Posted by J. Clifton on April 19, 2002 at 08:13:10:
Do you even know what else there is to do, how much there is to do of it, or what the other local investors are doing? Preparation, ‘street’ research and networking in your area would get you an OBJECTIVE idea of whether you’re succeeding or failing. It sounds like feelings are dominating your approach, and are not being supplemented with the discipline to figure things out or to stick it out. Your posts give the impression you’re don’t know how to measure your knowledge problems, don’t have a plan, that you aren’t inclined to think/act beyond a minimum level, and you haven’t made any local connections with sympathetic people. Re-read Creonline articles, post archives and the course(s) you have for the marketing answers, and network locally to properly set up to do your business.
I have a question, that, although might seem simple, is causing me A lot of pain. I’ve been trying to do a no money down deal now for about a month and a half. The place where I live right now is in what is considered a HOT market. Interest rates are as low as they have been in 30 years, there are lots of jobs and tons of people moving to the city I live in daily. As a result housing is at a shortage, and prices have risen quite a bit in the past 5 years since this boom has started.
MY QUESTION IS THIS: with such a hot market, it’s very hard to find these motivated sellers - SO HOW DO I FIND THEM AND GET THEM TO CONTACT ME? People know it’s easy to sell their homes right now, and even if they are desperate for the money seem to want to hold out until they get their price & terms! I’ve contacted the banks, and they are either unwilling to give me a list of their foreclosures or don’t have any to give me. One bank manager told me that even if they did have a foreclosure come in…they would hold out for someone to pay market value for the property.
Waiting for a property to be auctioned off doesn’t do any good either, because when a property does get auctioned off they usually get market price for the property and those that don’t are taken back by the municipality until they can get as close to market value for it. (It’s the law here.)
I’ve done newspaper adds, business cards, signs…all to no avail…I don’t even get one call! I search all the papers, drive around communities looking for FSBO signs work with realtors, etc…but nothing seems to help.
I know that eventually the boom will end, and that these people will start looking for ways to sell their homes, but until then, HOW DO I GET MOTIVATED SELLERS TO CONTACT ME?
I know others are doing it, because I see their ads in the paper…so what are they doing that I’m not!!!
Ask an agent for a list of houses that are on the market more than three months. Get another list of properties that have had the listing price reduced. Make offers.
Posted by J. Clifton on April 18, 2002 at 21:41:09:
10 (sets of) questions that may get you going:
Did you read any of the other stuff on this site? How much research did you do, courses did you buy AND study, and local investors did you talk to before starting?
Did you plan out HOW you were going to approach WHAT you’re doing, to get the best results? Did you prepare for how to answer objections, avoid negative people, and workaround obstacles?
Did you plan to work your marketing plan consistently for at least 6-12 months, NOT 1-2 months before saying you’ve “tried everything?”
Did you call those other investor ads or go to investment clubs to network with other investors, to find out how it’s done in your area, how long it takes, and who to do it with?
How many sellers do you directly contact per week, every week? How many offers do you make, or ‘kitchen table’ contracts do you try to negotiate a week? How much follow-up do you plan to do per potential motivated seller you find?
How many kinds of marketing are you consistently and simultaneously doing? Did you plan on a budget that would support 6-12 months of consistent activity?
Did you plan out how to target the properties that AREN’T moving in the hot market, or that AREN’T easy to sell? Did you concentrate on approaches that target motivated sellers, instead of just calling up the average classified/broker/bank?
Are you prepared to sign up a great deal TODAY if it fell into your lap? Do you have a small briefcase or binder ready with all the forms you need, if you had to dash to the seller’s house right now?
Do you have resources/cash or (again) at least a plan in place, for what to do if you make a mistake?
Do you have, or want to have, a positive “the deals are out there, I will make it happen, I will step out of my comfort zone, I will SOLVE problems and not just see them” etc. attitude?
If your answers to most of the above is in the negative, STOP EVERYTHING, and don’t start again until you have better prepared to do creative investing. Then get going again, once you are armed with a winning approach, time horizon, plan and attitude.
How to get motivated sellers to contact you? - Posted by JoeKaiser
Posted by JoeKaiser on April 18, 2002 at 21:21:09:
How to get motivated sellers to contact you? You don’t. In a “hot” market . . . you contact them. Why leave it up to chance?
Figure out where they are and slap your name and phone number down in front of them. Better yet, go pay them a visit. Heck if you’re too shy to knock, leave them a note.
Get out of the marketplace and work subterranean, the market beneath the market where the real deals are hiding, secret hand shake not withstanding - decoder ring optional).
Thanks for your input, you have some very good points, however I think you have the wrong picture of me.
The answer to almost all of your 10 questions is a yes…I didn’t jump into this with the idea that it was going to be easy or that things would fall into my lap. I’m dedicated to doing this, and went into it not only with a plan but a guide as well…however, having said that, I am discouraged by my lack of progress so far.
The general consensous from everyone I’ve talk to and researched and listed to is: Find the motivated sellers - And THAT is what I am trying to do!
I know I haven’t tried everything…and that’s what I need to find out…what else can I try? What can I do that the other investors in my area aren’t, or what can I do that will put my name and number in front of those motivated sellers ahead of everybody else?
Clifton,
thanks for the shake-up, that is very good feedback/advise. To do REI successfully you have to think of it as a complete business (from your notes)not just reading a course and going out there, but thinking about the whole enterprise: marketing, planning, training, budgeting, netwroking etc etc etc. and most importantly a positive attitude.
WOW! thanks for the shake-up
Juan from Chicago
I was in Fairfield County , CT when I did my first deal on a condo. Now, I would hate to be breaking into the market there. However, I think it is doable.
Is there an area where you can go that is not as hot?
Also, try to think of ways to get to the foreclosures quicker. Leave info at houses that are in disrepair. Follow up on obits, just do so with all sensitivity, graaciousness and tact. Don’t work with one Realtor, work with them all. Fax them your interest.
There are still deals out there. It just takes more work to grab them.
One last thought, if you are so sure that things will go down or at least slow down then think about the work you are doing now as sewing seeds. When things do turn who are the sellers going to think of first?
It took me 4 months of ads to get one deal that went through. I expected it to take 6 months. I got two calls this week but nether looked good for me (however one might wind up a listing).
I am beginning to hear people say things that tell me they knew my ad was there and looked for it when they needed more info. Oddly enough, today I got a call from someone looking for a job.
I digress. Keep doing what you are doing. Tune and tweak it. Eventually it will pan out.
I suggest that you might want to read John T. Reed’s “How to Buy Real Estate for at Least 20 % Below Market Value.” Check out his website at johntreed.com
You will see many possible bargain buying approaches. Pick the ones you like and give them a try.
You will not get that answer from this board! Only the other investors can tell you what they are not doing. however
This is a difficult business to break into you will find retiree’s buying with the idea of making little in order to supplement income or newbies paying waaaaaaayyyyy to much for houses (we love those guys)so be prepared to run an add EVERYDAY in the paper, put up thousands of bandit signs and not do a deal for a year!if you not financially prepared for that, get your license and jump into the frenzy while its going.
BTW what city is so hot?
Pat
