I have decided to start logging my daily real estate sales experiences. I spend most of my work time knocking doors of potential motivated sellers. I get their names from foreclosure lists compiled from the courthouse’s database. Foreclosure lists seem to be an effective way to locate motivated sellers because those on it with equity have a limited time frame to liquidate their equity.
I spend most of my day searching for motivated sellers willing to work with my terms. Today I ran into a “for sale by owner� property which is asking for $393,000 for his house. I discovered that he has had 2 other properties, which have gone through foreclosure in the last year. I decided that I would make him a $333,000 cash offer. I haven’t heard back from him yet. I anticipate him telling me that he has received several offers and that he will sell it at full price in “this market�. I will agree that his possibility for selling exist and explain that we are creating a safety net offer in case the auction creeps up on him. I anticipate keeping in touch with him and if he happens to not find a buyer within the next 6 weeks than he always can use me as a second option.
I have never secured a deal quite like this because I plan on being an alternative to the best-case scenario. Almost all my previous deals have been to offer homeowners the ability to exit the foreclosure with some money in their pocket even though they don’t have enough equity in their house to sell it to break even. I would then get a discount with the mortgage company as an alternative to them losing money by retaining the house at auction. The mortgage companies have been very flexible with the short sale. Lately, however, the market has sky rocketed 25% and homeowners now have an option to sell their house without the aid of an investor.
I offer to net homeowners the same equity they would receive using a realtor. The response is still not where it was before the market surged but is nonetheless offering some favorable opportunities.
"I'm a parasite. I've been a parasite all my life."
The Fountainhead
Peter Keating talking to Howard Roark
(p.575)
Recent Blog Entries
Recent Forum Topics
Recent Comments