| Another great saga for real estate investors... As | | | | $500,000 property purchased by a home-buyer for |
| home-buyers continue to receive more and more | | | | $320,000 is then immediately re-sold to one of their |
| requests from fellow investors hoping to develop an | | | | end buyers, willing to pay $445,000. For the use of |
| alliance, the realization is that there is a mass amount | | | | our capital investor's funding, he then receives (paid |
| of capital sitting on the sidelines. Most of this capital is | | | | immediately through escrow) $6,400 (2% of our |
| wondering what to do, where to go and how best | | | | "A-B" closing of $320,000). |
| to receive the safest returns. | | | | While this may seem like a small pittance, we have |
| While home-buyers are located across the country, | | | | investors who are closing on 3-5 transactions a |
| their endeavors are beginning to mature across | | | | month. Any savvy investor realizes that a ROI of |
| nationwide with properties being presented to us on | | | | 6-10% a month is nothing to sneeze at. |
| a consistent basis. Most of these properties are | | | | Phase three of what a sophisticated home-buyer |
| presented with significant equity built in, usually below | | | | offers investors is called the assignable contract |
| 70% of FMV (fair market value). This is more than | | | | program. There are those properties that don't |
| likely why professional home-buyers word of mouth | | | | attract an end buyer, do not fit their criteria for |
| is spreading like wildfire. Great investments, safe and | | | | long-term hold and are still extremely attractive |
| secure returns in the double digits and backing of | | | | opportunities under 75% of FMV. On these |
| assets with first trust deeds. | | | | occasions, home-buyers are willing to "assign" their |
| Although home-buyers generally prefer to liquidate | | | | accepted offer (short sale or REO) to an end |
| their real estate inventory to end buyers at market | | | | investor who is looking to fill their rental portfolio. |
| value prices, many times their marketing results are | | | | While this method is less attractive to a property |
| bigger than their mouths and their portfolio begins to | | | | wholesaler as an exit strategy (because most of the |
| overflow. When this happens, they should shift their | | | | profits are made by the "assigned investor", not |
| focus to wholesaling these under-valued properties to | | | | them), it has created such a buzz in the community |
| fellow investors. Although there is much equity that | | | | that the home-buying market has decided to open it |
| vanishes by selling wholesale, home-buyers prefer a | | | | up even further to their investor base. |
| "pea in the pod" rather than no pod at all. | | | | If none of this is your modus operandi and by |
| Although this is the case, over the last year, | | | | reading this you realize that you have more of a |
| capital-rich investors have been calling, presenting | | | | buyer base network perhaps this article can turn the |
| home-buyers with their request to be a capital | | | | table a bit... find a home-buyer that has cash-flowing |
| investor. What is offered to these capital investors is | | | | properties which they would like to present to your |
| the opportunity to "quick-fund" the deal so we can | | | | buyer base - it's a wine win. |
| sell more of our portfolio to our end buyer base. For | | | | A very robust wholesale database list will be ideal |
| this "quick-funding", home-buyers capital investor | | | | which will provide you with access to many |
| receives 2% of what our purchase price is. A | | | | properties for which to exchange. Best of success... |