Things Just Aren't Clicking. Can't Figure Out What I'm Missing

[Chris Nwoke]

So I'm at a very weird point in my real estate journey. I officially got my start back in April of 2012. I, like most, got sucked into it by the over-exaggerated guru hype that wholesaling will make you rich overnight and you can make 5-10K easily in the first month. Not quite.

My first deal didn't come until the end of October for 2K. So about 6 and a half months of non-stop work for that deal. That definitely made it worth and taught me that success in real estate is less about gimmicks and more about business savvy and knowledge.

As great as that first deal was, I find myself back at that point where I'm watching things fail to really get going. It would be one thing If I were struggling to find a deal or even find buyers. My problem has been getting things to actually get to the closing. I have had so many deals just fall through at the last minute, and it's mainly been from the buyer side. I either get tire kickers who show a lot of interest initially and never respond again or have buyers just back out at the last minute.

Even right now I have what are good deals. One is a rehab project in a nice little neighborhood. The ARV is 105K, repair estimate is 15-20K, under contract for 7K. Had a buyer who was ready to buy, but backed out because it was originally a duplex and he couldn't get a permit to build it back as a duplex because it was abandoned for over a year and has to be re-zoned to a single family home. I was also contacted by a realtor who said he had a client who wanted it. I even agreed to give him a cut of the assignment fee. He agreed, I sent an assignment contract, and I've yet to hear back from him. I'm now down to one more potential buyer who went to see the house earlier today.

The other property I have is 2bed/2bath home with a garage that has a full studio apartment above it. The house and the apartment are being rented for a total of $1050/month. ARV is 180K, under contract for 70K. Again, I've got so many tire kickers who say they're really interested and then I never hear from them again.

Sorry for the long post, but I'm just getting frustrated. I'm doing what I can to really take this seriously. I realized early that the idea that wholesaling is a quick and easy way to make money is asinine. I definitely take what I do a lot more seriously this time around. I even filed for an LLC last week. I'm just trying my best to figure out what I'm doing wrong cause their has to be something I need to change.

[J Scott]

Agreed with everyone above. You're selling in my market, and if you had good deals, I'd be all over them. I don't know what your other deals looked like, but the two you mention above are pretty representative of the mistakes a lot of new investors make.

The first example of the house that is improperly zoned is an obvious example of a house I likely wouldn't buy unless the upside were WAY more. Dealing with rezoning is a pain in the butt, and can take months, and there is no guarantee it will be approved.

As for the second deal, you should read my posts and my blog -- if you did, you would that in Cobb County (and much of Atlanta) anything smaller than a 3/2 is very difficult to resell, and most serious investors know to stay away from these. Also, the deal you presented is an average buy-and-hold deal (so you won't get a lot of landlords who are interested) and is a bad rehab deal, as the buyer can't kick the tenants out until the lease is up (so you won't get a lot of rehabbers who are interested).

Focus on getting great deals that buyers in your area want. You know my criteria, and I know a LOT of buyers in this area who have the same criteria. Focus on getting THOSE types of houses, and you'll be good to go...