Country Living - away from Jobs - OK for L/Os? - Posted by Heidi W

Posted by Jim Kennedy - Houston, TX on December 17, 2001 at 20:51:58:

Heidi,

Tim Randle has given you some pretty sound advice. If you decide you’d like to “take a shot”, here are a few recommendations.

First, test the waters. Run a blind ad that gives enough detail to let the reader know the uniqueness of the property. If you a great response, go forward. If you get no response, you’ve got your answer.

Second, use an option to give you the ability to market the property without making a firm commitment on the buy side. This is one of the weakest ways to get into a deal, but at least you have an easy out. Just be very honest with the seller. Let him know that you’ll use your best efforts to put a deal together, but make sure he’s aware that there are no guarantees. I did this with a property that had three strikes against it. 1) It was a $500K property in a market where the median price is $125K. 2) It had the weirdest floorplan I’ve ever seen, and I’ve seen some weird ones. It was only one room deep. I can’t remember the exact square footage, but it was very large (about 8 rooms wide and 3 stories high but, as I said, only one room deep. 3) Someone had bought it with the intention of converting it to an office building for his company. He was half way through the conversion when something happened that caused him to abandon the idea. I used an option to give me the right to market the property. When I was unable to find a buyer, all I was out was my time and a few hundred dollars in marketing expense. The seller knew from the beginning that there was little likelihood of finding just the right buyer for such a unique property.

Third, go for a VERY, VERY, SEVERE DISCOUNT. You wrote that the property was 1.5 hours from the nearest employment base, but you didn’t say how far away it is from you. Anytime that I consider a project that is more that an hour away from my home office, I figure in extra profit margin to compensate me for the added travel time and inconvenience. I do the same with unique properties and expensive properties in order to compensate for the added costs of a longer holding period.

BTW, for about 15 years, I lived in San Diego and spent one of those years living on Warner Mountain. If you drew a triangle between Julian, Ramona, and Temecula, it would be somewhere within that area. I believe that Warner Mountain is the tallest peak in San Diego County - taller than Palomar. It sure was pretty country.

Best of Success!!

Jim Kennedy,
Houston, TX

Country Living - away from Jobs - OK for L/Os? - Posted by Heidi W

Posted by Heidi W on December 16, 2001 at 20:58:00:

I’ve found a FSBO near a relative up in some expensive mountain horsecountry - about 1.5 hours from the nearest real jobs. I haven’t called them yet - but I heard from neighbors that they may be motivated - because after building the Horse Barn and other enhancments and having 2 kids and swearing they were going to stay there forever, they’re suddenly trying to leave. I smell Divorce.

In any case - I’m so new at this I haven’t even made my first serious call. The flyer says they want $495K, but my source thought it was $450 - so they’re probably already talking about lowering the price. It was on the market during Thanksgiving - so it’s at least one month old. The house looks to be on five acres, very well kempt and in good condition. I don’t have the flyer handy - but I think it was a 3 br, maybe a 4 br. I know for sure that the square footage was around 3200.

They’ve installed a fancy entrance gate - it has good curb appeal.

I’m going to be back near the house next weekend, and I want to call these people first. I’m not sure I want to personally handle this deal - because I don’t want to drive up too often, by maybe I can refer it to another invester in the San Diego/Riverside area.

Anyhow - what types of questions should I ask.

Thanks,
Heidi

my experience… - Posted by TRandle

Posted by TRandle on December 17, 2001 at 15:28:15:

Heidi,
Not that my experience would be indicative of yours or your area, but I wanted to share my comments. Almost without fail, every time I stray from the “normal” house in a “normal” price range in a “normal” neighborhood with a “normal” floorplan, etc., etc., I end up regretting it.

That short list would now include one or more of the following property characteristics: a murder, a 40 year old oak tree in the middle of the driveway, a condo, a less than desirable floorplan, on a golf course, large monthly payments, and/or in rural areas.

I now like 3/2’s that are at or under the median price range in a nice starter neighborhood, at least as far as the “keepers” go. I had heard other folks state this same sentiment long ago. It didn’t matter - I had to learn it for myself, and on occasion, I still decide to learn it again.

Hope my perspective helps some…

Questions to ask sellers. - Posted by Jim Kennedy - Houston, TX

Posted by Jim Kennedy - Houston, TX on December 16, 2001 at 21:28:43:

Heidi,

Read the “How To” article entitled “Get on the Same Page With the Seller” by Joe Kaiser. You can find it at:

http://www.creonline.com/art-149.html

Also read the “Money Making Ideas” entitled “How To Handle Telephone Calls” by Jim Piper. You can find it at:

http://www.creonline.com/mm_37.htm

Hope these help.

Best of Success!!

Jim Kennedy,
Houston, TX

Re: Country Living - good for L/Os - Posted by Heidi W

Posted by Heidi W on December 17, 2001 at 13:00:13:

Thanks for the What to ask seller tips Jim!

Any idea about the other side of my post. Anotherwords, how good are country hideways for the L/O or for that matter the Option business?

Thanks,
Heidi