Please help in clearing my confusion here!!! - Posted by benny

Posted by JoeB(Atlanta) on February 23, 2000 at 14:29:23:

Hi Benny, answering your questions…
1)The main target in almost all of your successful investing should be a motivated seller. The motiv. seller will usually agree to the best deal, with the least amount of hassle, and often agree to creative seller financing. Find a way to locate these sellers or have them call you (via marketing), and you’ll love this business!

2)Many investors dislike realtors because realtors seem to dislike creative deals and can ‘shoot down’ a deal that you and the seller were just about to agree on (side note: not all agents are ‘uncreative’, but of course the uncreative ones get all the bad press).

Realtors that are mainly Buyers Agents should have lots of buyer clients, but these buyers often times will take longer to close (due to bank financing), require inspections and repairs, etc, etc.

All these delays, etc. can scare the motivated seller–who usually just wants a quick close, as-is, for cash.

3)No, I don’t believe FSBO are usually hiding something like ‘murder’!! Some sellers need a quick sale (like I wrote in #2 above), some don’t have equity or don’t want to pay an agent’s commission, and some just don’t like agents. There are many innocent reasons for not listing with an agent.

But you raise an interesting point: if this house has been for sale (with or without an agent) for awhile, you should try to determine why it hasn’t sold (price, neigborhood, dogs in house, crime, etc). So that you’re not stuck with the same problem.

Hope this helps,
Joe Brillante

Please help in clearing my confusion here!!! - Posted by benny

Posted by benny on February 23, 2000 at 09:54:52:

Hi investors,

I have 3 questioins:

  1. I am wondering is the “Main” key or our target in creative REI is “motivated seller” ONLY?

  2. Usually people say in Creative REI, we don’t use realtor, so what makes a seller use private sale instead of using realtor? If they are very motivated, should they use realtor instead because realtor has more buyer in hand?

  3. Is seller using private sale always has problem with their houses (eg. murder etc.) so that realtor will not listed their house and they have to use private sale? How can I check if the house that I buy has no such problem?

Thanks a lot!

Excellent questions! - Posted by David

Posted by David on February 23, 2000 at 18:06:36:

  1. motivated sellers are definately a key. You can buy and make money without motivated sellers, but its a lot easier with the motivation.
  2. I don’t exclude in my area about 90% of sales go through real estate offices. I use them for both buying and selling, when I could do both without them.
    I’ve bought over 200 properties and have used realtors less than half the times, but I still use them! If I remember correctly Steve Cooke said almost all of his deals come from real estate agents.
  3. I have seen many potential frauds that FSBOs have tried to commit. Went to look at house on 3 acres out of the newspaper. Asked to see the deed and figure out that there was only 1.3 acres. expecting another deed I said where’s the other 2 acres. He said what do you mean? I said the paper said 3 acres, he said the paper messed up it was supposed to have been TREED ACRES no THREE ACRES. Only problem there were only 2 trees. i have several other stories that I could tell about sellers withholding crucial bits of information even when directly asked. Realtors can lose their license for that kind of CR*P, whereas the sellers think they’re bulletproof.
    Hope this helps,