LOOKING FOR WHOLESALE REAL ESTATE DEALS
In this video, I show you how I have around 15 minutes to spare before an appointment with one of my mentoring students, and how I use that time to drive around looking for deals. It took me only 8 minutes to find a vacant house with a blue tarp on it. In real estate lingo we call it “driving for dollars” since you can literally find wholesale deals just driving around town.
Why does this work? Properties get damaged. Every day there are properties that are damaged by fire, flood, water, hurricanes etc. And many of these homeowners want to collect their insurance money and move on. In many cases they have already made their money from the insurance payout but they still own the lot and the damaged house. In some cases they don’t have insurance or insurance did not pay them enough to cover the cost of repairing the house. This is one of those real estate tips that you don’t normally hear about, but it is based on real life situations that people encounter. Either way, that individual is a motivated seller and they desperately want to sell their house. And because it is damaged, they cannot simply list it for sale on the MLS with a realtor. Why? Two reasons. The first reason is because regular retail listing agents won’t take the listing. The second reason is because since there is damage, there cannot be insurance. And since there is no insurance, no buyer with a mortgage can purchase the property. So the only one that can buy the property is a cash investor like myself. That thins out the competition quite a bit. And the fact that this property is just sitting there means that it may not even be listed on the MLS (or it could be).
Either way the seller wants to sell and the seller is motivated. They need a cash buyer. And that is where you can step in and make them an offer to buy their house. Driving for dollars works. And way too many investors don’t utilize this tactic primarily because they are lazy – but they should. It’s a steady source of deals for us – especially after a Hurricane in Florida. One of my students made a few million dollars buying hurricane damaged houses in the Gulf so when you see damage think opportunity.