Posted by CScottNJ on June 24, 2001 at 24:14:35:
Jim IL,
I just sent you an email a short while ago and this is what I’m talking about. To the point and Very, Very informatative!
Thanks,
C Scott NJ
1st deal - Posted by Green Investor
Posted by Green Investor on June 22, 2001 at 14:32:21:
Help! I’m working on my very 1st deal and I need advise. I located a house, located the owner and here are the details:
SFR - 2 Bed 1 Bth, 1894 sq. ft., 6800 sq ft lot. purchased 1990 $184K w/$137K 1st TD. Taxes are current. The reason it caught my attention is the fact it looks like it’s abandoned. (High grass, needs paint, tree growth covering structure) All other homes in area are well cared for. Comps are in the mid to upper $200k range. but this house looks like it could be a real good fixer.
How should I approach this and what would be a good offer price on this home that is not being marketed yet and how do I market it for a fast turnover. I’m looking for owner financing if possible because of student loan problems on my credit report.
Talk and LISTEN, carefully - Posted by Jim IL
Posted by Jim IL on June 22, 2001 at 18:58:07:
Mr. Green Investor,
First, why not use your real name, at least your first name here. It just makes most of us here take you more seriously.
At any rate, on to your post.
Since you have some info, do some due diligence on the home.
Find out as close as you can what the home is worth, in GREAT shape.
Find out about possible back taxes?
Was there a foreclosure filed against it etc.?
Talk to the sellers.
Tell them that you noticed there home, and you are looking to buy one in this area.
Ask them if they would be interested in selling the home at all?
If they say, “No”, then ask them what they intend to do with it?
Some say “No, we do not want to sell”, simply because they think they cannot, and do not bother with it.
If the seller says, “Yes, I’ve been thinking about selling.”, then ask them to tell you more about the home.
LISTEN here, carefully.
IF they are not iving in the home, ask them what they had planned on doing with it?
Ask them “why?” they no longer live in it, it sure seems like a nice area to you?
and LISTEN here to.
This is where you will learn there motivation level if it exists.
And once you have the sellers problems layed out for them, and they are willing to sell, gather the info for that.
How much do they think it is worth?
How did they arrive at that number?
Repairs needed?
How FAST do they want to close?
Loans on the home?
Current?
Payments? do they include the taxes and insurance?
What is the balance of the loan?
Are there more than one loan on the home?
If yes, then gather the info on that?
And anything else they can think of to tell you about the home and their situation?
Then perhaps ask to see the home, IF the seller sounds receptive to selling to you.
In order to better screen someone that I have called, rather than someone who has called me, I will ask them about there needs in great detail. Do they need cash now?
if so, how much and for what?
If not, what about price?
Will they take it over time?
After this, many will ask “Why?” I want to know this.
I just give them my standard line of; “Well Mr./Mrs. seller, you see, I basically buy homes one of two ways. Either all cash, for a SEVERE discount, or on terms, with a higher sale price.”
They ALWAYS ask about the cash and the discount.
So, I offer them up a basic idea of how and why we offer what we do with cash. I tell them that since I use my own funds, in addition to funds from private investors, we must buy at or below 65% of full market value.
Obviously when people trust me enough to use their money to invest, I MUST be able to give them a good return in order to keep them funding my deals.
And with terms, we can pay higher prices, and generally get everything done that needs to be done for both the sellers and us.
I will often explain to people on the phone “Terms” a little, but I also tell them that before we discuss this too much further, I need to see the home and inspect it to insure that it will qualify for our programs.
This immediately places the burden on the seller, not me.
Since I do not NEED to buy there home, and after our conversation, they will think they NEED to sell there home.
Sorry this was so long, and not very well written, I am doing several things at once here, a feat in and of itself.
Hope it helps a little though,
Jim IL
Re: Talk and LISTEN, carefully - Posted by CScottNJ
Posted by CScottNJ on June 24, 2001 at 24:24:26:
Jim IL,
This could be a dupe. If so, I apologize to all for taking up the space. However, this message that you posted is exactly what I was referring to in the email I sent to you earlier. As someone who is really trying to understand and achieve in this particular business, I THANK You for your understanding and informative comments.
Wishing that you all hear a lot from me from now on,
CScottNJ