Posted by Jim Holmes on February 24, 2000 at 24:11:19:
In my case I had answered an ad from another investor who had fixed up a repo. This investor placed an ad to L/O the property. The terms looked fair, but I felt I could negotiate a better deal. After haggling a few days I controlled the property through my L/O and I had worked the deal so I had the right to L/O the property and assign. The next day I ran my ad.
The reason I had all those buyers lined up is because they were responding to my ad. I contracted with the second person I showed the house to. I made $400 up front, I’ll make $50 a month a long the way, plus build up $100 credit above the credit that I have to give to my optionee; and I’ll make money at the end of the option period.
However, your question about finding people before having a property…I think is very doable. When you answer the phone I would just tell them that you don’t have a property at the moment, but have some in the wings. While you got them on the phone sell them on the advantages of the L/O and screen them for ability to buy future deals and their preferences. Put their names in a data base and then search out some deals. This method could become very lucrative and be a win/win/win for all involved. Seller sells home at near top of the market price, you make money, and your buyer gets into a home that they may not have gotten into without you.
You can make money and help people solve their problems at the same time.
-Jim from Idaho