wholesaling foreclosed properties or rather rehab properties ???

Question

I'am new to the line, thinking that wholesaling is the right place to start since you don't need money to start with, but searching around trying to find out ,is it better to focus on foreclosed properties  or rather focus on properties in need of rehab  ?

Chris Piper · Answer

@Lip Meis I agree with Account Closed. Although in my opinion, bandit signs are a much faster approach in regards to finding motivated sellers and/or cash buyers. Plus, it's a lot less time consuming. But if you are literally trying to start out with as little money out of pocket as possible, mailing could be cheaper. If you choose to go with the bandit signs, I use Dirt Cheap Signs. You get like 25 signs and stakes for about $65 plus shipping.

Account Closed · Answer

My advice to new investors is to start wholesaling properties. First pick a neighborhood that you are either in or close to. Driver around all the streets and look for vacant houses. There should be some. Then look in the county assessors website to find the owners. it should give their name and mailing address. Send them a letter telling them you found their house to be apparently vacant. But if it is obviously abandoned, say so in the letter. Tell them you will pay them cash for a quick close.

When you do all that, then contact a local RE Agent to give you a list of all the houses in that neighborhood that have sold in the last 5 years with all cash. This typically is investors. Then again go to the assessors website and find their name and mailing address.

Once you get a response from the seller of the vacant house, negotiate a deal to buy it for all cash. Then immediately contact all the cash buyers you just found that buy properties in that neighborhood and tell them about the house and would they be interested in buying it.

Once you have done all that with that neighborhood, go to the next one and 'rinse and repeat.'

I hope this helps.

Steve Anderson

John Thedford · Answer

@Lip Meis

If you don't have money how can you sign contracts to purchase properties? How does that work?

No doubt piper can give you advice on how to put BS and lies in your contract to get out of it but only those with no honesty and integrity work that way. Get funding first.

Matt Motil · Answer

Foreclosed properties are going to have a bank as a seller. Banks aren't very keen on assignment of their contracts, so this might not be the best place to begin.