Posted by Ed Garcia on June 16, 2001 at 17:13:12:
BUYING in a SELLER’S Market.
Were not in this business to make the sellers rich. Were in it to make money. When you find yourself in a sellers market, then you have to do what I call, change the rules.
I don’t play if I can’t get a good deal. First of all, no matter the market, there are always going to be MOTIVATED SELLERS. It’s just a matter of finding them.
Second, when I say change the rules, I mean, find a property that is not a hot property, and make it one.
For example: knowing that 2 bed room 1 bath houses are not as HOT on the market as a 3 bedroom 2 bath. Then why not look for crummy 2 bedroom 1-bath houses that you can steal, and fix them up adding another bedroom and bathroom.
Obviously buying fixer uppers are always going to allow you to make money, because the average consumer buying a home barely has enough money for the down payment, let alone spending money for fix up.
Look for properties that have what we call upside potential. These are properties that may be in good locations but are not being used for their best possible use. You might purchase a little run down house that is zoned for units and build units, you might purchase a apartment building and convert it to condos or purchase a lot and build a house on it, and the list goes on, once you start to put your thinking cap on.
Get out there and find out what’s going on in your community. Remember if you talk to 10 people you get a result, if you talk to 100 people you’ll get a result. Which one will give you a bigger result? I hope you see the picture.
One more thing, there is nothing wrong in doing as you’ve suggested in your post. Money talks, B/S walks. I like making CASH offers. Not only does it give you better pricing, but in the event you can’t get them to sell where it’s worth it for you to use your cash, then it sets the stage to take a little less profit for terms.