Hello. I've been reading the forum for awhile but haven't really been active. I decided to post a new member intro earlier today and now I wanted to post about what I've been working on.
I became interested in wholesaling properties a few months ago after reading about it here. Since then I've been reading and trying to learn as much as possible about this. A few weeks ago, I decided to start taking action and send letters to property owners in my area who could potentially be motivated to sell their home quickly. I've only sent about 75 letters so far and have tried to limit sending letters only to property owners that own their home free & clear or at least have some equity.
Yesterday I received my first response via email. The lady who contacted me said explicitly that she was contacting me by email because she had a bad experience with another group of investors in the past so she didn't want to provide her phone number. To briefly describe her situation, she lives on the West Coast and the home is located in Illinois. She has a long-term tenant in there who she hoped would buy the property but didn't because he was hit by the recession (her words). She says she is motivated to sell and willing to sell at a considerable discount to avoid paying a realtor, fees, traveling back here, etc. She then asked me what my investors and I were willing to pay for the property.
After researching the property a bit more, I responded to her with a few more questions about the property including asking about the lease agreement with her existing tenant and what she was hoping to get for it and have yet to hear back. I checked the property records and it appears the owner has a mortgage of about 100K. In good condition, I believe conservatively, the property is worth about 130-135K. I had a difficult time finding recent comps in the neighborhood and if I go back 6-12 months and look at sales, I can find data that shows it might be worth significantly more than this.
I'm pretty excited to have received a response from a seller that seems motivated but lacking experience, I'm not sure I have much chance of turning this into a deal. Most of what I've read and heard on wholesaling is geared toward selling the property to a rehab investor. I see this more as a deal where I'd be selling the property to a buy and hold investor and it's a bit more unclear to me how I would evaluate this as a good deal. Thanks in advance for your input.
I became interested in wholesaling properties a few months ago after reading about it here. Since then I've been reading and trying to learn as much as possible about this. A few weeks ago, I decided to start taking action and send letters to property owners in my area who could potentially be motivated to sell their home quickly. I've only sent about 75 letters so far and have tried to limit sending letters only to property owners that own their home free & clear or at least have some equity.
Yesterday I received my first response via email. The lady who contacted me said explicitly that she was contacting me by email because she had a bad experience with another group of investors in the past so she didn't want to provide her phone number. To briefly describe her situation, she lives on the West Coast and the home is located in Illinois. She has a long-term tenant in there who she hoped would buy the property but didn't because he was hit by the recession (her words). She says she is motivated to sell and willing to sell at a considerable discount to avoid paying a realtor, fees, traveling back here, etc. She then asked me what my investors and I were willing to pay for the property.
After researching the property a bit more, I responded to her with a few more questions about the property including asking about the lease agreement with her existing tenant and what she was hoping to get for it and have yet to hear back. I checked the property records and it appears the owner has a mortgage of about 100K. In good condition, I believe conservatively, the property is worth about 130-135K. I had a difficult time finding recent comps in the neighborhood and if I go back 6-12 months and look at sales, I can find data that shows it might be worth significantly more than this.
I'm pretty excited to have received a response from a seller that seems motivated but lacking experience, I'm not sure I have much chance of turning this into a deal. Most of what I've read and heard on wholesaling is geared toward selling the property to a rehab investor. I see this more as a deal where I'd be selling the property to a buy and hold investor and it's a bit more unclear to me how I would evaluate this as a good deal. Thanks in advance for your input.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
