Archives For Wholesaling

5 ways to find buyers for investment properties

If you are interested in wholesale real estate investing, it’s important to know that you have to have a list of viable buyers. The wholesaling process itself requires quick action, which is virtually impossible without at least having an idea of where you will be able to sell the properties. The last thing you want to get stuck with is paying for a property because were unable to find a buyer.

Because it’s so vital to have a buyers list prior to getting started with wholesaling, the following tips will help you compile a list of buyers you can contact next time you have a property deal.

First of all, there are many areas of the country that have real estate investor clubs. Look around in your area, find such a club and become a member. This is a great way to network and meet other investors. Let them know that you are into the wholesaling business, and ask if you can call them when you have properties available.

As you drive around town, look for uninhabited houses that are in the process of being remodeled. You can talk to the workers to get the owner’s contact information. Chances are, the owner is an investor who will be more than happy to be added to your buyers list.

Another great source for property buyers is a property management firm. While they may not be able to give you a list of their clients, they may be willing to give your contact information to their clients. Ask them to have their clients contact you if they are interested in being put on an exclusive contact list; when they contact you, explain that they will be put on a list of buyers who get contacted first when you have new properties available.

Look through the classified ads; often you will find houses for sale listed as “newly renovated.” Words like that are usually indicative of an investor purchase. Call the number listed in the ad to see if they would be interested in getting a heads up as new properties become available.

One last idea is to buy your own classified ad. You can list them with words such as “priced below market” or other catch phrases to catch people’s attention. This won’t necessarily put you in contact with investors, but some of the responses you receive may be from investors.

All in all, finding buyers to create a contact list is a must-have for wholesale investors. This article has only outlined a few suggestions for finding interested property investors to add to your list. Remember that in order to successfully close a sale in real estate wholesaling, a predetermined buyer is vital, so have that list ready!

Thursday, 2 Jun 2016 | 9:26 AM ET

It looks so easy on TV. Buy a bargain-basement house, pull up some nasty carpet, re-tile the bathroom, paint away the wall stains and sell it for a hefty profit.

It’s not, however, all those popular shows that are driving the flipping market today. It’s pure and simple prices — and profit. There is a severe lack of good quality, turn-key homes for sale, and that has created a seller’s market across the nation, even for those reselling homes.

After cooling off in 2014, home flipping is on the rise again — its share of all home sales is up 20 percent in the first three months of this year from the previous quarter and up 3 percent from the same period a year ago, according to a new report from RealtyTrac, which defines a flip as a property bought and resold within a 12-month period.

While flipping today is nothing like it was during the housing boom a decade ago, when investors used risky mortgages, it is reaching new peaks in 7 percent of the nation’s metro markets, including Baltimore, Buffalo, New Orleans, San Diego and even pricey Seattle.

Dana Rice, real estate agent and home flipper, at her latest project in Bethesda, Maryland, a very small colonial, within walking distance to shops and Metro.

Diana Olick | CNBC
Dana Rice, real estate agent and home flipper, at her latest project in Bethesda, Maryland, a very small colonial, within walking distance to shops and Metro.

“While responsible home flipping is helpful for a housing market, excessive and irresponsible flipping activity can contribute to a home price pressure cooker that overheats a housing market, and we are starting to see evidence of that pressure cooker environment in a handful of markets,” said Daren Blomquist, senior vice president at RealtyTrac.

That’s because flippers today largely use cash — 71 percent did in the first quarter of this year. Compare that to just 27 percent who used cash at the height of the housing boom. That helps keep most flippers conservative, but it also exacerbates the problems for entry-level homebuyers, who are facing one of the tightest housing markets in history. They simply can’t compete against all-cash buyers.

Usually flippers look for distressed properties either in the foreclosure process or already bank-owned. These are not always listed on public sale sites. There are fewer of those today, so flippers are moving to the mainstream market, creating that new pressure.

“A telltale sign is when flippers are acquiring properties at or close to full market value. Those markets are so competitive that even the off-market properties flippers are looking to buy are not selling at much of a discount — and there may be very few distressed properties available,” said Blomquist.

Examples of these markets include San Antonio, where Blomquist says flippers are actually purchasing at a 7.8 percent premium above estimated full market value, as well as Austin, Texas; Salt Lake City; Naples, Florida; Dallas and San Jose, California.

