OfflineWho says that the real estate market is down. My venture into a duplex purchase fell through due to rent control and current tenants rent did not cover the mortgage, ROI way too low.
Since last year, I have been trying to get into another place but no luck. The cash investors are buying up the properties in my area, rehabbing and "trying" to resale tremendously over market.
So I need cash!! The assignment deals are not working for me, I can't seem to assemble a good team, these agents don't want to work, and then expect full commissions.
If there is someone in the Los Angeles area that is actually succeeding in closing a deal, please share a secret or two. I just need one and not sure what I am doing wrong. Not enough cash for sure, maybe strategy is off I don't know. I am using FHA financing, my offers are not getting accepted and then the house is practically given away to the next person.
I am missing something?
I was thinking about trying hard lending, but not sure if I can keep up the higher interest rates. Even though the houses are being snapped up, the rental market is sluggish.
I am going to the Feb 4 event, can't wait to try and put more of the puzzle pieces together.
CMJ
I know guys that wholesale out there. They are buying at 80 to 85% of ARV. If you use the 65% theory in LA you will get NOTHING!
If your offers are being turned down and are being accepted for less money something is wrong with the way your offer is structured. The others are most likely cash, quick close and NO contingencies?
Good Luck,
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
not sure why its double posting
Sorry about that!
but it isn't easy, and you will need a dedicated agent to help you put out offers. Matts 25:1 strategy is more like 75-100:1, so that means A LOT more offers. Wholesaling here is tough; you've got a lot of competition; the key is to network with your competition and work with them. I have run across a lot of GREEDY wholesalers here who are trying to make up to $30-50K on deals and then inflating the ARVs and lowering the rehab estimates to make them seem like better deals. I don't deal with those people. Co wholesaling (1 person brings the buyer, 1 person brings the seller) is what is working for me here; but like I said, be choosy who you work with or your reputation will be tarnished fast.
I've wholesaled 27 properties here that FELL OUT. And finally had a successful one. But, it is definitely NOT part time to wholesale here. FSBOs here are really time consuming and I've found I'm not getting too far with them, but the second I go our of state I have a LOT of success with them. We have a lot of people coming in our market and overpaying for properties, which makes it very hard to wholesale here. But, it isn't impossible.
I did have one under contact at that I tried to wholesale. Had a lot of interest, but the buyers didn't like one thing about its location, or so I was told. I took this into account with my offer though. It turns out, one of my buyers bought behind me after I fell out of escrow; for MORE than I was wholesaling it for. His excuse was that it showed 'pending' even after I told him I had it under contract and am wholesaling the contract. If he had bought it from me, not only would he have saved money, I would have made money; at the price he paid it would have been $12K!!! but I was wholesaling it for less. Go figure!
The wholesalers I know who are having the most success are those that have been doing it for the past 10 years, have their network in place and are getting pocket listings from realtors. Others that used to wholesale have switched over to short sales.