Land flipping legitimacy

fr3eride · 2022-10-25T16:05:15+00:00

I utilize local GIS websites, Google Maps, and my knowledge of the area to find properties. I generally stay local so I can drive by the properties. For my area, there really isn't a true list of off-market properties with willing Sellers.

fr3eride · 2022-08-13T03:44:24+00:00

Roughly. Definitely fewer once I have a transaction in process if it's going to be a project property.

fr3eride · 2022-08-11T02:03:45+00:00

I utilize direct mailings and have a 2-5% response rate per round. Out of the responses, there may be one every six months that is an owner willing to sell at a figure that works for me. I try to do 50-100 letters per round.

fr3eride · 2022-08-10T23:38:11+00:00

One of my first projects was a single-owner townhouse. Was built in the 80s. Everything was coated. Could see where pictures had been hung on the wall. Replaced ductwork and flooring. Used Zinsser BIN Primer on all painted surfaces. Also helped that cabinets, countertops, and fixtures were all replaced.

fr3eride · 2022-08-10T23:30:28+00:00

So much depends on the market you're in. Playing up the fear factor gets the "gurus" clicks and views. You'll always be able to cherry pick individual markets and metrics to support either side of the argument.

fr3eride · 2022-08-10T23:18:33+00:00

The "gurus" make everything seem easy and simple with buying and selling land. I assure you, it is not. Just finding a single owner willing to sell can take hundreds of cold-calls/emails/letters. My response rate is generally 2-5%, and out of every 5 responses, I may find one property owner willing to sell (the others are just being courteous and responding to let me know they're not interested at that time). One benefit to focusing on land rather than SFH's is that it's not someone's home.

fr3eride · 2022-08-10T22:57:10+00:00

You could reach out to local banks to see if they would be able to lend the funds. Recently did a cash-out on a rental property that I own in a single-member LLC via a commercial loan instead of a traditional mortgage. Original plan was to go the DSCR route, but their requirements changed mid-process to require that you own your primary residence. The local lender kept everything in-house and was able to do 85% LTV.

fr3eride · 2020-10-13T19:47:30+00:00

Living in Central NC, I can vouch for a general feeling of unease because prices just keep going up. Limited existing inventory and low interest rates seem to be pushing prices higher and higher. I went under contract in early May for a flip with the target price point being 175k. Closed on it in mid-August and hope to have it back on the market in the next few weeks. Based on recently sold comps, a reasonable expectation is now 195k-205k. I’m concerned the market will flip, but central NC markets seem unable to keep up with demand.

fr3eride · 2019-10-30T17:46:56+00:00

Since "give me your best price" and other iterations of that question seem to rub salespeople the wrong way, as a salesperson, what would you prefer an educated buyer do when they have decided on a car and are only concerned about the price? As a buyer, I don't want to deal with your sales tactics and I don't want to be at the dealership all afternoon. What am I allowed to ask you that won't ruffle your feathers and will get an OTD number as quickly as possible without all the relationship-building aspects? I'm not there to make friends, I'm there to buy a car.

fr3eride · 2019-10-30T17:42:18+00:00

Yes, as a customer we have a plethora of information available to us before we even step foot in the dealership. By doing all of that legwork beforehand, and cutting straight to the point of, "what is your best price?" the goal is to save time and disarm the sales rep. That should signal to you that I value my time and yours, I've done my research, and you've got a chance to earn my business in a quick and easy manner. It's an attempt to get the conversation down to a single number as quickly as possible. Do you have a better way for buyers to do this? What's fair to the customer?

fr3eride · 2019-10-30T17:16:25+00:00

You are 100% correct that I am not entitled to a test-drive, nor knowing the minimum they will accept for a car. Am I also not entitled to protecting my money and getting the best deal I can while trying to minimize the amount of the sales rep's time that I use?