Despite the premium to buy, flippers are still seeing growing gains in profit. Home flippers realized an average gross profit of more than $58,000 in the first quarter of this year, the highest since the third quarter of 2005, according to RealtyTrac.

Real estate agent Dana Rice and her husband flip houses in the tony D.C. suburb of Bethesda, Maryland. Prices there are well above the national median, and there are few distressed properties. Instead, they target old, small fixer-uppers. Even those command a hefty purchase price up front, but they can also offer big rewards.

“I didn’t want a teardown. There is so much character in this part of Bethesda,” said Rice. “I don’t think that everybody wants a brand new build. There is a hole in the market because not everyone wants to do a renovation. If you put a little bit of effort in, these numbers can be huge.”

Rice purchased her latest project, a very small colonial, within walking distance to shops and Metro, for $680,000. She expects to put half a million dollars into the renovation, adding both square footage and high-end finishings; she is confident that in this competitive market she will see an 18-25 percent return on investment.

“It’s like birthing a baby. … If you’re overpriced, you’re dead in the water.” -Dana Rice, real estate agent and home flipper

“It’s like birthing a baby,” she said, noting that she will wait to list it until she feels the market is just right. “If you’re overpriced, you’re dead in the water.”

The lack of inventory is certainly a double-edged sword for flippers. Their initial investment price can be high, and flippers are often competing against local builders, who may want to tear the house down and put something up that is twice the size. On the other hand, not everyone wants or can afford a huge, new, expensive home, and that gives flippers the edge.

“The key here is that there is particularly a dearth of listed inventory in good condition,” said Blomquist. “That is the inventory flippers are competing against when they sell.”

http://get.biggerpockets.com/flippingbook/

Learn to Flip Houses Like the Pros

Discover the secrets to find, renovate, and sell homes for maximum profit from one of the best in the business

Buy Now

Plus – get a FREE Bonus book “The Book on Estimating Rehab Costs!”  Keep reading to find out more! 

“The title says it all… this is THE book on flipping houses!”      -Josh Dorkin, Founder and CEO, BiggerPockets.com

Are you ready to leave the 9-5 and get started flipping houses?
The Book on Flipping Houses, written by active real estate fix-and-flipper J Scott, contains more than 300 pages of detailed, step-by-step training perfect for both the complete newbie or seasoned pro looking to build a killer house flipping business.
Whatever your skill level, The Book on Flipping Houses will teach you everything you need to know to build a profitable, efficient house flipping business and start living the life of your dreams.

Key Topics from the Book on Flipping Houses 

House flipping plans

Plan Like a Pro

Learn how to quickly and accurately estimate a potential real estate flip for maximum profitablity. Then, discover the right way to create an accurate plan, schedule, and budget for your project.

Manage the Flip

A real estate flip will only be as successful as your ability to manage the work. Learn the best ways to find, screen, and manage contractors – to stay on budge and on time.

Finance Your Flips

Use this book to learn how to find financing, even if you have little cash or poor credit. Learn how to speak with lenders and position yourself to get the best terms and rates.

Plan rehabs like a pro
manage the flip

$

Anyone Can Do It

 The 25 Major Renovation Components and The 150+ Most Common Repairs You’ll Encounter … with step by step tips for estimating costs even if you know nothing about construction
Anyone can flip houses

Hire Smart

Don’t gamble your success by hiring the wrong guy for the wrong price. Learn how to avoid being ripped off and how to hire the best contractors for your flip.

hiring contractors

Costs and Methodology

Discover the cost ranges and details associated with each and every aspect of the flip, as well as the framework and methodology for estimating rehab costs.
flipping costs and methodology

Key Topics from the Book on Estimating Rehab Costs 

FREE bonus book

Free Bonus Book!

