Posted by Larry S. on December 21, 2001 at 15:28:23:
Thanks for the ideas, I will put them to use. Larry
Clearing mental hurdle - Posted by Larry S.
Posted by Larry S. on December 21, 2001 at 06:40:31:
Hello! I would like to begin investing in real estate creatively. I live on Long Island in NY and the market here is ridiculous. It’s not uncommon for a home listed for $275,000 to have 3 or 4 people at an open house bid the price up 10 or 15 thousand dollars right on the spot. Many homes sell in 2 or 3 days. I’m having difficulty clearing the mental hurdle of “yeah, that stuff works for other people, but they aren’t trying to do it here”. Are there any seasoned investors who can give me a few ideas as to how to overcome this and put into action the principles that are obviously working in other areas of the country? Thank-you very much for your time. Larry S.
Re: Clearing mental hurdle - Posted by Bob-Tx
Posted by Bob-Tx on December 21, 2001 at 11:22:49:
The key is finding motivated sellers. Really, the same things that motivate people in one market motivate them in others. Regardless of the market there are folks out there who have to move and need to bail out of an existing mortgage, people who get far behind on mortgage payments, taxes and etc. Learn how to locate those owners and get them to call you with their problem and you have potential deals. If you are looking to the local MLS for deals then you are looking in the wrong place.
Re: Clearing mental hurdle - Posted by Chip (Tx)
Posted by Chip (Tx) on December 21, 2001 at 09:45:27:
For such a hot market, you can offer the seller his price, and tie up the deal. Make sure you have the right of assignment in your contract, and tell the seller you will be showing the home to other prospective tenants, partners, and buyers. Then sell the home in a few days to another party, and assign your contract to them. You earn the assignment fee.
Ex:
Buy home for 300K
Sell it for 310K (in a few days, right?)
Gross profit 10K
Technically, you will be selling your contract, not the home. The buyer will close directly with your buyer.
To do deals we don’t always have to find sellers willing to walk away from equity.