Wholesaling in a Slow or Buyer's Market? - Posted by Clark Kent

Real Estate Investing
1

Posted by Dean in NC on July 10, 2007 at 18:59:44:

Luke, where in NC are you? I’m not sure I know what a demo lien auction is?
thanks
Dean -Charlotte

2

Wholesaling in a Slow or Buyer’s Market? - Posted by Clark Kent

Posted by Clark Kent on July 06, 2007 at 08:41:08:

Its no secret that many places in the US are experiencing a Slow Selling or Buyer’s Market. It seems everybody and their brother has jumped on the wholesaling bandwagon. Is it possible that the number of wholesaling gurus has surpassed the number of actual investors?

I have noticed the following here in Ohio:

  1. An abundance of 3-Bedroom houses (most REOs) listed in the MLS below $40,000. Some even listed in the teens.

Not long ago, these houses would be listed above $40k-$60k, but maybe purchased in the $25k - $45k range. ARVs of $70-$80k.

  1. A slow down of rehabbers buying at Sherrif Sales, REOs sitting on the market indefinitely even at the low prices stated above, and seasoned, professional wholesalers sitting on inventory (i.e. forced to buy the deals themselves, and start rental portfolios).

  2. Its so easy to buy stuff cheap these days, but the problem is finding a rehab investor to take it off your hands.

QUESTION:

What are you experienced wholesalers, who are in Slow Selling or Buyer’s Markets, doing differently to find investor buyers and liquidate deals once you have them under contract?

3

Thanks for the feedback - Posted by Clark Kent

Posted by Clark Kent on July 11, 2007 at 16:45:32:

To those who responded, thanks for the feedback.

I would like to hear more, since I know this isn’t an isolated problem, but I appreciate those who took the time to respond.

4

Re: Wholesaling in a Slow or Buyer’s Market? - Posted by Determined

Posted by Determined on July 11, 2007 at 13:20:25:

I am a newbie and I live in Cleveland also and I am finding the same problem, but with each no or not interested brings me a step closer to a yes. I was told if you aren’t motivated and persistent then real estate is not for you. I wish you much success and keep going.

5

Re: Wholesaling in a Slow or Buyer’s Market? - Posted by adam

Posted by adam on July 08, 2007 at 20:34:45:

im in cleveland, just gotta buy them cheap enough so that you can offer a “no brainer” to your buyers everytime. if your selling to rehabbers you need to be buying houses with the right things wrong too :stuck_out_tongue: im on a few wholesalers lists and most of the properties are somewhat discounted but that doesnt always make them great deals

6

Re: Wholesaling in a Slow or Buyer’s Market? - Posted by Rich

Posted by Rich on July 07, 2007 at 07:59:53:

Your marketing sounds fine i would guess the best thing to tell you is to be persistent and possibly try to market to end buyers. you may want to try throwing some flyers up around gas stations wal-mart etc. or simplylower you asking price when you do find a good rehabber.

7

So I’m the ONLY Wholesaler in a Slow Market? - Posted by Clark Kent

Posted by Clark Kent on July 07, 2007 at 04:32:01:

Ok guys and gals, please help me figure this out…

  1. No other experienced investors on creonline are experiencing slow markets, no one else’s buying or selling wholesale deals has been affected, and its all in my head, or

  2. I’m just too impatient and not enough people have read my post to respond yet, or

  3. This topic has been discussed at depth recently on creonline and I missed the whole discussion, or

  4. People only like to respond to entry-level questions on creonline, or

  5. I need to forget about making money flipping “houses” until the market comes back, and start flipping “courses”… i.e. release yet ANOTHER wholesaling course onto the market

  6. Anything I missed?

8

Re: Wholesaling in a Slow or Buyer’s Market? - Posted by Rich

Posted by Rich on July 06, 2007 at 18:05:25:

How are you marketing to other investors.

9

Re: Wholesaling in a Slow or Buyer’s Market? - Posted by lukeNC

Posted by lukeNC on July 06, 2007 at 10:31:50:

i deal in a slow market about 50 miles south of me.

Its a town which has been ravaged by mill closings, relatively high unemployment, etc.

Key was finding a play that works. Thinking about a way to get paid legally, regardless of the market.

What I did was I bought alot of empty land parcels, fairly large too, for $100, $2000, etc etc. at tax sales and demo lien auctions. I still own some of them. I sold most to a mobile home guy who transported his own mobiles to the lots and sold them on terms - Lonnie deals.

People need homes, and pretty much anyone can afford $300-$400 a month house payment. I didnt want to deal with all of that so I marketed to those who did. And I got paid in the process.

10

Re: So I’m the ONLY Wholesaler in a Slow Market? - Posted by IB (NJ)

Posted by IB (NJ) on July 07, 2007 at 05:36:21:

  1. What are the rehabber-investors who you’re marketing these houses to saying about your deals? Talk to your market and find out if they even exist. If they do, find out what they are actually looking for.

  2. {Somewhat related to number 1} - You may have to leave those 3 bedrooms alone until the market comes back. The market here in NJ has slowed down as well. I’ve noticed that in my primary farm area (Newark, NJ) there are an abundance of 2 families (particularly with no parking) on the market. The reason is because they don’t cash flow and Newark is not a nice enough area for folks to want to live there and occupy the property. Those who would live there are subrpime borrowers who have a hard time getting loans these days. Therefore I won’t mess with 2 fams. in Newark unless I get one dirt cheap or unless it’s in a nice residential neighborhood (there are some in Newark).

  3. You may want to look at appreciating markets in your region of the country and work those angles. And/or deal with property types in your market that are doing well. For instance, here because of the 2 family slow down, 3 families are doing well. Particularly if they cash flow. Vacant lots aren’t doing bad either. So I’m concentrating on those property types along with 2 families in nice areas.

KNOW THY MARKET.

IB

11

Re: Wholesaling in a Slow or Buyer’s Market? - Posted by Clark Kent

Posted by Clark Kent on July 07, 2007 at 04:18:10:

“How are you marketing to other investors?”

Isn’t that what I was asking you guys?.. okay, I’ll bite…

  1. Personally calling a handful of VIP buyers
  2. Email to buyer’s list built up over years
  3. Offer properties for sale at REIA groups
  4. Postcards to tax address of investor-owned properties in target area
  5. The infamous “Handyman Special” newspaper ad has been scrapped due to lack of response