Specialist · MI · Member since 2018 · 19 posts · 3 votes
I am a wholesaler in Michigan who primarily works on getting deals in Oakland County (the richest County in Michigan). I have noticed a scarcity of Cash Buyers in my Market. A lot of the Facebook groups that I'm in, have Buyers mainly searching for the cheap, boarded up (or burned up) properties to multiply their rental portfolio's. This is a good thing, don't get me wrong, but I was interested in knowing if there are Cash Buyers who focus more on higher end homes that need little to no repair. Properties that actually have a higher ROI if flipped and a higher monthly rent if rented out. Should I switch my focus from high end to low end? What do most Buyers prefer and why?
Hi Natina! I actually just got my first property in Pontiac last month. It was flipped last year so everything is brand new. I love it since this is my first experience! I may want to do this once more next year if this goes as planned. Will you keep me as a buyer on your list? You can message me for what I'd be looking for. Thanks and good luck to you!
Any home you can put under contract with enough room for the next owner to make a strong profit will sell. You must price it appropriately for your next buyer. If you expect your next buyer will hold the property as a rental, make sure you check what similar homes are renting for and know the cost needed to put the home in comparable rent ready condition. You must offer your buyer enough of a profit to take the time and cover the expense of fixing your property rather than buying a property that is already rent ready. If you expect your next buyer will be flipping the property, you must know the comparable sales in the area and, again, offer your buyer a strong possibility of profiting for their efforts.
Most rehabbers of lower priced properties will have a minimum amount of money they expect to earn in order to purchase a property. On higher priced properties, most rehabbers will have minimum percentages they expect to earn on the money they commit to the deal. Sales are slowing and prices are flat in several more expensive areas around SE Michigan now. An experienced buyer is going to expect more of a discount in order to commit money to rehab a home with a $400K-$600K sales target now than they may have in the recent past.