Cold Calling Off Market Absentee Owners

[Sterling Fields]

Hello all, 

I have read many discussions on cold calling/direct mailing absentee owners. Before I begin this process however, I am interested to know how things progress if you actually get someone who is willing to engage you and possibly sell.  I was thinking that I would ask them if I could come look at their property with a contractor (as I am not fully confident with estimating rehab costs on my own yet) to see what the rehab estimates would be. Once I get the rehab estimates, I would then make a cash offer through a real estate agent and try to do a quick close, contingent on an inspection that reveals no major damage, i.e., termites, busted pipes, mold.  Am I missing anything here? Also, when not going through a bank, how do you know that the deed is good/recorded/warranty deed, etc.? When do you check this out?

Thanks for all of your help, 

Sterling

[Mateusz Prawdzik]

@Sterling Fields What Gabe said was correct. Couple things, make sure that you have an offer or roundabout number in your head that you want to present before going to meet or talking over the phone, that way you can say it towards the end of the conversation and see if they are interested. The most important part is to find some how you can relate and talk about what is going and their situation. Don't just jump right into what you want to talk about, make sure they feel comfortable and want to tell you. 

Next, Leave out the realtor. No point, you are the cash buyer so you are putting it under contract and then assigning it. A realtor kills that whole process. Don't shoot yourself in the foot.

Most owners don't want inspection contingencies. I am assuming you are very new to the game... you ever try to make an offer to a bank or an MLS listing with inspection contingencies... lol, as soon as people see that they reject the offer. You are assuming all problems with the house (as long as the house isn't about to fall down.) This is incorporated into your offer right away, so do your homework and make sure that you get a good contractor since you don't know what you are doing (over time this will change, as you do more and more houses.)

Finally, do a title scan when you sign the contract, a preliminary title search takes like 1 day. Usually on the contract, it says that the title has to be currently clean or else either party can back out with no problem. Additionally, there is usually a 3 day review clause that allows you to back out no matter what before the 72 hour mark is over. 

Please do your homework prior to going to see the house, you don't understand how many leads you will lose if you go there and don't know the answer to a question the person might have. It has happened to me when I was starting, you want to be prepared for a *****how.

If you have any other questions, please reach out to me. I am a developer/rehabber so most of my experience is on that side of REI but I am very knowledgeable on other aspects as well , so don't be afraid to ask. I am always here trying to help out any way I could.