Where are the buyers...

Real Estate Investing Single-Family Homes
1

I recently put a house under contract that I believe is a GREAT cashflow deal…

It’s worth $80 - 85k… and easilly rents for $500 per unit x 2 units = $1,000 cashflow.

It really only needs to be cleaned out as both previous tenants have left a mess and the owner lives out of state and hasn’t been able to handle the cleanup.

It has tile and is in a pretty decent area.

I have put ads on craigslist, called some local investors and put signs around the area with minimal response.

I’m asking $39.5 for it and have room for flexibility but so far… very little interest.

What gives?

2

Sitting on the sideline.

It sounds like your deal is very attractive, but it may be that the investors are tapped out. I have bought 7 SFR’s and 2 duplexes this year. I am tapped out on available funds. I have also noticed that the market for investment SFR’s has sort of dried up. Our rental market is maxed out. No properties available.

3

Besides posting to craigs list be sure to try:

  1. Call the “we buy houses” signs

  2. Put up some bandit signs that say this:
    Half Price House
    For Sale
    Call or Text XXX-XXX-XXXX

  3. Make up a flyer and hand out at the local investors club, package the deal w/ cash flow, comps, etc and package yourself as an expert

  4. Talk w/ hard money lenders and see if they know someone looking for a deal like this one

  5. Add a YouTube video and link to it from your craigslist posting. See this article: http://www.creonline.com/blog/3-ways-real-estate-investors-can-use-youtube-for-marketing/

always be building your buyers list, collecting information on what buyers in your area are looking for…

Jim

4

[QUOTE=FL-Wholesaler;886818]I recently put a house under contract that I believe is a GREAT cashflow deal…

It’s worth $80 - 85k… and easilly rents for $500 per unit x 2 units = $1,000 cashflow.

It really only needs to be cleaned out as both previous tenants have left a mess and the owner lives out of state and hasn’t been able to handle the cleanup.

It has tile and is in a pretty decent area.

I have put ads on craigslist, called some local investors and put signs around the area with minimal response.

I’m asking $39.5 for it and have room for flexibility but so far… very little interest.

What gives?[/QUOTE]

When you called the local investors what did they say? You must be getting some type of feedback, and that will tell you “what gives”.

In my experience, every property has a price…maybe you’re just not there yet. I think we can say though that if no one is looking you’ve got one of two problems: either you’ve overpriced it, or you’re underexposing it or both. You might take a look also, because if you’re wrong on the rents, it may have a large influence on the value.

There are distinct changes in activity in my market. This is usually the time that things start to slow in my market, it’s starting to get cooler, holidays coming up, year-end, etc etc. But there are always deals made every time of year. BTW, I have made some of my best deals around year end.

Ben

5

I really like Ben’s advice. As he says, every property should sell at a price. Potentially the property is priced wrong if the marketing is fit for purpose.

6

You can also use listsource.com to reverse market for absentee owners who have recently purchased a home in that area.

Once you have the list of which investors bought houses, contact them with your deal.

Jim