Recently sold a house by this method, the last weekend in June as a matter of fact.
It worked well up to a point. But is still a little avant garde for Belleville Ontario.
A lot of people seemed wary of the idea, or confused a bout the concept.
I followed the book to a T, advertised the house for $69,500 and on sunday night, the high bid was $122,000. This was just too low, less than I owed on the mortgage. So I turned it down.
A day or 2 later another bidder, who dropped out at 115, came back and bought it for $140,000.
So in a way it worked but I did get a lot of negativity along the way.
Now the high bidder (Mr. $122,000) is waving lawyers at me.
He doesn’t have a leg to stand on but still.
So, my experience is that the 5 day method works but can be a little bumpy along the way.
In a less conservative section it should work very well.
One thing they do warn you about. This method will not make your house worth more. It will only sell it fast. You should end up somewhere near fair market value. But these days that could be a lot less than you want or expect.
what is the best method to finding someone who’ll consider working with one who has a lot of the knowledge, just refining it. Most of the people I find want thousands of dollars. Seems like there is no one available to help without charging tons of money
Kglen
You already have what you seek!!! - Posted by Ed in Idaho
Posted by Ed in Idaho on July 05, 2008 at 09:09:14:
And it is right here! Can’t you see you are getting ‘mentored’ BIG TIME. And not by just one person, but by many. Every ‘atta boy’ and every ‘what the heck are you thinking’ is all a part of it.
So what is your next step? Well that is different for everyone but there has to be something here that peaks your interest. Start going in that direction. Research, ask specific questions, and take ACTION AVTION ACTION.
Maybe you want to locate a good deal and flip it to an investor and make $500 or even more. Get your feet wet. You could be the worlds most knowledgable person in RE, but that and a quarter will just get one gumball if you don’t act. Ceck out the mobile home section if you don’t have a lot of money and see if something clicks there.
By the way, if you don’t have any money now, making $10,000 in a hurry won’t help you unless you change your ways in that area also. Ask about 97% of the lottery winners about that one. I think the other 3% are dead.
Gotta go…wife and kids yelling at me…can’t think straight. Something about if you don’t eat, you don’t poop, if you don’t poop you die. I’ll try to help more later if needed but I hope you get my meaning. Don’t give up, take it all in stride, learn the true meaning, start moving.
99% of the people that actually walk down the hall way of success do it by bouncing off the walls all the way to the end, but they took action and didn’t give up…EVER!!!
Posted by online mentor on July 05, 2008 at 09:04:01:
If you already know so much why don’t you just go out and find yourself a deal? There’s really no “big secret” you got to pay tons of money to get mentored about. You’re basically looking for bargain properties no matter whether you are wholesaling, rehabbing and reselling, or holding as a rental. Most investors are not willing to take on the responsibility of your deals or even to share a deal with a novice. Start like most others have done - by themselves. You got this great Board to come and ask questions and seek support. You don’t really need a mentor to do a deal. Usually they’re just an excuse to keep procrastinating. But maybe this advice could help you:
Get a deal under contract (but with enough time and escape clauses to inspect and investigate and back out if you need to bail)
Then go to somebody you know who invests regularly and successfully in your local area (like someone you’ve met before at a local investor meeting or a local RE agent who also invests locally) and ask them for their advice about your deal. It is always better to talk in real terms, not just theories. And it won’t cost you tons of money. Get the ball rolling yourself.
If you are persuasive enough and maybe throw in a free breakfast or lunch you might get them to actually go to the property with you to look it over, take a look at the numbers that you ran, and why or why not they would do the deal themselves. Ask lots of questions. Just be sure you listen well, are respectful, and don’t get too smart or cocky even if you should disagree on some points. Make the visit and discussion pleasant for this person. Don’t be too pushy and start “pumping” them for their “secrets” either, as that’s just crass and futile. Focus on the deal at hand. Show appreciation and thank them sincerely for their time and help. Whether or not you follow through on buying the property you could learn a lot and/or get the emotional support you seem to need. AND in the process maybe create a friend and colleague and bonafide mentor at the same time. Who may help you again in the future. A true mentor does not solicit for money. And a local mentor is best if you do seek one.
