Question for established investors, what's been working for you?

[hassansr 0]

In the Atlanta market, what seems to be working is wholesaling to cash buyers. The hard part about it is the fact that most cash buyers have a good understanding of how the biz works and how to find deals. This fact is causing me to focus a lot more than usual on developing closer relationships with potential buyers and focus on reaching out to many more of them to get just one. I don't spend nearly as much on marketing to sellers as I use to, but spend more time finding deals via networking. I am also using options more than ever.

 

How have you guys (and gals) that are wholesaling been able to successfully been able to adjust to the changes in the market? What methods and techniques have been working for you this year?

[MichaelC 160]

Hassan, if we don't adapt to current market conditions, we go the way of T-Rex.

Used to be my efforts were spent on sellers, too, trying to get a deal. Not anymore. I can shoot out some emails this afternoon and score one without much effort. Problem is, the deal may very well be one I don't want because the numbers are so screwy. That said, nowadays my time is spent trying to find someone, anyone, to take the deal off my hands. Either a tenant/buyer or, more likely, a tenant. In my area, folks are very wary about committing to a price a year down the road because prices are falling hard here in south FL.

[<Steve> 82]

I agree with MC. Adjusting to the market is key. The standard boiler plate way of doing things works but may not get the deal done in this market. Finding a good tenant or tenant/buyer with $$ and Ok credit is a challenge.

 

While reading this post, I received a call from a potential t/b that looked at a property yesterday. He needed a lower rent and I need to get this house leased this month. In our conversation at the showing he mentioned that he had sold a couple big ticket items and it sounded like he had some cash. So, when he asked if I could lower the rent I mentioned, "well it's possible, how much can you put down?" So when he called tonight and asked again how low I could go on the rent, I replied, "the more you can put down the lower I can go on the rent."

 

The result looks like I will receive an extra $3,500. in option consideration and he will get $250. off the rent. So, really he is Pre-paying the rent $250. x 12 months = $3K and I am making an additional $500.

 

When he faxes his application and qualifies the house is his.