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Why You Should Build & Maintain a Cash Buyers List?
Build a Cash Buyers List

Build a Cash Buyers List

From time to time, I have been asked, “What is the big deal about building a cash buyers list?”.  I want to give you a few reasons why you should seriously consider building and then MAINTAINING a cash buyers list.  Here are the reasons why you need a cash buyers list:

  • A cash buyers list will give you insight into a new real estate market and what is currently happening in the market place.  Where you should buy, how much to pay, and how you can make money in that market.  They essentially will give you their business plan.
  • A cash buyers list will help you find and establish a real estate investor friendly powerteam that has already been trained, tested, and proven.
  • A cash buyer list will help you earn as you learn how to successfully buy and profit from real estate investing in your local area.
  • A cash buyers list will help you make money investing in real estate when you wholesale property to them without your assuming the risk of doing the deal on your own.
  • A cash buyers list can be a great source for property leads that meet your criteria.
  • A cash buyers list can help you make money from property leads that do not meet your investment criteria.

As you can see there are a lot of reasons why you need to build a cash buyers list and then maintain that cash buyers list over time.  It offers you more opportunities to make money and enter a new real estate investing area with reduced mystery and risk.  If you are not quite sure how to build a cash buyers list, you can go back into prior posts on this blog for pointers and tips.  We also offer an option where you can piggyback off of our cash buyers list.  If you want to learn more about this option, you need to fill in our form and let us know which option you want to pursue. 

February 11, 2013 / 1 Comment / by / in , ,
Do You Need Cash Buyers? Here is a Fast Solution!!
No Cash Buyers List - No Money!!

No Cash Buyers List – No Money!!

Many people who are wholesaling real estate nationwide find one consistent obstacle to making money consistently in real estate investing…….a cash buyers list. Within this blog, I have identified many different ways to find and qualify cash buyers, but some of you might struggle still with being able to find the right cash buyers or “REAL” cash buyers.  The solution we offer to that is access to our cash buyers list.  We have a nationwide list of cash buyers that are actively buying wholesale properties from real estate wholesalers today.   We have four different ways that you can access our cash buyers list.

Option 1:

  • List specific to your investing areas of Cash Buyers & the properties they have bought that consists of cash buyers mailing information & property addresses purchased

Option 2:

  • Cash buyers list with guaranteed contact information consisting of email and/or phone number, investment focus, & investment note

Option 3:

  • Email blast to our WholesaleDealMatcher.com subscribers, Facebook subscribers, and Linkedin subscribers.

Option 4:

  • Our Personal Qualified Cash BuyersLlist.
  • Waiting for you to contact them to buy your property!
  • Flat fee or agreed upon % of profit the wholesaler nets when sells to our cash buyer

If you would like to learn more about accessing our cash buyers list , please go here and fill in the form, so we can identify what type of cash buyers list you are looking for and where you want your cash buyers to be buiying wholesale properties.  We want to help you get up and running in the real estate wholesaling business as soon as possible.  The reality is that without a cash buyer to buy your wholesale property, you are going to be just spinning your wheels and not making money in todays hot real estate market.

February 5, 2013 / by / in , ,
Why Should You Invest In Mobile Homes in Mobile Home Parks?
Invest in Mobile Homes In Parks

Invest in Mobile Homes In Parks

Would you have ever thought that a mobile home could be a great investment vehicle? Let alone a mobile home in a mobile home park?  No matter the stigmas and stereotypes, mobile homes are great little cash cows.  There are so many ways to make money from mobile homes, it would be a shame to retain a negative perception of these little money machines. I hope to open up your mind to the possibilities that mobile homes offer and remove those stereotypes for you.  Why?  Well, simply because if you still hold those beliefs to be true, you will have a very hard time seeing and realizing all of potential these little moveable homes possess.

