If a distressed homeowner is willing to unload their property to an investor at 50% of what it’s worth, isn’t that going to drastically affect the value of the properties in the surrounding area? Is there a way to buy houses in a particular neighborhood at deep discounts without drastically affecting the prices of the other houses in that neighborhood?
Ok, I’ll check that out. But what if it’s an FSBO, I’m paying all cash, and the seller assigns ownership to me via quickclaim deed. Obviously, it’s not recorded in the MLS, and with a quickclaim deed, the price of the sale is not recorded, is that right?
If you can get a home owner with an UNLISTED property to sell it to you for 50% off, YOU HIT THE LONG BALL!!! It won’t hurt the comps, it’s a fluke, you scored. As long as that price IS REALLY 50% off you golden. A realtor can find the sales info but who cares. The real story will be how YOU reprice the home.
Everyone has a story were a guy gets a GREAT deal on a property from a homeowner who just HAS to sell. Fix that baby up, get it looking good, and MOST IMPORTANT…UNDER PRICE IT!!! That may seem strange but let me explain. In this market (slowing everyday) you need to make your home STAND OUT. I do one of 2 things…
If it needs a lot of work I just blow it out as a HANDYMAN SPECIAL and just drop the price to a point were it’s a STEAL. What usually happens is I get a LOAD of people at my open house and get 2 or 3 bidding for it. If you go that route spend a little time CLEANING the house. You’d be surprised, there’s a HUGE difference between DIRTY and just outdated.
The other route assumes the house is nice to begin with. If that’s the case, get a landscaper to redo all the beds in front, get some grass going and hit the front of the home with nice accents (new numbers, light fixtures by the front door, shutters, shrubs, you know the drill.) Then paint the inside in neutral colors. And here’s THE IMPORTANT part. Hire a home stager. A good stager, in this market is PRICELESS. I’ve even gone as far as renting furniture to stage certain rooms. You pay by the month, if it doesn’t work you just call and they pick it all up. But I have to tell you, in this market IT HAS sold homes for me. Add it all up and tack on a very GOOD price and you’ll sell it FAST. PRICE IS KEY.
Good advice. Sounds like getting an unlisted property is the way to go. I imagine getting a better deal like that would take alot more work. I heard that contacting a divorce attorney is a good strategy for getting deals. Is that how you do it? Sending out postcards to homeowneres in default is another way. What process do you use for finding great deals?
Interesting stuff! I’ll be checking back on this thread to see your response to Jrennick’s question.
And Pete, I sent you an PM on a post you made for that guy who was asking for the help of a REI vet (Re: Firesale). If you have a few minutes can you respond? I’m sure you get alot of questions, just thought I’d shout out at ya and see if you could reply.
These are two of many ways to run your real estate business.
First way…By properties from owners who don’t want to deal with realtors or who call you first. They are out there, you have to advertise to dig them out. These people sell because their homes need work or they need money fast. They mistakenly think a realtor will want them to fix it before they list.
I buy at HUGE discounts (50%) and move VERY fast for these people. Don’t be surprised at the crazy things they want to keep, or need. I had one lady who sold me her home for $100K but NEEDED a car inorder to sell it???HUH??? OK, Honey…sign here, and I’ll have a 1993 Toyota Camry delivered to you tommorow morning. Her response…
“This is why I didn’t go with one of those God D@mn realtors, you’re a sweet heart!” I MADE HER HAPPY! That’s why I got the house. I SPECIFICALLY asked her WHAT DO YOU NEED. I let her leave all her crap, junk, got rid of cats for her, you name it.
YOU do much less volume but make more money per deal. I do it this way. It doesn’t tie up a ton of capital and it’s EXTREMELY hard to screw this up.
Second way…you do volume and make less on each house. But beware… it takes VERY DEEP POCKETS to do volume. Inorder for you to by and sell or hold lot’s of homes you need lot’s of money. I know, I know, I can already hear the “I buy houses with no money of my own at all!” There are people right on this forum who do it EVERYDAY. BUT…THEY REALLY KNOW WHAT THEIR DOING and have built a business around that.
Propertymanager is a perfect example. Mike BUILT his way to where he is, he did it methodically. You can too, but it takes time, credit, knowledge and money.
Based on your question your just starting out. The HOME RUN method (my name for it) is your best bet. RUN ADS. I’m not going to write them for you because you might do a better job than me!
YOU CAN’T BUY IT IF PEOPLE DON’T KNOW YOU WANT TO!!!