Book on Flipping Houses Cover
Unless you are an experienced contractor, one of the most difficult tasks for a new house flipper is the process of estimating repairs. Without a doubt, most house flip failures are a direct result of underestimating the cost of repairs as well as the time frame required to complete them. To help you overcome this obstacle, as an added bonus to The Book on Flipping Houses, BiggerPockets and J Scott are giving away another book for FREE: The Book on Estimating Rehab Costs.
In The Book on Estimating Rehab Costs, J Scott pulls back the curtain on the flipping process and shows you not only the cost ranges and details associated with each and every aspect of the flip, but also the framework and methodology for estimating rehab costs.
You’ll discover how to accurately estimate all the costs you are likely to face while flipping a home as well as what upgrade options you have to provide the biggest bang for your buck. Whether you are an experienced home renovation specialist or still trying to learn how to screw in a light bulb, this valuable resource will be your guide to staying on budget, managing contractor pricing, and ensuring a timely profit.
Meet Your New Best Friend…
Dev Horn

“The definitive text on Residential Real Estate Investing!… Every real estate investor – whether a novice or pro- should read this book.”

– Dev Horn, WeBuyHouses.com

Joe Delia

“J Scott does a great job and takes a no fluff approach to these books. “

– Joe Delia, Dream Team Properties LLC

Jacob Allen

“A lifetime of knowledge for the price of a book. There’s no fluff, it’s straight to the point… this book is a must read.”

– Jacob Allen, Rives & Associates, LLP.

What Others Are Saying…
About the Author…

J Scott runs a real estate company based in the suburbs of Washington, DC.  He invests in several markets around the county and specializes in both rehabbing distressed houses and building new residential construction.

Along with his wife, J builds and renovates about 20-25 houses per year.  In addition, they consult, manage, stage, list and market properties for other investors, and spend as much time as possible speaking and providing free training at various investor groups and clubs around the country.

Click to Order the Book on Flipping Houses Today!

Convinced? Click this orange button to get it today! 

Click to Order the Book on Flipping Houses Today!

Click this link

right here to order!

Arrow
divider line

Digital Bonus Material!  

Purchase the Book on Flipping Houses from BiggerPockets.com and in addition the Book on Estimating Rehab Costs, you’ll also get…

Scope of Work and Estimation Worksheet

Sample Flipping Chart of Accounts for Quickbooks

Independent Contractors Agreement Form

Inspection Checklist

Rehab Analysis Worksheet

Appraisal Package

Form W-9

Lien Waiver

checkbox
checkbox
checkbox
checkbox
checkbox
checkbox
checkbox
checkbox
Joshua Dorkin
Brandon Turner

“If you REALLY want to flip houses, you need to read this book.”

– Shane Woods, 2nd Chance Properties

“These are the books I wish I had when I started. I would have saved tens of thousands of dollars!”

– Brandon Turner, Editor at BiggerPockets.com

“The name says it all… this is THE book on flipping houses.”

– Josh Dorkin, CEO of BiggerPockets.com

More of What Others Are Saying…

Buy Now

Digital Only

Download both e-books in PDF format right now! 

$29

Paperback Only

Buy Now

Order just the physical books from Amazon

$49

Digital & Paperback

Buy Now

Download both e-books in PDF format now and get the physical books shipped to you!* 

$49

divider line
It’s Time to Order!

Congrats! You made it to the bottom of the world’s longest web page! Now it’s time to get The Book on Flipping Houses!  Just click one of the “Buy Now” buttons below!

Satisfaction Guaranteed
Order with Confidence

BiggerPockets fully stands behind the quality of The Book on Flipping Houses and The Book on Estimating Rehab Costs.

We are so confident in the value these books provide that if for any reason you are unsatisfied with your purchase, we offer a 100%, no questions asked money back guarantee.

Seriously- this is the end of the page!  What are you waiting for!?

Arrow

Have Questions about The Book on Flipping Houses?

Contact Us!

Over 45,000 Sold! 

Copyright © 2004-2016 BiggerPockets, Inc. All Rights Reserved. BiggerPockets© is a registered trademark of BiggerPockets, Inc.

Over 45,000 Sold! 

Over 45,000 books sold
The Book on Flipping Houses from BiggerPockets
The Book on Estimating Rehab Costs from BiggerPockets
Shane Woods
Book on Estimating Rehab Costs
Get Both Books Today for One Low Price!

* Please allow 7-10 days for delivery of physical books. Shipping to USA only.

Frequently Asked Questions
Who is This Book For? 

