Noticed a FSBO sign on a home

Noticed a FSBO sign on a home

New to Real Estate · Northridge, CA · Member since 2019 · 42 posts · 15 votes

Hello to all Bigger Pockets members, 

I hosted my first meetup in my neck of the woods and shout out to the one and only member that joined me. :D

I mentioned to him that I noticed a FSBO while driving on my way to work. From previous seminars I understand a FSBO could be an oppurtunity. I just am not sure as to what steps to take next.

I am thinking about knocking on the door of homeowner or I can call the phone number that is one the sign and asking why and how much he plans to sell his home for. I just don't know what to do next. What I would like to do is hopefully connect with a local investor who would then take on the remodeling project adding to his/her portfolio. The member suggested I ask the BP community, so here is that .

Home 

Thank you in advance to any one who responds. 

Some questions that I thought about asking are:
1. what comes to mind when you see a FSBO sign on home that doesnt appear to be a mess

2. what methods would you use to contact homeowner, and what do you say

3. What info do you ask for and how do you determine if it meets your criteria

4. As someone who intends to connect off market properties with potential fix & flippers, would it be best to lock property under contract or do I just call a known house flipper

5. Not having any prior credible experience, what are some pointers to keep in mind in order to assure the end buyer and original home owner are protected?

6. Prop the most hardest question , what is a respectable and ideal fee to collect? Does it depend on deal or should it be fixed? 

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  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    5y

    @Joel Castaneda You have a lot to unbox with your post but yes a FSBO sign could be a discovery or a dud.

    In some cases home owners don't want to work with agents. Seems a like a get scenario for a contract deal or off market opportunity right? Not always the case.  

    Goal #1 is to get the owner talking and find the motivation to sell. Don't talk about numbers! Talk about life, why they want to move, and anything but numbers. Ask about property details but stay general. 

    Goal #2 is the ask. Steer the conversation and make it there idea to invite you to the property for a walk through. It's a power move and helps with the future negotiation. "Mr. Greene, at this time we like to walk the property before making an offer"... *long pause* - Are you available tomorrow evening Joel? If they don't invite you into the property they may have other intentions. You don't want half motivation, you want full motivation and full attention. Otherwise you're probably wasting time on a dud. 

    Market research is so important because not all sellers enjoy the small talk. They may ask for a number right off the bat. You may be dealing with an investor, landlord, retired agent, etc. Deflect this as much as possible, "without interior pics we can't accurately make an offer today", "we typically walk properties before getting to the numbers". In most cases he who gives up the first number loses. Be mindful of that. This could take a few phone calls or property walk throughs. The point is don't pressure someone to give you a number, make it there idea. Don't show up in a suit and tie driving a BMW. The owners are judging you in the first 15 secs.

    The money you make depends on the contract. The wholesalers that send me emails and market deals have a spread baked in. They have a property locked down for ___ days at $89K, but market it at $110K. The magic occurs when $110K is an actual deal and investors want to buy it. The dangerous side is when you can't find a buyer, it's not a deal at all, and the contract expires leaving the property owner with nothing but a terrible experience. Don't be that guy. 

    I'm not a wholesaling expert but hopefully this answered some of the questions. There are numerous ways to get into REI. Keep an open mind, read and learn as much as possible, and you'll be on the right path. Cheers.

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