What Is The Best Way To Come By Deals? *Newbie Question*
Well, I'm certain that this has been asked a million and 1 times, now a million and 2. However, I am a new investor in Florida. I have a few books by Conti/Finkel and have Bronchicks course on Lease Options.
I was just curious what methods work for you guys the best for finding deals. I was thinking of advertising in the paper in the "houses for rent" section in an attempt to get tired land lords. I just figured that was a good group to target since they are already ok with the idea of renting out the house. Thoughts?
You Must Master
*How to consistently find motivated sellers
*How to be a master negotiator
*How to quickly analyze deals to know the deals
*How to structure a variety of deals: short sales, lease options, cash sales, "subject to" deals, selling on a wrap mortgage and the list goes on
*How to write up the deals and understand the contract part of investing
Developing a good marketing strategy is essential to getting any business off the ground. Educating yourself and discovering how to locate and motivate potential sellers to contact you is a must in making your real estate business a success.
Marketing is also a numbers game, the more leads that come in; the more opportunities you will have to make deals.
The best way to do this is to develop between three and five marketing techniques that work the best for you in your area.
“For Rent” Ads You Will Reach:
*Landlords or Landladies
An Excellent Sources for Investment Property & Lease Option Deals.
Being a landlord is tough, tiring, and stressful!
Many do not understand the market!
Many are poor business managers!
= Motivated Seller
I approach Landlords or Landladies in this manner when working the newspapers in this manner.
I first of all go to the library and pull up ads that are two weeks old or older and I call and state the following:
I am interested in your property at 1234 BTO Street, I am not interested in renting it but would you consider a lease option to purchase?
If they say no!
Would you consider selling for cash for a little bit of a discount?
[addsig]
Good info. I would need someone to assign or short sale a property like that too if I got them on contract with a cash deal. However, how would I go about finding someone to pass that on to? Considering that I am a new investor. I have very few contacts. Obviously, I need to start going to my local REI Club, however, aside from that, what other ways would there be to find someone to pass off a short sale like that?
First you need to start networking. Let everybody you know and anybody you run into that you buy houses.You pay a finders fee. I had a hard time networking with people at first and was getting frustrated but then I started getting calls from people that I didn't even know. Just start talking to everybody and anybody. It won't happen overnight but you will slowly start getting calls. I ran a newspaper ad everyday for 4 weeks and had lots of calls from other investors and people that wanted me to buy there house. From there everything just exploded and I don't have to run that expensive ad anymore. I ran it in the Real Estate Wanted section. Can you imagine going through a McDonalds drive through asking the drive through window clerk if they knew of anybody that has a house for sale. Give them cards and tell them you pay big cash for house referrals if you buy them. Haven't had 1 turned down yet..It generally takes less than 1 minute to do this. Network.
Thats a much more encouraging reply. :D I think I will start by going to the local real estate investors club here and place an add as you suggested.
Be aware that while tired landlords want out and are more sophisticated (do understand leases), their properties tend to be a bit rundown (not always true, but as a general rule). I prefer to place ads in Homes For Sale. I want a nice house in a nice neighborhood where the Seller is feeling the pressure and seriously needs debt relief. My best deals have been from people who have never had a rental (but who have heard the typical horror stories).
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"A deal is only as good as the quality of your Contracts." --Me[ Edited by LeaseOptionKing on Date 10/13/2004 ]
So true KING. Infact my first 6 calls from my ad in the paper were from tired landlord's in run down area's. Houses needed to be fixed or most were looking to cash out at my expense. NO THANKS. I even got calls from mobilehome owners, modular's, but I did get 2 deals in that 1 months span and they were good houses. Sifting through the good and bad was a learning experience. I guess I just wanted to here the phone ring. Becareful what you wish for.
Good point. I had thought about the fact that the houses could be in slight need of repair. But that should not be a real deal breaker. Bronchick goes into detail about L/Oing a junker to a 'handyman.' None the less I see your point. Thanks guys.
Bronchick was also burned a few times doing that--until he realized that for it to work, he can't let the person move in until after the repairs are made.
[addsig]
Thats true.