No matter how much money you have right now, you can make money investing in mobile homes.  You can invest a minimal amount of money and make a great return.  Depending on how aggressively you approach investing in mobile homes, you could have a nice monthly cash flow and no longer work for someone else.  If you have invested in real estate before, you know that a monthly positive cash flow of $300 or more dollars per single family home is a rare thing in some markets.  But, i do know there are some real estte markets, where you can make that kind of cash flow if not more, however, these real estte markets are not everywhere and not for everyone.  In many cases, they are in low income areas that have been hit very hard by the economy and might be many miles away from where you live.  What if I told you that you can make that and more each month on one mobile home over 5-30 years without the headaches of being a landlord!!!  If you buy and sell mobile homes the way I do, you will have this same type of cash flow each month from one mobile home.    Now consider if you had a bunch of these producing the same cash flow each month?  Let’s say, you had just 18 of these producing $200 a month, you would be bringing in $3600 positive cash flow a month.  Would you be able to quit your J-O-B then??? You definitely would not have to worry about making sure the tenants needs and repairs are taken care of each month and pay a property manager to manage those issues for you.  You would be receiving a monthly check from someone who owns the mobile home and wants to pay you so they can eventually own it outright.  I have only had about 10% of my seller financed mobile homes go into default.  The benefit for me is that I have already received my initial investment back in full and in most cases have already received a profit before they went delinquent on their loan with me.  I just clean the place up, collect another down payment, and monthly payments from the next buyer who want to own my mobile home.  I don’t have to worry about being able to qualify to refinance a loan either, because it is paid in full within 6 months to a year of selling the home with financing.  I have the same type of cash flow as a site built rental property without the outstanding debt or the headaches of being a landlord.

What if I told you that you could do this with only a few thousand invested?  Yes, you read that right and it does not even have to be your own money.   Most of the mobile homes I buy are bought for $6,000 and less.  Do you think you could raise at least that and buy your first mobile home? I am sure you can get at least that much if not more.  After all, how many of you have a credit card, a savings account, a car, boat, atv, travel trailer that you own free and clear, equity in real estate, retirement savings account, or a few friends or relatives.  If you do not have any of these to utilize, you could set up your business and gain a business line of credit with a local bank.  I set up a business banking account and asked for a line of credit.  The bank asked me to fill out a form and within 12 hours I had a line of credit for $5,000.  I did the same thing at another local bank and got the same thing.  You can see the trend and the amount of cash you could have at your disposal without much effort or time exerted.   You can network and find others who have money and want a great return.  You can network with people who want to make a better return on their money.  At one point in my business, I wanted to move into buying mobile homes on land, so I was looking for funds to acquire these in Arizona.  I started networking within my sphere of influence and a good friend of mine suggested getting in touch with a local hard money lender.  I called him to see if he was willing to invest in mobile homes on land in Arizona.  He said that he was not interested in investing in that market, but that he liked to invest in Utah and asked if I had anything I was looking to invest in Utah.  I told him that I did not have any mobile homes on land in Utah, but I was actively buying mobile homes in parks.  He was intrigued and asked me to explain a little bit more about what I did.  To say the least, he asked me to put together a prospectus and outline of the deals I had done and meet him for lunch.  We had another meeting after that, which is the meeting that he offered to fund all of the deals I wanted to get into as long as I taught him how to do the business.  We were going to split the proceeds for each deal after he received his initial investment back plus 10%.

Okay, well what if none of these work for you and you still can’t find money to buy mobile homes? There are peer to peer lending networks or P2P lending networks that you can post your money need and have a network of people bidding on your offering and help you gain the funds you need to start or continue buying mobile homes where you can make amazing returns. These are just a few of the sources I have tapped into to find money to buy my mobile homes in mobile home parks.

So, do you think you can make money investing in mobile homes now?  I hope you can at least see the potential now.  Really, the only obstacles you face are those that you place in your own way!!!

Learn how easy it is to invest in the Mobile Home Real Estate Industry! Please register for our FREE Mobile Home Investing Webinar called Tin Can Profits! (Yes, that’s what we call it.) on Jan 24, 2013 7:00 PM MST at:
https://attendee.gotowebinar.com/register/1427201625011787520

While the rest of the investing world jumps on the latest Real Estate investing craze, avoid the competition and market mayhem by investing in Mobile Homes.Investing expert Dawn Erling will show you how easy it is to make money in this lucrative market. She will give you her inside ideas and tricks that have helped make her the mobile home investing expert she is today. Be-aware that this niche isn’t for everyone… so if you are looking for lower investing price points, faster turn-a-round investments, and how to make quick cash then join our free webinar! WholesaleDealmatcher.com is proud to sponsor of this webinar. After registering, you will receive a confirmation email containing information about joining the webinar.

