Posted by Ryan on May 10, 2004 at 14:12:58:
I am in Chicago.
As to a strategy, that is something you need to come up with. That is the key. This is how you will market yourself. Be creative, how will you find motivated sellers? What makes them motivated? Who deals with people in those situations, etc…
Ryan
Flipping Strategies - Posted by Mel_Chicago
Posted by Mel_Chicago on May 10, 2004 at 12:37:48:
Dear CREOnline Wholesalers/Flippers:
I have been studying REI since Oct. '03. I have yet to make my first deal, but have taken the class for the RE Sales Exam, joined 2 investment clubs, purchased Sheets “No Money Down”, printed out how-to articles from this site and other sites and have read and even posted on this forum.
Here’s my question:
I have zeroed in on flipping as my method of choice. I understand that I need to build up my buyer’s list before I even make my 1st offer. I know that what I find should be in line with what my buyer’s are looking for, and that there needs to be room for profit on top of my assignment fee.
What I don’t understand is how to find the properties. I know this is where marketing comes in; putting up bandit signs, passing out business cards, advertising in the paper. I also know the driving and looking for run-down properties method.
What I would like to know is what kind of strategies do you successful wholesalers/flippers use to find these properties/motivated sellers? What would be the best approach for a newbie?
Thanks in advance for your response. I am tired of sitting on the sidelines and reading success stories.
Melanie
Re: Flipping Strategies - Posted by David
Posted by David on June 08, 2004 at 17:35:12:
In terms of marketing nothing beats the “mini-sign”, IMHO (I dislike the term bandit sign). For cost effectiveness and control, they offer one of the best values. Postcards and mass mailings have merit as do the “must-haves” like b-cards, flyers, etc., but so far the signs are the hands down winner in my book. Others have advised that you should know what you want and that you should be looking for motivated sellers - BOTH totally correct(every deal should have a “story” behind it). But to get your phone to ring with warm callers who want to sell a house to you, the “mini-sign” works VERY well. The rest is up to you to determine if the seller has somthing you can work with.
CAUTION: Before you employ the signs, go to your local code office and learn the rules.
Then OBSERVE where and in what sort of places others are actually using the signs - and how long they stay up in such places. They are everywhere if you begin to focus in on them , rather than tuning them out. Everything from alarm systems to health insurance is hawked with them by somoneone. Soon you’ll start to see a pattern to their best use.
If you want, I’ll send my info-letter to you FREE - this is not a solicitation, folks - which tells how I made mine.
David
Re: Flipping Strategies - Posted by Ryan(IL)
Posted by Ryan(IL) on May 10, 2004 at 13:01:33:
Strategies vary from location to location, not to mention from niche to niche. Do you want rehabs? Foreclosures, etc.
Now, the key thing I can think of to tell you is that you aren’t looking for properties. You are looking for motivated sellers. That is the key thing to remember. Focus on where you could interact and advertise the most to find motivated sellers.
Think about why a person needs to sell and is willing to sell for below FMV. Loss of job? Transfer of job? Divorce? etc…
Ryan
Re: Flipping Strategies - Posted by Mel_Chicago
Posted by Mel_Chicago on May 10, 2004 at 13:30:45:
Thanks Ryan
What part of IL are you in?
I was thinking about staying clear of foreclosures, because from what I’ve read that REO’s can’t be assigned. Unless you were talking about pre-foreclosures.
What kinds of strategies to you utilize to locate these motivated sellers?