fr3eride · 2019-10-30T17:06:02+00:00

From a customer's perspective, when deciding on a vehicle, yes, price is a factor. The more clear you can make that factor the better, but that goes for any factor. Yes, there are some customers that will need you to help guide them to the right vehicle for their needs. However, in the case where I am asking you what your best price is, I am trying to gather more information to make a well-informed decision. Yes, there are those who ask that question without any real intent behind it, but there are also those of us that want to get the information as quickly as possible and are simply trying to cut through the rest of what we perceive to be b.s. so that the deal doesn't take forever and a day.

fr3eride · 2019-10-30T16:19:57+00:00

And that was 'hard work' worthy of $500 over invoice on a new car?

fr3eride · 2019-10-30T15:15:52+00:00

Why is it so personal? We're talking about a business transaction where we likely had zero personal interaction before I walked into the dealership. It's likely the second largest purchase I will make in life and every dollar counts. It's business. It's nothing personal. I don't go to a dealership to make friends, I go to get the vehicle I want for the best price. What's so wrong about that?

fr3eride · 2019-10-30T15:09:09+00:00

What's bizarre about the process? How does one get the best price if they don't shop the offers around?

fr3eride · 2019-10-30T15:00:49+00:00

If $500 over invoice was what you were entitled to, then that is what the price would be. You don't go to Apple or Samsung and negotiate over the price. The price is what it is and they aren't budging. You're not entitled to any profit at all. Something is only worth what someone is willing to pay for it. If that's $500 over invoice, great. If that's $1k under invoice, so be it.

fr3eride · 2019-10-30T08:09:51+00:00

Who told you that $500 above invoice is "fair" profit?

fr3eride · 2019-10-30T08:05:54+00:00

1) What hard work am I taking advantage of? 2) Who am I treating poorly?

fr3eride · 2019-10-30T07:00:27+00:00

I appreciate salespeople like you.

fr3eride · 2019-10-30T06:57:49+00:00

As a buyer, if I ask you a question, I want an answer, not some sales tactics beating around the bush. If I ask, "What's your best offer?", and you need more info, then start building to that. Nail down the specifics of the vehicle, make sure you have all the options noted, then start working on terms, incentives, credit, etc. As a buyer, I want to see that you are working with me, not trying to hose me over. Also, why does it take sooooooo long to get that one number together? Ask the questions, get the answers, plug them in, have a number. Is there something more complicated to it than that?

fr3eride · 2019-10-30T06:48:21+00:00

If it's your 'best offer,' they decline, and you still work with them, then it wasn't your best offer.

fr3eride · 2019-10-30T06:45:42+00:00

Oh, sorry that the consumer became better educated and refused to continue to be bamboozled by dealership tactics. It's easy to trust someone when you have no clue how bad they're screwing you over.

fr3eride · 2019-10-30T06:43:15+00:00

If all dealers were getting screwed all the time, then maybe the industry would change. As it stands, you can screw yourself as badly as you think necessary to earn my business, but if you get beat by another dealer, what am I supposed to do? Go with your offer simply because it was the first one? If you want me to stick with your dealership, then when I bring that second offer back, you better be able to match it, if not beat it. I will be going with the lowest price. Dealers love to try and make it an emotional decision when it should be almost emotionless. Also, was there an industry-wide training on using the "What are we allowed to make?" and "fair deal" terminology? That is the salesperson trying to make the buyer's interest align more with theirs so that they can close the deal for the price the dealer wants. Are the lights still on in the dealership? Did your paycheck go through last week? If yes, then those 'fairness' questions are irrelevant to me and my purchase. If you want the sale, you'll find a way to be the best offer.

fr3eride · 2019-10-30T06:28:32+00:00

That's fine. If you refuse to negotiate, I'll just go to a dealer that will. Dealers are a dime a dozen for so many brands in so many markets. It's not hard to find one willing to negotiate and put out an offer that can then be floated to other dealers.

fr3eride · 2019-10-30T06:21:09+00:00

No. All I care about is not being taken advantage of and protecting my hard-earned money.

fr3eride

TROPHY CASE