January 20, 2013 / by / in , , , ,
Warning Signs & What To Stay Away From When Evaluating Mobile Homes For Repairs
Mobile Home Repairs

Mobile Home Repairs

When you are evaluating a mobile home, you must take into consideration the overall condition of that mobile home.  There are some repairs that will cost more than some mobile homes will be worth in the end.  The factors that impact the value are going to be the location, condition, and type of mobile home park.  You could have two mobile home parks sitting right next to each other and the after repair value for the same type of mobile home could be very different.  For instance, if you have a mobile home in an area where the mass population is not 55+ you are going to wait longer to sell the mobile home and for half as much as in a family park.You must make sure you thoroughly evaluate each mobile home, so you can ensure you are not missing a major expense. The after repaired value of the mobile home will dictate the level and severity of the repairs  that you should do.  In fact, I bought a single wide mobile home 2 beds 1 bath 800 square feet for $299.96 from the mobile home park.  Since, I paid so little for it, I could go in with a larger budget and do the necessary repairs to the roof and bathroom.  The most expensive repairs for all mobile homes are the following:

  • Roof replacement
  • Siding replacement
  • Furnace replacement
  • Structural issues
  • Underbelly plumbing replacement
  • Major mold issues
  • Moving mobile home
  • Window replacement

The repairs that can push you beyond the value of some mobile homes are the following:

  • Complete kitchen remodel
  • Complete bathroom remodel
  • Carport add on
  • Steps & porch add on
  • Exterior painting

I have a specific budget that I keep for each of the types of mobile homes I buy, fix, & sell.  I have a different budget for single wides than I do double wides.  It allows me to ensure that I have enough room in the deal to make sure I can make my required profit.  It gives me a guide by which to evaluate each mobile home.  I know that if the current condition exceeds my set rehab budget that I need to move on to the next mobile home to preserve my profit.  I allow for a bit of cushion in this budget for unexpected expenses.

It is all based on how much I can sell the mobile home for and what condition the mobile home has to be in to sell for that top value in the mobile home park it is located in and who my target buyer is going to be.  Essentially, I run my numbers backwards to arrive at what I can afford to pay for the mobile home to make the money I need after repairs are done and holding costs are accounted for and end up meeting my rate of return.

Learn how easy it is to invest in the Mobile Home Real Estate  Industry! Please register for our FREE Mobile Home  Investing Webinar called  Tin Can Profits! (Yes, that’s what we call it.) on Jan 24, 2013 7:00 PM MST at:
https://attendee.gotowebinar.com/register/1427201625011787520

While the rest of the investing world jumps on the latest Real Estate investing craze, avoid the competition and market mayhem by  investing in Mobile Homes.
Investing expert Dawn Erling will show you how easy it is to make  money in this lucrative market. She will give you her inside ideas and  tricks that have helped make her the mobile home investing expert she is today.  Be-aware that this niche isn’t for everyone… so if you are looking for lower investing price points, faster turn-a-round investments, and  how to make quick cash then join our free webinar! WholesaleDealmatcher.com is proud to sponsor of this webinar.  After registering, you will receive a confirmation email containing information about joining the webinar.

January 19, 2013 / by / in , , ,
Mobile Home Investors: Learn Why Mobile Home Park Owners Want Mobile Home Investors to Buy In Their Park
Mobile Home Park Managers Want to Work With Mobile Home Investors!!

Mobile Home Park Managers Want to Work With You!!

It might seem crazy to say this, but many mobile home park owners are turning to mobile home investors for help in filling their vacant lots, help with rehabbing abandoned mobile homes, and help them keep mobile homes in their park by buying them from mobile home sellers.  I will address why they are willing to work with mobile home investors in a two part blog.  In this blog post, I will address why there is a lack of supply of mobile homes and why mobile home park owners don’t want to own park owned homes.

