Ok Now what??? Help! - Posted by Mia (FL)

Posted by Mia (FL) on September 12, 2002 at 20:30:48:

Thank you I agree with you completely. I wouldnt feel comfortable pretending to be something I am not. I know I couldnt pull that off or would I want to. I will let you know how it goes. I need to go by the house in the morning and I will get back to the owner. Good luck to all- Mia

Ok Now what??? Help! - Posted by Mia (FL)

Posted by Mia (FL) on September 12, 2002 at 16:24:25:

Hello to all. I scanned a neighborhood close by and made a list of distressed and over grown properties. I sent out the letters. Today I received an email from one of the property owners out of state, and he wants to know what distress I witnessed,what deteriation of his assest I can prevent and where he can check my references and how much I would charge to rent out his property.
What do I respond?? I can tell him the condition the house is in over grown etc. but I am stumped on the rest. I am a new investor,I do not have a portfolio. How do I save face and still make a possible sale?
I was hoping to maybe find a gem for a subject to or owner finace that I could fix and either resell or rent.I would appreciate anyones insight or experiences with this.Thank you to all. Mia Fl

Be honest with the seller - Posted by Jim FL

Posted by Jim FL on September 12, 2002 at 17:47:53:

Mia,
This is an easy one.
Be honest with the seller.
He wants to know certain things, so tell him.
He wants to know the condition of the property, simple, tell him what you know.
Something like…
“Mr. Homeowner, As to the condition of your property, frankly, all I’ve seen to date is the exterior. I noticed your house because it had, overgrown grass, unkempt landscaping, peeling paint…etc.”

He also wants to know what you can do to protect his asset?
Simple, should you come to an agreement about purchasing his property, you can and will maintain it, make repairs as needed, etc.

As to references, don’t lie.
Be honest with the seller.
Tell him the truth, something like…
“Mr. Seller, I have to be frank, after witnessing the not so stable investing enviroment in the stock market and seeking out alternative ways to invest my time and money, I have recently decided to invest in real estate. Obviously I will be investing to make a profit, so I will need to buy things in order to maximize my return. Because I am just starting out investing in real estate, I cannot provide you with refernces with regards to that, but I can pass along some personal and business references from other dealings and associations I’ve been involved in.”

The last question you said he posed, “how much will you charge to rent out my property?”
Simple, tell him nothing. You are not asking him to list his property, as you are an investor, not a real estate agent or broker, so there will be no fees or commissions due from him…unless he wants to pay you something…(joke!)"

Also, since we have no idea what the mailer you sent him said, it is hard to give you specific things to say, because I don’t have a clue as to what your pitch was to the seller.

Tell us more about that and perhaps we can help.

Just keep in mind, honesty is the best policy.
Be sincere, professional, and don’t agree to anything that you cannot do.

You may also point out to him that you are local to the property, and this is why you noticed it in the first place.

Good luck,
Jim FL

Great Advise! I like it.(nt) - Posted by Kristy-AZ

Posted by Kristy-AZ on September 12, 2002 at 21:30:57:

(nt)

Re: Letter - Posted by Mia (FL)

Posted by Mia (FL) on September 12, 2002 at 20:24:35:

Jim thank you. Your approach is perfect. My first impulse is to be completely honest but I didnt want to seem unprofessional and too green. Your response is great I will be comfortable with that. I only sent out 14 letters so I was surprised I received a response.I started to panick alittle. The letter I sent was a version I took from the archives.

Dear Mr homeowner,

Hello. While passing through the neighborhood yesterday, I noticed that your property at xxxxx dr. appears to be in some distress. I wondered if, because you live in another area, you are aware of its condition? As an absentee owner myself at one time, I know how difficult it can be to manage a property from afar.

I am an investor in real estate and have experience in property management, rehabilitation, and rental. I also buy properties in some cases. If you would like my assistance or advice on how best to prevent further deterioration of your asset, I can be reached at (xxx) xxx-xxxx. You can also email me if you would like at xxxxxx.com or if you would be more comfortable, you can respond by mail to my address above.
I look forward to hearing from you. Have a great day.

Sincerely,

Mia xxxx

I really didnt want to leave the management part but I wasnt sure being my first time if I should mess with it since so many people used it with success. Any suggestions?? I look forward to your reponses. Thank you so much in advance for any suggestions from pros and newbies. Mia (Fl)

Re: Be honest with the seller - Posted by Kathy Lee (MS)

Posted by Kathy Lee (MS) on September 12, 2002 at 20:08:38:

Hi Mia,

Jim is totally right. No matter what you have to be honest. Dishonesty will come back and bite your hind parts sooner or later.

There are folks out there who appreciate honesty. Most people will over look being new at this and give you a chance if you start out on the right foot. Most first impressions happen in a split second. Sounds like you have his attention just by letting him know your are concerned about the shape his property is in.

You could have 100000000 dollars and 5oooooo houses and if your word is no good what do you have? Just my 2 cents.

Good luck