Wholesaling houses in your own backyard is where you need to start flipping houses. Why? You probably know your neighborhood like the back of your hand – you probably know the people living in your neighborhood,
what houses are occupied by homeowners and renters, and which ones are currently vacant. You might even no the scoop on that new couple that’s going through a divorce that just moved in 8 months ago. Even if you do not own the home you currently live in, you know its a neighborhood you would live in and others as well. So you know how much rents are in the area. You can get started looking for deals in your backyard today.
Opportunity knocks in some of the most familiar places. Remember those houses in your neighborhood with the “FOR RENT” or “FOR SALE BY OWNER” sign? That have been up for months. If you investigate a little further, by calling the number on those signs you will most likely reach the property owner. Let’s say the property owner wants to sell the house cheap and all the house needs is some plumbing work and cosmetic repairs and once completed the property can be occupied. If you put these type of properties under contract for the right price these are fantastic properties for you to wholesale. A lot of property owners are motivated seller’s because of the affects the recession; they don’t have the money or resources to fix the minor repair issues let alone the big ones. You can control several properties in your own backyard at deeply discounted prices starting today. But you don’t know what opportunities are out there until you knock at the door. You won’t know that the homeowner would sell to you well below the market value because they can’t find anyone to rent to - until you ask.
Learn and become the expert in your neighborhood. So how do you do that? Pick up the phone and start gathering information asking questions. People are most likely already investing in the neighborhood you live in. Just by taking action and calling the FSBO and FOR RENT signs you can learn a lot about whats going on in the community you live in. I have found that most real estate investors like to talk and share information with other investors and even budding real estate investors like yourself. Even if they have a property that is currently not producing any income for them. For instance, say you spot a “FOR RENT” sign; you need to call the number on the sign and see if it is indeed the current property owner on the phone with you. Sometimes you will be talking to a property manager, realtor, real estate agent, or tenant placement company but for the most part you will reach the actual owner of the property. Once you have them on the line you want to start asking questions about the house: How many bedrooms?, How many bathrooms?, How much are the houses selling for fixed up in the area? and How much is the rent each month?. These are some basic questions that will help you get familiar with the properties in your backyard and also play a huge part in helping you become an expert in your neighborhood as well.
Vacant properties are also another prime opportunity for your big chance to wholesale real estate in your own backyard. Have you ever wandered why the property four doors up has been vacant for such a long time. Chances are it is owned by an absentee owner. The property most likely needs some type of repairs to get it up to code to a livable standard. If the house is vacant and needs repairs, it may be an opportunity for you to wholesale the property to another investor that specializes in rehabbing and buying and holding properties in that area. So how do you get in contact with these two types of real estate investors? Remember I mentioned you needed to pick up the phone and dial those phone numbers on the “For Sale By Owner” and “For Rent” signs. Once you get them on the phone let them know you will have a property for sale at an wholesale price very soon. But guess what you won’t know until you pick up the phone and ask. By starting out in your own backyard you will have the edge over any competition that arrives. You will know what sells and what doesn’t, how much rents are, the values of the properties in the community and you”ll know how to identify opportunities to buy and sell. Watch this quick video I recently put together on How to Wholesale Houses in you own backyard.