Tough time finding Indiana rehab buyers - Posted by indybuysell.com

Posted by Blane (MI) on June 17, 2004 at 08:48:36:

John,

Where at in northern Ohio?

Blane

Tough time finding Indiana rehab buyers - Posted by indybuysell.com

Posted by indybuysell.com on June 16, 2004 at 15:20:49:

Man am I finding it tough to find buyers… I have listed the properties I have under contract, in my local paper, have announced them, with flyers, at two of my local investor clubs plus they are being viewed consistently on my heavily advertised website (see screen name) yet still, no serious inquiries.

What gives? Seems to me properties that need little more than carpet would be picked up in a heartbeat if the buying investor stood to make 20K+ retail after repair and holding. All I want is a couple g’s on an assignment. Is that wrong thinking?

Surely there are some Central Indiana investors out there that want me to send them similar deals aren’t there? (

Re: Tough time finding Indiana rehab buyers - Posted by NM Reagan

Posted by NM Reagan on June 17, 2004 at 06:54:59:

You never returned my phone call to get my opinion, so I will give it to you here.

The house is too pretty for a rehabber (so you are marketing to the wrong group) and there are very few investors that will want to put up almost $100k in cash with the possibility of not turning it over quickly enough, i.e., the holding costs would be too great and would eat up most of the profits. In my opinion, the deal is too skinny the way you want to do it.

Re: Tough time finding Indiana rehab buyers - Posted by Sean

Posted by Sean on June 17, 2004 at 03:14:20:

Its a matter of market… if properties can be easily picked up with 30k spreads without much efforts, experienced investors aren’t going to settle for 20k.

Secondly, its been my experience, wholesaling is a lot more a pain and tougher than it is made out to be. The higher the asking price, regardless of the spread the fewer people have access to that much cash and the fewer potential buyers you have.

In my market, if you want a quick flip without problem you need to be selling it for the teens… above that and your pool of potential buyers with cash declines dramatically.

Thirdly, if an investor can buy houses for 15k, put 10 into them and see 20k-30k profit at the sale (Selling it for 50-60k) They are going to be less apt to purchase the 175k home for 145 needing zero work. It ties up more of their capital for no more of a payday.

Forth, if your investor club is like my investor club, the set of TRULY active purchasers is very very small… lots of want to bes and lookie lous… but very few who are ready willing and able to pull the trigger when a great deal is put in front of them.

Finally what’s the add say in the paper? If it says Handyperson special, you will get more want to bes than you can shake a stick at… try putting it as a “CONTRACTOR SPECIAL” and you will filter out much of the crapola.

I Am Having this Exact Problem - Posted by John Katitus

Posted by John Katitus on June 17, 2004 at 01:31:41:

I am in northern Ohio. A seasoned investor, I decided to try flipping to make some quick cash. My first deal is, I am confident, a great one. $20-25k profit for two rooms of carpet and paint and one toilet.

I thought the hard part would be finding the properties - not passing on a very good deal to a rehabber. Let’s keep trying!

Re: Tough time finding Indiana rehab buyers - Posted by PBoone

Posted by PBoone on June 16, 2004 at 18:22:00:

Recheck your numbers, sounds like the 20K may be on the high end or the houses are in a slow moving area. Remember real investors do not pay more than 75%fmv for properties to resell.
Patrick

Re: Tough time finding Indiana rehab buyers - Posted by Kristine-CA

Posted by Kristine-CA on June 19, 2004 at 11:42:15:

It’s true where I am that ads in the paper will get a ton of newbie calls. I find that “cash only” works too. It eliminates most of the calls about carry back financing. And I explain to everyone before they drive-by that I do not allow due diligence during escrow and that the deal is cash with no loan contingency.

Sometimes I really feel for the newbie rehabber though. They call and make the most ridiculous offers, not realizing that I am not a motivated seller. My favorite was a guy who offered me nothing down and a one year balloon note for the balance. When I had a half a dozen full price offers. I can’t blame him for trying though. I do the same thing…Kristine