In any case, get yourself out there and just do it!
I talked a doctor into doing Lasik surgery on my eyes for free. Wouldnâ??t you know it. He messed up and now I am nearly blind! So, I searched and found an attorney that took the case for free. I think he wants some of my millions, but a few hours legal work donâ??t justify that. Weâ??ll discuss that later. Then today, I find out he didnâ??t file documents in a timely manner and messed up my case. I have another attorney that says he will sue this one.
The H.E.A.T. program pays some of my utilities, but not all of them. I donâ??t think that is fair. Iâ??m going to vote for a politician that says heâ??ll fix that and get me more money. I tried to rent out a room, but the ignorant sobs said they were going to lower my benefits if I did that. Iâ??m going to complain. Maybe I can sue?
Anyway, I even had one mentor I promised to give 10 grand once I made at least a million and he said he was too busy. How rude. I deserve. I really do. From YOU.
why not pay a fraction of what you want to make in order to receive?
As a youth mentor, I find it funny when I read posts about people who want to mentor but don’t want to pay someone for one-on-one teaching them or who don’t even mentor someone themselves. How many people even ask ME to mentor them but who won’t come down to our organization to volunteer and mentor a child. They won’t even make a $5 donation yet they want me to take time out and teach them what they need to know to make lots of money.
Please don’t take this personal kglen but your question mentioned nothing about what you intend to offer the Mentor for spending time with you.
Well I did take action. I have a house that appraised for $170K rehab to make totally new by two qualified rehab contractors that are reputable and good quoted about $40-42,000. I have it under contract for $69K. So, why don’t investors grab it? We’re talking .41 on the dollar. It’s a good area, near river port, many industries, downtown, beaches, shopping. I need an investor to p/u the deal. I just don’t believe the “you get the deal and the money will be there.” Ain’t happened. So, I’m reluctant to put more deposits on deals until I figure out how to find takers.
I’d be willing to work and split profits, if a mentor would join in on a rehab, helping with funding, I’d be willing to do a split, or if need by a 60/40. I don’t mind paying a mentor, just don’t have the money up front. I sure appreciate a menor’s time and knowledge but just don’t have it up front to pay.
Are you sure about your numbers on this deal? Are you sure the property really comps out at $170K? Are you sure the rehab work is really $40-42K?
If the answer is yes, why don’t you get a hard-money loan and rehab/flip yourself?
Maybe more experienced investors don’t believe your numbers. Maybe they are looking at better comps and see that the real comps are lower. Maybe they are looking at the rehab costs and see that the rehab costs are higher. Maybe they know something about the neighborhood (declining values, too many competing properties for sale, etc) that you don’t know that would make this is a tough flip.
If you really think this is a good deal, go to a meeting at your local RE club, and pitch it to some investors there. If it’s good, they bite. If it’s not, they’ll likely tell you why they’re not interested.
Hey guys I know this response is kind of late but I have run into a few people who have contactd me tell me they will mentor me for anywhere from 5k to 20k. But when I bring to them that I have scouted more than a thousand properties for other investors and I am just looking to get into the game for myself and use my rehab exp. with the experienced I have gained in that time Im usally told I dont have the committment because I wont put up the cash. I dont believe this, and I am glad I found this website because I have worked with enough people to know that if they believe you have what it takes to succeed, they will take you on and work with you for free because it is both your investments put together. In am not saying that we do need to spend some money in this business but if someone truley believes that you have what it takes they will make themselves available and move foward.
Why do you think you deserve 50% if the investor/mentor is putting up all the money, finding the deal, and spending time teaching you? If anything, you should be happy that an experienced investor would let you work beside him for free, so you can learn his business. For the 50% of the profits he’d be paying you, he could probably go out and hire someone more experienced to help on that project.
Also, keep in mind that when someone mentors you, you suddenly become their competition. Why should someone pay you 50% of their profits on a project so that you can turn around and start competing with them?
