I've been getting 2-5 calls a day... still no deals...

General Real Estate Investing
1

I’m working the Austin market. I’ve got some killer marketing that’s been getting 2-5 calls a day but I still can’t seem to put together a good deal. All of the calls are low equity, bad terms. And retail prices are dropping like a Led Zeppelin, so I don’t feel comfortable doing Sub.2 on low equity.
(Alright, I just used that last line because I’m a Pete Townsend fan.)

Short sales would worry me, as the retail market is incredibly sluggish.

What do y’all think?

2

AK,
Please realize this is primarily for the benefit of others, but if this circumstance related to your other biz, what would be your conclusion? I know you’re a student of marketing, so?

Response rates are good to great, but prospects are not highly targeted to your needs. Getting warmer?

So, either the message, although apparently well done, is not appropriate or it’s not getting to the right folks?

Or perhaps it’s just a numbers game and you’re not yet generating the quantity necessary?

I don’t have any answers. I know you test and measure like crazy in your other biz. Have you done the same with REI? Is there a way to use the non-productive leads to generate cash or goodwill (yes, most definitely on this one)?

anyway, just some thoughts to mull… :brow

3

So, what’s your marketing…

If it’s Killer then it works… Otherwise… well…

The beauty of short sales is that you don’t have to make payments or take on any liability… If any deal is even remotely close to workin’ as a short sale… then I do it that way…

You market is dead for low equity deals… But, if the terms are right… Section 8 pay great and these deals cashflow well… to get you through the storm…

Or if your just not liking the deals… Crank up your other business with your killer marketing… yank out some cash… and buy all cash at severe discounts…

You don’t have to be in the RE biz to get rich… you can use it as your investment… to stablilize your cashflow…

David Alexander

4

Good advice.

I reposted this question from a few months ago as a test of sorts. I wanted to see how much it would stimulate board participation. (Re Board activity post from below.)

But good advice, nonetheless. Definitely gives me something to think about.

Thanks,
Adam.

5

How many of these low equity deals have you asked for an option at little or no risk?

6

Bud,

Please explain what you would do with the Option?

  • Adam.
7

Why not get an option to purchase it subject to contingent on when you can find someone acceptable to occupy the property. You have no risk other than that of advertising.