Let's take the situation where you are looking at a REO for which they want 25k and they have just come down from 29k. Apparently, the bank did not really look at it because it isn't worth that. To rehab it the house would have to be gutted; the only good part of the house is the structure. You don't want to rehab it yourself but you would like to flip it if you could get it for a really low price.
Otherwise you are not interested, but you don't want to let this property go just yet because it has been listed by a realtor who doesn't even have a sign in the yard. No one knows this house is even available. Also, sales comparables are anywhere from 45 to 106k, of course that is after rehab.
So why indeed there is no sign in the yard? It could be one of two reasons. One reason could be is the realtor is lazy.
Second, if a realtor knows what they are doing, it means they have investors or friends for whom they are trying to hold the house. Then they hope that nobody notices the property and they will get to sell it to their buyer who buys from them and closes all the time. They may know it needs to get to a certain price range for their buyer to be willing to pick it up.
This happens all the time and frankly speaking, that is just business based on good relationships. You eventually want to be that kind of person. This kind of relationships is the reason why one has a success in real estate business. They are not hard to build but it does take some skill.
Otherwise you are not interested, but you don't want to let this property go just yet because it has been listed by a realtor who doesn't even have a sign in the yard. No one knows this house is even available. Also, sales comparables are anywhere from 45 to 106k, of course that is after rehab.
So why indeed there is no sign in the yard? It could be one of two reasons. One reason could be is the realtor is lazy.
Second, if a realtor knows what they are doing, it means they have investors or friends for whom they are trying to hold the house. Then they hope that nobody notices the property and they will get to sell it to their buyer who buys from them and closes all the time. They may know it needs to get to a certain price range for their buyer to be willing to pick it up.
This happens all the time and frankly speaking, that is just business based on good relationships. You eventually want to be that kind of person. This kind of relationships is the reason why one has a success in real estate business. They are not hard to build but it does take some skill.
About the Author:
The author, Jesse Davis is an experienced wholesaler in the Jackson, Mississippi, Real Estate market. He has wholesaled over 80 properties this year alone, and he teaches a seminar on how to really be successful in today's market. Click here to learn how to find all the buyers you will ever need to build a massive monthly income in Real Estate today
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