Back in the Wholesaling Game - CA

I got a call last night from the only other real estate wholesaler I know in this area. He has stumbled upon a nice strategy for picking up REO(bank owned) properties. He has gotten in with the code enforcement office in one of the cities we work in and got leads for 4 bank-owned properties last week. Apparently, when there are code violations on a house, the banks will take even greater discounts because of the limited pool of buyers and the added expense of continual fines from the city.

He called me to see how I was coming along building my buyers' list and to see if I was interested in finding a buyers for these properties. Yep, I'm interested.

This guy has access to millions of hard-money through some he's part of. He is also a licensed contractor. So he makes offers to the bank with his lic'd contractor estimate of repairs and copies of the city ordinance violations and estimated compliance costs and plans on having his agent friend make repeated offers to the banks and over time wear them down to the price-range where they will cash flow. Cash flow properties in California... Who would have thought we'd ever see that!?

Our plan is for him to get these under contract and put together an estimate of repairs (he is a licensed contractor.) I will have a chance to wholesale them on my websites and send out to my buyers list.

It could be a great thing for me to get back on the wholesaling train again. One thing that wholesale deals do is keep you motivated and moving forward quickly every day. It's like the slot machine approach to real estate investing. Lots of wins, lots of clanging and flashing lights (in a manner of speaking,) but smaller payoffs, and not much wealth building.

At this point though, it's all about the cash flow. I need to keep the machine going if we hope to do any of that wealth-building stuff.

Keep your fingers crossed!
-Taylor