One of the biggest challenges that mobile home park owners face right now is vacant lots and a lack of available mobile homes to move into those vacant lots.  The quantity of mobile homes available for a mobile home buyer to buy has decreased a lot over the last few years.  One reason is that the number of mobile homes produced has decreased considerably over the last few years, due to the lack of financing available for retail buyers to buy a new mobile home and move it into a mobile home park.  Also, the retail buyer is having a harder time qualifying for the financing that is available for these new mobile homes.  A lot of the older mobile homes have been scrapped by mobile home park owners & mobile home owners.  Many of the older mobile homes that were scrapped had deteriorated beyond the value of the mobile home to address the repairs.
Mamy of the mobile home parks nationwide face fierce competition to keep mobile homes in their parks, due to the lack of supply.  If a mobile home park manager is not on top of what is occuring in their park or friendly with the mobile home park tenants, they will miss out on opportunities to help prevent tenants from selling their mobile homes to people who will move them out or the tenant from moving it out themselves.  There are a lot of mismanaged mobile home parks nationwide and these parks are the ones with the most vacant lots.  They will be the most motivated to work with mobile home investors when they want to try and turn the park around.  Many of these mobile home park owners do not want to have park owned homes, because of the increased expenses to rent those out to tenants and the additional management needed to turn these rentals around.
As you can see, there are some real big reasons why mobile home park owners are more motivated and interested in working with mobile home investors now than ever before.  I was just talking with a regional manager for one of the largest mobile home park owners in the Nation and he said their company loves working with mobile home investors, because we help make thier lives easy and keep their mobile home parks full and profitable.  He even proceeded to tell me all about their moving a mobile home into their mobile home park incentives for mobile home investors.  It is a pretty slick program that definitely has the mobile home park invested along with the mobile home investor in moving in and keeping that mobile home in that park.
If you would like to learn more about Mobile Home Investing please register for our FREE Mobile Home  Investing Webinar called  Tin Can Profits! (Yes, that’s what we call it.)on Jan 24, 2013 7:00 PM MST at:
https://attendee.gotowebinar.com/register/1427201625011787520
While the rest of the investing world jumps on the latest Real Estate investing craze, avoid the competition and market mayhem by  investing in Mobile Homes.
Investing expert Dawn Erling will show you how easy it is to make  money in this lucrative market. She will give you her inside ideas and  tricks that have helped make her the mobile home investing expert she is today.
Be-aware that this niche isn’t for everyone… so if you are looking for lower investing price points, faster turn-a-round investments, and  how to make quick cash then join our free webinar!  WholesaleDealmatcher.com is proud to sponsor of this webinar.  After registering, you will receive a confirmation email containing information about joining the webinar.
January 19, 2013 / by / in , , ,
Considering Mobile Home Investing: Check These 3 Factors Before You Buy A Mobile Home In A Mobile Home Park
Learn How to Be Successful Investing in Mobile Homes

Learn How to Be Successful Investing in Mobile Homes

Anyone who is considering getting into the mobile home investing business needs to make sure they check a few key factors out first or else you stand to potetniall loss money.  If you do not check into these factors, you might have a few hidden expenses that could reduce your profit margin.  If you are considering buying a mobile home or manufactured home in a mobile home park, you need to make sure you check into three factors that could impact your investment and cost you more money.

