After the BULK REO Tapes Real Estate Investing – its more than just finding cheap properties<---- this picture is the home of one of our recent wholesale deals in Fresno, CA We got it undercontract at $54,000 and sold it to a rehabber for $65,000 It took him 4 months (on his own) to complete the rehab and they now have the home sold We made $11,000 and HE made almost $45K in profit after that... great deal for a bulk reo transaction. So about this blog:
Successful Real Estate Investing in New Markets…after you’ve purchased BULK REO tapes
Day 1: Start to research the area
-research Trulia, Zillow, and other google searches
-locate areas where median income is above 40K a year
-locate “bedroom” communities around the outskirts of the city where people want to live
-Locate the better areas and interview a realtor about what areas are “hot” for Investment Properties
-Interview a local property manager about these areas, and ask about problems they’re seeing in the rental income property market.
-Call a local RE Max Agent for some ideas on selling houses in a slow/difficult market.
Day 2: Locate a good team for your local experts
-Go on to Craigslist under resume’s, and Jobs wanted.
-Find a couple individuals who indicate P/T work and add to interview list -Go on to Real Estate Investment group web pages and search for birddogs. -Post “bird dog” and a P/T help wanted ad for real estate assistant -Buy signs from Bandit Signs . com
Day 3: begin interviewing team members
-always get three or four people per group
-Attorney, agent, loan officer, non-profit group for home buyers/community development teams
-Call your local B of A loan officer introduce yourself and offer to send people to them who qualify for loans ask for referrals for pre-qualified buyers looking for nice homes.
-Call hard money lenders for investor meetings, and people I should talk to to find good homes.
Day 4-7: Finish up on anything that didn’t get completed in Days 1-3
-get a voice mail box in the area you want to invest
-record a message explaining that “you sell homes” will consider owner financing.
Week 2: Find out what the market wants
-Nothing sells if you have something that nobody wants
-Begin to identify hospitals, schools, universities, areas where traffic and job market is pretty good.
-put signs out in high traffic areas, but place them where people have to stop often (stop signs are good) -put out lots of signs in good areas, around schools. something like Gross Point Woods – Owner will finance
Week 3: Begin Interviewing for buyers
-Find out what they’re paying now
-Find out what areas they feel are safest
-Find out what they’d like to put down and pay per month
-Ask if you found “the perfect house” if they could afford a little more for that “ideal situation” -Take good notes and ask good questions
Week 4: start to look for homes on the MLS and through wholesalers like us -Search Craigslist for “fixer upper”, “handyman special” and must sell. -Download our spreadsheet for analyzing deals
-Ask what repairs are needed.
-Analyze deals
-Make an offer to purchase
Week 5: close with cash or private investor funds
-Begin demo on the house
-begin repairing
-Always do curb appeal work first and put a sign in the yard and near the entrances to both sides of the street
Week 6: line up inspections as work is done
-get electrical and plumbing done first as these usually take the longest. -do necessary repairs
-begin to call back the potential buyers
-Call back agents, bankers, and plan open house
Week 7: Wrap it up and get people in it
-Make sure that you plan one or two days where you have open house -Make sure the house smells good, looks great and is clean
-the open house should be open only for an hour or two.
-have a sign in list so buyers see there is interest
-Put a non-binding bid sheet in for people to make an offer.
-Call back all offers and see if they’d pay a little more or let the other guy win it.
-Offer bonuses for closing early: closing costs, one year warranty, upgrade bathroom or Kitchen faucets/fixtures
Week 8: Accept an offer and close
With a few variations, this is exactly how we did our last two houses in NE Detroit, MI. Even though the market is tough, we still managed to find over 45 interested buyers for our homes. We managed to find 4 cash buyers for other fixer uppers that we can now wholesale for a couple thousand dollars and lots of people who would love to do Rent-2-Own while they fix their credit.
For info on this and more Investment Properties or foreclosure deals, visit http://sillypricesSweetDeals.com/splashca.html to join our early notification investor list and free real estate investing information
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