Posted by trish on June 07, 2006 at 14:52:47:
Thanks guys!!! that helps me immensely.
Help with strategy needed… - Posted by Trish
Posted by Trish on June 06, 2006 at 15:04:02:
I am new to this and am i need of some intial fast cash deals. I know that wholesaling is the way to go at first and then move onto rehabbing and buy and hold. What I am stuck at is which properties are the best to wholesale. Preforclosures? Foreclosures? FSBO’s? Bankruptcies? Short sales? I am in analysis paralysis. I have an idea what to do, but don’t know which way is going to be the most time and income productive? Please I am very ready for advice. Which way is the best to go; at least at first. I want to make this a career but have to get some income to stabilize me for right now.
Re: Help with strategy needed… - Posted by advice
Posted by advice on June 08, 2006 at 14:51:49:
If you need income right now to “stabilize” yourself I would suggest your immediately getting a job, at least a part-time one, to cover the necessities of living and stabilize your financial life. Don’t allow your bills to catch up and overwhelm you. Do what it takes NOW to accomplish this with certainty.
Especially for beginners who don’t really know what they are doing, making a “quick buck” in real estate can be quite dicey. Money-making deals may not happen for quite a while, so don’t ruin your finances in the meantime by counting on a “magic deal” to appear when you are desperate for income. Have a back-up plan working for you at the same time.
Re: Help with strategy needed… - Posted by Sean
Posted by Sean on June 07, 2006 at 14:28:01:
Any and all of these can be good sources… however If the bank has the deed, flipping it is more difficult… those addendums you sign generally say, you can’t assign the deal.
FSBOs are probably the quickest and easiest when trying to wholesale.
Re: Help with strategy needed… - Posted by Jack
Posted by Jack on June 06, 2006 at 17:43:11:
They all could be good wholesale prospects. Its not the way you get them, its the margin that the properties have in potential to flip them to others to either rehab or otherwise. When you are wholesaling you need to understand that you are the intermediary between getting the property at a good price that will allow you to pass it on to a retailer or rehaber paying your smaller commission and still leaving enough margin that they can fix it up and still make a reasonable profit, usually larger than your commission. To do this you need to know what true comps and I mean true, not some relators guess, are selling for, for the house and back off from there. It is not all fun and games. You have to work at it and be professional in finding out all the information necessary. then make a reasonable analysis and go from there. Don’t cut it close. Make sure there is enough both for you and the retailer including closing and holding costs. This is the practical advice that you probably will not get anywhere but on this site. Good luck! Jack. If we can help further let us know.
Re: Help with strategy needed… - Posted by Trish
Posted by Trish on June 09, 2006 at 14:22:25:
I have backup income for a few months. I am not going into this blind. I also have jobs lined up if I have to have income to supplement and I have a strong gameplan for what I need to make to get a head and keep me there. I have a pretty good financial head on my shoulders. I figure 4 assignment deals started within 7 months netting me about 3-4k each will put me ahead. Is this unrealistic? please advise. I have invested money in courses and a boot camp. I have some good working knowledge. It’s just getting out there and closing the deal. Thanks for all the advice.
Re: Help with strategy needed… - Posted by Trish
Posted by Trish on June 06, 2006 at 18:17:08:
Thanks Jack. I really appreciate the advice. I have been working on some information for comps. I am using realquest.com. Would you suggest that? Is that the best place for comps? I have not been asking realtors. What would be a reasonable mile range for sales in an area? I am not finding many comps for the same neighborhood. Some for the same zip but I know that one street can change in value from one end to the other.Thanks for all the info so far.
Re: Help with strategy needed… - Posted by Chris in Fl
Posted by Chris in Fl on June 07, 2006 at 10:16:08:
Trish,
Realquest is pretty good. Start as close to subject as possible, and go further out if needed to come up with the desired number of comps.
If the price and comps justify going to see the property, go see it. Take your comp list with you, and drive by the comps at the same time. Now use your common sense to determine which comps are most similar to your subject property, and which comps should be discarded. Best wishes…
Re: Help with strategy needed… - Posted by Jack
Posted by Jack on June 07, 2006 at 14:16:50:
Good advice. Don’t go beyond one mile and the past six months if you can. Compare total Sq Ft and number of bedrooms and bath rooms. You can total three or four and average them then apply to your subject property on price per Sq ft if you like. It is important to see the comps you have selected on a drive by as the quality of homes can change considerably in even one block to the next. This is a mistake that flippers make frequently.