Hi! I found a realtor that is willing to help me. He told me " inventory is low right now most buyer are competing to purchase nice properties. ". How do I respond to this?
Thank you for your advice
Sounds good for you! Since, if you are wholesaling, the more distressed the better! (Not that you tell him you are wholesaling! Just that you are wanting distressed props)
"You're never too old to be what you were meant to be!"
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"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Let the Realtor know that you are not looking to buy 'nice properties'. Ask what is the average DOM (Days on Market) for SFH listings in your area and then add about 35% or so to that. You are looking for expired listings, properties that need TLC, Handyman specials, properties that have exceeded and are on the higher end of DOM average (i.e. can you say 'Motivated Sellers'??) and certainly foreclosures that also need repairs.
These criteria should certainly move you out of the "competing to purchase" category!! Good luck; keep at it.
"If it is to be, it is up to me". -Unknown
I appreciate the advice.
I see you are in California. He is correct. If you are looking to wholesale, you need to find deals not on the MLS. MLS properties are getting bid up with multiple offers because inventory is low. Not a good environment for the 25:1 strategy.
I keep hearing people saying that inventory is low, but it depends on how you are looking at it.
Here in Atlanta, there is an area that investors are snatching up where properties are going for around $30K - $40K. They are picking them up to use as rentals. In this area the inventory is tighter. (Also, on a side note... inventory is tighter because banks are holding on to a lot of shadow inventory to bring the prices up... just my opinion).
However, there are other areas where the price ranges are going for around $110K - $130K. There is a lot of inventory in that price range. Part of the reason is that most investors I've come across are only thinking about rentals. The potential rents for the $30K properties aren't very different from the rents you can get from a $110K property. So, it doesn't make much since to go after the $110K properties. But, on the $110K, Lease-Purchases work great.
So, my conclusion is this... find the price range that has the most properties that still have a good demand. Then, find the strategy that would work best for that type of property.
Just my two cents,
"In absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia!"
Here is a FREE property analyzer I've found:
It's a great tool to use to help analyze your deals (and did I mention it's FREE)! But, you really should spend the $97 and get the full premium edition! IT'S AWESOME!!
right now. My agent is also willing to be a bird dog. Is there anothern strategy that will be best in California?
I greatly appreciate everyones advice.
Hi sounds like your Agent is willing to work with you at any level, work with him and make it worh both of your times( win-win) for both of you.If hes willing to do this do something nice for him to show your appreciation thats how you build lasting relationships and thats what we all want, Jim
When you get a good agent, embrace the opportunity to learn from him, as well as being self-educated. Do what you feel comfortable doing.
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