Posted by Robert M. Campbell on March 17, 2000 at 13:09:03:
Follow this advice and you can’t help but be successful.
This business isn’t rocket science. But you do need a marketing plan . . . and Brandi has given you a good one.
Robert M. CAmpbell
I will buy any house-48 hrs-CASH, Fast, Easy,Best Price, etc… - Posted by Henry
Posted by Henry on March 17, 2000 at 11:11:49:
I see these ads all the time in the paper. Do these people sit around all day with wheelbarrows full of cash ready for a call? Or is this a form of verbal “baiting”, where they find a very small % of folks that fit within the scope of
what they are looking for…a workable “deal”. i.e., Lease/Purchase, option, etc?
Thanks,
Henry
Re: I will buy any house-48 hrs-CASH, Fast, Easy,Best Price, etc… - Posted by JS
Posted by JS on March 19, 2000 at 18:56:05:
is this a form ofverbal “baiting”, where they find a very small % of folks that fit within the scope of
what they are looking for…a workable “deal”. i.e., Lease/Purchase, option, etc?
BINGO! But that does not mean that you can’t do busines with them. Find out what they want and bring it to them. Only a small % can actually perform, but that should be a given.
FORGET CASH (LONG)! - Posted by Jim IL
Posted by Jim IL on March 17, 2000 at 21:28:23:
Henry,
Many people here advocate the use of the word CASH in ads to get calls.
I did that in the beginning.
I found though that most sellers who called zero’ed in on the word CASH and that was all they could think about.
Plus, in reality, unless I could buy the home at a SEVERE discount, the cash option for me was not reality.
So, I removed the word CASH from my ads, flyers and signs. (I was just not comfortable offering something that I would in all probabilty not be able to, or willing to do.)
I now simply way, “I buy homes”.
When sellers call and say, “I have a house I NEED to sell, how do you work this?”
I steer them away from that topic and ask them about the house and there situation. When they balk at this, I tell them that I need to gather info in order to figure out the BESt offer for us both. If that is not good enough, then the answer is classic…“Some will, some won’t, so what?, someones waiting” (R. Legrand)
After I have talked about that, if they ask again “how” I will buy the home, I tell them this;
"Mr./Mrs. Seller, I buy homes basically two ways:
- All cash, which means at a SEVERE discount. This is after all my business and you surely understand that I cannot run a business without allowing some profit in the deal for me, otherwise, it simply makes no sense.(the word SEVERE weeds out many FAST!)
- On terms".
The sellers always ask what “Terms” means, and I go into a little bit about that.
Basically my approach is to tell the seller, “This is your problem, and this will make that problem go away, will that work for you Mr. Seller?”
If they say “Yes”, (they usually do because I have solved the problem), then we sign it up and they are happy.
So, the answer for me has been to steer away from the CASH issue, and toward the problem solving aspect.
Now that is not to say that some problems can be solved without CASH. Some problems sellers have do require cash. That is when you get real creative, and rather bold in my opinion. If you remain detached from the outcome of the deal, you can be creative, and who cares if you offend the seller with your offer.
I once had a seller tell me he “Needed to get $20k down” from the sale if his duplex to pay off some bills.
The place needed repairs, so even IF I had $20k, it would not have been wise to put it into the deal.
Instead, I proposed to the seller that he refi and pull the $20k he needed out. I gave him the advantages of doing this. (ie: using the $20k tax deferred, and keeping some cash flow.)
He said he could not get a refi, and was adamant.
I put him in touch with a mortgage broker I know, and he got his refi.
I then bought the place for his mortgage balance, using a Land contract.
I used a partners money for the repairs, and now have the duplex.
I got it about $20k under value when all numbers were done, plus $500/month in cash flow.
The seller got his problem solved, I got a property NO MONEY DOWN, with CASH FLOW, and a great price.
Not too mention the Land Contract has a nice long term allowing me to keep the place without refi-ing for several years. (I’ll probably sell it before then anyway.)
So, be creative, forget about CASH, especially since you do not have it to offer.
Even if I had the CASH to use, I would not. It simply makes no sense to do so now.
And, to date, the MOST CASH I have EVER put into a deal was $2k, and I got $5k in option money just a couple days later, more than doubling my initial investment in less than a week. (what kind of yield is $3k profit upfront, $200/month cash flow, and $15k backend, for ZERO into the deal?..right! Good 'nuff!)
Hope I did not ramble too long, and hope this helps,
Jim IL
P.S. Happy St. Patricks Day! I’m off to drink some beer now…Õ¿Õ
P.P.S. For those of you who think CASH is KING, you may be right, but do not jump on me for NOT using it. (I don’t have it anyway.) I bet my yields not using any are as good as, or better than those who use it. Besides, this is fun.
Re: I will buy any house-48 hrs-CASH, Fast, Easy,Best Price, etc… - Posted by Craig
Posted by Craig on March 17, 2000 at 19:40:49:
Henry:
Most I know using these ads can act quickly if they can use Land Contract or Lease Option. They talk cash if they can purchase for about .50 cents on dollar. There are several investor groups willing to help fund these half-price deals. You are right, " small percentage."
I 'll pay cash for your house in 48 hours… - Posted by Brandi_TX
Posted by Brandi_TX on March 17, 2000 at 12:41:45:
… but that doesn’t mean I will pay full market value for it.
“Fast” - you bet - call me and I will meet you at the property and sign this puppy up.
“Easy” - what could be easier than signing a paper or 2 to solve your problem?
“Best Price” - sure! Your best price or mine?? If mine, great, all cash may be doable. If yours, then we may need to talk terms.
Bottom line is that your ad gets the phone to ring. Make sure nothing in it is false, get an apponitment with the motivated sellers, make an offer that you can live with and perform on, then go do another one.
Brandi_TX
Brandi- Very well said!!! nt - Posted by SCook85
Posted by SCook85 on March 17, 2000 at 14:21:04:
nt