making an offer??

Question

I need assistance in how to go about making an offer on a property. This is a property that is near my home that I just stumbled upon. I was taking a drive one day and noticed an abandoned home that is in pretty rough shape but I am a do it your self type guy so it sparked my interest. Fresh off of a rehab of my own home, I am looking make an investment but I am unsure of how to approach the situation. Heres the deal. I found a house that looks to be at least 2 br 1 bath home in my neighborhood. It needs alot of work to be put on the market, but I feel that I have the potential to get the property for a steal. I researched the registry of deeds and found that a woman who owns the property lives at the other end of the state. The deed shows that she owns the property free and clear. I have her address and phone number but I am unsure of how to approach her.

I think that if I can get the home for the right price it would make a great rental property.

Thanks, Eryk

I think that if I can get the home for the right price it would make a great rental property.

Thanks, Eryk

Ryan Webber · Answer

Making direct contact is always going to be more effective than direct mailings.  If I can find someone's phone number then they get a phone call.  Don't complicate this, just tell them you noticed the vacant house and you were wondering if they were interested in selling it.  This isn't brain surgery.  It's a numbers game.

As yunghova described, if you have been involved with sales before then you will understand how important it is to hold in your mind the fact that this is a numbers game.  I was also involved in door to door sales before investing, and it was always essential for each of my sales people to understand the concept of the "numbers" game.  Depending on your personality and people skills you will have a certain percentage of sales to qualified contacts.  Once you have determined your closing percentage then your paycheck becomes completely controlled by how many qualified contacts you get in front of.

The more vacant home owners, preforeclosure sellers, and frustrated slumlords that you put your offers in front of, the more deals you will have available to you, and the more money you will make.

Here's my advice, pick up the phone, bumble through it, and see if she wants to sell.

I would also completely disagree with TN that a couple weeks probably won't make a big difference.  I have personally lost tens of thousands of dollars by following that exact advice.  Call her now.  There are other investors out there driving by that house.  She might be calling a realtor tomorrow.  You never know.  All you can do is do what you can, as soon as you can.  Procrastination will steal money right out of your hand.

Ljay Jones · Answer

this doesnt sound like a thing of how it sounds like a thing of FEAR, so what are you scared of rejection?

The only thing I can tell you on rejection that may help was what my old sales/marketing boss used to tell us. (we did door to door) He told us when he went to the door he coulnd't WAIT to get a "no" out of the person he did his "pitch" to, the reason why is because the law of averages in our case (door to door)  said for every 10 people we talk to 1 will say yes. So he couldnt wait to get 9 NO's because the next one would be the one "YES" HE NEEDED. Now this lady's house may not be for you but there are 9 other junkers that may be and one of those owner could provide that magic YES.

N/A N/A · Answer

yes. yunghova I must admit that I am a bit intimidated, but this is my first attempt at realestate and trying to sell myself to some one, so I was looking for sugestions on how  to go about it so I could maximize the possibility of a positive result.

Wes Tuinstra · Answer

My personal style would be to just call her. Tell her the
same story you just told us -- you were driving, noticed
the house, just finished redoing your own home, ready
for the next challenge, searched the records, found
her name, you would be honored if she would consider
selling the home to you so that you could get it 
"market ready" and get a new family into it.

Notice I didn't say you would be honored if she sold you
the home, honored if she would consider selling you
the home.

There's no pressure and she will tell you her thinking. Then
you know what to do next. (Which is come right back here
and give us the scoop.)

N/A N/A · Answer

those are some great ideas.  How sucessfully have they been for you?   The generic mailing sounds like a easy way (less pressure) to approach first but I have a feeling that it will find it's way in the trash without a second glance.  But mabey not if I put a picture of the home on the add.  This will also give the owner a look at the condition of the home if they don't know how poor of shape it's in.  I have a feeling that this person hasn't seen the property in years.  Does that sound like a reasonable approach without direct contact, or is that to direct or personalized for a mass mailing type approach?  If all fails with that approach I will just give the person a call.

thanks again!!

N/A N/A · Answer

A lot of this depends upon your own personality and negotiating style. One thing you might consider doing is trying to get her to contact you. You could send her a generic "I buy properties" kind of postcard that looks like it's part of a mass mailing. Briefly describe the type of properties you are looking for (of course, hers would fit the bill) and list several neighborhoods that you are interested in (including the subject neighborhood). Everything on the card should be completely honest. Have your contact info. If she responds, then you have a great sense of her motivational level, and you are in a stronger negotiating position because she is coming to you, rather than the other way around. If a couple weeks go by, then you could always contact her specifically about it. Since it sounds like this house has been sitting for a long time, I doubt the few weeks delay would matter much.

Whether it's a deal or not is going to depend largely upon how motivated she is. For all you know she may have a family member who's anxious to start working on it him/herself this spring.