I have purchased real estate before, HUD homes and worked with people that were looking to sell their house quickly. I had now decided to start contacting people in foreclosure in a new state (TX) that I have moved to.
I am not liking what I am finding. I started with someone that lived down the street from me, I thought it would be good practice. The best option seemed to be a short sale, her house was worth about the same amount that was owed. Another investor comes along and tells her he is going to pay full price for the house in cash because he is wealthy and really wants to help her because he cares about her and her family. She asked me if I could match his offer. I explained to her I couldn’t but explained the short sale.
Trying to make the story short. 4 days before the auction date she finds out he is trying to short sale for 50% off value of house. This story had a good ending because she kicked him out of her house and the lender decided to let her stay.
Now I have come across another person who is being told they are “getting” her a loan. Well the foreclosure is only 2 weeks away and based on the info she has given me, I don’t believe the loan story.
The most difficult unexpected issue is the emotional trauma that these people are going through.
I am in real estate to make money, no question about it. I don’t expect people to be working for free. But is this outright fraud the norm?
There are many shady people out there, there is nothing you can do to avoid this. I definitely don’t think you need to follow their lead to succeed. You can go out there, make money, and stay true to yourself and still do well. Eventually karma will bite them in the ass and you’ll still be out there making money. Hopefully word will spread about you and people will refer their friends to you when you are able to help them without lying to them.
It is, and croocks like those give a bad name to all of us.
There definitely isn’t an equal playing field when it comes to real estate. Some people will do or say anything to get a property they want.
I like Rich’s comments (again). “Eventually karma will bite them in the ass and you’ll still be out there making money”. There are so many people out there with a chip on their shoulder that think the only way to make money is to step on somebody else or take advantage of people. BS. I like to try to help as many people as I can, and in turn that is what I get back. The whole “law of attraction”. Put out BS and crookedness that’s what your going to get back eventually.
Thanks for all your responses.
I have regrouped and decided to reduce my target area so that I can concentrate more time on each potential deal. In my fantasy plan, all I had to do was make these people a good offer (I was imagining a fair level playing field:) ) and that is how the deals would happen. My new plan is to spend more time with potential clients so that they can realize that they can trust me. I am also going to use the people that I have purchased properties from - as a reference.