5/20/2008
I've been feeling kind of "out of the loop" lately, so today I pretty much sat on the phone all day and did a whole lot of networking. I literally had the phone glued to my ear for at least 8 hours. It's amazing what you can learn by just going up and down your buyers/investor list and calling people to see what they are up to and what they are looking for (if anything). So, anyway, I spent all day on the phone, calling buyers and also several other wholesalers that I have lost touch with over the last month or so. I also just got off the phone with a commercial broker who has 2 buddies in California who are looking to invest 500k in this market. Apparently they don't really know what they are doing, and are looking for someone to find them deals. I think I may know someone who might be able to help. Hehe. I'm definitely following up with this guy in a few days if I don't hear from him...
I'm meeting the guy with the NY buyers for lunch tomorrow, and keeping my fingers crossed that it isn't a big fat waste of my time. We shall see..
What else. I've got a whole shit load of offers out there right now, so I should be hearing something back by the weekend.
I'm trying to focus on quality as opposed to quantity when it comes to my wholesale deals, so my offers have been getting lower and lower. I know I will get less accepted this way, but I would rather do one really nice deal a month as opposed to 3 little ones. It will require me to make more offers, probably, but I can live with that...
Over and out.
5 comments:
Looking good...you're starting to merge into that higher-ended mindset of wholesaling in which you theoretically will only do deals that will give you a higher return/certain minimum (5K-10K+) which is up to each individual to set that #.
Yes it'll lower some offer #'s in the beginning, but then increase as you barter on those specific deals a bit...and there's nothing wrong with chipping in on a very easy/occasional 3-4K deal, but by focusing on a higher minimum/deal, it typically works itself out much better in the long run.
I think that is a wise decision. When looking at wholesale properties I like to keep my profit around 10-20k. There aren't many of them, but if I can sift through the pile of junk out there and find just a couple it is a nice chunk of change. Combined with the rehabs in which I shoot for 20-30k, I can definitely play more golf than spend time hustling 1-5k deals.
Thanks for the input, guys.
I try to soak up as much knowledge from the seasoned guys as possible, and this seems to be a common thread- focus on quality not quantity.
I don't want to be running around like a chicken with my head cut off doing 10 deals a month, when I could do just 1 or 2 deals by making more (and lower) offers..
We'll see how it goes.
The one thing I commonly hear (especially from landlords) is they wish they'd bought in better areas and better houses. The problems that come with tenants, in the long run, was not worth it to them. So though the cash flow was better in the worse part of town they would avoid that area had they known.
Even so, you can make a good cash flow of a home in lousy areas...it all comes down to how well your tenants are.
If you buy with them in there, better check to be sure how good they are, otherwise get them out or don't buy the place.
If it needs people, then you can go ahead and do a pretty rigorous screening...which I feel that many do not, especially if it's going to be a Section 8...
Post a Comment