Currently looking to help someone complete their real estate goal

[Jay Richardson]

Hello BiggerPockets

I have been working really hard for this past year gaining as much knowledge as I can about everything real estate. I’ve manually skipped traced, drove for dollars, as well as cold called hundreds of people. My biggest challenge so far is just developing a eye for what a good deal looks like. If any experienced investor in the Baltimore, Maryland area looking for a someone to take a bird dog ish role in exchange for knowledge on how to be successful in this business please reach out. Referrals on people to contact will also be a tremendous help.

Thank you.

[Account Closed]

Someone said ---- "You don't Find good deals --- you Make them (create them, use creative formulas to make them work, negotiate to the bottom base line price and use the proven second stage negotiations for absolute results).

Most all sellers ask too much for their real estate - they know what they will accept but inflate the price they are asking - this is done for several reasons -

1. they are greedy and want to get more than the top dollars and are working on the greater fool theory 

2. they honestly don't know the true market value of the property so they just use the PFA method of pricing (Plucked form the Air) 

3. A real estate agent told them a high price with the comments...." we can always come down - let's test the market" ( not a good way to get rid of real estate). Comments like this does not help the seller - but helps the agent get the listing.

To MAKE a good Deal from a seller who wants more than you are willing to offer - you as an investor need to be absolute on target and knowledgeable of the comparable sales. Once you feel competent that you understand the retail values of properties in that area - your work now begins - now determine how much to negotiate for a wholesale or an equity profit you want. 

OK --- easier said than done! --- So if you are not sure and need some more time and help from others who are more experienced than you --- you need to CONTROL the property - you could write a clause in your offer (use a *skinny contract offer) that will give you some time to perform a skilled *Second Stage Negotiation.

The clause you want is "Seller hereby grants to Buyer's agent, employees, engineers, contractors and others to enter the Property upon reasonable notice to Seller, at any reasonable time for the purposes of performing tests and other investigations to be performed at the sole expenses of Buyer in accordance with the following conditions: ..... 

Always use "Banking Days" - this will give you more time to determine the price you want to negotiate with the seller.

* A Skinny Contract offer is a ONE PAGE contract that says everything you need to make a profit - it is skinny because you want to make your negotiations simple and easy to understand by the seller.

*Second Stage Negotiation - this is when, after you do more comps and inspections you deal with the seller for a lower price; "Mr. Seller, after doing our inspections, I am unable to offer you $ xxx due to the windows, water marks in basement, that white stuff on the furnace, the need for up-grades or replacement of .......). This is the time where you MAKE your deal - be professional and kind - seller needs to understand why you are making a lower offer (second stage) let the seller know that your goal is to earn a reasonable profit and can't do it with the original offer. Always be ready to walk - you can always walk back.

Good luck ----