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.
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