Once I've Found The Owner...
Once I've located an owner of a vacant property, what would I say? This is how it plays out in my mind.
Me: "Hi, I'm an investor in the area and was wondering if I could take this property off of your hands?"
Them: "Umm, it's vacant now. It's not my problem anymore."
Me: ...looking stumped.
OR
Me: "In that case, can you deed me the property for a fee?"
Any help is greatly appreciated!
Junoti
Me: Hello, my name is John Doe and I understand that you own the vacant property at "123 Main". Have you considered selling that property?
Owner: No not at this time.
Me: OK, well thank you for your time. Here's my card and if you change your mind in the future, please contact me. I would like to be the "first in line" with a chance to buy this property.
If you don't mind, I can check in with you from time to time to see if the situation on that property changes? Is that alright with you?
If owner says yes:
I would ask him all about the property and not bring up price until the end of his description of the property/sale pitch assuming there is one.
During his pitch on the property try to lead him to a lower price.
Me: "I've been looking in this area because I've found that prices are a little more reasonable around here."
When he gives you his price
Now the negotiation beings.
Hope this gets you started
[ Edited by docmike464 on Date 03/14/2004 ]
Thanks a bunch Doc for the advice!
Junoti
Hi there Sir, I am from the USAF and I would like to buy your land and dig another big hole in it cause we think there is an incoming Atomic Bomb and we think it would be nice if we had a bomb shelter. Besides the Control Center is full and we need more room.
Stop stop I am only kidding. Just trying to be timley in your area. Colorado Springs.
Home of the Continental Air Defense Center.
For Real:
I understand that you are the owner of this vacant lot. Do you own a lot of these undeveloped lots? May I ask why you are holding them?.
The market seems to be very high and wherever I go people seem to want to sell.
Do you feel that the market has reached the top? Really, You want how much?
Forgive me but please explain how you arrive at this price?
I'll tell you what, seeing as how you think that the lot is worth .......... What if I showed you a real way for you to get it.
More then that allow you to continue to speculate and pay all your real estate taxes and give you an income while you are holding. Maybe even make it possible for you to gain a completed house for no more money. Would that interest you? I should hope so.
Well I know a way to do this but you will have to assist me.
Yes we live in strange times. Supose you think about it. I have to get to Escrow now but if you like I will call you and we can make an appointment and talk about it.
(This is leader, what you are trying to do is unbalance an attitude, create a flexable response and find out what he is really trying to do and then make him the proposition that fullfills all of his dreams and fantasies.) You cannot close him and motivate him standing out on the street. You must get him in a closed place. Go have coffee, Buy lunch and talk of other things. Other real estate things, you have to move him from a mindset
The following information is something you should know if you are interested in playing in the dirt aka buying lots.
You can build, and sell, or build and hold
just by leasing the land. Sometimes you cannot buy a piece of land now but in ten years you or your assignee can.
Consider a 99 year lease, of a prime piece of land in the downtown part of Chicago. Local loud mouth imigrant gains the lease. No payments due until completion of construction. He borrows from two banks enough money to build one of the first skyscrapers in Chicago. Leases to a Sandwich Lease
and from there leases out on subleases almost a floor at a time. Ends up with all kinds of money to buy more property and as time goes on we have a great depression 1929 and guess what he buys the Fee for about one third of the original negotiated buy figure. OOOps Excuse me his son in law did the buy. But all in the family. How do I know this cause it was my Great Grandfather Lucius Fisher, aka The Kingfisher, loud crude but he had read his history.
Supose you have only $10,000 and the lots cost $25,000 each and you want to build 10 houses and you do not wish to deplete your capital. This is how.
To accomplish this you must learn negotiation. This is the start. Work on it reduce it to a SOP. Standard Operating Procedure. It has been a major means of controling land since about 1520.
Lucius