The Book on Flipping Houses and The Book on Estimating Rehab Costs were designed for both new and seasoned investors to learn and grow from. This book is perfect for:

  • Anyone looking to get into house flipping
  • Wholesalers looking for help on determining ARV
  • Seasoned investors looking to acquire new skills
  • Anyone looking to “up their game” as a real estate investor
  • You!

No matter what your skill level is, The Book on Flipping Houses and The Book on Estimating Rehab Costs will help you gain skills to flip more houses and earn more income as a house flipper or wholesaler. 

Perhaps the greatest benefit of these books is the focus on the business aspect of the house flipping industry, showing you how to set up systems and processes so you can automate many parts of your business to run with or without your direct involvment. 

How Will This Help Me?

We are so confident that these two books will absolutely blow you away that we offer a 100% no-questions-asked money back guarantee. If these books don’t completely change your life – we will refund your entire purchase amount. But seriously… you are going to love these things.

For a refund request, just send an email to Webmaster@BiggerPockets.com.

What If Want a Refund?

For orders of ten copies or more of the Book on Flipping Houses, email Webmaster@BiggerPockets.com with your request. Significant discounts are given for group orders! 

I Want to Order Copies for My Entire Office. Do You Offer Group Discounts?
Paperback Only

Buy Now

Order just the physical books from Amazon

$49

Digital & Paperback

Buy Now

Download both e-books in PDF format now and get the physical books shipped to you!* 

$49

Buy Now

Digital Only

Download both e-books in PDF format right now! 

$29

* Please allow 10-14 days for delivery of physical books. Shipping to USA only.

Order the book on flipping houses
J Scott and Carol Scott from the Book on Flipping Houses

Wholesaling Real Estate

As a lawyer, my favorite answer to give when I’m asked even a very simple question is, “Sometimes, yes; sometimes, no. It all depends.” When it comes to if wholesaling is really legal, that answer applies perfectly. When you do it right in the State of Ohio and follow the requirements and rules set forth in Section 4735.01 of the Ohio Revised Code, wholesaling can be done in a legal, compliant manner.

Are most people wholesaling legally? Absolutely not. In fact, in the last few months, I’ve been privileged to work with two large national organizations to make sure they are compliant with Ohio law when it comes to what they teach their customers and students.

Why is it necessary to get it right? Because this is an era of growing regulation and increasing scrutiny. The complaints of homeowners who thought they had their house sold, only to find that some joker put it under contract and couldn’t do anything with it, are reaching the ears of regulators and causing problems for investors.

Contract Red Flags https://youtu.be/jvYjyzyoluY

Earnest Money https://youtu.be/zjw-u-9vvNM

Marketing No Nos https://youtu.be/BUxPol8SMvY

Ohio Department of Commerce Division of Real Estate https://youtu.be/9fi54S8nwUA

via Wholesaling Real Estate | Watson Invested

https://www.youtube-nocookie.com/embed/Z3XMKrNBGMk?rel=0

1. Maintain positive relationships with your closing attorney

Typically, your lender will choose the closing attorney. However, this does not stop you from developing a relationship with them as well.

In fact, if you work with the same lender a lot (for your purchases or your buyer’s), you will find yourself in that closing attorney’s office quite a bit of the time.

Learn the culture of the office. How does it run? What are the personalities of the staff? What are their names? How do they like to operate?

You will find that all closing attorneys are different.

Some are more laid back while others are more uptight. Some will accept documents and requests faxed from you, while others want them directly from your buyer and/or your lender. The key is to find out how to best work with them so that your deals run smoothly. Find out what you can do to make things easier on the staff to bank some goodwill, you might need it on a bumpy deal!

2. Maintain positive relationships with your contractors –

Although they tend to get a bad rap, it is entirely possible to find a competent contractor and to develop a relationship with him.

You may have to go through several contractors to do this, but it is possible. Your relationship with your contractor is important, because you need to be able to count on the quality of the work and the prices at which it can be done.

Their prices should be in-line with those that you have found to be fair and reasonable in the market place and their quality should be the same. If you are recommending your contractor out, do your best to make sure that this person is reputable, fair and performs high quality work. There is no guarantee in this, I have come across some duds myself! But always do your due diligence. Check with references and view jobs that they have already completed. And always be on the look out for more contractors. You can never have too many good ones!

