Buyers coming EVERYDAY! Is this normal?

Question

Wassup fam, hope everyone is having a great day so far. This is an update of my last post. If you don't know, I'm new to wholesaling and I have my first property under contract. Since then I've been showing the house at least 2x per day EVERYDAY now. Is this normal? It's making my nerves run a marathon through my body, just the intensity of knowing that only 1 person has to sign the contract. Does anyone have any tips so that I can close this contract ASAP? Any special words to say

J Scott · Answer

If you're showing the property to lots of buyers and none of them are biting, do you know why?  Have you asked them why they're not putting in offers?

The simple answer is price -- if it were priced correctly, you'd have offers coming in.  But, maybe it's something else that you can easily fix.  Can you remove a bunch of trash?  Can you cut down a tree that's about to fall on the house?  Can you remove the junk cars in the driveway?

There are lots of buyers who can't see beyond the obvious.  I bought a property last month for $75 that nobody else wanted.  I spent $500 cleaning it out (trash filled an entire 30 yard dumpster) and suddenly was getting offers at $100K.  I slapped on a coat of paint for $4000 (interior and exterior) and am selling it today as-is for $115K.  Sometimes a little can go a long way.

That said, if there's nothing little like that you can do, then it's just priced too high...

Antonio Johnson · Answer

Thanks Jon. I'm good then. I specifically market to cash buyers for now until I learn more and build capital

Jon Holdman · Answer

If  you buyer is paying cash, then paying cash for your fee won't be a problem.  If they're getting a loan, its likely the lender will use the price you're paying as the "value" for the loan.  Assuming it appraises for at least that much.  So, they will have to have enough cash for the down payment plus your assignment fee.

Antonio Johnson · Answer

Iam assigning the contract. I plan on getting a signature, taking it to my escrow and getting paid on closing day. Is there more I need to know?

Account Closed · Answer

Antonio:  I assumed, and perhaps incorrectly, that you were going to be assigning your contract to your buyer.  How are you planning to get paid on this deal?

Dawn A.  The junkiest stuff I've sold doesn't have copper, or much else of value.  Theft by potential buyers is the least of my worries.  In the hood, the vandals and thieves don't need permission or access to enter.

For the better properties I've never had a problem letting buyers enter.  It's no different than giving agents the lock box numbers. The properties are usually vacant of everything except sometimes appliances. And believe me when I say I would be grateful for theft of some of the appliances that get left behind by tenants or ownes.  Often the potential buyers wanting an interior inspection heard from me first from either a flyer or call.  Serious cash investor buyers have a history and/or can be easily vetted.  Especially in these last few years.   I've never had a problem in the better areas.

Antonio Johnson · Answer

Natasha yes the home was vacant. I'll let you know my process when I do get a home under contract with tenants. Thanks for your response and if you have any questions, even though I'm a rook, I'd happily help out however I can

Antonio Johnson · Answer

I appreciate that Marie. I do understand tht FHA funding isn't going to cover the deals I'm doing. I have ran into a few who has mentioned that. Please elaborate on my buyers needing $5k to take over my contract. Thanks for the advice

Dawn Anastasi · Answer

K. Marie Poe how do you ensure that the "buyer" won't let themselves in and help themselves to some copper in the house, etc.

Account Closed · Answer

I haven't shown a house to a buyer in years.  They drive by and if they  call and need to see more, I tell them how to get in.  Not so easy if the house is occupied.  Is your property currently owner or tenant occupied?

Are you pre-qualifying your buyers?  Do they know they need $5K cash to take over your contract?  Do they have cash or secure funding to close with the seller?  Are you and your buyers aware that they can't use FHA and most conventional funding when your name is on the original contract?

One thing you can do is gang-up the showings.  Tell people you'll be there from 2-5 on a certain day and they can see it then.  That way they'll usually drive by first and only come for the interior if the are really interested.

Again, make sure your buyers understand the terms of the deal and can perform, otherwise you are wasting your time and theirs.

Natasha Wilkinson · Answer

I remember your last post,  but can't recall if the property is vacant or not. Is it? If not what did you say to the seller? I'm a rookie also and I haven't yet got my first one under contract. So im still taking notes.

Thanks