Advice on possible wholesaling opportunities next door! (Alabama)

[Devin Doherty]

Hi Wholesalers,

We are hoping we can pick your brain. We hope we are posting in the right spot but if we aren’t please let us know where this should be!

We originally were thinking of starting out with land and possibly some trailers but the more I learn the more I think we might be living next to 3 awesome opportunities. We are super new and have never done a deal before so any thoughts and suggestions are welcome.  

We currently live in a very nice neighborhood in Alabama on a shallow but very pretty lake. We got one of the last lots on the lake. Now there is only one left. Sadly the house next to us is a very badly managed single family rental. There is a lot going on in that house the property owner may not even be aware of and probably would not be happy about. It looks like they tried to sell it in 2011 but only kept it on the market for 2 months before turning it into a rental. We can’t help but wonder if this is actually a problem property for the owner and possibly a good whole-saling opportunity.

The second property is vacant and directly next to the poorly managed rental. This property has been vacant for about 5 years. The home is beautiful with lots of amenities that the current HOA does not allow anymore. There was a problem with some neighborhood kids partying there about 2 years ago so there is probably some damage inside. It was listed for sale for about 10 months 3 years ago (pity we weren't ready for investing!), but now it's just vacant.

The final property is the last lot on our lake. It's small with a steep incline but it is nested between 2 very nice and well cared for properties. There was a private for sale sign on it years ago, the sign disappeared but nothing was ever built there. Currently it's where people go to let their dogs poop. We know that there are several folks in the neighborhood that are delinquent on their HOA dues and we can't help but wonder if it might be the owners of these properties. Devin has not gone down to meet the new HOA staff yet but that is possibly a good resource.

All 3 properties back to the same lake we do with great views. We would very much like to get them back on the right path which would in turn raise the value of our home (we were not aware the house next to use was a rental when we purchased and the other home was not vacant at the time). If we can make some money doing that that would be great. We are facing some big bills with IVF so some extra cash would make huge difference for us.

In short, we are thinking there is a great opportunity here, but we need to come up with a plan. Some things that come to mind:

Does anyone have an example of a good business plan for doing this so we can get started on the right foot?

What is the best way to find and approach the owners?

Are HOA's typically helpful in getting owner information or providing lists of who is delinquent in HOA fees?

We would love to do the badly managed rental first if they have motivation but we are thinking the vacant property would be easier. The land is lowest on our priorities. Any thoughts here?

How do we find buyers?

Do we need a real estate agent?

We have 0 experience with underwriting and real estate in general.

We’ll be very grateful for any ideas or suggestions!

Best,

Devin & Luca