Posted by Richard Roop on May 18, 1999 at 11:02:20:
I buy a lot of homes and I find dealing with real estate agents extremely difficult…so I avoid it. I only target properties for sale by owner. Maybe one out of 40 homes I buy are listed, and it has to be a great deal.
In my area, good deals on the MLS are snatched up by agents or investors being serviced by agents. It is possible to get an agent to watch out for good deals but I would not count on it or try to build a business that way.
Only by talking directly with the seller will you be able to build enough rapport and gather the personal details you need to evaluate an opportunity and make a offer.
I believe this is a business about solving seller’s problems. You must do a gentle exam before you write a prescription.
I must know…
- Why are they selling
- When do they want to sell
- How much do they owe
- What are the terms of their loan (payment, balloon)
- What do they think the home is worth
- What do they think the home will rent for
- What is the least they would take all cash and they pick the closing date
- What they consider taking any part of their equity in installments, or can they wait for their equity
- If they need some cash, why…for what
- What will they do if I don’t buy their home…have they ever been a landlord.
How can you get these answers through a third party?