Tactics for buying houses at small discounts (90% FMV)

[Sean Dezoysa]

Hi;

I'm targeting landlords for lease option deals. Not all of them want to give up their income stream, so for a seller who wants the ongoing rental income I'm planning to help them buy another house.

Do you guys know any strategies for buying a house at 90% of retail value (I've heard this being called "retail net")? The standard wholesaling model at 70% ARV and below is VERY difficult now in So Cal, but I don't need that big a discount anyways. I've heard you can door knock MLS listings to offer "retail net" but that seems like it could be a breach of contract for the seller

[Will Barnard]

Buying a home at 90% of retail does not offer enough room for a rehab flip. So you must implement a different strategy like landlording. If it can cash flow at that price, then it may make sense. If you can buy creatively with owner financing, sub2, or similar, it can be a deal for you. Master lease options would be another option.