Where do these properties come from? Why are they so cheap? How do i buy them?
Tuesday, November 11th, 2008
Where do these properties come from?
These properties are posted by real estate investors who would like to sell their properties at a discount. A home seller can post their house for sale here directly without going through a real estate investor. However, this service is designed for investors to buy and sell discounted properties.
The process goes something like this:
- Wholesale investor (”Wholesaler”) locates property from a motivated seller
- He puts it under contract
- He then takes this contract to the title company to get the title work done
- You (investor), buy the house from wholesaler or take over their contract for a fee and close on it yourself, or buy the property from the investor in a double closing (simultaneous closing)
You end up getting the property at a huge discount with very little work.
Why are they so cheap?
Most of these properties come from distressed home owners (motivated sellers), such as home owners facing foreclosure, going through divorce, job loss, job relocation, illness, or simply cannot afford to keep making mortgage payments.
Sometimes they just need to get rid of the house, but cannot afford to do the repairs needed, or simply don’t want to do it. They therefore accept to sell the houses at a discount for a quick and easy closing.
This discount is passed on to you as an investor.
What makes these deals good?
No deal can posted on our network unless it leaves at least 15% equity, AND at least $15,000 in profit after it is fixed up. For example, a house worth $100,000 must leave at least $15,000 after it’s fixed up in order to qualify to be here. We try to make sure that each deal has the potential to make you money.
What makes these deals better than I can get from other web sites?
These properties come directly from other investors. They are not listed in the MLS or the local newspapers.
Therefore, there is less competition, so you can buy them at a truly profitable bargain.
Why would an investor sell their house at wholesale price when they’d just fix and sell for big bucks?
Each investor has their preferred way of making money in real estate. Some are so good at locating great deals that they cannot possibly handle to rehab all those houses!
It’s much easier for them to make quick money by wholesaling and move on to the next deal.
Sometimes a lot of investors fix and sell, but they still wholesale when their schedules cannot allow them to rehab, or when the number of houses they have makes it impossible to do so.
This has created a unique opportunity that will be very profitable for you.
What if the cost of repairs and After Repair Value are not true?
Our local partners look at each deal manually to make sure it meets our guidelines, both by profitability and the numbers given.
In addition, we give you a guide of the value of the house by requiring that the investors provide the county appraisal value as well as the estimated After Repair Value.
A lot of times you will find a link directly the property record at the county. We then provide you with comps from zillow.com on each property. We also provide you with enough analyzed information to quickly decide if it’s a deal or not.
Armed with all this information, you can then make a quick judgment; in any case, we always ask you to run your own comps to assess the true value of these properties.
If you cannot run the comps yourself, we link you up with real estate agents in your local market who can run comps for you.
We present all this information for you on a simple page in an easy to understand manner so you spend as little time as possible agonizing if the deal is good or not.
Of course we also encourage you to physically go see the house yourself to make sure the repairs are not misrepresented.
What information is available to me as I view the properties to help me make up my mind?
We allow the seller to put in as much information about
the house as possible including:
You have to contact the seller directly to buy the house. We provide you a way to send them an email as you view the properties, and also provide a phone number for you to contact the seller.
Generally, most of these properties are not listed for owners by real estate agents, but you may find convenient links to recommended real estate agents, service providers and hard money lenders if you need their services. You may find these on our directory of vendors (service providers).
Do I need a real estate license to do these deals?
No, you do not need any license to be a real estate investor, or even a wholesaler. Real Estate Investors do not represent anyone, so you do not need a license to make money investing.
How does the current market affect me as an investor?
Distressed properties and foreclosures are at an all-time high. Which means the time to buy really discounted properties is now.
You cannot have a better time than now to buy some unbelievably discounted and profitable deals.
How would I buy the deals if I have bad credit?
You can still make money from them even if your credit is bad.
Most of the deals listed here qualify for hard money. We recommend the most reliable hard money lenders who can get you funded in a few days.
They lend money based on the property, not your credit. Most do not even pull your credit. With most hard money lenders, if you can fog it, you can qualify.
Can I post my own house for sale?
Yes, anyone can sell ther house on our web site as long as it provides a discount for a real estate investor to make a profit.
