Driving For Dollars
Have you ever wondered how the successful real-estate investors purchase deals that you never saw listed or on your pre-foreclosure list? The answer is simple. They don't compete against the same houses off of the pre-foreclosure list that everyone else is bidding against. If you would like to find the same deals that the super-successful real-estate investors come across, read on.
Step1- Pick a neighborhood that interest you,
e.g. , in transition, being fixed up, however not in a "war-zone".
Step2- Drive around it slowly and write down 20-30 addresses of vacant, neglected, or boarded up houses. A lot of times they have signs on them saying For Sale, For Sale by Owner, or For Rent.
Step3- Find out who the owners are. You can start by running a property profile of the property. You can also check on the internet
White Pages or one of those locator programs on the internet such as KnowX or
MerlinData. If that does not work, try talking to
neighbors. If you really are persistent you can do a skip-trace.
Step4-Start by sending them a letter offerring to purchase their house. Forget about telling them you are a multi-million dollar real-estate
investor! Just say in your letter that you are interested in buying a property in the neighborhood that their house in located in.
If they respond to your letter, talk to them in a respectful manner and ask them what the least they would consider taking for their property. Then give them a couple different scenarios of how you would like to purchase their property. The first scenario could be
"all-cash". The second scenario could be cash to existing loan subject to. If you have no luck contacting them with a letter, then go to next step.
Step5- Contact them by phone. This has been my successful method of purchasing houses from "absentee" owners. Explain to them that you are looking for a house in that neighborhood to purchase and are interested in buying their house. Try to find out what the lowest price they would accept and then give them several different scenarios like I mentioned earlier. Send your
offers by priority mail and follow-up with immediately. If they are not interested, continue to follow-up with the owner on a weekly, monthly, or semi-montly basis, whatever you feel comfortable with. If you are unable to reach them by telephone, proceed to the next step.
Step6- Cash-offer. Sometimes with much persistance, you may not be able to find out what their telephone number is and do not get a response by mail after several mailings. It has been my experience that money talks. Send them a cash-offer. Explain to them in your offer that you will take the property "as-is" and that you will close escrow quickly. You will be amazed how fast your phone will be ringing. If this does not work, continue to follow-up with your lead and with persistance this will all pay off.
Remember, " the only place success comes
before work is in the dictionary."
Jeff Adam
This is a great article, Thanks
Great article, very motivating for newbies just starting out who dont want to compete with more experienced investors.
Thanks
Tvarookieinvestor