If you really want to learn, try this. Go find a great deal, take it to an investor (who would want that kind of deal), and say, “I’ll give you a deal, and I’ll work with you on it full-time to learn how you do things, and all I ask is that you answer my questions and teach me what you know along the way.”
If you really feel like the knowledge you would gain from a mentor is valuable, you need to be willing to make some sacrifices for it.
the numbers are there. The neighborhood is coming up with new homes, it’s in a perfect location, rehab costs were quoted by two very knowledgable experience with rehabs.
I have 50 plus investors to email to, tried 6 online classified sites, don’t really get bites from that. Maybe newspaper and bandit signs are the way to go.
As for me getting financing, I am in Chp 13 so I cannot get a loan right now. I’d love to have a private lender get into the deal. Shoot, I’d even work out a deal where they get their interest and take a 50/50 or 60/40 profit split. Just to get things going. This is a 2 story house with 3/2.5 upper deck, nice trees on corner lot. Near the new container port…great location.
May I’m just not getting the attention of enough investors.
Well…I know quite a bit about the business, that’s why I said 50%. I can find the deals, crunch numbers, etc. My problem in my area is finding any investor who will take a deal. The reason I said 50% or even 60% to the mentor is I know enough that he/she won’t have to dedicate much time. I guess it’s just a refinement of what I know and getting into the “circle” because I can tell you in talking around, it is definitely a cirle of investors.
My biggest hurddle…finding someone to take my wholesale deals and possible private money.
I have posted deals on Craigslist and other classifieds, don’t get much off of that. I’ve been told that road signs are not really effective as well as newspaper ads. So, what do you do. I just need to know the best way to get end wholesale/retail buyers.
I guess what I’m looking for is the best avenue to find these buyers. Is it newspaper. Online classifieds have’nt worked well. I have put in the ad:
Investors Rehab with 35K plus profit!
3br 2/5 ba, nice upper deck on a corner lot. Just appriaised at 170K, 39-42K repair, price $69K.
So it’s like they are not seeing it. So I thought maybe bandit, classified in newspaper may work best.
As far as a mentor, it would be nice for someone to work with me on some deals to make sure I’m on track, and to refine what I know. I do know how to find deals, secure them, good with people, got a good professional team in place, real estate attorney who closes many many deals in our area and two good title companies.
Posted by Sharyn SJR on July 06, 2008 at 07:32:41:
There is a book, “How to sell your home in 5 days” by Bill Effros that explains this method in detail.
Generally the way it works----you price the house well below market and buyers bid the price UP instead of the usual way of making an offer below asking price. It is sometimes called a round robin sale.
Advertise house about 50% of market value to build excitement and advertise a weekend open house to investment groups, on craigs list, in the newspaper and in real estate offices. You need to get at least 25 calls on the house and invite everyone over to view and bid on it that weekend. Hold an open house Sat and Sun then the house is sold Sunday night to the highest bidder. Bids are private.
Get the book, it is an older book but you can probably get it on Amazon. Good luck!
Re: Don’t you want to make tons of money - Posted by tampasteph
Posted by tampasteph on July 05, 2008 at 16:08:51:
Hand written bandit signs have worked really well for me. I will usually put out 10-15 in the neighborhood where the property is. Also, while I’m driving around putting the signs out, I take down any numbers on “for rent” signs,and call the landlords to see if they are in the market for more rentals.
Also, you can pull the recent cash sales from the mls for that neighborhood or zip code and find out who is buying. Hunt them down and see if they are interested in buying more deals. 9 times out of ten, if you pull the recent cash sales, and then drive by each property, you will find a for rent or for sale sign in the front yard with the owner’s phone # on it, or a rehab in progress where you can stop by and try to get the owner’s info- I did this a few weeks ago, and left my biz card w the rehab crew and asked them to give it to the owner…he ended up calling me later that day, and turns out he is looking to buy 7 or so properties by the end of the year.
Craigslist is good too. When I have something under contract, I try to put an ad up on CL twice a day.
