| In real estate there is a saying that you don't | | | | though they are being sold without an agent. |
| make your money when you sell, you make your | | | | Technically, real estate agents must state that |
| money when you buy. The name of the game is | | | | they are agents in all advertising materials, but the |
| finding amazing deals and then keeping them for | | | | less scrupulous ones frequently disobey this rule. |
| the long term or turning around and flipping for a | | | | Also look for key phrases such as "must sell, |
| handsome profit. Of course, if great deals were | | | | fix-up, needs work, vacant," and of course, |
| that easy to find, everybody would be doing it. | | | | "motivated sellers" (although agents often |
| The forces of supply and demand would inflate | | | | advertise "motivated seller" when in fact their |
| the price of properties to the point that there | | | | client isn't all that motivated!). Be prepared to |
| would be no deals left! Naysayers claim that this is | | | | make a lot of calls and not to spend much time |
| true of today's housing market, but in reality, | | | | with each seller - finding deals is a numbers game, |
| there are endless deals to be found almost | | | | and you have to make a lot of calls to find that |
| anywhere at almost anytime. Finding these deals | | | | one special deal. |
| takes experience and talent, but this article | | | | But you shouldn't limit yourself to FSBOs (homes |
| serves as a head start for novice investors, or a | | | | that are "for sale by owner"). Instead, draft a |
| refresher course for old pros. | | | | letter on professional letterhead and fax it to all of |
| Distressed Owners Make for Distressed | | | | the real estate offices in your area. Explain that |
| Properties (And Vice Versa) | | | | you are a real estate investor looking for |
| What is a great deal? Quite simply, it's when you | | | | distressed properties and that you can close |
| buy a property for well below its actual value and | | | | quickly if the price is right. This way, you can |
| or with favorable terms. The only way this can | | | | have an entire army of real estate agents |
| happen is for the seller to be ignorant of the | | | | working for you, free of charge. If one of them |
| market, completely uninterested in profit motives, | | | | finds a property for you, the seller of the home |
| or extremely motivated to sell. Your chances of | | | | will pay the agent's commission. You owe them |
| making a career out of finding homes owned by | | | | nothing, it comes off the seller's side. |
| people who don't know any better or who don't | | | | Another idea is to call the owners of rental |
| care are slim, so it's best to concentrate on | | | | properties and offer to buy. Many income |
| identifying motivated or "distressed" sellers. After | | | | property owners are reluctant landlords and will |
| all, only someone who absolutely needs to sell is | | | | certainly entertain the offer. If they say no, leave |
| going to price his or her home well below market | | | | them your name and phone number and tell them |
| value and/or accept unusual financing | | | | to call you if they're ever interested in selling. |
| arrangements. These are the ingredients of a | | | | Finally, you can place your own classified ad. A |
| great deal! | | | | simple headline like "We Buy Houses for Cash" |
| So what makes a person a motivated seller? | | | | works best. Don't worry that other investors use |
| Divorce, death of a relative, job transfer, and | | | | the same ads, it's a numbers game. Sometimes |
| serious financial distress are the items that top | | | | people will sell to you because they like the way |
| the list. While you might feel guilty for "taking | | | | you sound or they trust you over your |
| advantage" of people in such a situation, you | | | | competitor. How many advertisement do you see |
| shouldn't. After all, they need to sell - you are | | | | in the paper for mortgage companies, car dealers |
| helping them! You and the seller are finding a | | | | and retail stores selling the same product? There's |
| mutually agreeable price point and terms. You are | | | | enough business to go around, and so long as you |
| getting a great deal and they are unloading a | | | | get the phone ringing, you'll learn to get good at |
| headache. It's a win-win situation. | | | | converting them into deals. |
| How to Find Distressed Sellers | | | | By knowing what you're looking for - distressed |
| The first place to look is the newspaper. Don't | | | | owners - and following these strategies, you will |
| bother searching through the fancy ads with | | | | already be way ahead of most beginning real |
| pictures placed by real estate agents; go right to | | | | estate investors. It takes work, and lots of it, but |
| the classifieds instead. Look for listings with "for | | | | the rewards are worth it. |
| sale by owner" in the text, or that appear as | | | | |