Wholesaling Hoarder Houses

[Caleb Reits]

Hello all! Just wanted to share some success and how we did one of our biggest deals / biggest checks in wholesaling: 

What's going on with the home? 

This home was filled to the brim with trash and belongings. We actually saved this owner's dogs and cats from the freezing cold! She had no water or electricity in her home. We helped her find homes for these animals (6 of them) and helped her sell this home that she was sleeping in with NO electricity. She had no heat in the middle of the blizzards we were in and slept in the basement area. Keep in mind that no electricity also means no running water to the sinks, toilets, or showers! We were glad to help her get out of this situation and start fresh.

Marketing

We left marketing materials at her home in person - it was a personalized letter letting her know we were interested. She initially called us mad saying she didn't want to sell, but we built a lot of rapport with her and ended up closing the transaction. But we spent a lot of time with her, taking her to doctors appointments because she had no vehicle, dropping off water because she had no electricity or running water, and helping her in other ways rather than just focusing on the "what's in it for me". We could have gotten it at a lower price and made way more money, however that wouldn't of left her with enough to start over. We'd rather do the right thing than get greedy trying to make the most amount of money possible.

Challenges 

It's easy to forget to ask people WHEN they will be moved out by. We now have a specific area in our contracts that specify when the home owner or occupant will be out by - if that means vacant at close or needs an additional 30 days after close to move.

Helpful People

We worked with a local real estate agent who helped bring the buyer. He made the process easy as he maintained contact with the buyer while we maintained contact with the seller. For any wholesalers out there, it is GREAT to work with agents who are connected to many buyers to help dispo and sell your deals. Real estate agents specifically who work with investors are great agents to build a relationship with because chances are, they'll have a client who might end up being your end buyer and ultimately getting more eyes on your deal. COMPENSATE YOUR AGENTS GUYS! Don't forget that. They don't want to work for free and you shouldn't want them too either. If they provide you value and you want to continue sending them deals or building a relationship, compensate them out of your wholesale fee! 

We'd love to connect with other wholesalers in the west Michigan area so feel free to shoot us a message! :) 

#GrandRapids #Michigan #Wholesaling #GR #Kentcounty #flipping