Rehabbing for the End Buyer??

Question

Is anyone here in BP marketing directly to the end buyer?  What I mean by that is, there are some buyers out there looking for their homestead and disappointed with what is on the market and wish to have a "fixer upper" rehabbed to their liking.  I have a potential client right now looking for an investor to rehab a property and we are trying to find an off market deal for her.  (Yes, like the Gaines in Waco)

Because I have a back ground in design and remodeling and because I am now a fix and flip real estate investor, I have entertained marketing directly to potential homeowers to rehab an older home for them.  I am trying to figure out what that would look like...do I find the deal?  Do they find it?  Who funds it? Any of you doing this?  Help!!!

Christine Heartsill · Answer

My only issue is if you do the math...If an investor/rehabber can get the property at the right discount, they make a heck of a lot more money buying the property with HML then rehabbing to the end buyer specs and turning around and selling it to that buyer than if they just have the buyer purchase it and investor do the rehab. It's a catch 22. We can pay more for the property however, if there is only one closing which is helpful when negotiating with the original seller.

Allie Pfannenstiel · Answer

If I were you, I'd consider working with a real estate agent or wholesaler who can help you make a deal or find a deal on "off market" properties if that isn't your skill set. Then you can help them with the design and flip, all expense paid by them. If they are paying in cash, which 80% of homeowners don't then it's easy, if not then they can apply for home loans that cover the price of the house and renovation costs.