Well, here we are again. The time has come. Life goes full circle, and so does the Money.
It is time to start hunting, and gathering up the Bargains. The problem is that in our current Economic Situation there are so many. We need to devise a strategy to sort out the best Bargains.
"Back in the day" (as they say now) one used to pour over the newspaper's classified ads, going through each ad's words to pick out the "don't-wanters". Today it's much the same, except you're reading the ads on your computer screen. Finding the "Don't-wanters" is also much the same. You look for the people that are scared of what lies ahead in the Real Estate market; the people that have to liquidate because they need the cash, or just need it off their financial statement. Try to "read between the lines" to determine when the property has been for sale too long; or there is a divorce, bankruptsy or illness. Maybe a note is coming due soon and the property can not be re-financed. A seller needs to sell for many reasons. Once you get used to reading the ads, and start recognizing the same properties being listed with different words in the ads, you will soon be able to feel when someone is becoming more desperate. The ads will talk to you, saying "Buy Me, this is The One!"
You need to call on all the ads you are interested in, or that you sense may have underlying desperation. When you call (or now respond via email) you need to question the seller about the property and his situation to determine the real reason the property is up for sale. Ask lots of questions, do not be rude, but don't be bashful. If you approach the seller the right way and he knows you are sincere, he will do everything in his power to help you acquire the property. After all, he does want to sell. And if you have read your ad right, he wants to sell desperately.
Certainly, don't be bashful about calling on an ad. Even if you think there is no way it could work. Talk to the seller, always leave your number. Let it cook. I've had sellers call me a year or two after I initially contacted them. You never mention price, terms or any details during the initial conversations, anyway. Always remember, "first liar loses". In other words, most sellers always inflate the price of the property (a lie), and most buyers deflate the amount of money they are willing to pay (another lie). Do not let the seller get into your head, while you are trying to get into his.
You need to know everything about the property and as much as possible in regards to the seller's situation. Once you know what the seller intends to do with the money that he is going to receive, you will be able to carve out a way for him to sell his property to you.
For example, maybe the seller is just tired and wants to move to Mexico and retire. Could you find a property that he would like to trade for his equity in the property he is trying to sell. One site that I like is Baja Mexico Vacation Rentals & Sales. There are several others.
Another example: What if the seller is getting divorced and his soon-to-be-ex is forcing the sale. Ask the seller if they would be interested in taking on a partner and cashing out his soon-to-be "ex". Maybe the "ex" will take payments just to get the divorce moving along. You will never know until you ask.
Always ask questions to find out where the real deals are. You have friends, relatives, neighbors. All of these people have information for you to use. Put out small ads "Looking to buy real estate. Are you looking to Sell?" Every body knows somebody that has something for sale. For example, your brother-in-law (who owes you money), has a buddy that can not sell his Bass Boat, and you know a guy that can not sell his lot, and you know a contractor who's business is slow. Buy the boat at a discount; trade it for the lot; then make a deal with the contractor. You will provide the land if he provides the materials and builds the house. When the house sells, both of you will split the profit. Just have an open mind and "think outside of the box."
Other good sources for finding Bargains are newspapers (still), estate sales, foreclosure auctions, multiple listing books, public records at the County Courthouse, tax sales, vacant properties, church, school, shopping center bulletin boards, small weekly "bird cage" papers. And last, but certainly not least, The Internet.
Information is precious. Acquire it, and use it wisely.
No comments:
Post a Comment