Would you like to make $1,000 to $4,000 a month? If your answer is "No" than don't read this post. If your answer is "yes" than read on because I am gonna explain how you can make this happen in today's real estate market.
There has never been a better time than now to profit from real estate. With foreclosures, preforeclosures, short sales and REO properties there is a flood of opportunity to buy houses at a huge discount. There is no doubt that there are more discounted properties than there are buyers for these properties. But the key to remember is "There are Buyers" . There are Investors, End Buyers and Corporations that are ready, willing and able to buy these properties and there are huge profits to be made in putting the two together.
The process is called real estate wholesaling. It is a process in which you (the wholesaler) find a property for sale, negotiate the deal, lock the deal up on an agreement of sale and assign that contract to a buyer for a profit.
The best properties are the "ugly" properties! Drive your neighborhood in search of vacant properties. Look for properties with high grass, boarded up windows etc... In an effort to make sure a property is vacant I will drive by the property again once the sun goes down. No lights on means no electric. Good indication that it is truly vacant. Once you locate a property take pictures and write down the address.
To find the owner of the property simply call your local tax office. They will have the owner's name and current address if different from the property address. I have provided links in the side bar with sites where you can locate property owner information.
You must get as much information as possible on the property before you contact the owner to negotiate a selling price. Find out the Market Value (Visit realwholesaling.blogspot.com for a list of websites that provide the market value of real estate) , the taxes, in the tax records you can also see how much they paid for the property and how long they have owned it.
If you have located the phone number to the owner (whitepages,com) call them and ask them if they are looking to sell their property. Ask them how much they will take if you offer cash and can close in 30 days. Once they give you a price ask to see the property. Try to take a contractor with you or someone knowledgeable in home repairs. Tell the owner that you will contact them shortly with your offer.
Here is a sample formula for determining the maximum allowable offer (MAO)
Market Value
Subtract estimated repair costs
Subtract your assignment fee ( how much you want to make on the deal.)
Subtract 30% profit for investor buyer (Subtract 30% from the Market Value)
_____________
Offer $
If the seller agrees to your offer you must lock it in with an "Option to purchase contract" or "Sale agreement". Read my blog (Assigning a property) for more information on this process.
Call adds in the news paper that say "We buy Houses" etc..., post adds on classified sites like craigslist.com and backpage.com. Keep track of all of the buyers that you contact or that contact you. This buyers list will be an asset with future deals.
Once you have a buyer you will transfer the deal to the buyer through an Assignment contract. This contract is very important because it will ensure that you get paid at settlement.
Now pocket your profit!!!
Written by Carol Stinson. All rights reserved.
For more information on Real Estate Assignments I recommend the book 'Be A Real Estate Millionaire" by Dean Graziosi. You can find it in the recommended book section of Real Wholesaling.
For The Bird Dog
