How would you approach a potential seller?

[Mike Lindsey]

Given the scenario that you find what could be a good rehab, wholesale, or any type of possible investment, what is the best approach to approaching the owners? Phone or in person? How would you start out the conversation? Thank you in advance for any feedback on this question.

[Michael Rossi]

saltybear07,

Forget the websites! Real estate investing is not a stay-at-home internet business. You've got to get out of the house and meet people. The very first thing you should do is join your local REIA and make friends with the SUCCESSFUL investors. These investors frequently will know of deals that they won't want to do personally for one reason or another. If you are one of their friends, they will pass the deal on to you. Also, there is a steady stream of newbies at the REIA. Many of these newbies will buy rental properties and rapidly realize that they are in over their head. I've bought rentals from desperate landlords who told me they were physically sick and couldn't sleep due to the stress of their tenant or money situation. These desperate landlords will do ANYTHING to get rid of the stress, including bringing cash to closing and selling you the property subject to the existing financing.

Of course, there are other great deals out there. Find a young, HUNGRY realtor who is willing to work hard for you. Tell her EXACTLY what you are looking for and then be prepared to buy the property when she finds a property that meets your criteria. My realtor has found me many good deals (because she networks with a lot of people).

REOs, estate auctions, foreclosure auctions, tax sales, etc can also be sources of great deals.

There are many sources of desperate sellers and great deals. The one thing that is certain is that you aren't going to find them sitting at home!

Good Luck,

Mike