Where to Find Off-Market Properties

Many would-be wholesalers fail to get started simply because they do not know how to find deals that are not advertised on the NWMLS.

Wholesaling involves buying at a LOW price and selling to another investor or rehabber at a LOW price to complete the work necessary to bring a property to market. Anyone can buy a property on market, but rehabbers willingly pay wholesalers to find properties that are more difficult to find.

Anything listed on the multiple listing service is priced at retail, not wholesale. Even the major fixers will be bid up in the frenzied real estate market that exists in our area now. The best opportunities to pay wholesale prices for properties exist off-market.

Many wholesalers find property through a direct mail campaign to homeowners most likely to NEED to sell. It is much more likely to get a property under contract at a reasonable price with a seller who is MOTIVATED to sell, rather than with someone who is "in no hurry," "doesn't need to sell," or "who is not going to give their house away." If you hear these words out of the mouths of your seller, just move on. This is your clue that you are not dealing with a MOTIVATED seller.

Who is motivated to sell? Someone in distress perhaps - medical issues, divorce, death of a spouse or loved one, financial stress or facing foreclosure. It could be someone who has to relocate quickly for family issues or other life changes. Perhaps someone moving into a nursing home or assisted living. or a landlord tired of dealing with tenants, evictions, code enforcement, or city regulations.

Perhaps the property is distressed, and the homeowner does not have the resources to make the needed repairs. All of these situations create motivation.

In my case, I am looking for commercially-zoned property that can be developed within the city of Seattle. So I want wholesalers to bring me off-market properties that have commercial zoning. Savvy wholesalers take orders from buyers like me to find properties for us.

So how do wholesalers find these kinds of properties and sellers? It helps to know what type of seller or property the Buyer wants. It should be as specific as possible. Then find a source for getting property addresses, homeowner names and phone numbers, if possible. If not, get addresses and go knock on doors.

Where do you get these lists? Title companies are one good source, particularly if you plan to steer business to them when you do get some deals. Another good source is anyone who peddles data and information lists. ListSource is one of the most popular sources for real estate investors (www.listsource.com).

Internet ads may also be a good way to target leads, through Craigslist or social media. Many real estate investment trainers provide education on best ways to do this at minimal cost. A good google search may help you do this research on your own.

Unless you can figure out how to find properties off-market, you will not succeed as a wholesaler. Make this your priority in pursuing this approach to real estate investing.

Happy Investing!

Honest Advice for Sellers

Here is a real ad that has run recently in Seattle's Craigslist:

If you have real estate you may be selling, PLEASE:

✜✜ Be aware there will be a line of people who have made jobs for themselves of trying to essentially steal your house from you, wasting your time at best, and scamming you at worst ✜✜

Word of the day: wholesaler. These are people who are trying to get into real estate investing, or are comfortable being bottom feeders. Their competitive edge is often found in deception and dishonesty, and after providing you with (not really) "comparable" sales to convince you that your house is worth nothing, they will sign a contract to buy it for much less than it's worth.

But they won't be buying it - they will ASSIGN (sell) the contract to other investors (for a fee) before the sale closes, making money just off the fact that they hoodwinked you. If they don't find a buyer, they walk, and take months of your time with them. Beware of any contract that says "OR ASSIGNS" after the buyer's name. Further, also beware of any sales contract that isn't the standard NWMLS (Northwest Multiple Listing Service) contract.

Also, watch out for contingency or inspection periods, especially longer than 2-4 weeks. This will tie you up for 1-3+ months and then, GUARANTEED, after that period they will want to renegotiate the price based on some problem they "found."

It really is not easy to go FSBO (For Sale By Owner) and be your own real estate agent. Be prepared for a ton of showings, questions, and potentially costly mistakes. Everyone who is selling a house should at least TALK TO A REAL ESTATE AGENT and get a free "Opinion of Value" from them, so you can know where you are starting.

Now, in terms of where I come in: I am a native Seattleite who fixes up and rents houses...

• Due to my established, long term approach, if you desire flexibility such as continued residence/tenancy or other creative sales terms, we might be a particularly good match.
• Any offer I make will be a fair, reasonable market offer - no wasted time and no funny business (references if desired)
• I am able to make both all-cash offers and "seller financing" offers, which turn your house sale into an interest-bearing investment yielding roughly $182k total for every $100k of value while avoiding 25% capital gains taxes

Please, start off by scheduling a free consultation and opinion of value with a real estate agent. Then, before you sign a listing agreement with them, feel free to drop me a line...

I happen to agree that ALL sellers should talk with a professional real estate sales agent like myself, prior to a sale. I look at houses and prices every day, and I understand the Seattle real estate market. There may be many reasons why an off-market sale will make more sense for some sellers than a listing on the NWMLS. But a competent real estate professional will be able to provide options. And armed with good information, a seller is in a better position to make an intelligent decision.

I am happy to provide a FREE, no-obligation, confidential in-home assessment and evaluation of your real estate portfolio, whether that is one home or multiple income properties.

I do buy homes as well as list them, but only if that makes sense for both the seller and me. If you are interested in learning more, please email me at HomeLandInvestment@gmail.com or call my recorded hotline at 888-621-4999.