  1. You need to contact the mobile home park manager or mobile home park owner and make sure that there isn’t lot rent owed that will transfer over to you when you buy the mobile home.  In some cases, the mobile home can not be sold or moved until all of the back lot rent is paid in full.  Why is this your problem?  Well, it might impact the amount of money the seller sells their mobile home for in order to pay off that existing debt.  It could take more money out of your pocket in the end.  In some cases, the lot rent outstanding will transfer with the mobile home and not the tenant.  You could face a large bill when you take over ownership of the mobile home, because of this oustanding lot rent.  In many cases, the utilities that are outstanding with the prior tenant will be passed onto the new buyer too.  You really need to check with the mobile home park manager to make sure you are not assuming someone elses debt & burden.
  2. You should check with the tax assessors office to see if the personal property taxes are paid current.  Specifically, you will call the county personal property tax assessors office.  Also, you should make sure that the tax deed has not been sold recently.  If it has been sold recently, the legal & titled owner will be someone other than the current seller…possibly.  You want to make sure that the persons name and address listed on the tax record is the same as the person who is selling the mobile home, even if they claim they have title to the mobile home.  It might not be a legitimate or current title.
  3. You will need to confirm that the seller has title in hand and that it is a valid & current title transfer.  If they do not have title in hand, they probably have a lien on the mobile home that needs to be paid in full before they transfer it to you.  It could add additional time and money to your mobile home acquisition time frame.  In many cases, you find that there is a dispute between the borrower and the lien holder that may not be able to be resolved.  Often, it is due to a payment dispute which could cause you problems.  If they do not have title in hand, you need to walk away and not look back on that deal.

I hope you check these 3 factors before you consider buying a mobile home or manufactured home in a mobile home park.  Performing your due diligence will save you a lot of money and headaches in the long run.  After all, you could potentially buy a mobile home from someone who does not legally own it, if you do not do your homework.

Learn how easy it is to invest in the Mobile Home Real Estate  Industry!  Please register for our FREE Mobile Home  Investing Webinar called Tin Can Profits! (Yes, that’s what we call it.)  on Jan 24, 2013 7:00 PM MST at:  https://attendee.gotowebinar.com/register/1427201625011787520
While the rest of the investing world jumps on the latest Real Estate investing craze, avoid the competition and market mayhem by  investing in Mobile Homes.
Investing expert Dawn Erling will show you how easy it is to make  money in this lucrative market. She will give you her inside ideas and  tricks that have helped make her the mobile home investing expert she is today.  Be-aware that this niche isn’t for everyone… so if you are looking for lower investing price points, faster turn-a-round investments, and  how to make quick cash then join our free webinar!  WholesaleDealmatcher.com is proud to sponsor of this webinar.  After registering, you will receive a confirmation email containing information about joining the webinar.

January 19, 2013 / by / in , , ,
Is Your Real Estate Market Heating Up? Are You Struggling To Find Wholesale Properties? I Have A Solution!
Learn How to Invest In Mobile Homes

Learn How to Invest In Mobile Homes

I buy Single Family Residences in Utah.  I have noticed that the inventory has decreased quite considerably within the last 9 months.  Therefore, the typical wholesale property is becoming harder to Get an offer accepted, because there is more competition in the market place from retail buyers and landlords.  I travel all over the country, so I am in a lot of different real estate markets.  I am seeing the same type of thing poking up in many of the real estate markets throughout the United States & Canada.So, if you are new to real estate investing, you might find it difficult to get your whosale offers accepted.  In some cases, you might be entering wholesaling as a way to put capital in your pocket and get your real estate investing business up and running. The big question is….can you still make money wholesaling real estate? The answer is yes, but it is going to take longer to get wholesale offers accepted and evenlongest to make money with these challenges in place until you really dial in on your market and find your niche.

I have a solution to this problem.  The solution will get you earning money in almost any real estate market quickly.  The solution is a niche that I have actually been laughed at for doing.  In fact, any time I have stood up in a real estate investment club meeting and said what I do, I have received some interesting feedback and a sigh or two. You know what, I am glad they feel that way, because it keeps my competition low and my cash flow high.

So, guess what my niche is?  I buy, fix, and sell mobile homes and manufactured homes in mobile home parks. I even wholesale mobile homes with or without financing too.  Did you know you could even do that?  Okay, we’ll you may have thought it was possible, but did you know how much you could make per mobile home deal versus what you make with your typical wholesale deal?  Let’s just say it can add up to a lot of money, if it is done correctly. It could also become a long term cash flow producing investment too with no real carrying coSts either.  If done correctly, you could even get all of your money back within 12 months or less and still make 12-18% return on your initial investment.

