Need Help!
I posted this message in the beginners forum..but realized that beginners may not know the answer..and maybe that's why one has responded.
So I'll ask it here. Maybe some pros can help me
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I believe my biggest problem as a newbie is figuring out where to start. I've done a good bit of reading.. thought about what RE investing I'd like to do...and what areas of town.
So when I go to my local paper..or look up properties online, that's usually as far as it goes. For some reason I'm afraid to make that initial call. I suppose I don't know what I should be asking..and don't want to sound inexperienced.
So I'm asking for some assistance. What basic questions should I ask when I make that first call on a property that I saw an ad for? What other more specific information should I gather? How do I spot pitfalls, or too good to be true deals?
For example: Here's 2 ads I highlighted in the paper. To my novice eyes..they sound pretty good. What would you do next?
Ad #1
Good credit, bad credit, no credit. 100% fin. 3BR/1BA. Sale, rent, or lease. $95K Receive cash. Investors welcome.
Ad #2
Downtown. Handyman special cheap! Investor's Landlord dream. Purchase $65900. Fair market value $115K. Repairs $12K. 3BR. Owner.
I really need some insight from the veteran investors on how to make the transition of reading ads..and knowing how to make that smart first call.
Thanks in Advance.
Chrishette,
i wouldn't even call the first one because it sounds too investor'ish - and they're trying to do the same as you - which means you as a beginner may not win that battle for the deal. plenty more on this, but just my opinion, i wouldn't call that one. don't let this dissuade you tho, you know your own goals.
the second one i would call. this could be an investor as well who has maybe held it too long and is ready to flip it for cheap (again too many possibilities on who it could be) but whoever it is, i'd call and ask them a few questions like:
why are you selling?
what condition is the home in?
title in your name?
what are you trying to get out of it?
would you carry the note?
balance on mortgage?
etc..
just remember to not be nervous, everyone's human, some more so than others ..hahaha. but if you just talk casually you'll find out a lot about the place and the owner that way.
don't focus on the repairs needed in the house, as much as the values associated with the place and liens on the property. if it's a seasoned veteran investor, they may even help you thru your dialogue - which will help you on later calls - write down everything they say and sift thru it later. if it's a regular home seller, they'll be as lost as you and may not even kno the answers to all of your questions - but ask anyway.
if they're under stress to sell, find out why and try to remain helpful in your disposition - don't phrase your questions like your a predator attacking your prey.
all will go well. don't be afraid of the phone ... think of how easy it'll be when you get the first one out the way. then imagine how hard your first live visit will be (door knocking).
good luck!