I got a call from a friend that's a Realtor in New Mexico and he wants to do some business. I find it to be pretty funny that I can't find a Realtor in my own area that wants to get off their @ss but 1400 miles away I haves a friend that wants to EARN some money...Here is my questions:
1 - First off is anyone on BP successfully wholesaling property out of state?
2 - Since he's a Realtor, he's mostly going to be passing MLS property my way, how do you guys approach wholesaling off the MLS, REO or otherwise?
The good thing is that he has no problem making low ball offers for me, most realtors in my area use the "that offer might insult them" approach.
I'm curious to hear input from others on how to best utilize this relationship. Even if you've never done a deal out of state but use a Realtor for your wholesale business, I'm all ears. Thanks.
Come on, someone has to have an idea. Anyone?
I'm in Seattle and a WA agent but am planning to start doing some out-of-state wholesaling and flipping. Of course it can be done..you need to have a system in place to
1)build your buyer's list
2)get a system in place to determine good MLS deals such as REOs..
3)get a way to quickly grab the values and offer price
4)submit lots of offers
5)link them with your buyers
I'm just starting however and this is just what I've determined so far...clearly there will be a lot more details to fill in the gaps. I'd also be interested in hearing responses.
I've made tons of offers out there that have all been turned down. I can tell my buddy is getting a little tired of "low ball" offers but we're offering based on the numbers, if they don't like it we just move on. I don't need a deal so bad that I'm going to cave in and make a bigger offer.
Most of these properties have been on the MLS for over 300 days, as time goes on they may come back around and accept our offer but I'm not counting on that. I have some buyers in TX that buy in NM but I'm obviously wanting to add to that list any chance I get. I'll post another update on here if we get an offer accepted.
A lot of sellers in my area are delusional, stubborn, and fickle. Although they've read the news, they've seen some foreclosures in their neighborhoods, and they've entered into various negotiations, many of them are still trying to hold out for 2005-2006 prices--only to lose their homes via foreclosure or whine about the fact that their property values continue to drop. I hope my next statement doesn't come off as being insensitive, but I wish they'd sell or shut up.
Anyway, although I'd like to do business with some of the locals, I do deals mostly out-of-state.
Should the fact whether or not a property is listed affect the way one structures a wholesale deal? IMHO, no, because a deal is a deal.
I have wholesaled and am wholesaling deals from out of my home state successfully.
The key to "making it work" for you and your relationship with your agent friend is to have a specific strategy. Many suggest the make tons of low ball offers on MLS properties. While that is certainly an option, you are experiencing first hand the lack of success in doing that. May I suggest you start finding deals BEFORE they are on the MLS!
You should also choose a strategy and stick with it. In other words, if you are going to target REO properties, your offers should be all cash, very quick closings and you must get your hands on them BEFORE they hit MLS.
Or you can target distressed homeowners (motivated sellers) in danger of foreclsoure or behind on their mortgage, job transfer, divorce, etc. This strategy will require a marketing budget and you must be consistant in your marketing efforts.
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