Let’s do a quick comparison onconservative numbers.  On average, we net about $3000 on a wholesale real estate deal and if we have a money partner on our rehab & sell properties it might end up around $6000 in the current real estate market. Okay, so that is for your typical single family residence deal.  Now here is an example of what I made on a quick flip deal, I bought the mobile home for $5,500 using a business line of credit.  In a week, I sold it for $14,500, which is a profit of $8950 with my finance charge of $50 being pulled too.  Not too bad for a weeks worth of work.  It was noteven a manufacturedhomer, it was in the mobile home era and it was a single wide with 3 bedrooms and 1. 3/4 baths in a nice family park.  We just cleaned it up and sold it, so there were not any repair costs either.  We did not hold it long enough to pay lot rent and we kept the priorowners security deposit in place.  It is just one example of the money you can make in the mobile home investing world.

I have one additional point to make here too.  I was talking the other day with my single family residence investing business parrtner, who said we are slow now because we are having a hard time finding propertieS that meet our investment criteria.  I laughed and said well maybe we should do more mobile homes now.  She looked puzzled and said what do you mean.  I stated I put an ad out earlier this week that we buy mobile homes and I have received 10solid phone calls where people just need out of their mobile home.  Oh and by the way they are looking to buy single family residence like what we buy, fix, and sell, so we betterstart getting more inventory, can we cthe double dip on theseleads I have right now.  Now, I hope this has helped you to see the amazing opportunity intone current real estate market to have a low cost investment and make the same return if not more buying & selling mobile homes.

If you would like to learn more about investing in mobile homes please register for our Mobile Home Investing Series on Jan 24, 2013 7:00 PM MST at:
https://attendee.gotowebinar.com/register/1427201625011787520
Tin Can Profits! (Yes, that’s what we call it.)
In this webinar, you will learn how easy it is to invest in the Mobile Home Real Estate  Industry! While the rest of the investing world jumps on the latest Real Estate investing craze, avoid the competition and market mayhem by  investing in Mobile Homes.  Investing expert Dawn Erling will show you how easy it is to make  money in this lucrative market. She will give you her inside ideas and  tricks that have helped make her the mobile home investing expert she is today.
Be-aware that this niche isn’t for everyone… so if you are looking for lower investing price points, faster turn-a-round investments, and  how to make quick cash then join our free webinar!  WholesaleDealmatcher.com is proud to sponsor of this webinar   After registering, you will receive a confirmation email containing information about joining the webinar.

January 18, 2013 / by / in , , , , ,
Real Estate Wholesalers Learn The Indicators Of A None Investor Friendly Real Estate Agent
None Investor Friendly Real Estate Agents

None Investor Friendly Real Estate Agents

What often happens to new investors and real estate wholesalers is that they find a real estate agent who talks a good talk and appears to send good properties to make offers on; however, when the real estate investor or real estate wholesaler really starts learning about the market they find that what the real estate agent is recommending is not entirely true or is not really in line with the real estate investor’s investment criteria.  Real estate investor need to find an investor friendly real estate agent, who understands how real estate investing works and how to help real estate investors accomplish their investment goals.  The items listed below are limitations that some real estate agents might have; you don’t want to work with these limited real estate agents.

  • The none investor friendly real estate agent might have a limited understanding of the market, or their experience may be limited to a small area. If such is the case, the  investor friendly real estateagent might constantly bring you back to the area they are comfortable with.
  • The  none investor friendly real estate agent might limit him or herself based on price point or property type. They might not like going into a lower income area or working with a property that needs major repairs.
  • The none investor friendly real estate  agent might be eager and willing, but they might have limited experience and understanding for the market you need.
  • The  none investor friendly real estate agent might be limited in their ability to listen to you or to respond to your requests quickly.
  • The  none investor friendly real estate agent might be limited with their time and be too busy (or lazy) to show you enough properties or to perform the detailed searches and reports you need.
  • The  none investor friendly agent might place a limit on the amount they are willing to work for and be unwilling to work for lower commission amounts. In fact, some none investor friendly agent might even have commission caps.
  • The  none investor friendly real estate agent might only send you their, or their office’s, property listings. If these properties are good deals, certainly take advantage of them, but be aware that such a relationship severely limits your opportunity to find good deals.  The none investor friendly real estate agents that approach it like this are acting as an employer and not an employee and are probably not your best option.
  • The  none investor friendly real estate agent might simply give you access to the Multiple Listing Service (MLS) or key codes to get into properties, but if that’s all they’re doing, you need to ask yourself if they are making you work too much for what you’re paying them.
  • The  none investor friendly real estate agent might consistently send you the Client Summary version of the MLS listings for the properties. These limited listings don’t have the details you need to make a sound investing decision based on value, condition, and overall quality of the deal.

