All Forum Posts by: Stinson Bland

You found a motivated seller... But he's motivated to pawn off his bad situation. I'd hand this off to my SS broker and forget about the deal. On to the next one.

Good deals are hard to find on the MLS and the few that exist are purchased rather quickly from the REI pro's that constantly monitor the MLS. Manny also makes a great point about wholesaling with a realtor involved.

Focus your efforts on marketing for motivated sellers.

Michael,

As I said in my previous post... If you find a deeply discounted deal, you will be able to locate cash buyers quickly and easily. You must understand what a good deal is, how to market a deal, and who to market it to.

Play by play? Sure.

I put a house under option-contract in a city that I have never bought in. I used a termination option because I was worried about my lack of a buyer in the area. All of my buyers buy in North Dallas and this property was in far South Dallas (Lancaster, TX to be specific). The deal was not incredibly deep but it was rental ready and would produce good cash flow at asking my price. I posted the deal to FB.com, Craigslist, Backpage, among other websites, and put up Bandit Signs in the area describing the deal. I assigned the deal 4 days after I started marketing the property and I now have 4 cash buyers that buy South of I-20 in Dallas. We closed on the property 3 weeks after I got the call from my new buyer. I'm sure I could have gathered more buyers if the deal would have been bought deeper. This was a very small assignment for myself but it did produce revenue and I now have more confidence buying in the southern part of The Metroplex.

If I wouldn't have found a buyer so quick, I would have continued to market the property at my local REIA meetings and asked my current buyers list for referrals to buyers that buy in South Dallas area.

If that didn't work I would search the MLS for cash purchases in the area and call the owners to ask if they're interested in another cash flow property. I could also call the For Rent homes in the area and give them the same offer.

If I got desperate, I would approach other wholesalers that I see marketing properties in South Dallas and offer them a 50/50 split on my assignment fee.

I think having a good buyers list is extremely important but I feel that it takes more time, money, and work to find a deeply discounted deal to wholesale. I believe that all newbies should start marketing for deals ASAP and while they're learning how to buy, they can be building a buyers list. In my opinion building a buyers list is MUCH easier than finding good quality deals that buyers will buy.

Good luck

Michael is dead on... if you've already bought the homes. I'd try to FSBO at an as-is price or sale via the MLS for a "discounted" handyman price. We call this a Wholetail sale. I'd also advertise the house for sale using bandit signs around the neighborhood and consider handing out flyers if the home is in a lower-end neighborhood. Try to locate ta buyer without the MLS first (this will save you realtor fees).

If he's honestly looking to unload a group of rental homes to a cold caller, I doubt you are the only person he's mentioned this to. I'd do my best to get in front of him ASAP and really "wow" him with your ability to help him out with his problem. Like the others have said, you need to find his motivation (problem), determine if there is real motivation, and figure out a solution to his problem.

If he owns entire neighborhoods, you can bet he's not a novice investor, so you better have your act together before approaching him. If you’re a newer investor, I’d start looking for a partner that’s trustworthy and get them to help you lock-up the deal.

Good luck.

Let's be honest, building a buyers list is simple if you're buying your deals deep. I could locate at least a dozen buyers today if I was selling a house in my area for 60% of true ARV minus real repair cost. Locating cash buyers via the internet is relatively simple... but you need to have a top quality deal to offer them once you open a line of communication.

The point I'm trying to make is that most major cities are full of cash buyers and everyone of those buyers is interested in a deeply discounted house. Every cash buyer I know is looking to establish more relationships with good wholesalers. The problem is that most wholesalers don't comprehend the idea of adding value to a deal and leaving profit for the end buyer. I met a cash buyer with deep pockets yesterday and he was happy about his most recent purchase that he paid over 80% of ARV. I showed him numbers from my last five deals and he nearly fell out of his chair.

I say you find a great deal and hit the phone, internet, and the streets telling everyone about your deeply discounted deal. Word spread fast around the local REI circles and buyers know how to find good deals.

Attorney's Title (Lonergan Law) actually goes by the name of First Western Title. They no longer have a relationship with Attorney's. Eitherway, Lonergan is very investor friendly and they'll go above and beyond to get a deal closed for you... but you have to stay on top of them to make sure everything stays on schedule.

If you're looking to invest in rental properties, you should read the following thread: 2% Rule

Hope that helps!

Full-time here.

I usually shop around on the internet and can find someone that's running a special on large orders.