Buy and Sell Houses Working Backwards...
Find the Buyer or Renter First!

Buy and Sell Houses

Plan before you buy; Pre-sell or Pre-rent before you buy.
Test, Test, Test...
Run test ads first... this is back to basics. Identify the demand and fill the orders.

Try not to be misleading to prospective buyers and renters please. Once you've decided on buying properties; in a particular neighborhood, have actually looked at a few, and are ready to make an offer...
Before you make your offer, run your test ad to see if you get any interested replies from prospective buyers or renters. Because you are serious about buying the property and have already looked at it, you can provide well informed answers:
-- Describe the property your ready to buy,
-- Availability (30 - 60 days; the time it takes to close and prep the house),
-- Tell them you Buy and Sell Houses and you will have more than one to offer,
-- Qualify your buyers and or renters,
-- Get their phone numbers and email address and BUILD YOUR LIST!
-- Ask what they're willing to pay for that area (research).

A small price to pay, $20.00 to $50.00 for an ad in your local newspaper to avoid a big mistake - right!
www.craigslist.com is where you can use the internet to list your ads for free.
If you have a Realtor on your Team (as you should), their feedback on the local market your working in is invaluable.

TRY IT BEFORE YOU BUY IT! Run those test ads.

Offer To Sell

When you buy and sell houses, that means you're selling more than one, and hopefully on a regular basis... So you offer to sell has to be an obvious Win / Win Strategy that works consistently.
You will be the go to person... word of mouth will pre-sell you properties... when you have great offers... What will you provide your buyers and renters?

-- TERMS...
-- Features, Advantages, and Benefits:
-- No money down or little money down,
-- High quality workmanship,
-- Sell them a home with built in equity,
-- Full disclosure on how you buy and sell houses,
-- Affordable payments,
-- Furnishings and window treatments,
-- Anything and everything better than your competition (yes there is competition),
-- Pay their closing costs,
-- Ask what they want - - - and provide it!

We must be creative and competitive to keep the projects flowing. Don't get greedy and we'll never run out of business. Remember Win / Win.

Offer To Buy

NOW THAT'S A DIFFERENT STORY! We have to be ruthless! Now that we know what our customers are looking for; we can only pay a certain amount plus fix-up and carrying costs, plus a fair profit, to fill the order of the buyers and renters we have (on our list).

All too often sellers fall in love with their properties, want more than it's worth, and realtor commissions may be involved. If they want more than you can sell or rent it for at a fair profit, WALK AWAY.

Develop your system of buying, by making offers on a regular basis. The more you let people know you buy and sell houses, eventually the deals will find you.

The BEST deals and the LOWEST PRICES may be found in PROBATE and TAX SALES.
(more about this later) However, these particular deals may take you quite a distance from your home. As a Rehabber, we like to work close to home for our convenience. Do check with your local Attorneys and City Offices so when Tax Sales and probate deals do arise, you are first in place.
On these occasions, are the opportunities to make HUGE PROFITS because of the rock bottom prices we can obtain them for, and still sell them at a WIN / WIN price.

Need more info? Just Ask-The-Rehabber...(click here)

Lease Options

We can take the same position we offer...
When we buy and sell houses, our buyers in many cases need a lease with an option to buy. If we don't have a cash buyer, a lease does generate the cash flow to cover our expenses (and profit too) until the buyer can qualify to buy. This works for the Real Estate Investor just as well.

This is just one of the many strategies that may come to surface on occasion. I just wanted to point out that anything we offer... we can get for ourselves. In other words, if we have to offer a great deal to our buyers, we should expect great deals from our sellers! In the case of having to offer Lease Options, we should expect that we can get lease options as well.

Private Money

Line up several Private Money lenders! To buy and sell houses (more than one - right!), working capitol is the primary ingredient. Diversification is the strategy here; your money, mortgage money, equity loans, private money, seller financing, unsecured lines of credit, and the combination thereof is what it will take to build a thriving real estate investor / rehabber business if you want to grow and build wealth. More on this later

Some methods about Creating Money

Contract For Deed

Also known as a Land Contract and Seller Financing; the difference between a Mortgage and a Contract for Deed is, Who Holds The Title?
On a Contract for Deed the seller maintains the Title in their name until the contract is paid in full. With a Mortgage, the buyer holds the Title in their name with a lien against the Title.

DUE ON SALE is always present nowadays in Mortgages. When buying on a Contract for Deed (land contract) the due on sale can be negotiated! Tell your seller that you buy and sell houses; and would like to be able to sell the property when you complete the renovations to your buyer on a Contract for Deed, and that you will include a due on sale in the second contract for deed with your personal guarantee that it will get paid.

Contract for deed was quite normal in my portfolio in the 1980's as my prediction it will be widely acceptable again in the 2000's and 2010's for real estate investors.
Consider the advantages with holding a land contract;
higher interest rates than current bank rates,
a higher sales price than a cash sale price,
and if the buyer runs into trouble, we have the ability to adjust the contract or take the property back and sell it again.

See more about Contract for Deed aka Land Contract

Buy and Hold

There is a big advantage to managing the property (holding) after rehabbing the property.

When we Buy-To-Sell houses,
- We have to start all over from scratch,
- Find another house - again,
- Arrange the terms - again,
- Do the rehabbing - again,
- Find another buyer - again.

If your in it for the long term,
Holding a property and collecting the interests,
With higher sales prices,
Means the property continues to pay you,
Long-After the original remodeling is done.