Prehab Your Wholesale Real Estate Investment Properties BEFORE inviting rehab buyers to see it.
Finding buyers is the key to being successful today.
You can’t just stick a sign in the yard and expect to get ANYONE to look at your property.
Knowing how to attract the highest number of qualified buyers is essential.
If you are looking to wholesale a property, you better find your buyers first and find out what areas they are interested in.
I posted an article on my blogspot site over the weekend.
Follow this guide to locate as many buyers as you can BEFORE you go and buy a property that you want to resell quickly, whether fixed up or just to wholesale to a rehabber.
http://realestateinvestingresults.blogspot.com/2010/04/top-five-ways-to-find-wholesale-buyers.html
Some people ask me why a rehabber would ever want to buy from a wholesaler.
It simple…. They don’t want to have to find and negotiate the deal.
Many of the properties you can wholesale are not profitable for an agent to market.
If a house is only going to sell for $10,000, the agent is only going to make maybe $300.
Not much to put effort into. So, many agents these days are actually buying the properties dirt cheap then reselling them as principals in the transaction which allows them to set the price higher than they bought it for.
You can “PreHab” a property to add value to it for the rehabber.
How do you “PreHab”? This is the act of doing some of the clean up work so your potential rehab buyer is not walking into the giant mess you have found. They want to be able to see the potential and it’s tough to do when the house wreaks of cat urine. Think of wiping the canvas clean so your rehabber can see the bones of the property. If you have very little money, just get the garbage out and clear up the yard.
- Clean out the property. (Get a dumpster and hire someone to go in and clear all of the nasty carpet out. If drywall needs to be replaced, tear out the old stuff.
- Clear out the exterior. Pulling out or at least trimming overgrown bushes can REALLY make a big difference. Think curb appeal.
You might think that the professional rehabber would be able to look past these items.
They can and will, but guess what, if those things aren’t done, the price tag in their mind goes down.
Spruce it up then invite your rehab buyers over for a look.
To your success,
Marshall
