doesn't like the spread you are making on transactions you have two options. You can either take title for a minute by using hard money lenders and then reselling it to the investor, or you can call your title company and ask if they offer a seller side only HUD. Not all states offer it, but of course, asking doesn't hurt. You can also have the investor come sign his documents in the morning, and the seller in the afternoon.

Close the deal and walk out with a huge grin on your face and $5,000 in a check :).

Happy investing! 

Forgot to include that a seller side only HUD is paperwork that doesn't allow the seller to see what your fee is for assigning your contract. This also helps the deal process since the seller may pull out last minute because of it.