Posted by TCR on August 11, 2002 at 14:30:08:
Ahh, I see. I figured that we, as in investors, must operate regardless of what the economy is or rather market is around us. For whatever reason, there’s always going to be someone out there trying to move their house and can’t for some reason. We just need to find them and answer their problem. Got it - thanks.
Doing LOs in a SELLER’s market - How? - Posted by TCR
Posted by TCR on August 07, 2002 at 12:41:37:
First off, I live in Richmond, Virginia. The market here is a Seller’s market. First-time home buyers find it tough to buy a home. They may make an offer to a seller one day then someone else pulls the rug out from underneath them and does a better deal with the seller the next day. There’s more buyers than houses available for sale. And sale prices are TOP dollar.
So how do I, as a newbie investor, get to start in real estate investing using lease purchases as a vehicle?
Find that motivated seller? Are there any out there in a market like this?
Let’s expand this… what is the BEST type of market for an investor to be in if he’s doing L/O deals to start out?
I am trying to figure out the logic here. If a seller’s market allows for a seller to easily sell a house, and a buyer’s market allows for a buyer to easily buy a house, then the investor doing L/Os must be in a market that is basically the equal between the two. Right?
Re: Doing LOs in a SELLER’s market - How? - Posted by JoeKaiser
Posted by JoeKaiser on August 11, 2002 at 12:03:12:
Troy,
The mistake you’re making is your belief in the notion that we investors operate within the traditional marketplace. This in incorrect, at least in my way of doing business. The sooner you realize that that’s NOT what it’s all about, the sooner you’ll be able to put together deals that work. Get the heck out of there.
Who cares whether or not it’s a buyer’s or seller’s marketplace? That’s for traditional homebuyers and homesellers and has little or no bearing on me as an investor. I couldn’t tell you what my local marketplace is because I don’t invest there.
When you understand that deals happen on another level of your local market, the market beneath the market, where sellers in trouble need quick solutions for immediate problems, where they themselves have no interest in entering the traditional marketplace, that’s when you’ll be able to identify a motivated seller and as a result, make something happen.
Doesn’t matter if it’s the hottest sellers’ market in the planet. If a guy in my town is a day away from losing his home, I’m the one guy on the planet, at this very moment, who can make that problem go away.
Go subterranean.
Joe