There has never been a more profitable time to invest in real estate than right now. Pre foreclosures, REO properties, foreclosures and short sale are everywhere. Unfortunately because of the mortgage crisis the banks have made it difficult for buyers to qualify for a mortgage. Therefore there are significantly more properties for sale than there are qualified buyers. Since houses are not selling many struggling homeowners are forced to rent out their properties in an effort to keep up with the mortgage payments.
On the flip side with the housing prices being lower than they ever have investors are taking advantage of the great bargains and purchasing properties at great discounts and holding them until the market improves. Once the market improves and housing prices go back up these investors will sell these properties and make a huge profit. Since these investors are going to buy and hold these properties they must rent them out to cover their holding costs.
What does all this mean for today's wholesaler? A goldmine filled with both motivated sellers and buyers.
For rent adds can be adds placed by sellers who could not sell their property so they have decided to rent the property to keep up with the mortgage. This is not always the case but by not calling to find out you could be passing up a good wholesale deal. Search online classifieds and your local paper for properties for rent. Call the number and ask if the property is also for sale. If the property is for sale chances are you are dealing with a very motivated seller.
If the property is not for sale ask if the property is currently vacant. If the property has been recently renovated and it's vacant chances are you are dealing with an investor. I suggest getting their information and putting them on your buyers list. A good indication that a property for rent is owned by an investor is if the add states it has been recently renovated. Investors will purchase properties (usually rehabs) renovate them and then rent them to hold them for a future flip.
So next time your browsing through the for rent adds, stop and make the call. It could prove to be a diamond in the ruff!
Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10
http://realwholesaling.com FREE wholesaling tips and resources!
To your success,