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Justin Pierce is a real estate investor who regularly writes about his experiences buying, renovating and selling houses in the Washington area. The writing is clearly on the wall — this local housing market has definitely leveled off and there’s no saying for sure which direction it’s going from here. It’s by no means doom […]
The majority of people that want to get started in flipping houses have to do so while working a job and taking care of their existing obligations. In a perfect world we could all just decide to do something not have to worry about loose ends or making sure that we can feed ourselves and […]
Wholesaling Real Estate – Finding Buyers (Part 1 of 3)
By Eric Medemar
Wholesaling real estate is one of the best ways to begin making money in real estate without the need for capital or credit. In part 1 of this series, I will start laying out some of the best ways that I have found to locate buyers for your potential wholesale deals. These strategies will also work for real estate bird dogging.
1. We Buy Houses Signs I call every single one of these signs that I see, I actually keep a note book full of numbers and info that I find out about these companies when I call.
I usually ask them whether they are still buying, what they are looking for, what percentage up FMV (fair market value) they are typically paying, and what areas of town they want to buy in.
While I have them on the phone I also ask them if they wholesale out any of their homes, if they do then I ask them to call me when they have something good. I tell them that if the deal is right I can close in less than 2 weeks with cash.(I can do this because I have other buyers already in place to buy their deals, sometimes these buyers could be other cash for your house buyers)
Here is a sample of a deal that I put together using this.
1. I called a we buy houses sign
2. Found out where they were looking
3. Put a home under contract for $52k in that area
4. Called them and let them know.
5. I signed a 6 month lease option with them for $64k
6. I closed the home.
7. The lease option started
8. He sold the home
9. We close this week, I make about $12,000 (I also made commission when I bought the house, because I am a realtor)
10. He makes around $12k.
11. Were all happy.
2. Call realtor’s I call realtor’s and find out if they have any cash buyers that are looking to buy some wholesale deals. It varies on what I offer to pay them but typically I offer 10%-20% of my profit, or a flat 2-3% fee, each time the buyer they have given me buys a home. It creates a win- win, I get a buyer and they get paid whenever their buyer buys a home.
I offer the continuous pay because a realtor’s worst fear is that they give you a buyer and he buys from you, then when they have a good property to show their buyers they