Posted by Redline on January 19, 1999 at 13:33:28:
SCook, I didn’t mean my message as a response to your message in particular. It was just a general statement. I understood where you were coming from.
But anyway, so you DO negotiate prices with wholesalers … hmmm … I guess the bottom line is how motivated WE are at the time, eh?
Thanks,
RL
A question about flips - Posted by Tarun
Posted by Tarun on January 18, 1999 at 01:20:28:
If I have a contract signed on a deal and the numbers look good, and the only thing that I don’t have is a good database of investors in my area, to whom I could flip, is it wise to advertise that property in the newspaper as an “investor’s special” or should I wait until I know a lot of investors who I could flip to. In other words, should I have a good database of investors before I even start looking at deals or should I find the deals and then the investors.
I would appreciate any comments.
Thank you
Re: A question about flips - Posted by SCook85
Posted by SCook85 on January 18, 1999 at 02:19:24:
Tarun,
It always helps to have an idea of who you are going to flip the property to. It is not absolutely necessary to have your investors lined up but it does make life easier. I can flip most of my properties without ever running an ad. I just make phone calls. If you have a good enough deal you don’t have to worry. One week in the paper and you will have plenty of calls.
SCook85
Another Flipping question - Posted by John (KS)
Posted by John (KS) on January 18, 1999 at 11:28:23:
I noticed the first question out all the investors that call my test ad was “Where is it located?”
Should I just let all of them look at it then let me know what they will pay for it? Like a bidding situation?
Re: Another Flipping question - Posted by Bud Branstetter
Posted by Bud Branstetter on January 18, 1999 at 12:06:15:
Try asking for bids. See how many will try to lowball you. If you did your homework you should have a pretty good idea what they will pay so the can make their profit after repairs.
Or you could tell them you have a place at 123 Main for $xxxxx.00, Drive by and see if you are interested. After a couple of no’s you might consider lowering your price or keep calling.
Re: Another Flipping question - Posted by SCook85
Posted by SCook85 on January 18, 1999 at 16:29:27:
I never tell people, especially investors to go out and make bids. You will be disappointed with the response of the bids. If no one give me a price on a home I come in so low just to get something out of them. Come up with a starting price. If there is still a fair profit in it for the investors you will have no problem.
SCook85
Re: Another Flipping question - Posted by Redline
Posted by Redline on January 19, 1999 at 12:29:11:
I always hear people here say: NO NEGOTIATION. One price - either they pay it or they don’t. The argument is that negotiation sets a bad precedent.
I guess my idea on this is: No negotiation - great … I’ll try it. But if my numbers are a little off guess what … I’ll HAVE to negotiate!
What do you guys think?
RL
Re: Another Flipping question - Posted by SCook85
Posted by SCook85 on January 19, 1999 at 13:12:03:
Redline,
I think my post came across the wrong way. What I meant is that we all should put a price on our homes. If not, investors will offer almost nothing just to get a number out of you and for the Newbies in here that almost nothing may be very discouraging until you know how to play the game. I negotiate almost all of my deals.
To tell you the truth, I accept the first LEGITIMATE OFFER that puts money in my pocket. But I am serious about Legitimate offers. I can get all kinds of offers from people but the ones that get the deals done get the property, even if they offer less.
SCook85