Posted by Fernand on June 22, 2001 at 17:20:43:
Richard, thanks a lot for your advise. I learn something new and valuable today… I think I always knew it, but it didn’t click in my mind before. I’ll do it.
NEWBY: CAN’T FIND FLEXIBLE SELLERS IN ORANGE CTY. - Posted by Fernand
Posted by Fernand on June 22, 2001 at 13:45:10:
I live in Orange County, California, with a big family to support and with a full time job that gives me around 50K/y, and no money to save…so, after finishing a course from Carlton Sheets, reading a lot about Real Estate, and coming to this site almost every day for quite a while to learn as much as possible, (some of your posts are great, and I really thank you all for this!)I think I’m ready to start R.E.I.
I started making phone calls and looking for prospective flexible sellers, or any kind of good deal that would work for me.
I’ve never been so decided in my life to make this work like I am right now… for my family, for my children’s college, for my retirement… but now I think that as in every business there are ups and downs. When the economy is healthy, and the interest is low, it’s called the SELLER’S MARKET. When the recession comes, there’s no money, interest rates are higher, then we have the BUYER’S MARKET.
Now we are living in a buyer’s market, and houses in this part of the country sell fast, full price… everybody wants cash, and nobody wants to help in the buyer’s financing.
How can I start my first deal with this scenario?
Are there good deals in Orange County?? Every person I have talked to (specially Real Estate agents) tells me NO!.. there aren’t. Are they right??
Maybe I should get together with other investors at investment clubs, or get a mentor to help my to start.(I know I will help others when I get “there”… it’s part of life)
Do anyone know if there is any investment club in this area of Southern California?
I would really appreciate your help.
Thanks all of you and I hope you get very good deals.
Switch Gears - Posted by DL Cunningham
Posted by DL Cunningham on June 22, 2001 at 19:02:38:
We have a hot market in Colorado. I’m going after mobile homes. People hate those things everywhere, in all kinds of markets.
We have a lot of Mexican nationals. Good, hard working people that will snatch them up on terms.
I’m going to build up my cash, then go after R/E deals.
Quit looking! - Posted by Jim IL
Posted by Jim IL on June 22, 2001 at 18:15:51:
Fernand,
Rather than re-hash what has been said here on this site many times, let me just point you in a direction that should help.
Notice, I did not say, “The right direction”, because every area is different, and you will need to learn as you go along making deals what works best for you.
But, I did notice one thing in your post that has the potential to take the drive you feel now completely away.
You are looking for “houses”, and “Flexible sellers”, FORGET THAT!
Make them able to find you, and seek you out.
Try doing an archive search here for words like “Motivated seller”, “Marketing”, “Advertising” and “Bandit signs”.
Perhaps “Phone calls” as well.
Many people, myself included have posted here about our marketing techniques and how they work.
Use the info you find, it works. After you use some of the ideas presented, you will see rather quickly what works best for you. For me, it is BY FAR my bandit signs, and business cards, along with word of mouth that get my phone to ring.
The bottom line is that you need to get “What you do?..you buy houses!” and “How to contact you?..your phone number” in front of as many people as possible. Don’t you think that IF 10,000 people saw and read your advertising, some people would call you, and out of those calls, someone will deal with you?
A “Seller’s market”, versus a “Buyers market” does not really matter all that much.
You may need to change up your exit strategies a bit when dealing with the ever changing market, but no matter what the economy is doing, someone somewhere needs your help.
When a truly motivated seller calls you, you will know.
They will be the seller who says, “I just want out of this house NOW!” (maybe not those exact words, but you’ll know, trust me!) and they will not care how, just as long as you can do that for them.
Once you determine a sellers NEEDS, not WANTS, and figure out a way to solve them, while being able to make money doing it, then you have a deal.
It sounds simple, and to be honest, once you learn the techniques, and strategies, it really is rather easy to find a solution for most sellers. The hard part is selling them on the idea, and when they are REALLY motivated, this is an easy sales job.
One thing that I see many investors from here and other places often forget, is that they are not selling the idea per say, of “how?” they will solve the sellers problem(s), but rather, how they, the investor will perform. You are selling your ability to solve the sellers problem, through specialized skills and knowledge. Show a seller that you have a solution to their problem, and that you can handle EVERYTHING regarding it, with confidence and professionalism and you will do fine.
Remember, EVERY SINGLE seller WANTS an all cash, full retail price offer that closes FAST!
But, most NEED something different, and it is your job to figure out what that solution is, and then sell the seller on the idea that YOU are the person who can do this for them.
HTH,
Jim IL
I’m in OC too. Here is one SUCCESS!! - Posted by Gantry
Posted by Gantry on June 22, 2001 at 15:55:56:
Fernand,
I’m in Huntington Beach, a hop and skip from Richard and new to creative real estate also.
My buddy just closed a house in Anaheim with no money down exept closing costs and $10,000 below asking. He got the seller to carry back 10% and then rented it out for a $75 a month cash flow. The real estate didn’t even want to submit the offer.
Just as Richard said, it is about solving needs of the seller. The seller got transferred and received a 5% bonus if he could sell his house within a certain time frame. He had 3 other full price offers, but knew my friend could close quickly. It was a win-win.
Now the agent is bird dogging all sorts of properties for him.
I am going to attend the LA real estate investment club http://www.real-estate-online.com/clubs/clubs-ca.htm Has anyone heard anything about it?
Good luck,
Gantry
Re: CAN’T FIND FLEXIBLE SELLERS IN ORANGE CTY. - Posted by Rich Hamilton
Posted by Rich Hamilton on June 22, 2001 at 14:51:54:
Fernand,
You are going at this from the wrong direction. You stated in your second paragraph that you are looking for any good deal that would work for you. You need to be looking for motivated sellers / landlords that you can help by resolving THEIR problem(s) and present them with solutions that would work for THEM as well as allow you to make a profit. Don’t concentrate on finding good deals. Focus on finding motivated sellers and the “good deals” will present themselves. Keep reading this site. I see fantastic advice on this very topic just about every day. It’s not just fluff. It is freely given by numerous EXPERIENCED investors. You need to digest this stuff.
As far as it being a buyer’s market or seller’s market, it really doesn’t matter. Good people get into bad situations all the time and need a way out. Your mission, if you choose to accept it, is to find these people and HELP THEM.
I live in Seal Beach, CA. As you know, that is in Orange County, CA. Sure, real estate sells here full price within days and sometimes hours of being listed. You propably shouldn’t be looking at these properties anyway. Think of yourself as a problem solver and go find people with problems that need to be solved.
Not to bag on real estate agents, but many of them don’t work in this area, “Creative Real Estate”, of real estate. However, don’t let that stop you from networking with them. Just don’t expect that to be your sole source of leads.
Don’t get discouraged, adjust you thinking, continue to educate yourself, and read ALL the information so freely given on this site. It will come to you as long as you are willing to work at it and be open to suggestions.
Best of luck,
Rich
Re: Quit looking! - Posted by Fernand
Posted by Fernand on June 26, 2001 at 14:38:20:
Jim: Thanks for your good advise.Your answers changed my perspective. Good post.
Fernand.
Re: I’m in OC too. Here is one SUCCESS!! - Posted by Fernand
Posted by Fernand on June 22, 2001 at 17:26:39:
Thanks for your advise… I’ll check that address, and maybe I’ll se you there.