Wholesaling Real Estate | Driving For Dollars Finding Houses

Wholesaling Real Estate | Driving For Dollars Finding Houses

– Hey guys, Lex over here and I’m driving into a neighborhood where I’ve got a listing, Pompano Beach, Florida and I’m going to go check it out and while I’m doing that I’m also going to be looking
at some other stuff, see what’s on the market and whatnot. So one of the things when you’re driving these neighborhoods that
I like to tell people is that you have got to go slow, like I’m looking right now I’m going at about 15, 10 to 15 mph, going at 10 mph right now but I usually go at about 10 to 15 mph and the reason you go so slow, which is incredibly
slow you can see, right. Is because you want to notice things. So what I’m looking for is
vacant, boarded up properties. So if I see a vacant
or boarded up property that’s where I’m going to use an app like Send Fuse or Deal Machine to send out some postcards and if I see a property that’s listed for sale, then I want to make a note of that, I use my realtor.com app on my phone to see what price they are listing them at. And get a feel for the neighborhood, like as an example, this house over here, let me go and just turn
it so you can see it, so that house over there
where the white van is, that’s a rehab that’s… Some investors have
been working on, right? So I noticed that property
when they purchased it and I noticed them redoing the windows and redoing the exterior stucco which they did a pretty good job on. I notice how they have
not done the roof yet. Be interesting to see
if they do that or not. But here’s what interesting
about real estate compared to other investments is that I can go and look
what they paid for that just by looking at the
address of the property and go on the property appraiser and see what they paid for it. And then I can also see, there’s an interesting set-up, this guy’s got a house for rent with a tarp on the roof, so
this house over here’s for rent, and it’s got a tarp on the roof. Or it looks like some kind of repair job they didn’t even bother doing. So it’ll be interesting to see I noticed he put a for
rent sign last week. So driving through these neighborhoods and not just doing it one time, but going through them all the time, so you see changes is
very, very important. Very key. So for example when I drive through this neighborhood here, like here’s a set-up look at this house. I’ll go ahead and show it to you so you can see it. All right, so, it’s an interesting set-up because there’s hurricane shutters on the windows and the hurricane was more than six months ago. So the question is why are there still hurricane shutters up and is somebody living in that property or not? So there is a car there, a boat there, but it does not appear to me like somebody is living there, right. So driving through this neighborhood I don’t really see much for sale. But you can always find opportunities, for example, I just drove past a property with a blue tarp on it, so. That indicates to me that they probably have some sort of a roof leak. They could be contracting with a roofer to sell the house. But they also might be a little, you know, not really wanting to deal with it. Especially if they don’t have much money and maybe are going to want to sell it. All right, so driving around neighborhoods like this is kinda fun right? So, here it is a Monday morning and this is what I do on a Monday morning. This is a classic example. Let me show you this house because this is a good learning experience. Take a look at that
house over there, okay? So notice the complete shutters, right, so clearly nobody lives there. So this is the kind of situation where you want to get hold of the owner and say hey, listen, I’m
interested in buying your house. Are you interested in selling it? I’d like to make you a cash offer and I can close in two
weeks and see what they say. If you can get hold of them, right? So you can mail them a postcard or a yellow letter or you
could give them a call. If you can get them on the phone, skip trace their number, right. So Deal Machine’s good
for that, by the way. So driving through is very good, so for example, let’s say this street. I drove from the end
there to the beginning. So this specific pocket we’re in is called Cresthaven so it
runs from 7th over there, I’m currently on 9th and it goes down to about five streets
more before it switches into another subdivision
called Collier Manor. Basically by gridding through, let’s see I did that
street and now I’m going to go along and see this house over here is been listed for sale for I would say at least six months. And the guy’s asking like $279k or $289k for that house. This house just sold I noticed. About a month ago. Had a for sale sign and
now people moved into it. So when you’re going
through the neighborhood like this that’s when
you start seeing things. Especially when you’re
not going too quickly. Like right now I’m going 20 mph which is a little faster than
you should be going because what you need to be able to do is look at every door. And why do you want to look at the doors? Because you see lock boxes. So if you see a lock box on a door it means either it’s a rental property that’s going to be rented, or case in point, there is a lock box on that door right there, you see that? So that property address now I can jot it down and I can look at that and see what’s the story here. There’s a car parked in the driveway so is that the owner’s car, is that property on the MLS, did it just sell, was it listed for sale, is it about to be listed for sale? Or is it a rental property? Right, so driving through
this is the kind of stuff that you see. Now here’s the thing that’s interesting about this business. Some people view this as boring. They say like, wow that kinda sucks driving around looking at houses, well it might be for you and if it does then this probably is not
a good business for you. But for me, I just went to the coffee place, I got my iced coffee and I’m driving around,
relaxed, casual, right? And usually on an expedition like this, driving around for a couple of hours, I can usually find a house. There’s another house over there with a lock box, see that? Lock box on that. It looks like it’s a little in disrepair. So these are addresses
