Posted by Ed Garcia on December 30, 2000 at 14:11:32:
Brandi,
There is no question that you’re in a tuff market for an investor.
But let me ask you a question? Do you thin that if Donald Trump was living in your area he’d find a deal? Now I know that’s a little far fetched for me to use him as an example, but why not. I know you’re thinking that he is more resourceful than you but believe it or not his cash is not as his knowledge and contacts or network. Proof of that statement, is that there are a lot of people or investors in your area who are financially resourceful, and who are in the same dilemma.
I think the first thing for you to do, is to “think outside of the box”. Rather than be victimized by a buyers market, you should look for properties which have what we call “upside potential”.
Perhaps a two-bedroom house, that ad on value could be added, if you added another bedroom and a bath. Perhaps a small house you could tear down and build a new larger house. Perhaps an apartment complex, which could be converted to condos. I could go on, but I’m sure you’re getting the picture.
If you’re concerned bout your personal resources? Again creativity will have to play apart, meaning not only finding properties with upside potential, but to negotiate with sellers who may not see their property as marketable or valuable as it could be and will work a deal to help market it. Example, the seller sells you the property as a two bedroom and agrees to subordinate to a construction loan as well as carry back a second in order for your to build the ad on bedroom and bath.
Brandi, I’m introducing you to a way of thinking, so my examples are not meant to be exact. They are meant to be eye openers, to get you to think about properties and their best possible use in your area.
I hope I’ve given you some food for thought,
Ed Garcia