When I purchased my own home I made it clear to my buyers agent that I would be in the market for more houses.  I made an poor attempt to pick up one property for a fixer.  The deal fell through because I just couldn’t line up the hard money needed.  It turned out to be a blessing since that property would have been a thin profit for me.  Then in October my buyers agent presented an opportunity to me I just couldn’t pass up.  He had gotten in touch with a rehabber/wholesaler.

This particular gentleman rehabbed 4-5 houses a month and sold them to investors with tenants in place.  Basically he picks up properties for as low as 40 cents on the dollar, puts in rental rehab work and then sells them.  The reason he sells to investors is simple.  Shorter turn around time.  Owner occupants are usually fairly particular on what they want for a home.  Neighborhood, style, schools, master bath, etc etc.  With investors its more about the numbers. Will this property cash flow?  Will it appreciate?  The seller was trying to ramp his business up to 8-10 houses a month.  Unfortunately he ran into the issues of having enough quality buyers.  That is where my buyers agent was able to step in.  My buyers agent has a very long list of buyers with good credit (I’ll explain in a bit).  My buyers agent lines up the buyers and collects a small transaction fee.  With a decent credit score of 730 (Cutoff was 700) I was near the top of the list and began looking at properties the very next day.  Would have been that day, but there is not much to see at 8pm in the winter in Colorado.

It really is a win for all three parties.  In my next post, I’ll explain how the seller is able to do this, and how I was able to pickup three properties with very little down.