that you notice, right? So if I look at that I
see this property address is, where is it? 2810. And then I can go ahead and send them, look on the GPS on my car,
see what street I’m on and then I can go ahead
and send them something, postcard or whatever. Driving for dollars can be a lot of fun. But you really need to have a feel of the neighborhood and
what you’re looking for. And when it comes to fixing and flipping, this is even more important because in fixing and flipping you’re really, really need
to have an understanding when you’re buying a house what you think you can sell it for. And that’s why it’s so key for you to be taking a look at what other people are doing in the marketplace. So as an example, I’m driving
along these two streets and I’ve seen zero for sale signs. And when I turned the corner over there I saw one for sale sign by a guy who’s asking too much because he’s asking 289k in a neighborhood where some stuff’s going for $250,000 so that’s why he’s probably sitting and also he’s probably
not even rehabbed inside. Meaning, it’s just an existing property. So these two streets that
I’m driving right now, about two weeks ago when
I drove the same streets there were maybe three or four realtor signs out, all gone. That means that stuff’s gone pending. So that indicates to me demand, all right? And so I’m looking on the MLS everyday and I’m seeing how many houses are listed for sale in this subdivision. And how many houses are listed for sale, whoops there’s my listing,
I almost passed my house. Let’s go ahead and back up a little. All right and there it is. Right so this is the house I’m
gonna go check out right now. This is one of my houses that I’m in the process of rehabbing. You can see my sign over there. What we gonna do is we gonna go in and we’re gonna check this out. This house has been finished, the rehab’s been done on the inside and we just had a cleaning crew come on the weekend to clean it up so the next step is we are going to have a photography company come, it’s called VHT Photography. And they charge around $220 or so and they are going to do these expert wide angle lens shots which are going to make the property really
pop out on the MLS. So now this is like the
last minute due diligence, I like actually doing this part myself because it’s fun. Maybe because I like the anticipated profit or return on the deal. But I like to do this last step myself. I get a gauge for inventory by being out on the street. I look on the MLS, I see what’s available. I look at actives, I look at pendings, and I see where I want to price it. Ideally, I want to price it aggressively meaning I don’t want to put it $20,000 more than where I want to sell it at. I want to put it exactly where
I’m willing to sell it at and my goal is try and get an offer within the first 24 to 48 hours a solid offer with multiple backups, so I can get the best, most solid offer and sell the house. So let’s go ahead and take a look inside. Okay, now we’re inside the house. And let’s go ahead and give you guys a little bit of a preview. So there’s the kitchen, all right. And this is what a remodeled
kitchen looks like. Okay, so this, when we first picked up this house, this kitchen over here, you see over here, was just really old-fashioned, like 1957 old cabinets,
just nasty in the wall, stove, one of those old-fashioned stoves. So now we’ve gone and we’ve
given it this new look. It’s pretty straightforward. Cabinet company, custom cabinets. Backsplash is from Home Depot. This granite we ordered
from the same company that did the cabinets over there. Stainless steel appliance package, these appliances over here, it’s kind of hard to see with the light, there we go there. All right so these over
here that you see, right? As well as the fridge over here behind me. So these are all standard entry-level stainless steel package. And this stainless steel
package over here was $1,800. So this specific house, the numbers on it were, I
purchased it for $165,000. There are comps in this neighborhood in the $249,000, $255,000 range. But I’m going to probably
price it aggressively at like around $239,000 right? So I can try and get a quick buyer on it. And as far as the repairs on this house. The roof was great. Kitchen we put $6,500 into. We spent another $8,000 or so, so I’d say about $15,000
probably with holding costs and everything, probably spent 20k in that, so into it probably for about $185,000 and we’re looking to sell it for probably around $240,000 even $230,000 could be a nice profit, right? And this is just a standard rehab, right? So part of pricing these
things on the market and knowing where to price them is looking on the MLS and seeing what’s out there. And like I said, it’s fun, you know, because you sell this house and you cash a check and at the same time while you’re preparing this house, you’re looking out at the market at other potential deals, other properties that are on the market. And looking for more fix and flips, so I think it’s a pretty fun way to spend your morning. And it’s flexible, you’ve
got financial freedom. And you can do this anytime you want, and from anywhere, which is what I
like so much about it, right? So it’s interesting A/C pump
going off there right now. It’s, never seen this before actually. It’s kind of like a pump that drains the, the water overflow from the A/C, which is interesting. But doing this, driving around, pretty great way to, you know I could this for three hours, go grab some lunch, go work from my home office. If you want to learn how to do this guys, I just put together a brand new fixing and flipping webinar. You can go ahead and I’ll mention the link right now and I’ll
also add it to this as well. It’s lexlevinrad.com/fixandflipwebinar. So I hope to see you on it.

One thought on “Wholesaling Real Estate | Driving For Dollars Finding Houses

  1. do you have an instagram ? i am located in palm beach do you mentor, i am willing to work for free and bring you value i am a wholesaler and did my first deal at the beginning of march

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