wholesaling abandoned/vacant property...good or bad idea????

Question

I'm trying to find more info on if it is a good beginner marketing strategy to target abandoned/vacant homes in a area that is constantly building new homes? I am in a area where that is currently the situation. any info would be much appreciated

Zachary Smith · Answer

Hey @Jerome Turner  have you checked you county GIS website and or built a relationship with code enforcement. There's a property around the corner from me (Binghamton NY) that is abandoned and I was able to get a lot of pertinent info off of the GIS website. When I mentioned it to a code enforcer officer who I know well now through dealings he gave me some more tid bits (its banked owned now, and has not moved along in the process) - perfect striking opportunity for a discounted deal.

Mary B. · Answer

If your area is under heavy new development then you best get moving and get some properties under contract. Don't forget to perform thorough due diligence. Use the 'Analyze'  & 'Learn' blue bar above for assistance. With a developer you never know unless you somehow communicate with them if they are going to do teardowns of the vacants or renovate them. It makes a difference in purchase price for you and them. The developer is your buyer, either directly or indirectly. You might be good to find the owners of the vacant land in that area as well. If construction is already underway you need to move fast while discounted supplies last.

Kudos,

Mary

Derrick H. · Answer

Speaking Personally about code enforcement is an interesting topic. They're starting to crack down on a lot of property owners. If you interested in any investing in WNY the best option is attend court and make your face known. That's how you're going to gain the experience of dealing with housing issues.

Jerome Turner · Answer

thanks!! im gonna look into the developers and buyers of the property and dig a little deeper and run some comps...i guess my next step is figuring out how to find cash buyers and find out there needs and go from there

Joe Fairless · Answer

@jerome

@Jerome Turner I would make sure you have multiple exit strategies. For example, in addition to flipping it to a developer I would also run the #s on renting it out to make sure it is profitable in case you don't get any developers to bite.

@zachary

@Zachary Smith is also looking at Buffalo. He's going to buy a multifamily property but you two still might want to connect

JPaul Mills · Answer

You definitely want to find out who is building the new homes and look on the property appraiser site to see what they are buying those tear owns for. Like in my area I have a builder that is a pastor at my church and he told me that pretty much anything $55k and under he would buy site unseen. Most of the new builders I have seen have been picking up these older 50s and 60s homes for around 50-63k so that's one of the first prices I go for for a quick flip. But if those numbers don't work I have other buyers hat do rehabs so they will buy at a little higher price and then I also have a few buy and hold investors that put just a. Little bit of work in them and rent them for 4-5 years and then flip.  Get your buyers list built as well as vine properties and one day you'll have all sorts of VIP buyers to tee your deals up too.

Jerome Turner · Answer

thank you for the tip!!! thats what i was thinking that I better get the ball rolling. For the last 2 yrs my area has been completely renovated!! with the exception of some real old abandoned houses..Ive looked up some of the owners info so I guess its time to get to it!!!

wholesaling abandoned/vacant property...good or bad idea????

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