Buyers list or making calls/offers!? What comes first when flipping?

Question

So I'm trying to get started in my house flipping path and I'm finding myself becoming hesitant. I'm actually at a standstill. I want to go out and make offers and make calls to people to get my feet wet and see what it is like to have an offer be rejected or approved, but it is almost as if I'm scared to have it the seller say yes. Do I want to try and create a small buyers list before I go out and try to make some offers? Also, when looking at the mls and places like zillow.com, pre-forclosures are good options to possibly knock on the door and make it seem more real for the potential seller?

I don't want to invest to much capital, and I would rather hold off on bandit signs for as long as I have to, until I can make some offers and find some potential buyers.

What do you guys suggest? Help me get started.

I don't want to invest to much capital, and I would rather hold off on bandit signs for as long as I have to, until I can make some offers and find some potential buyers.

What do you guys suggest?  Help me get started.

R. Kerry Brooks · Answer

Mike RomaineKayleen Hammerschmidt best advice I can give you is work with some local investors first. The biggest problem most new wholesalers have is not offering low enough or buying in a area that is not selling good. You have to know what a good deal is and the best way is to work with people in the biz in your area, you can avoid a lot of stress and headaches that way.

Michael Giamanco · Answer

Just get out there and find some deals. Buyers will come. Don't spin your wheels trying to attract cash buyers. If you haven't already, find out who the most successful flipper in your town is, call them and connect. Bring your first deal to them. This advice I received about six months ago and it helped me to get rolling. I started a facebook fan page, twitter, etc...told all of my family and friends that "I buy houses" and a deal came my way. Now I have some capital to do some more advertising and get MORE deals coming my way. I am working on that now. Bandit signs work. This is proven. put them up as soon as you can afford $180. get the biggest ones you can 18" x 24" and most of all, get some business cards and pass them out to everyone you meet, from the barista to the dentist office. give them to everyone. Don't be afraid of calling yourself an investor, it's what you want to be so believe that is what you already ARE! an Investor! Don't worry about having to back out of a deal because if anyone is gonna back out it's gonna be the seller. Good luck and God Speed my friend!

Account Closed · Answer

It's not even that I'm scared of meeting the sellers or anything, I'm scared that I might have to back out of the deal once I find a house.  BUT from all the feedback I've been getting on all these posts it has actually shown me that finding the buyer is likely to be the easier part of the deal.

Thank you for all the input, and Kayleen Hammerschmidt, I just signed up for LIREIA.com, which is Long Island Real Estate Investment Association, and from what I've seen there are sites and organizations like this all over.  Not sure where you are located.

-Mike

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Bill Gulley · Answer

The first thing to do to get in the business is learn the local landscape, not only looking at the market and community, but also how things are done in that area. What are the rues, regulations and laws that apply to your dealings. Not saying study law for a year, I'm saying get with a closing agent and see how deal can be closed with them. Ask Realtors about searching for properties there and what you can do legally.

Wholesaling, selling to other investors: It's much easier to meet investors and see what they are wanting than to find a house, put it under contract and then search high and low for your buyer while under the clock in a contract.

I suggest you first know options, they are easy, neat and clean ways to lock up a property and then approach your investor with something you already know they will be interested in. Just sell them the option and walk away.

You can also use a standard purchase agreement with the right to assign it, getting more complicated, get a buyer to do a purchase contract. At this point, various strategies exist to fund and close your deals.

If you try to find properties first, that's the cart before the horse, you'll spend time looking for and hooking up properties that other investors in your area may have no interest in.

First learn, then meet the players, then fill the needs.  Good luck...

Kayleen Hammerschmidt · Answer

I am in the exact same position as Mike. I have been reading too much with no action. Plain and simple, I'm scared. Funny thing is that I have my finances in order, but I have buyers block. 
Tom mentioned a mentor, but I'm not sure how to or who to ask. Do I call up a broker? 
This is the part that I am stuck on. I want to pull the trigger and start buying!
I am in Central California and can't find a Investors Club to participate in. Any suggestions are appreciated.

Glenn Espinosa · Answer

Getting an offer accepted shouldn't be something you fear but something you derive a lot of pleasure from. Notice, however, that this process is much easier if your are making the RIGHT offer.

Tom C. · Answer

Flipping isn't for everyone.... you may not be up for it.   It may be worth trying to find a mentor who can show you the ropes and "take the fear out of it."