Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
This question was just asked of me via PM and I thought it was a great question, enough to create a thread about it.
Here was the full question:
"Hi Will, Just starting to make offers on Reo's. If my offer is accepted when should I begin marketing deal to my end buyers, once my title company says title is clear or once offer is accepted? Thanks
Here is my answer:
The moment you have a fully executed contract. The title is only part of the due diligence, so if that comes back with anything not satisfactory, you re-negotiate or demand seller clears it.
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
15y
I'd actually start sending out feelers before you have a contract in place, especially if you don't have the earnest money, and plan to use your buyer's. You should know your buyers well enough to know what you need to get the property at to flip it quickly. This is all contingent on your certainty that you'll get the contract. And, putting a buyer in place before contracting, can help you out of the semi-common "no flip" rules the banks are putting in their contracts these days. And, it will help you in your negotiation with the bank, as well.
Bottom line, you can never have a buyer too soon. Just my two cents...
Wholesaler · Dallas, TX · Member since 2011 · 294 posts · 152 votes
15y
As soon as I get a contract I begin my marketing. I'm on the phone and internet as soon as I know I have a deal controlled. I believe speed is a very important aspect to a successful wholesaler.
How quick can you find motivated sellers?
How quick can you lock up a house?
How quick can you sell the house?
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y
And the more sellers you have on your buyers list before getting any contract will increase that speed to the paycheck finish line! It always helps to shop for deals that your buyers are looking for.
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
15y
I'd actually start sending out feelers before you have a contract in place, especially if you don't have the earnest money, and plan to use your buyer's. You should know your buyers well enough to know what you need to get the property at to flip it quickly. This is all contingent on your certainty that you'll get the contract. And, putting a buyer in place before contracting, can help you out of the semi-common "no flip" rules the banks are putting in their contracts these days. And, it will help you in your negotiation with the bank, as well.
Bottom line, you can never have a buyer too soon. Just my two cents...
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y
Andrew brings up a very solid point, and while I would never give out property details before i had it locked, I would propose the numbers to potential buyers ahead of time to peak interest and perhaps acknowledge a format on how to vest the offer and how to structure your deal over to your cash buyer.
This can be done with entities, trusts, & quit claim deeds to name the most common. Particularly with the trust format, the structure is important depending on you and your buyer.
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
15y
You bet, Will. That's exactly what I was talking about. I wouldn't give out the address, or anything like that. But, I would give out some details, and "put the feelers out" to see if there is any interest. If there isn't, you may just kill the negotiation...
Wholesaler · Dallas, TX · Member since 2011 · 294 posts · 152 votes
15y
Andrew,
That's great advice! I like to do the same thing and "put the feelers out" before I get a contract. I think it helps my sales process when I'm confident that I have a buyer lined up.
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
15y
The only add I would add is that when looking at property to buy it is important to know what the highest demand property looks like and where it is typically located.
Number of Bedrooms, Baths, Idea sq, gararge; yes/no, year built, zip code are filters I use to determine the right areas to market for sellers.
Not that everything wont sell if priced right however knowing what the largest buyer pool is wanting sure helps...
Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
15y
As soon as the contract is signed! As the calls come in, build your list. Then when you start workin on your next deal, I send out teasers to my list before I even have it. I will not mention enough detail to give it away, I will just mention numbers or area. :mrgreen:
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y
Originally posted by Michael Quarles:
The only add I would add is that when looking at property to buy it is important to know what the highest demand property looks like and where it is typically located.
Number of Bedrooms, Baths, Idea sq, gararge; yes/no, year built, zip code are filters I use to determine the right areas to market for sellers.
This all goes back to knowing your market and searching for properties that your buyers want. Likely, their criteria will be of homes that are easiest to sell if they are wise investors!