Re: wholesaling properties - Posted by dell-ohio
Posted by dell-ohio on July 21, 2003 at 22:07:19:
I always enjoy reading your posts. Good insight and advise. I have a lot of respect for your expertise.
My viewpoints on a couple of your comments.
As a bit of background; We have purchased twelve rehab properties since Janurary, eleven of them listed on mls. Although we have not purchased from “flippers” half of these properties had enough money in them that we could have paid a flipper 3,000-5,000 if he had a contract on them.
> Why should buyers go through you when they can buy directly from the owner.
It basically comes down to the same as buying from FSBO. If you are willing to write offers significantly below listing price and get deals you can sell them just like fsbos. From reading the board I get the sense that most people are not willing to write “good” offers on mls listings.
>Most serious fixer buyers probably have at least one and probably several agents watching for good MLS deals to bring to the investor’s attention.
This is true, we have four in different areas. The situation in my experience is that most realtors, no matter how often you explain to them what you are looking for, still have a hard time “understanding” what you want.
All our realtors contact us with “deals”. Problem is they cant seem to see what I see. We have not purchased one property at this point from realtor originations.
I suspect a flipper could sit at a coffee shop, look through homes magazines, pull out all the fixer-uppers, handy man specials, needs TLC’ers, call his realtor for comps, drive the neighborhood. Look at comps, meet realtor to look at target properties, go back to coffee shop with realtor write low offers on all feasible ones and get a couple flippable deals though mls.
If I decided to flip properties this would be my strategy. Oh the other thing I would do is ask my realtor for all the bank owned properties, and write offers on each one. I would put them in a data base and keep writing on each property at least once a month until it sells. You are almost gaurenteed to purchase some properties.
Just have to share this … Today we got apprasials back on a couple rehab properties we purchased through MLS. The best one, a 12 unit “abandoned” apartment complex with 12,500 sq ft commercial space. Purchased it for 180,000 owner carried down payment. Renovation cost 90,000 (bank financed)it. Appraised value came in at 525,000. GOD THIS IS TOO MUCH FUN!!