How do you find the two most valuable pieces in these deals...the investors who fix up the houses and sell them, and more importantly the houses to wholesale that are not usually in the MLS?
Well the value comes from what you see regarding the property and the area....never be discouraged on the condition of any property. First and foremost your end buyer will find the value for himself...your job however is to evaluate the property before hand and lock the property up at a price that will work for the investor/ or end buyer, but more importantly you! Now you’re probably asking how do you know if the investor would buy at whatever price...the answer is you don’t! However before you step into any property you must do your due diligence in order to have an idea as to what type of buyer would want to purchase the property. So before you enter any property you ask yourself some simple questions regarding the property such as:
Where is the property located?
Does it have a majority of renters?
Does it have a majority of home owners?
how much is this property a.ssessed for?
How much would it sell completely fixed up?
Now everyone wants a great deal right? Even you guys...think about it...if a mother fu*ker was selling a PS3 tomorrow for 150 bucks and its re sell value was at 200, what’s the first thing you’re going to attempt to do? See if you could get it for just a little cheaper to make more on the other end right? Well that’s the same thing with real estate....Due diligence is so vital within this game that if you don’t know where or how to evaluate and or find value then you'll never make any money! Your job as a wholesaler is to get it for the lowest possible price to where you can MAKE YOUR MONEY! You must make a good enough spread to make your time worthwhile! For example today about an hour ago I just got off the phone with a guy whose agreed to sell me his house, a two family home for 40K however based on its location and having buyers that I know will invest within this area will BUY this property at a price of 60K, why? Because they could make double that within 4 years of owning it….Now how did I find such a seller? Well he saw one of my bandit signs called me, I scheduled a time to look at his property, did my due diligence he ended up naming his price which was 40k I locked it up called my buyers BAM! 20k profit potential when we go to close in roughly a month and I did this in just a little over 2 1/2 hours of work.
Regarding the MLS, the mls is a tricky source to find deals mainly because its a national data base that has been combed through by thousands of buyers so chances are if a property is still available on the MLS, may mean that no one really wants it. The price could either be too high or the agent is more of a roadblock based on whatever agenda they have....So regarding the MLS you just have to know when to shop and how to shop using the mls....Myself I use Zillow, Trulia and I have other agents send me properties that comes through their wires. Now I did say using the MLS was tricky not useless and heres why...When I'm searching for properties using these websites, I only look at properties that have been listed on them for roughly +180 days...Why because usually a contract between the seller and real estate agent runs from 3-6 months therefore when its over 180 plus days the owner has tried selling through an agent, it hasn’t worked and now they are stuck with a property they may really want to sell... so where you come in is finding those type of sellers...getting in contact with them and then figuring out their situation and then move towards locking it up under contract or move on to the next one. Now I’m just giving you the basics, but there are so many different ways to locate deals but this is just one effective way to locate them.
So start by
Using Online data bases
Locate your local real estate investors clubs to locate buyers and mentors
Research online for new ideas and innovative ways on how to become more effective in become a Real Estate investor
And most importantly READ READ READ! If your hungry no matter what hurdle that comes your way…your goals of becoming wealthy will a.ssist you in jumping right over it!
If you want any help with anything please feel free to contact me through my facebook page…there I can give you PDF files on books, videos, help you out with how to approach a deal whatever I have no problem with helping you. Just do me a favor and like my page I have investors and agents that are well versed in the NYC markets and however way I can help I’d be more then happy to! My names Lavelle by the way!
Here’s the link for my page…hit the “like” button I provide tips and motivational quotes that I use every day that helps me become a better investor.