3. Improve relationships with your appraisers –

Your appraiser will also be one that is approved by the lender. This is good for both you and your buyer.

You always want to make sure that your values are as accurate as possible. The appraiser will make sure of that. Again, it is worth your time to develop a relationship with the appraiser. When you do this, you will be able to get them to verify values for you. This is important if you are unsure about an area and need to make a quick decision.

A lot of the knowledgeable appraisers can tell you values off of the top of their heads.  This is very valuable for you.

You also want an appraiser that will get the appraisals completed quickly. There is really no reason to wait more than 3 or 4 days for an appraisal. If an appraiser has you waiting longer than a week, you need to look for someone else. Most lenders are amenable to trying out new appraisers, if there is justification. If you are having problems with them, they probably are too. The good thing is, there are a lot of appraisers out their with experience appraising investment properties

Check out

Sharing your vision for success,

Kim and Charles Petty

Making Money Flipping Properties

by Rodney Brooks

“The definition of insanity is doing the same thing over and over again and expecting different results” Albert Einstein

Hopefully you’ve read my previous article, No Money Down Real Estate Financing. In that article, we discussed the Lease Purchase Option technique of
acquiring property with little or no money down. On the premise that you have read the article, there are a few guidelines that should always be followed when making a lease/option agreement.

1. Never agree to lease/option any property unless you can negotiate a long enough term to make it worth your while. (a good term would be five years)

2. Make sure the future option price allows you enough room to make a profit.

3. Only option properties that are in a good neighborhood. That way, there’s always a potential for steady increase in property value.

4. Choose properties that are in good condition and can be easily maintained.

One well known, but seldom shared fact is this: You do not need to buy real estate, to make money. What you need, as an Investor, is to control it. The Lease Purchase Option, remains one of the best techniques used to control real estate for profit.

If you have not yet read the article, but would like to do so before continuing, you can find it at ezinearticles.com

********************************************

Many people, looking to make money in real estate, become agents. These agents help facilitate a sale by finding a willing buyer for a willing seller. When the deal closes, that agent earns a commission of about 6% to 10% of the sales price. Although many agents make a very good living, there are a few things they must endure in doing so.

1. There is strong competition among agents.

2. Successful agents must work long, hard hours. Most are “on call” nights and weekends.

3. Real estate agents are required to take continuing education classes and follow strict guidelines set forth by city and state agencies.

There are much better ways for an entrepreneur to make a living.

Flipping Property

The “flipper” accomplishes the same task as does the real estate agent, but without all of the hassle. Essentially, the flipper buys real estate with the intention of immediate resale for profit. As a flipper, you will buy property at substantially less than “retail”. Then, simply resell at a higher price. (Note: If you locate property that is truly wholesale able, you need to buy it. Otherwise be creative in your offers by using options. Always record your option contract in the local municipal office).

There are three different types of flipper investors. Based upon their experience they are either:

1. The Scout

2. The Dealer

3. The Retailer

Scouts

The Scouts main objective is gathering information. They find potential deals and then sell that information to potential investors. Many creative financing newbies choose to scout because it does not take any money or prior knowledge to find distressed properties. The Scout finds a property for sale, gathers the necessary information, and then provides this information to the investor for a fee. That fee will vary depending on property cost and profit potential. A Scout can expect to make anywhere from $500.00 to $1500.00 every time their information leads to a purchase by an investor.

Dealers

The Dealer, similar to the scout, also locates deals for other investors. They will locate a bargain property and sign a purchase contract with the owner. That gives them the option of closing on the property and selling it outright, or selling their contract to another investor. The Dealer provides more than just information; they actually control properties with binding purchase contracts. Since the dealer controls the property with a contract, they have greater profit potential than the Scout. On a full time basis, a Dealer can make well over $20,000.00 a month without ever fixing a property or dealing with a tenant. The Dealer lives the life of a true entrepreneur. They can work as much or as little as they like, with no boss, no employees and the freedom to do as they please.

Retailers

The Retailer buys properties from a Dealer or with the assistance of a real estate agent or Scout. The Retailer’s main objective is to fix up the property so they can sell it for full retail price. The Retailer puts up the most money, has the greatest risk and stands to make the largest profit. The only downside being that it may take the Retailer months to realize their profit, whereas the Scout or Dealer will make their money in a matter of days or weeks.

