Posted by Jesse (CO) on April 03, 2002 at 10:52:44:
Hey Booker T.!
I’m a couple of months into this CRE stuff. I’m in Denver where Bandit signs abound as well as the ‘sign police’ (aka, CAUSS - website www.causs.org). I’ve never been called by the authorities on my signs and I’ve put them in conspicuous places (on the Main streets that cross the neighborhoods I farm, haven’t had the gumption to jump out of my car and stake a few in the ground near the busier highway intersections…). Find out what the regulations are in your city/town and see how you can make it work. What you’ve said about passing out business cards, etc. sounds right on the money. I believe it was Joe Kaiser who said recently: ‘when the sellers are ready to call you, they will’ (not his exact words). The point is, when they need to call someone… ‘who they going to call?’ by some mysterious design, your number finds it’s way into their hands in a moment when they’re down and out…
I won’t say I’ve gotten a ton of calls, but I’ve sifted out the deals that had no potential and got one deal underway. Wasn’t a great deal and a lot of it was done with help of a partner/mentor. I was in this guy’s office the other day looking at the paperwork from the first deal and told him about a call I had gotten. I asked him if he could listen in while I made the call. He caught something I missed (this was about a mobile home something I don’t normally deal in).
I met this partner/mentor through the local CRE group. So I’d say, If you’re not a member of a local CRE group, I’d say join one and see if you can find someone to help you and even critique you on your mktg., dealing with sellers, etc. And probably more important, this gal/guy has access to information such as the MLS or is a broker and can see if you’re striking a deal or a pitfall.
Even if you join the local CRE group to get another boost when you feel like ‘throwing in the towel’, it’s well worth it! Hang in there!!!
Hi folks, I am a relative beginner. My situation is, I have been aggressively looking for a house to rehab since Jan. 2. I am working w/ 4 or 5 agents who send me LOTS of leads, mostly REO’s. The problem is, most of the stuff is overpriced and when I make my lowball offers ( I never offer more than MAO), the banks don’t even counter. The juicy deals go to investors who have been doing this a while – before they hit the MLS. In addition, I have an ad running, but seem to get mostly people w/ hardly any equity in their houses. I have tried letters and postcards w/ no results. I put up 10 banding signs one day and the police called me the next and told me to take them down or they would take me to court. I have made about 16 offers. I had set a goal of doing 8 rehahs this year, and so far have nothing. I did have a contract on one last week, but sent my inspector out and he found some problems w/ the plumbing which would have altered my repairs estimate. I haven’t given up, but I am wondering if this is normal for beginners and if it gets easier once you have become established. One more thing: I have a hefty amount of cash in the bank (over $130K) due to the sale of my home. Would some seasoned investors please advise how they would use that cash to make more money? I am grateful to have it to live on, but I don’t want to keep spinning my wheels and have it run out. I have RLG’s courses and have attended Robyn Thompson’s boot camp. I feel like I’m doing everything I can, but maybe there is something missing. Any advice?
Put it in the bank and borrow against it. Use it to establish a strong credit line. Increase that $130k cash to a $500k credit line!
Regarding the REO’s. I agree with CurtNY. Make your offers all cash and follow up. Also, get with a LISTING Realtor (not merely one who sells REO’s from the MLS) who lists REO’s for specific banks and mortgage companies. Take him/her to lunch. (Hell, make one of them your partner). Let them know that you are serious about buying and CAN CLOSE ON TIME (one of the main concerns of Realtors who list/sell REO’s). Have business cards and make sure you can be reached at a moment’s notice (cell phone). Send flowers on birthdays and cards when you meet a Realtor (nice to have met you…looking forward to doing business with you…blah blah blah).
A couple of years ago, I was in your boat. Please read the post above this one called “There Was Once a Little Fly”. I now own 100 apartments and am in the process of buying another 120 appartments. Oh, by the way, I don’t need to work anymore.
Linda, take that money and invest it. Buy yourself an income…like apartments. With 130K cash you can have a nice cash flow, appreciation, tax advantages, etc.
Hi Linda,
I was reading your post and a few things popped out at me. Please don’t take any of what I’m about to say the wrong way. First, you’ve been looking since 1/2/02, thats not that long, so be patient, its going to take some time for the first deal, they come faster the more you do. Second, you make offers with a few realtors who are providing you REO’s, good I like them the best, less emotion involved. But here are a few suggestions, make your offers all cash, and if possible with no contingencies. If you don’t feel confident, only use one escape route. Also, the most important part to REO offers, is follow up. Follow up every 3-4 weeks. Third, you stated you’ve made 16 offers as if that was a lot, you want to close 8/yr. Thats a great goal, and definately obtainable, but remember this is a numbers game. When you’re starting out exptect to make 15-20 offers for every one accepted. That in mind expect to make approximately 160 to meet your goal of 8. As you get better, get a good reputation, that number will get tremendously bettter. I don’t know what to say about the bandit signs other than to verify you actually spoke to the police, get a badge number and call the local police to confirm. Regarding the money, good for you it will make your investing much easier. My suggestion, spend some on education (looks like you started this already), use the rest to live on for current needs and invest the rest. Well thats my two cents, good luck!
Yes pretty normal. There are dry spells then times when you get offered 3 good deals in a week.
The longer you keep at it the better you get, and the more you get known.
The big danger is that you will get anxious and buy something even though it is not a good deal. This comes from the old wage slave mentality that you get paid for working, you don’t! When you are in business for yourself you get paid what is left over after everyone else is paid, if it matches up with the hours you worked it is just a coincidence LOL.
So don’t lower your standards as far as taking an iffy deal. If there are no rehabs in your area you may have to try another type of investing.
I should be getting my bandit signs today. I wasn’t home to sign for the package, so I have to go to the UPS station today. I was really looking forward to putting them up. I’m in the middle of a six-week penny saver ad, no calls. I’ve placed 1000 business cards at malls, payphones, bathrooms, stuff like that. I’m getting worried. And now I hear the police will take you to court if you put up the bandit signs again. I know, I will get those calls too. Did you place the bandit signs in the same town? What state are you in? I’m starting to think maybe I should throw in the towel. I guess I will be poor the rest of my life and working a dead end job.