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When one thinks about how to buy off market properties they have to remember that this finding these properties is not for everyone. But for those that want to be involved in the buying discounted investment properties, this is ideal. Wanting to buy fixer-upper houses is one thing. Actually finding them and buying them is another. One of the stumbling blocks is where to buy houses to flip.
Here are six successful ways to find wholesale real estate deals. Are you up for the task?
It may take a little time, but driving for dollars in your area can be a great solution to find houses to flip or hold at a discount. It doesn’t mean just driving around aimlessly. It means being observant and having a route and clear criteria for what to look for. It doesn’t take much to detect homes that are in rough shape. Those that need some tender loving care.
After finding a few of these, there is nothing wrong with the direct approach. If you want to buy fixer-upper houses, you need to have some confidence. Simply go and knock on the door of a home that fits into this category. Ask if they are the homeowner. If so, ask if they would be interested in selling. Yes, you will get yelled at sometimes. It is okay. There are a lot of people that just cannot afford to fix their homes. They don’t think they are worth putting on the market. Having someone who is interested to buy fixer-upper houses may be all they need.
Buying a house wholesale may also mean looking for sale by owner opportunities. Some homeowners may have approached traditional real estate agents to list their house in hopes of a traditional MLS sale. But, because of the home’s poor condition, they or the realtors were not very hopeful and said the property couldn’t be listed on the market.
Alternatively the home owner probably considered the real estate costs and realized they were not likely to come out with any money. This may have driven them to the sale by owner (FSBO) option. Looking for FSBO properties may be one of the fastest ways to buy investment properties at a discount if the seller is motivated.
Another place to look for discounted real estate deals is through estate sales, probate properties, inheritance properties. There are a lot of people who end up inheriting their parent’s homes. In many cases, these homes have been neglected. The party inheriting the home may just want to get rid of it. They may not realize that there are individuals who buy fixer-upper houses.
The sale price of the house is not going to be their major concern. Their priority is going to be on getting rid of the house in the fastest way possible as they don’t want to deal with it and may be still grieving. Buying the house for cash saves the seller time and hassle.
The local government gets to a point where they will take action against those homeowners who do not pay their taxes. When this happens they will put a lien on the property, and then they eventually force a sale. An investor should be aware of these opportunities. Often the government will make it public that they have these houses for sale, through a publication or other means. They are only interested in getting the money out of the sale that is owed for the taxes on the property. They are not intent on getting any extra money for the homeowner.
In many of the cases, these homes are run down and/or even in disrepair. They are in need of repair. If the homeowner was not able to pay their taxes then not likely, they could afford repairs.
Those that want to buy fixer-upper houses will soon recognize that the internet can be a useful tool for finding them. However, it can also be time-consuming. It means having to sort through all the listings to find those that fit the criteria. If you have the time and persistence it is worth the work because there is usually a selection of them to be found. After some research, it will be easy to determine which sites contain more of these types of listings. Keeping a database with the links to these sites will save time in the future.
Out of the six tips described here for helping investors buy discounted, fixer upper houses this one may be the most important, and certainly the easiest. How to buy houses from wholesalers is something every investor should learn.
How to buy houses from wholesalers should be an easy process, but sometimes it can be difficult or tricky depending on the wholesaling firm you are working with. Hence, it has some rules to follow. Not everyone that says they are a professional property wholesaler is actually a pro. Although not true in every case (but sometimes accurate based on the specific wholesaler), wholesalers have a reputation of being untrustworthy, unethical or unprofessional. Know who you are working with and ask around.
There are also certain components that come with wholesale deals that you should know. Buying wholesale properties should be a quick and easy transaction and process.
The wholesaler has to be honest, truthful and upfront with their deal. They need to know the process that has to be carried out with this type of property transaction. There should be no unforeseen roadblocks.
On the buyer side you need to understand that wholesale deals are mostly cash deals. In turn, you have the cash readily available, either through 1. your own cash, 2. through a hard money lender who has already approved you and can move fast or 3. through private funding that is ready to go.
This is not the traditional MLS process of buying and selling houses. Both sides need to realize this.
Make sure your first experience with a professional wholesaler to be a positive one. We care about making connections with local real estate investors so that we can have a long lasting beneficial relationship. Here at Sesa Properties, LLP, we spend a lot of time finding the best wholesale properties for our valued investors on our buyers list. We have earned our reputation for being professionals when it comes to wholesaling and real estate investing in Cleveland.
It doesn’t matter whether you are new to the process of how to buy wholesale, off market deals or not. We are prepared to do business with you and serve you with white glove service. Have a question about our process? Want to join our buyers list? Great! We’d love to get in contact with you. Give us a call today at 216-750-3132, or visit our website at www.offmarketcle.com to join our buyers list.
The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.