If at first you don’t succeed… - Posted by Carmen
Posted by Carmen on November 30, 1999 at 16:08:58:
Stop! Try something else!
I agree with JohnG on this one. You seem to be limiting yourself to only buying at Sheriff’s auctions. Why? These are not the motivated sellers that creative real estate is based on.
Those sellers will be found by calling the ads (for sale and for rent) looking for someone who just HAS to get out of their house who will deed the house to you; or who will Lease/Option to you; or who will accept owner financing; or who will split the equity with you; or who will otherwise make it easy for you to “control without owning”. You will find the deals in the sellers who are entering the foreclosure process who value their credit and just want an out and will deed the house over if you make their payments for them (you will find them at the county courthouse). You will find them in the ugly, beat-up houses with the weeds growing out front, whose owners are out of state or too sick or elderly or just disinterested in making anything of it; but if you make them a cash offer (from a hard-money lender), they would take it. Or, you could find a rehabber/investor in your area who would gladly pay you your $3K fee if you find and then assign this house to him, at 65% of FMV. Or you could buy one of them wobbly boxes for $1,000 or so, and get your start this way, selling it for $500 down and $250/month for 24 months, owner financed.
Or better yet, get them to come to you. Get the word and your name out - hundreds of gaudy “I buy houses” business cards at the post offices, the laundromats, the dry cleaners, the grocery stores. Cheap “I buy houses for cash” ads in the Pennysaver ($40 for a month!) Flyers you pay your teenagers to distribute door-to-door (avoid the mailboxes! you could get fined)to work a “backwards” deal (find the buyers first, the houses after, and flip to them retail).
Or… well, you get the picture. There are a hundred ways to get started - don’t get stuck in one mode.
Read the articles here and try a few of the techniques. You should be able to start your REI career with very little money up front, and no credit, if you want to. You can always try something new, and find your “niche” once you’ve tried a few of the techniques first. It may be that, in the end, you are happiest buying homes at Sheriff’s sales with your own cash after all - but by then, you will have a slew of new tricks up your sleeve to handle any number of situations.