Your investor friendly real estate agent will be an important part of your power team; they must be on board with you and your business plan or you’ll need to find a different agent. Always remember: you are paying them, so they are working for you, not the other way around. You dictate where you’re going to spend your money and what investment criteria you’re focusing on, not them. It’s great to be open minded to new areas and opportunities, but if you lose sleep at the thought of investing in a particular area, or property, you’re being untrue to yourself and you won’t find comfort in that investment. You need to invest where, when and in what you feel comfortable investing in, after all, the real estate agent isn’t investing their money into the property, you are.

If you want to learn more about finding investor friendly real estate agents, I recommend that you read a book titled “Surefire Techniques to Find Investor Friendly Agents.”  It discusses the characteristics any real estate investor should look for in a real estate agent too.  It is a great read.

January 13, 2013 / by / in , , ,
What is Wholesaling Real Estate Going to Look Like in 2013?
Wholesale Property 2013

Wholesale Property 2013

Lets first start off by defining what wholesaling real estate is and who is involved in wholesaling properties.  Wholesaling real estate consists of identifying cash buyers who are actively buying investment properties in a local real estate market, getting their investment criteria, finding properties that meet their investment criteria, and then selling the information, contract, or property to the cash buyer for a fee.  The most common cash buyers you are going to find in any real estate market are real estate investors who are buying investment properties to rehab and sell to FHA buyers or credit challenged buyers or rent out.  These cash buyers are professional real estate investors who have bought and sold properties for an period of time in the current real estate market.  In some cases, these cash buyers are seasoned veterans who have bought and sold tons of properties over the years and thru a variety of different real estate markets.  These cash buyers are the ones that Wholesalers of real estate should really follow and learn their tricks of the trade.  These cash  buyers know how to make money in any real estate market.Wholesaling real estate up to 2012 consisted of finding cash buyers and passing wholesale properties onto them via bird dogging, assigning, or double closing with them in exchange for money.  The types of cash buyers we worked with during this time were most commonly rehabbers who bought properties, fixed them up and sold them to owner occupants who qualify for financing and those who dont qualify for financing as well as landlords wanting to rent properties out.

Toward the end of 2012, I started seeing more novice cash buyers coming into the market place.  A lot of these novice cash buyers are people who have money from retirement accounts that are looking for a better return than what they are currently receiving.  Many of them do not want to learn about real estate investing, they just want to reep the benefits of investing in real estate.  In fact, you will find that many of these cash buyers are migrating toward turn key rental properties. A turn key rental is a property that has been fixed up, rented out, and it has property management in place. These novice cash buyers want a headache free and minimal return on their cash investment.  Sometimes it will be as low as 6%-8% return.

The reality is that in many cases they are paying more than retail for these investment properties, because of the income these properties are producing.  The trend is no different than in years passed where as the market heated up then the stock market and conservative investors jumped onto the real estate investing band wagon.  The problem with these types of cash buyers is that they are not savvy enough or expereinced enough to really have dialed in and concrete investment criteria, so it is difficult to hone in on what exactly they want to buy or the type of return they want to invest in.  These cash buyers will most likely over pay in the local market place due to their lack of education, thus they will drive up the property values in the areas they are investing.  It can be a good and a bad thing in many markets.  If you want a good example of what I am talking about, just think back to what happened in Phoenix metro, Las Vegas metro, and throughout Florida between 2003 to 2006.  It was a factor of novice cash buyers buying an investment property at the top of the market and they hoped it was going to sell for more in a few months due to appreciation.

