Best strategy for low pop. low income markets.

[Jon L.]

Hi Guys, I live in WV and it is not a hot market. Median income is ~$30k and population is 50k in my area. Houses aren't selling here, yet there are lots of them for sale. Rental market is high, HUD rental assistance is high, poverty rate 30%. There is a university that is seemingly thriving, but no jobs for the graduates.

I've been wholesaling since last year, and can find the legit deals (40-50 % ARV, 25% cash-on-cash, lowest on market, no war zones) but the "cash buyers" just don't seem to have the cash. It's a challenge to move a $35k for $10k, so forget about moving a $70k for $20k.

Let's just say that my wholesale deals are garbage, I need to work harder to find better deals and fatter buyers, and wholesaling does indeed work in every market. Either way, what would be the best strategy for this scenario? Thus far, I have only focused on wholesaling and am attracted to the no cash no credit techniques, but I most definitely feel the need to expand my horizons.

Thanks in advance.

[Curt Smith]

I feel you have a gold mine up in your area!! You have 2009-2010 still happening, a buyers market. Here's the general tactic:

- Use a public records search service, sitx.com, agentpro247.com and search for 2 property types:

- zero or a little equity, mail to these folks, buy the property for zero $$, take over paying the mortgage payments. This is called buying subject to the existing financing. You just pay closing costs out of pocket, some times some fix up too. Market for rent to own who will eventually buy the place at a mark up with bank money.

- 100% equity, wholly owned. Usually older folks who need to get out of their house but as you say few buyers. You write a purchase contract based on THE SELLER owner financing to you. You are an investor so Dodd Frank is not even in play. You pay 1/2 the rental rate on the note. Negotiate the least down, the longest term, monthly at most 1/2 rent.

For very little cash you can become a millionaire (on paper) very quickly, in a few years.

The key is don't do the above in junk neighborhoods. Only do this in nice neighborhoods and good schools. This is the experts wisdom!!! Picking up junk houses will only get you walk aways and you being on the hook for mortgage payments etc. Nice neighborhoods rent to own / renters will want to stay.

Good luck.