Any professional wholesaler could adise me on what to do

9 Replies

So I found a house that was boarded up today and I wanted to know when I get in touch with the person what should I do first. I can not buy the house by the way I want to use contract assignment and assign the house to someone else because I don't have hardly any money to buy a house. So what I want to know is what should I do negoiatie and when we reach a agreement should I have someone expect the house for damages. Can someone who is a pro wholesaler advise me on what to do  and how to find buyers in a small city I live in Selma alabam

Originally posted by @William Riley :

@Harold [email protected] William Riley I am a new wholesaler contact me and I can tell what to ask is the FOR SALE BY OWNER OR A FORECLOSURE

 suggest you guys also attend all the real estate meetups  folks that go to those love to blab about real estate and show you the ropes 

@Harold Smith

Most importantly, you want to get a hold of the owner. You can try accessing your city's assessor's office for ownership information of the property. There's a great chance they are an absentee owner, so you can hand write them a letter letting them know you are inquiring to buy their home located at [insert address]. Obviously, include your name, phone number, and also an email (as some folk are shy and would rather communicate this way). Cross your fingers you hear back- if you don't you can try mailing them a follow up letter every month for a few months to see if they call/write back then.

Cheers

@Harold Smith Get ahold of the owner first of all. Second of all find out if they actually want to sell. After that go look at the property and determine how much the rehab would cost. Im guessing that you're pretty new so maybe get a contractor to give you a repair estimate. Determine ARV. Make seller an offer that leaves you room to make a wholesale fee and room for an investor to make a profit.

I would suggest that you spend some more time getting familiar with the wholesale process before you just go out there and start making offers. You should definitely know what you are doing and feel comfortable enough with the process to call a homeowner and talk numbers.

Ok.  So I'm on a BP streak this week, and stumbled on this.  

@Harold Smith - just as a general rule of thumb, listen to whatever @Jay Hinrichs has to say on this, he's got more deals under his belt than most on here.  

To answer your question, its going to go like this: 

1) Address of house/houses you want to buy

2) Find the owners, usually via a skip trace website or something similar, or asking around.  Property radar dot com can help too if you are on a budget. 

3) Call the owners up, see if they want to sell.  If they do, negotiate a price. It must be low enough that another investor would want to buy it.  If its too high, you're dead in the water.  

4) Place a contract on the property, open escrow (although AL might be a lawyer state, I haven't done a deal there in a few years), and then start contacting flippers.  

5) Understand that wholesaling any home in an area with low demand (rural/small towns with slow economies) is going to be tough.  We used to cover the whole state of Alabama at the office and only sold deals in Birmingham and Huntsville.   In slower economies, we literally paid $10 for houses sometimes.  Not a typo.  

6) Invest in some training.  If you truly want to do this, it will pay back multiples of whatever it costs. 

@Harold Smith - some of them were, some of them were not.  

All you need on a property is a deal, meaning a very low price relative to what type of shape the property is in.  

You can wholesale anything at the right price.  

But if it is in rough shape, the hardest part is accurately judging rehab costs, which is very local.  

One thing I would add is that after you get in contact with the owner you need to be able to walk the house first before giving them a price. Without knowing what the repairs are going to be you aren't going to be able to give them an accurate number. If you offer too high based off the value and the repairs then you're just going to spin your wheels and ultimately waste both your time and the seller's time