I Would Like To Flip But...
...so far, i didn't really find a seller motivated enough to sell his property to me!!
So, my question is : "How the h..l do you do to find such deal?"
The last one was a seller i contact a monday. He told me he MUST have a contract by thursday to show to the judge and hold the foreclosure. He needed $154K to pay everything and get nothing at closing. Property worths $173K more or less. I tried to offer the $154 he needed. He said i was crazy and never sell for that price. The next day he put the property on the market by owner at $169,900 and got a full price offer the next day!!
I just do not believe anybody agrees to sell even 10% below market...
So, where's my mistake?
So far, no motivated sellers. How long have you been doing it? REI is a business that takes some time to build up.
I noticed that you mentioned that you called him. Marketing is an important step in REI and it usually focuses on the sellers calling you. While you can find deals dialing thru the FSBO ads, be prepared for alot of rejection.
Also, I notice the 'pre-foreclosure' is the 'in thing' in REI right now. I guess its because new investors think that is a sure way to find motivated sellers. But just because they're facing foreclosure doesn't necessarily mean that they're motivated to sell.
By picking a target area and marketing it, you'll get alot more qualified clients (ie sellers) that will be more agreeable to investor terms. Sometimes people just need to sell fast. Job transfer, divorce, 2 house payments are just a few of the problems that some sellers have. These you don't have to deal with back payments, penalties, etc.
Roger
[quote]
On 2003-07-04 18:15, Codythebest wrote:
He told me he MUST have a contract by thursday to show to the judge and hold the foreclosure. He needed $154K to pay everything and get nothing at closing. Property worths $173K more or less. I tried to offer the $154 he needed. He said i was crazy and never sell for that price. The next day he put the property on the market by owner at $169,900 and got a full price offer the next day!!
I just do not believe anybody agrees to sell even 10% below market...
So, where's my mistake?
[/quote]
What?, you agreed to purchase a property at $154,000.00 and you think the full market value is only $173,000.00 + or -? Just my 2 cents but, there is not a whole lot of value in this property.
Second, I highly doubt this guy sold his property FSBO for 6k off (rough market value). How do you know he sold it? Did he tell you, did you see a signed contract? My opinion is to continue on searching, there are plenty more deals than this one, no mater where you live in this great country of ours! Good luck!
Well, i'm an agent, so i call people and people call me since 18 months now.
I have a lot of leads with 5% are people who "must" sell for any reason. But no one wants "to lose" money.
Yes, i have seen the contract. I did it myself for a fee. Sold in one day FSBO.
And maybe for some, flipping a property from 154K to 173K is not a lot, but for me it could be 19K in...one day!!
Through the MLS, i got all pre-forclosure i want. Just think about a neighborhood and bingo, there is always at least a pre-foreclosure. I present one offer a day to a pre-foreclosure 5% to 15% below market value. No result so far.
Being a re agent, you'll have to be careful about your investing, as you will be considered a pro and held to higher standards.
I see a couple of possible problems with your method. First, since you are an agent, alot of people won't feel comfortable dealing with you as the buyer for the reason above.
Second, preforeclosures don't necessarily mean 'motivated'. Just because they may be being forced to sell doesn't mean they want to. They are also usually in denial and the only reason that the property is on the market is because the bank requested it.
Third, an important part of determining the sellers willingness to sell is why are they selling. Do you actually know this on every offer that you've made, or are you just going by the ad the agent has made?
Fourth, MLS listings are some of the least motivated sellers out there. Depending on your market, selling thru the MLS usually takes 6-9 months and isn't very successful. It's potluck when dealing with it.
That said, it's all about the owner. I just got a call from my realtor tonight about a house that we viewed a couple of days ago. The seller's agent called and said that the seller's wanted us to make them an offer that they are ready to move. Sound motivated?
Roger
Most home buyers can't close deals in 3 days. You can buying properties "sub. to". He sold it fast and at FMV....good for him. Most can't, and most go to foreclosure. Keep looking and learning. It's still 90% marketing and 10% real estate. As long as you think it's 90% real estate you'll struggle.