| Discover how to find motivated sellers. Learn how to | | | | each month. |
| determine whether a deal is profitable or not. Learn | | | | Once you've found a motivated seller you will need |
| the different ways to advertise to bring you more | | | | to determine whether or not the deal is profitable. |
| sellers. | | | | This is the second qualifier and would seem to be |
| When buying a wholesale property there are two | | | | pretty elementary, but you would be surprised at |
| qualifiers that you need to be looking for. The first is | | | | how many investors' make costly mistakes at this |
| a motivated seller. There are many reasons why a | | | | point in the process. OK so now you have your list |
| seller might be highly motivated to sell their property. | | | | of sellers. It's time to call each one and gather all |
| Maybe the seller is about to go into foreclosure and | | | | pertinent information on each of their properties. |
| needs to get the property off of their hands. | | | | Personally I use a checklist, making sure to ask each |
| Perhaps they are going through a divorce or maybe | | | | and every question on my list so that I have enough |
| a loved one has passed and the executor of the | | | | information to make my offer once I am ready. The |
| estate is attempting to sell the property. Whatever | | | | next step is to check the comps of the area and |
| the reason, there is no shortage of motivated sellers | | | | figuring out what the fix-up costs will be, as well as |
| out there that are willing to part with a property for | | | | the closing and holding costs if your planning on |
| much less than the properties market value. The | | | | closing on the house and then putting it back on the |
| most common scenario in today's market is one in | | | | market at a reduced price after rehabbing it. If after |
| which the seller is about to go into foreclosure or is | | | | all of this research is completed you determine that |
| already in pre-foreclosure due to foreclosures being | | | | the deal is a good one, then it is time to call the seller |
| at an all time high right now. This is due to all the | | | | back and make an offer. My offers are normally |
| adjustable rate mortgages that people signed with | | | | between 50-65% of ARV (After Retail Value). Now |
| sub-prime lenders during the housing boom 2-3 years | | | | pay close attention here! This is where you save the |
| ago. These home owner's mortgages are hitting their | | | | most money in buying properties. You need to buy |
| adjustment phase, and many can no longer afford | | | | the property 'right' otherwise you can get yourself in |
| their monthly payments. In many cases these home | | | | a real pickle. Some investors will go up to 70% of |
| owners are desperate and looking for someone to | | | | ARV. I may go above 60% if the deal is right, but |
| come along and rescue them out of their situation. | | | | NEVER! NEVER! NEVER! buy at market value. Many |
| That's where you come in. | | | | investors do their first deal and either doesn't buy |
| But first things first. How do I find these motivated | | | | right or they put too much into rehabbing the home |
| sellers you ask? Personally, I place ads in my local | | | | and either lose money or make a minimal profit when |
| newspaper and on various websites such as | | | | they sell. Then they never do another deal again |
| craigslist.org and letting people know that I am | | | | because they don't think it was worth all of that time |
| looking to buy homes. I put signs around my local | | | | and energy to make that small amount of money. It's |
| area and I even have those cheesy magnetic signs | | | | unfortunate because had they done their homework, |
| on my truck. Believe if or not, the magnetic signs do | | | | they could have had a better experience. |
| work. I also look in those same newspapers and | | | | So now you know what to look for when seeking |
| same websites to see if I can find a motivated seller | | | | out and buying wholesale properties. Check back to |
| advertising their home as well as any FSBO (For Sale | | | | find out more on various real estate investment |
| By Owner) websites. I also drive around various | | | | related topics as I will be sharing more in depth |
| areas in my city looking for vacant, distressed, for | | | | information on topics like rehab and buy, sell & hold |
| rent, and FSBO properties. And in doing all of this | | | | cost estimations to help you determine if a deal is |
| research and advertising, I get quite a few deals | | | | indeed one that you should invest your money in. |