If you’re doing rehabs then the people who aren’t fixing them up have the properties you want, just need to buy them at ~70% ARV (after repaired value).
If you want to do your own wholesale deals then there are several ways. The best way I know of is to get some business cards and hand them out and talk to as many people as you can (people on the street, coffe shop, clubs, UPS/FedEx guys, avon consultants, etc.). The second best way I know of is to hire a scout to drive the neighborhoods for you and snap digital pictures of the front and back of houses for ~$10/each.
One of my favorite ways is the UPS guy. We got a shipment of business cards that had the card on the outside, I saw him at a Starbucks later that week and he said, “So how long have you been investing?” I’m thinking yeah, this guy has to read every box, red letter, and package we receive. Plus he drives by every house in your neighborhood. Trust me, he knows more about you and your neighbors than you can possibly imagine.
Where do you find distressed properties? - Posted by tlhdiver
Posted by tlhdiver on January 25, 2004 at 16:29:19:
I am just starting out with the program. We have drove neighborhoods and looked through the classifieds. We have noticed that there are quite a few people fixing up houses or buying them and flipping them without fixing them up. Where are they getting these distressed houses cheaply? Any ideas on where I should start would be helpful?
Q:Where are they getting these distressed houses cheaply? The best formula I found was the service of a Record Research company. The cost vary, but the better companies offer you the information on whats going to be foreclosed on, how late the morgage payments are and the position of the note. Some include the Market Value, Which are a close estimate but you will need to verify with your R.E. Agent. This will give you an idea if the deal is right for you.
Another way is to save the $10.00 as noted in a previous followup and think about the area you live in. A:Drive into areas that are the bread and butter houses and look for run down homes, vacant homes, ect. take down the address and call your agent or have the agent hook you up with a title company, Ask for a (Property Profile)without the Demorgraphics.(maybe once if you don’t know what the demorgraphics are, but not required to some investors. With this information in hand you may wish to follow up on if you feel that their is a profit spread to be made after the rehab & selling cost (agent/broker %). If so a profit exist then contact the owner and try to negotiate a purchase price. remember to go into the negotiations with a set cap offer. Offering more than the cap cuts into profits.
Q:Any ideas on where I should start would be helpful? Most Investors including myself find or have a real estate agent that deals mainly with investor (sometimes a hard item to find, because agents want the quick sale of a qualifing buyer. The investor wants information most of the time before a bid is made and most bids are under market value. That’s the spread the investor is looking for in -Distressed Properties)
Good Luck and always think positive!
Ps. I have found out that having a good and honest heart is most helpfull.
tlhdiver,
another way to “advertise” is supermarket post boards, post office, barber shops etc… any local business in your town… you could (as I have read) perhaps offer a “Local” Merchant a “referral” fee.