Posted by Jim Holmes on February 24, 2000 at 24:11:19:
Sev,
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.
I just have a couple of questions. - Posted by Annette
Posted by Annette on February 11, 2000 at 08:13:09:
Hi Everyone!
I just have a couple of questions as a newbie that I need answered.
When getting a house under contract to flip retail, how do you answer buyers that assume you are the owner of the property? Do you tell them that you are a real estate investor that place houses under contract to sell retail? I ask this because I believe in being upfront with people and not misleading them. Honesty is the best policy especially when establishing business relations.
How do you go about finding buyers before you find properties? I have already made contacts with some investors and what they are looking for in property, but what about individuals who are not investors?
Re: Question 2: finding buyers - Posted by Jim Holmes
Posted by Jim Holmes on February 13, 2000 at 01:43:15:
Annette,
I recently had an ad that said, “3 bdr 2 bth, Rent to Own, $650 mnth, low down payment.” I had 30 calls and sold very quickly (about the 2nd caller screened). But then I had a list of 10 or more good candidates looking for a good deal. Now I just need to find them houses that meet my criteria and theirs.
Re: I just have a couple of questions. - Posted by vernon
Posted by vernon on February 12, 2000 at 17:44:26:
To answer your question:
I am always up front and honest with anyone I come into contact with when flipping properties. Generally, the seller is ready to get rid of the property fast and need help doing it. They don’t care if I plan to flip it to another investor. They just want their money now.
Dealing with the new buyer, again I tell them that I am an investor and that I have the home under contract. I have generally contacted several of my investor contacts and will flip it on first come first serve basis. If you have done a good job finding the property, it will be an excellent deal and they don’t care if you are assigning it to them or selling it directly.
When finding buyers, I will first call all my investor contacts that want cash deals. Unfortunately, only about 10-20% of my deals offer a price low enough for them to make money and pay me a reasonable assignment fee.
If I am in that situation, I will put an ad in the paper and look for “retail” buyers. Generally, to make the
Re: Question 2: finding buyers - Posted by sev paso
Posted by sev paso on February 22, 2000 at 20:18:07:
hey jim,
my name is sev, and i find this way of investing very interesting,unfortunately i do not understand,(you find people looking to buy property before you you have property??? and what about investors? where do they come in to play? please reply with some insight for me,for i am new to REI and trying to gain as much knowledge as possible. thank you