*Best Strategies for finding Sub2 deals, TX

hello all.

i’m having a little trouble finding folks who will sell me their property sub2 here in Austin, TX.
does anyone have any input on this subject??
most effective strategies?? (I understand if austin-investors don’t reply :wink:


I’d make good friends with Tony Di Corpo from this board. He seems to have a good way to get deals done in TX. Just for kicks, what kind of objections are you getting? Regards,

2 words for u: MOTIVATED SELLERS.

the problem, u r having is that they are not motivated. maybe still in denile that they cannot afford the pmts, or that they are about to be in pre-forecl, or even forclosure, or that the last pmnt is in their bank account and about to be spent on Feb 1st, they are hanging on a glimmer of hope. they will be motivated once they know u r their last hope andcan make a difference in their life. market to the right folks too if u r not already.

I teach my staff a very simple, 4 objective approach:

  1. Build Rapport
  2. Gain Commitments/Find the pain
  3. Gather information
  4. Set up for a TO.
    I teach them to thoroughly accomplish an objective prior to the next step. Analyze each sales situation within the context of these objectives and I’ll bet you’ll find your solution.

thank a billion for the input guys!

you’re right
i’m a firm believer in report. i’m a realtor too and definitely put 90% of my emphases on building report, as this is the basis of ALL sales.
by the end of my appointment with the seller, i find they are just not motivated enough.
the good news is i’ve probably gained a good referral source.

i’ve come to the conclusion that my marketing just isn’t cutting it.

what do you guys do to find motivated sellers? (marketing wise)

i would have posted this in the marketing section but i really wanted the sub2 experts to see this


[by the end of my appointment with the seller, i find they are just not motivated enough.
Mark, Refer to Step 2. You need to do a better job of either building yeses or probing for their pain. You need to educate your clients as to the consequences of not doing business with you.Ask lot’s of open ended questions and learn to listen between the lines. Build their want to and you’ve got it made. If that doesn’t work, then yep, your marketing sucks. :wink:

Texas has just become a huge ATM for those who can creatively work around the new legislation. How do you like the idea of taking over an overencumbered property with no equity, no down and no new loan and still make bank on the deal?

thanks again david.

…it’s definitely my marketing i think.

on another note,…

I noticed some investors, such as Tim Randle, recommend only concentrating on properties that i can get at <85% of market value, <80% of median house price (Austin-roughly <130k)
which limits me alot.

many others say that a 100% ltv is o.k. because there’s anough creative buyers to buy on a wrap with good-% down, etc.

what’s your take/criteria on your sub2 properties?


I’ll take 'em all day long and still make decent upfront $$, positive CF and a chunk on the back ends. For example, a deal I just closed yesterday in a depressed area:
Home comps at 70K, Fair rents 550 mo.
I just put a buyer in there for 4K down, 850 mo with end purchase price of 78,900. No maintenance, management headaches etc. 22k profit on a home I’ve never seen, have no new loan on and no management headaches. And, I don’t have to compete with every other investor out there. Not bad, huh? :wink:

not too shabby david.

what marketing strategies do you use to get these types of deals on you desk?

thanks again,

Cold calls to FSBO’s and FRBO’s primarily. The rest is from other mortgage lenders, realtors and other referral sources. I make my “birddogs” a principal in the transaction. I’ve learned over the years that taking care of folks always pays dividends. To market the property, I use classifieds. I usually don’t have the luxury of bandit signs and the like on most deals since they’re so far away from me. I also have a program where, for a refundable fee of course, I’ll go find a property for a potential owner that can handle the upfront $$ and payments I need.

what do you have you bird dogs do?
cold call fs/frbo’s, etc. or different stuff?


Well, the way I’m structured is I have my birddogs/sales reps perform steps 1-3 after identifying a likely property. They’re typically responsible for their own marketing, supplemented by my referrals from the area. The TO is either myself or one of my highly trained managers who actually closes the deal. If I have all the information I need and the rep has done his job effectively, it’s very easy to structure a win-win deal for everyone. It’s important to note that my staff are principals in every deal, otherwise I couldn’t legally pay them IAW most state laws.