Market is To Hot? - Posted by matt

Posted by David Krulac on July 09, 2002 at 15:45:10:

here there is a big time seller’s market, intereest rates are low, and properties are selling fast ofr asking price.
BUT there is always another market, the unemployed, the sick, the estates, the motivated sellers. Talked to some one today about a bank selling a house which they have $65,000 in to it. Probable selling price less than $29,900! It there evry day of the week and twice on Sundays!

David Krulac
Central Pennsylvania

Market is To Hot? - Posted by matt

Posted by matt on July 09, 2002 at 13:21:33:

With the market the way it is houses are gone as soon as they hit the market. for example, my neighbor had their house on the market for 3 days, and they sold it for what they were asking which is over $200,000.

Is anyone having luck finding homes using creative re techniques? It just seems that sellers can just list their house with a realtor and it’s gone in a matter of days. I don’t see what creative RE can offer sellers in this market if they can sell through a realtor in a matter of days. Sure, there is the wait on the closing which can take 45 days, but other than that, I don’t see the point of a seller calling on us to solve their problem. Am I wrong? I hope I am.

Please give me your opinion.


Re: Market is To Hot? - Posted by GinBC

Posted by GinBC on July 09, 2002 at 14:08:07:

Hi Matt,
I live in Vancouver where the median price in Vancouver proper is $347,000. Try to get a positive cash flow from that! It’s the most expensive place to live in Canada (if you get paid in CDN $ LOL).I found that after I talked with the nice lady at the classified section of our local paper, She told me “she has another client placing ads looking for houses” and that he can barely keep up with the calls. There are only 4 (now 5 with me) I buy houses ads running in the paper in a city of 1.8 million - I can see alot of room for opportunity.
I’m new at this and when I read “You Can’t Do This Where I Live” and “Getting Started - Now What?” It provided the kick in the ass I needed to get into action. Those two articles alone, I think anyway, vanquish many myths that I beleived were fact. There’s more than 1 way to buy and look for the seller not the house. Thank God or I’d have to start looking for a “real job” as my friends put it. Anyway - good luck and look in the archives. There is an absolute wealth of info there.

Re: Market is To Hot? - Posted by Michael

Posted by Michael on July 09, 2002 at 13:38:45:

Mylast offer was on a fixer. Asking was $470,000. I offered $490,000. There were 49 offers and the house sold in one day for $605,000.

Tough market to do business!!!

Re: Market is To Hot? - Posted by matt

Posted by matt on July 10, 2002 at 02:24:28:

Thanks for the reply, it was encouraging.


Re: Market is To Hot? - Posted by Jim FL

Posted by Jim FL on July 09, 2002 at 13:57:23:

Yes, your market is HOT, and YES, you CAN do creative deals there.
I’ve worked with people all over the country, and the one thing we seem to hear from the vast majority is how they doubt creative investing will work where they live.
When asked why?
We usually hear an answer like the one you posted here.
Houses are selling in DAYS, for at or above asking price.
And while this might actually be the case with many listed homes, there are ALWAYS motivated sellers.
Do people get divorced, lose their jobs, transfer out of state, fires, estate sales, bad tenants in property, in your area?
I’d bet that these things DO happen where you are.
And this is where you need to focus.
Frankly, while I KNOW creative real estate deals can and are worked in your area, it certainly is not easy.
To get the deals you may need to market harder than others in other markets.
You might just try targeting your marketing a bit to get a better response.
Deal with those folks who NEED to sell, but are not offering the house for sale just yet.
Mail to divorce filings, eviction filings, probate filings, N.O.D.'s and the like.
Talk to relocation departments at major corps., or relocation services.
Get the word out strong and loud thru aggressive marketing and the deals will follow.

They are there, it just takes HARD work and persistence to find them in a market like you describe.

Good luck and keep your head up and eyes WIDE open,
Jim FL

Re: Market is To Hot? - Posted by matt

Posted by matt on July 10, 2002 at 02:31:03:

I see your point. Do you have any other ideas about finding motivated sellers other than running ads, signs, flyers, business cards and what you mentioned in your reply? Maybe there is a post that has more ideas? Thank you for the help.