There have been hundreds of no money down books written. Some of the techniques are interesting, and most of the time they work. The typical inexperienced creative financer will, however, take about five times as long as the technically trained creative financer, to purchase real estate. A technically trained creative financer is a facilitator, who negotiates a beneficial deal for all parties involved.

In my next article we will discuss some of the realities of Foreclosures. Realistically speaking, foreclosure investing is very different from what people have been led to believe through late night infomercials and the hundreds of books written on the subject.

Get your own Free Comprehensive Creative Real Estate Financing Course

Explore posts in the same categories: real estate, Real Estate News, buying houses, Real Estate Investing, buying property, real estate financing, creative real estate financing, no money down, buyingproperty with no money down, no money down financing, flipping properties, buying property with no money down


FHA Finalizes “Anti-flipping Fraud” Rules
by Kenneth R. Harney

Real estate flippers got a new set of marching orders last week — at least those flippers who want to use FHA mortgage financing.The Federal Housing Administration issued long-awaited final regulations on property flips last Wednesday. The rules take effect nationwide July 7. Flipping involves resales of houses or other real estate shortly after acquisition, typically at a substantial price markup. Say you buy a rundown rowhouse at a bargain price, do cosmetic fixups, and then sell it a month later for twice what you paid for it.

Sounds like a high payoff short-term investment, right? It is. But the FHA found that too many property flips using its insured mortgage program involved outright fraud — hyped appraisals, shell games where property flippers never actually took legal title to the house before selling it for huge profits, sometimes overnight.

Often the end purchaser of the flipped property was not financially qualified, and used fraudulent income, employment and assets information to obtain the FHA loan. Then the buyer quickly defaulted, leaving FHA with insurance losses and a house that was worth nowhere near its appraisal valuation. The flipper, meanwhile, pocketed all the sales proceeds financed with the FHA mortgage.

To rein in such practices, FHA proposed — and last week adopted in final form — new restrictions. Specifically, FHA will now require that:

  • Only owners of record — listed as such in the local court house real estate recordations — may sell properties that will be financed using FHA insured loans.
  • Any resale of a property may not occur 90 or fewer days from the last sale to be eligible for FHA financing.
  • For resales that occur between 91 and 180 days where the new sales price exceeds the previous sale price by 100 percent or more, FHA will require additional documentation of the property’s true value before insuring the mortgage.
  • The agency may also require additional evidence of the accuracy of appraisals whenever properties are re-sold at high price gains within 12 months.

The FHA 90-day no-flip time restrictions will be waived when the sellers of properties to be financed are:

  • HUD itself, disposing of its REO (real estate owned) acquired property portfolio.
  • Sales of properties that were acquired by the sellers through an inheritance.
  • Fannie Mae, Freddie Mac or other federally-chartered financial institutions disposing of REO.
  • Local or state housing agencies.
  • Nonprofit organizations that have previous approvals to purchase HUD REO properties at a discount.
  • Properties located in a presidentially-declared disaster area, provided FHA has issued a formal announcement of eligibility for a specific disaster area.

Real estate investors, particularly those who specialize in rehabilitations of rundown structures in central city areas, had complained to HUD about possible negative impacts on their business activities stemming from the new rules. But HUD decided that banning most 90-day or under flips, and by scrutinizing flips between 91 and 180 days of acquisition where the price markup exceeded 100 percent, FHA should be able to protect itself against the worst abuses.

Investors with questions about the new regulations can call 1-800-CALL FHA for guidance. The rules are contained in HUD Mortgagee Letter 2006-14 , issued June 8.


Copyright © 2006 Realty Times. All Rights Reserved.

With an award winning staff of writers providing up to the minute real estate news and advice, thousands of REALTORS® in North America reporting daily market conditions, and a nationally broadcast television news program, Realty Times is the one-stop shop for real estate information. That’s why over 10,000 real estate professionals have turned to us for their publicity needs.

One of my favorite REI Sources is Cameron Dunlap, a serious REI in NY, who coaches many people in buying and selling houses.

