Trying to Scout.. Need some Blunt advice! - Posted by AR

Posted by AR on October 21, 2003 at 15:06:51:

Bird Dogging/Scouting yes, that is my intent. So how do I access an MLS expired listing without Access to the MLS?
Basically I’m a guy who works a 7-5 job and wants to free myself and pick up some extra income in my off time.
So I should scrap the FSBO’s and hunt “fixer-upper” properties? Learn how much needs to be put into it to re-sell?
Ok here is my dilemma: I’m quickly learning values of property. The more I hunt the more I learn, but I don’t have it down to driving by the house and knowing what it is worth. Which I think is the key. If I know the areas so well that I can value a house in a heartbeat I know I’ll be better off… Sort of like having a comp calculator in my head.
I guess there is so much out there that finding a niche is the best thing. Some people like fixer-uppers, some like to hunt FSBO etc.

Any tips of what to hunt for someone who lives in the largest bankruptcy state in the union?

Trying to Scout… Need some Blunt advice! - Posted by AR

Posted by AR on October 20, 2003 at 14:35:57:

I recently got into Scouting property for a Cash investor. My concern is that I am quite eager and am finding motivated sellers:
Some Examples:

  1. Woman who was obviously not making payments (lives with dad now) so decided to rent and had bad tenants, still wanted to sell a “good” condition house at “Excellent” Market Value. Wouldn?t budge on the price.

  2. An appraised $165,000 selling for $158,900 or Make offer-sellers had house on the market for A YEAR AND A HALF and just recently reduced and wanted to move out of state for family reasons.

But I am not finding “enough margin” for him to work the deal.
He has stated that he wants to make at least $5000 off a deal after he has paid myself and the realtor that runs comps ($1000 each)

I have no fear calling a seller, no problems talking with folks… but I need some tips. Am I looking in the wrong places? Wrong houses? Wrong price ranges? Am I on track to do a deal-- I just need to find more desperate people?

Suggestions, problems you see, are encouraged. I know I can make this work, but I’m stumbling in my quest to know what to look for in order to say “THAT is a deal!”


Re: Trying to Scout… Need some Blunt advice! - Posted by Tom-FL

Posted by Tom-FL on October 21, 2003 at 19:36:43:

Well … In your first paragraph, you said you were finding motivated sellers. Then you gave two examples where the sellers were clearly NOT motivated. They are both content to sit there forever waiting to get their price. Find someone else.

Re: Trying to Scout… Need some Blunt advice! - Posted by Brent_IL

Posted by Brent_IL on October 20, 2003 at 20:34:01:

You’re confusing sellers that are assessable with those that are motivated to sell. I think that you need to talk with more people to track down the legitimate must-sellers.

Your unmotivated sellers want to sell at the retail market price. I believe that the investor is being honest with you when he says that the deals are too thin. Investors don?t buy retail.

Re: Trying to Scout… Need some Blunt advice! - Posted by Roger (WA)

Posted by Roger (WA) on October 20, 2003 at 19:01:49:

That?s a big job and from my experience a tough one to do. I too had looked for an investor a couple of years back. There was never enough money in the deal to make it work. The deals that are $.50 to $.75 on the dollar are few and far between and when they come, you have to act fast and have cash. Of course, that?s why you have the investor is for the cash.
I don?t know if you are working with an investor realtor or not but I found out that it was the best move I ever made. She gets wind of some good deals more often then I would after spending lots of time trying to dig one up. This person must work almost exclusively with investors or they will not be in on the latest offerings.
If you?re not looking to make a big killing off each deal then you can work some of these. I don?t know what you meant by saying the investor is giving a $1,000 to a realtor that runs comps but your realtor should be giving you the comps for free. The title company can also do this for free.
I never did make any deals scouting, I wound up getting my own loans and buying to rent or re-sell using my investor agent to get me into HUD?s, VA?s and Fannie Mae?s. There was just more money in it this way.
Sounds like you like talking with people, the lease option strategy works well for people persons and requires little money and even less credit if these are issues.
Hope this helps,

Re: Trying to Scout… Need some Blunt advice! - Posted by AR

Posted by AR on October 21, 2003 at 09:05:20:

Thanks for the comments, most appreciated.
Basically, I want to start out by scouting property, learning as I go. I figure if I scout property and learn from my investor (20 yrs exp. in RE) I can build up enough $ over time, as well as knowledge to start to do my own deals. The reason this appealed to me (and calmed my wife) is that there is really no $ involved besides some gas and a bit of my spare time.
If I find a property that he eventually buys he gives me $1000, but he also takes care of his realtor to get information that he doesn’t have access to (MLS) and believes highly in taking care of people who assist him in the deal. He isn’t a realtor, just a smart businessman with Quick Cash to buy property at a moments notice.

He paid Cash for a Million Dollar house that he owns free and clear so I can’t say he’s doing anything wrong in his decisions.

As far as my targets thus far: I have been searching and talking to anyone with FSBO property only, as I said I may not be finding people who are desperate enough to sell.

Maybe my overall question is how do you drive by a house and get a better hint that may be a winner? Or isn’t there- just call call call and maybe hit that one lucky one?


Re: Trying to Scout… Need some Blunt advice! - Posted by Bryan-SactoCA

Posted by Bryan-SactoCA on October 21, 2003 at 14:26:34:

I assume you’re bird dogging here (or at least trying to). From what I’ve read, FSBO’s aren’t a very good source of deals. Better sources are the MLS (expired listings, obviously distressed housing), REO’s, and advertising. HUD/VA homes can’t be flipped anymore because of HUD’s stupid antiflipping law.