Posted by Heidi W on December 15, 2001 at 19:44:01:
Oh Paula, oh Paula,
You sound just like me. I remember in my early days of doing this, I drove around a neighborhood and found some Ugly Vacant houses. I got a little excited too. But unlike you - I never did anything about it. Hell - I’d be hard pressed to put my hands on the addresses with less than an hour’s search time. But so what. I didn’t want to do those kinds of deals yet anyways.
But back to your question.
I can see why you are excited. Sounds potentially excellent to me. For starters’, definately try and find out who the owner is.
I think I found out at least some basic information on my property by going to my County’s Wesbite. I heard about that from my Local Real Estate Investors Club. Their website had a link. SDCIA.COM
I think I’ll start a website with awesome CRE related links.
Yep - definately.
Anyhow, If you can get a hold of them (the owner) - you can very nicely tell them that you understand about their house situation, and what you do for a business is help people in situations find their way out of some of their troubles - IF POSSIBLE - and that if they are interested you’d like to see if there was anything you could do. Then get the basic information: Mortgage Loan value? After Repaired Value of the House (their estimate / compare with your own comps), Other Liens Against the Property, Sqr Feet and Bed/Baths.
Basically, listen and find out what their situation is. But - If they are jerks, don’t Beg-em, the H with them. Find out who the bank is and buy it after it’s a REO. Or just walk away.
If they are cool and want to listen - then it’s your turn to start listening. Tell them, “Explain your situation, not how you got here - but what you are having to contend with today and what you need to move along into your future with the least amount of pain possible.”
Attitude is King: You are not in need of this deal to go through - this is their only chance for a solution - they need you - you can find another one. But at the sime time, you need to find out what their situation is and then you need to tell them you “might” be able to help, but no promises - of course. “You understand”
At each significan step - post all of your info on this site (except address and clients name - etc) and the friendly people (like me) will give you’re their tips. That’s what some of us are here for.Even me - and I’m just a beginner - but the light bulbs are starting to go on, and I may know something that you don’t.
On the other hand - it’s fee advice and you get what you pay for.
Also - in the meantime - I’d recommend using the internet both for the owner name search and for the comps. Check this site for comps techniques, look in how-to articles as well. Bug these folks for specifics on any question. This sounds like a secret no competition potential opportunity to me - and you should strap on some booster rockets and go for it. At least go as far as formulating ‘the offer - or offers’ in your mind. Keep stalling the customer - their in no position to get picky - just keep saying that you’re looking into this to see if ou can come up with something that will work for them as well as yourself - because you have to make a profit, plan and simple and you hope they can understand that.
Don’t make any promises. Don’t promise to make up their back payments - Don’t promise anything until you’re ready to make the offer. We’ll all give you tips and you pick and choose and make it the paula-florida first deal. It may not go perfect - but you won’t lose your shirt either.
Just calm down and provide us with all the information you can - so we don’t have to do any of the work for you. We will just give advice.
Gaaadd - Forgive me for sounding so B…ing condescending - I’m treating you like a new-bee. I Know you’ve been reading this site for a while - but perhaps others will pick up something from what I say.
I feel like posting about a friend of mine who is ready to dive in (just to do it) but hasn’t thought it completely through yet.
Analysis through paralys is one thing - but not having a step by step, beginning to exit strategy (aka end)is another - and I’m just trying to warn you or anyone else to take a step back and have at least a good chance of success before putting any substantial money at risk.
Sorry to take so long - must be the wine.
Your in Girlfriend-Hood