I hope you enjoy his article here…..

All the best to you,

Brian

—————————————————————————————————

In a “Buyer’s Market”, where houses sit with little activity and prices stagnate or fall, it’s VERY easy to get great deals.

You can buy so cheap and so often your head will spin. It’s simple to get really good deals because they’re everywhere.

Then… your challenge is to sell but that’s easy too, when you know how.

I’ll address this here. This is where conventional wisdom steps in and will convince you that the opportunity ends… if you let it.

What most people don’t know is that if you are aware of the market conditions and, you know how to play the game, either type of market is good. It’s just a question of knowing how to do the business in the current, given, environment.

Think about the current market.

Sales have slowed, prices have leveled off and in some cases are falling and what this has caused is for many investors that have been in the business for the last few years to loose heart and in many cases GET OUT!
That’s good.

The fact is, if you don’t know what you’re doing, this market and what’s likely to follow doesn’t look good at all.

If you do know what you’re doing this market is the most exciting you’ve seen in a good 7 or 8 years and the best part is…the competition is leaving! Buh Bye!!!

So, no matter what anyone tells you… take it from someone who’s seen the cycles and been to the school of hard knocks. This is about the best time to get in or be in the business as is humanly possible.

Don’t listen to the untrained doomsayers and certainly don’t try to convince them they are wrong. Let them leave. Let them get out of your way and my way.

Think of the law of supply and demand. It ALWAYS prevails.

If foreclosures are up, houses are staying on the market longer and in general supply is up, that’s good.
Then consider all the untrained (I call them $9 book pinheads) investors that are leaving because properties are no longer appreciating 35% per year. Demand is down appreciation has leveled off and that’s good.

It all equates to more GREAT deals for you and me.

It’s important to realize that in this environment, appreciation is all but a fantasy that you can’t count on. I learned this when I got in the business in 1993, when appreciation was a bonus if I was lucky. It was a time when appreciation pretty much didn’t exist.

In the absence of appreciation, we make up for it by buying better.   Getting better deals. You know the old saying… “You make your money when you buy”.

While it’s true that you get your pay check when you sell, that old saying REALLY holds true in a Buyer’s Market. You’ve GOT to buy right.

Ok, so now to the burning question in your mind.

How are we going to sell?

If it’s simple to find great deals but it’s hard to sell. How are we going to see the big bucks?
Easy.

In every Buyer’s Market, you’ll need to plan to sell in one of the following 3 tried and true ways, and you will cash in while others are bailing out.

First is on “Quality”.

  1. Meaning you rehab the house and the others like it on the market, and make it pale by comparison.

The few qualified buyers in the market will want your house because it’s the best one in their price range and in the area.

2.   Or, on “Terms”.    Meaning we take payments on the house and focus on folks that have credit problems and can’t go to the bank.   We use a Lease Option or Seller Financing.

Think about this. Every borrower that loses their house to foreclosure because their ARM adjusted them right out of the picture is now a potential buyer for the houses you sell on terms.

3.  Then there’s “Discount. Meaning we sell the house at below market value and beat the competition by being cheap.

This can be the case when we’re wholesaling Junkers to rehabbers or when we’re selling houses that are in good shape but don’t qualify for the “quality” angle.

An example being we take the deed from a seller who’s house is pretty but that we are not going to rehab.

So, 1. Quality, 2. Terms or 3. Discount. Pick one.

Focus on those exit strategies and buy according to the one that fits the property and the deal and you’ll ROCK this business at a time and point where your $9 book pin head competitors are jumping like rats from a sinking ship.

To to summarize…

  • DON’T listen to conventional wisdom, it’s a trap for the broke.
  • DO look at today’s market as one of the greatest opportunities we’ve see in years.
  • DO make sure you buy RIGHT, there’s just no excuse not to. It’s a Buyer’s Market!
  • DO be sure to decide how you’re going to sell before you make your offer.
  • Then finally… DO get going.
  • This business is outrageously profitable and outrageously doable, regardless of the market conditions at any one point in time, when… you know what you’re doing.

So get trained and get in the game NOW!

Your timing couldn’t be better.

Cameron Dunlap
www.CameronDirect.com
A Free Resource For Real Estate Entrepreneurs