Happy Investing!

Seattle Rental Inspection

ALL landlords within Seattle city limits MUST register their rental properties (single family, condos or apartment buildings) with the city by 12/31/16.  You can register at www.seattle.gov/RRIO

The City will be requiring property inspections every 5-10 years and will make random selections monthly.  If you have been selected, we can recommend an inspector and answer any questions you or your tenant might have.

OTHER CHANGES

• The City now prohibits increasing rent if a property fails to comply with the RRIO.
• The City has prohibited special deals or concessions for tenants based on where they work.
• The City approved a new law outlawing housing discrimination based on source of income.
• When selling or reoccupying a property, landlords MUST give 90 days notice (formerly 60 and 20 days), but landlords may request a hardship exception to shorten the notice period in certain circumstances.  
• The time in which landlords need to refund a tenant’s security deposit is 21 days from the date the tenant surrenders possession, unless otherwise stated in a lease agreed upon prior to 2016 
• Effective January 2017, landlords will need to accept applicants on a  “first come, first serve” basis.  All information regarding minimum screening criteria will need to be disclosed prior to accepting applications and they must be screened in the order in which they have been received. 

Happy Investing!

Seattle Appreciation

It seems I am asked at least once every day if the Seattle housing market will continue to appreciate.  My answer:  Yes, but not at the insane rate it has been for the last couple years.  Underlying fundamentals for why the Seattle housing market will continue to appreciate:  Because Supply of homes in Seattle cannot keep up with Demand, and Seattle’s overall affordability is still high relative to other large cities. 

The Puget Sound Business Journal summed things up pretty well in one of their recent articles.  Though Seattle isn’t going to be the fastest growing US city in the next 25 years, we’re right up there near the top.  Our expected population growth will not match Raleigh, Austin, or Orlando – but at 38% population growth over the next 25 years, demand for housing around here will continue to be strong for the foreseeable future.  Seattle/Tacoma/Everett is at about 3.8mresidents currently, however by 2040 the American City Business Journals estimates our population could be closer to 5.1m – That’s a 1.4m increase in people moving to Seattle.  Plain and simple, we may have some blips along the way, but overall this increased demand is going to continue supporting a strong housing market in the Puget Sound for years to come. 

http://www.bizjournals.com/seattle/news/2016/10/11/seattles-population-expected-to-grow-38-percent.html

Happy Investing!

Today's blog courtesy of Kyle Bergquist, Guild Mortgage

Hawaii Road Race

I will be running in the Reebok Ragnar Relay Race from Hilo to Hapuna Bay on the big island of Hawaii this Friday and Saturday. Blogs will resume when I return!

Happy Investing!

Seller Questionnaire

If you need to sell your Seattle house, you may want to talk with someone who both lists and buys houses in your area. To match you up with the right buyer, please complete the attached questionnaire:

Name ____________________________________________________________________________________

Address __________________________________________________________________________________

Phone ____________________________________________________________________________________

What are you asking for the house? _____________________________________________________________

If we were to have your house appraised, what do you think it would be worth? __________________________

When would you like to close? ________________________________________________________________

Does the house need repairs? __________________________________________________________________

How many bedrooms and bathrooms? ___________________________________________________________

What is the approximate square footage? ________________________________________________________

What is the construction? _____________________________________________________________________

What is your current loan balance? ___________________________  Payment?_______________________________

Are you offering any terms?___________________________________________________________________

Would you consider a lease option if we can't buy if we guarantee your payments and maintenance? __________________________________________________________________________________________

Please submit this information confidentially in a private email to HomeLandInvestment@gmail.com, and investment broker Wendy Ceccherelli will be back in touch with you shortly to discuss several possible options to purchase.

Happy Investing!

We Buy Houses

My partners and I are looking to purchase 3 – 4 single family and multi-unit properties in the Seattle area within the next three months. 

I work with business associates who currently own more than a dozen properties in the Seattle area, some of which are commercial income properties. We are serious buyers who invest in real estate as a profitable way to improve the neighborhood and the community, while offering affordable housing options to individuals, couples and families. My partners and I are willing to fix up and renovate properties in “as is” condition, often purchasing properties through techniques with which most traditional realtors are unfamiliar or untrained. That means that in today’s skittish lending market, we can close without relying on conventional financing. We can pay cash and close quickly, if that is best for you.

I promise you that we won’t waste your time. My Washington real estate license provides access to professional training and information on comparable sales, but I am not looking for listings. I am looking to buy, and I pay fair prices for properties—with no commissions paid to me whatsoever on unlisted property.  I assure you that this is not a solicitation for a listing, and is not an attempt to circumvent broker fees as part of any existing listing agreement if that is the case.

If now is not the right time to sell, please keep my information and feel free to contact me at 206-355-1706 any time. Our conversation will be kept completely confidential. And you will have one or more purchase options to consider, with absolutely no pressure or obligation.

I look forward to hearing from you!

Sincerely,

Wendy Ceccherelli

 206-355-1706

homelandinvestment@gmail.com

Investment Broker, Century 21 NW