The moral of this story is that real estate wholesalers might have more cash buyers to buy their wholesale properties in 2013.  Real estate wholesalers might have a new group of cahs buyers who will pay more than their usual seasoned cash buyers in any real estate market.  In 2013, you might see a large increase in the number of cash buyer you can pass your wholesale properties onto. It will result ultimately, in the real estate wholesaler making more money in 2013 from passing on wholesale properties to cash buyers.

January 2, 2013 / by / in , , ,
Are You Buying Investment Properties? All Cracks Are Not Created Equal.

I am in Houston, TX this week looking for investment properties we can buy fix, and sell or fix and sell as a turnkey rental.  In some areas, you will find common flaws for the area.  What do I mean by flaws?  These might be foundation issues, water issues, roof issues, landscaping issues, structural issues, or fascia issues.  For instance, Houston had a very hot and dry summer this past year, so a lot of the foundations in the area have broken or cracked due to them not being irrigated correctly during this time.  You will find this in many of your southwestern states where they have  extreme heat and lIttle precipitation.

How do you know if any one property was affected by the extreme heat? You will need to look for evidence of foundation issues on the exterior fascia and the interior walls and flooring.

Here are some of the main items to look for:

  • Many of the homes in that area have brick exteriors.  Brick exteriors will easily show shifts, settling, and any movement.  You will find that the mortar will crack in areas that have moved.  Most times you will find these cracks originating at the roof line or from window or door openings.  The lonager the crack in the mortar the more concerned you should be.  The biggest concern should arise when the crack is wider than the width of a quarter.  It is even more severe, of you find that the crack has gone thru a brick instead of around it.  The number of cracks in the brick exterior are also a concern.  If the brick fascia is moving forward or bowing outward, you need to do more investigation into the reason for this direction of movement.
  • The foundation is obviously a place to look for cracks.  In a lot of case, the foundation will show just above the ground and will allow you to see any issues with it. You should look for cracks in areas where  a basement window or door are located.  Also, you should look at corners and other weight bearing areas on the foundation for cracks?  In some cases, the cracks will be on a stucco like material added to the foundation for a nicer finish and not the actual foundation itself.  Where you find brick mortar cracking, you might find foundation cracking too.
  • You will want to check entry doors and door frames for settling too.  In some cases, the settling will be so bad that you will find the door is hard to open or close.  You might even see visible cracks in the wood around the opening. Garage doors will not open or close properly or you will find that the garage closes on one side but there is a large gap on the other side
  • The basement or crawl space will offer more information about settling.  You will need to look in area where windows and doors are located and where most of the weight of the homeborn being held.  If you find surface cracks, you might need to do a little more investigative work.  If the cracks are wider than a quarter, you should consider that there are some issues with the foundation.  Some floor cracks are common and more common in some areas than others, but when you have a lot of cracks running all over the basement floor, you should consider moving onto your next investment property.  You should note whererepairs have been made in this area too.  The floor may have been releveled or resurfacedTo hide the issue.
  • The ceilings and walls will show shifting and settling too.  When you are inside the investment property you might find around the door and window openings cracks leading down to the floor or up to the ceiling.If these are large cracks that are prolific throughout the investment property, you might consider walking away or further investigation.  Plaster finishes are less forgiving than drywall finishes, so you will see the settling in plaster more readily than you will in dry wall.  If the doors in the investment property are closing on there own or they are difficult to open, then there has been some settling that has occurred.
  • All of these factors are indicators that shifting and settling has occurred with the investment property you are considering investing in.  You will find some evidence of settling in most every home you go into, but the severity and amount of cracking will be the true indicator of whether it is usual or unusual cracking.  The more severe cracking might be an indicator of foundation issues or other structural factors being present in that investment property! This you will either need to run or seek further help to investigate the severity and options for resolution.  Foundation and structural issues can be quite expensive to resolve.
January 2, 2013 / by / in , , , ,