Day 1: research your new area -research Trulia, Zillow, and other google searches -locate areas where median income is above 40K-50K a year these may be areas where suburbanites will live and most likely commute to. The "bedroom" communities around the outskirts of the city where people want to live and search out better areas and interview a realtor about what areas are "hot" still -Interview a local property manager about these areas, and ask about problems they're seeing in the rental income property market. -Call a local RE Max Agent for some ideas on selling houses in a slow/difficult market.
Day 2: Identify and Interview your new team members. Craigslist is an excellent source because you find people who know how to use technology and usually they'll tell you if they want Part time or full time work. Find a couple individuals who indicate P/T work and add to interview list -Go on to Real Estate Investment group web pages and search for birddogs. Post bird dog and a part time help wanted ad for real estate assistant. Buy signs from Bandit Signs . com
Day 3: begin interviewing team members Always get three or four people per group Attorney, agent, loan officer, non-profit group for home buyers or community development teams Call your local B of A loan officer introduce yourself and offer to send people to them who qualify for loans ask for referrals for pre-qualified buyers looking for nice homes. Call hard money lenders for investor meetings, and people I should talk to to find good homes.
Day 4-7: Finish up on anything that didn't get completed in Days 1-3
Get a voice mail box in the area you want to invest Record a message explaining that you sell homes will consider owner financing.
Week 2: Find out what the market wants -Nothing sells if you have something that nobody wants -Begin to identify hospitals, schools, universities, areas where traffic and job market is pretty good. -put signs out in high traffic areas, but place them where people have to stop often (stop signs are good) -put out lots of signs in good areas, around schools. Something like Gross Pointe or Harper Woods - Owner will finance
Week 3: Begin Interviewing for buyers. Find out what they're paying now. Find out what areas they feel are safest. Find out what they'd like to put down and pay per month. Ask if you found "the perfect house" if they could afford a little more for that "ideal situation". Take good notes and ask good questions
Week 4: start to look for homes on the MLS and through wholesalers like us. Search Craigslist for "fixer upper", "handyman special" and must sell. -Download our spreadsheet for analyzing deals -Ask what repairs are needed. Analyze deals then Make an offer to purchase
Week 5: close with cash or private investor funds -Begin demo on the house and begin repairing. Always do curb appeal work first and put a sign in the yard and near the entrances to both sides of the street
Week 6: line up inspections as work is done -get electrical and plumbing done first as these usually take the longest. Do necessary repairs -begin to call back the potential buyers Call back agents, bankers, and plan open house
Week 7: Wrap it up and drive traffic to the home. Make sure that you plan one or two days where you have an Open House. Make sure it smells good, looks nice, is clean. -the open house should be open only for a couple hours. Have a sign in list so buyers see there is interest Put a non-binding bid sheet in for people to make an offer. -Call back all offers and see if they'd pay a little more or let the other guy win it. Offer signing bonuses to motivate offers or early closings: closing costs, one year warranty, upgrade bathroom or Kitchen faucets or fixtures
Week 8: Accept an offer and close
With a few variations, this is exactly how we did our last two houses in NE Detroit, MI. Even though the market is tough, we still managed to find over 45 interested buyers for our homes. We managed to find 4 cash buyers for other fixer uppers that we can now wholesale for a couple thousand dollars and lots of people who would love to do Rent-2-Own while they fix their credit.
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Jason bought his first investment property out of state while he was living in his apartment. He still manages this home 3 years later from the comfort of his new home in CA. He has bought 5 more homes in Detroit and 3 are currently occupied and cashflowing. For Free Real Estate tips, spreadsheets, lender resources, and access to our exclusive lists of
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