What Is The Ideal Home Buyer?
Wholesaling Real Estate can lead to a certain amount of “marketing incest”. Building a “buyers list” that consists of other wholesalers can be a good start, but someone, at some point, is going to have to find an “end-buyer” who will actually use the wholesale property for its designed purpose: To LIVE in it.
Granted, that could be a renter or an owner occupied buyer. So in case it’s a renter, the end buyer we’re looking for would be a landlord or “buy-and-hold” type real estate investor.
Here is an astonishing concept:
“The ideal home buyer now — in a reverse of what was true for years — is a renter who is not burdened with a house. Such a buyer will need a down payment from somewhere, and he or she will need enough income to meet the monthly payments for the foreseeable future, including any increase in adjustable rates that seems probable.
“But not owning a home, which may be hard to sell, is a big plus.
“A year ago, having a home that had appreciated in value meant that an owner could trade up to a more expensive home. Now it means that the homeowner cannot move until the old home is sold, and that is getting more difficult.
“First, the seller has to find a buyer who can get a mortgage. Second, the price has to be high enough to pay off the old mortgage and leave enough cash for the down payment on a new home. Both were taken for granted a year ago. In many markets, neither is a sure thing now.”
Makes sense to me. So the next step in our buyers list building effort has to be getting some landlord/buy-and-hold investors, and some renters with a down payment on…
Stay tuned and have a great weekend!
Filed under: investor • wholesale
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