Is the time for Creative Financing over?

Question

Is it not a great time for creative financing? I am having a hard time finding "motivated" people needed to make a deal happen. I live in California and was looking to do deals in the Riverside area as well as parts of Arizona. I know the percentage of people who are "motivated" or "desperate" is low, but I haven't had one person respond to my inquires. Worried if I should give up or if I am approaching the process incorrectly? Help please!!!

Joshua Nudell · Answer

@Amanda Cadena  I'm not sure we have enough information here to answer this more in-depth and in a satisfactory manner for you; What is your current marketing strategy? How long have you been using this strategy? Have you receive any response from home owners at all motivated or not?

I also don't know how much time you've put into the research for your investing career and goals.  Have you listened to the BP podcasts?  They contain TONS of great ideas for marketing and finding potential leads.  After having listened to some of the podcasts, some things that might work are:

- Using listsource to create a targeted direct mail campaign
- Using online ad words to generate leads
- Driving for dollars
- Lis-pendens lists (although these people get marketed to VERY heavily)
- Put together a list of everyone you know (friends, family, coworkers, acquaintances, etc) and send out a letter to all stating your new career and ask for help in getting started (one of the podcasts describes this better in detail, forget which).

In any case, I would say to keep educating yourself, and keep excited about your new career decision and life goals.  Good luck and keep us posted on how you're doing!

Karen Margrave · Answer

@Amanda Cadena  Creative financing is always in, based on certain criteria. Motivation of the seller for some reason, condition of the property, etc. What type of "creative" financing are you offering, and does it make sense for a seller? If you're asking for great terms, are you offering a higher price to the seller to offset the risk and sweeten the deal? Creative deals require give and take, and finding a balance.

Amanda Cadena · Answer

@Joshua Nudell

Currently I am researching homes on websites like Zillow, Searchtempest, Craigslist, and others to find homes that are For Sale By Owner, Pre-foreclosure, or Motivated Sellers. I reach out to the owners with a professional email, expressing my interest and further information. I recently have thought about  mailing out flyers to the addressed home with my business card attached.

I have not received any emails or phone calls in response to my initial reach out. I did come close to a potential deal when I stopped by a home that was for sale where the mother had just passed away. I luckily ran into the son who was visiting the house to  pick up some of his belongings. I began talking to him about his situation and the house, he seemed very interested in the deal I could possibly offer him, but unfortunately the house was left to his younger sister and he had no say. I gave him my business card and asked him if he could pass the card and information to his sister. I have not heard anything back, but it was the closest I have come to speaking with a "motivated seller". It has been about 2 months that I have been using this strategy and I am very interested in learning about other marketing options. I have listened to a few of the podcasts, but I will definitely  take another look at the marketing pod casts. Thank you for your help/suggestions and I will continue to keep posting about my experiences.

Amanda Cadena · Answer

@Karen Margrave

Okay good to know!! My plan of action is to find sellers who are desperate to sell (for countless reasons). I want to be able to help out the seller as well as myself, the terms need to make sense for the both of us so it is a win, win.

I do not have the money to offer a seller up front, my plan is to create specific terms for each deal so in the end seller can walk away from their home peacefully and so that I can obtain a property that I will potentially rent out to generate positive cash flow.

I believe that my plan is  balanced enough that if I could find the "motivated" sellers it would be perfect for both parties.

Belinda Rodriguez · Answer

Amanda,

What are you targeting buyers, sellers or both?  What type of deals are you trying to put together retail, investment, wholesaIe, residential, commercial, fix and flips, buy and hold? would suggest you get a real estate license so that you don't make any mistakes in the process.  I am not sure what your state laws are and how creative you are trying to be.  We all know that real estate is an art, but a real estate license is not required unless you are doing a retail deal or something of that nature (depending on your state).  However, if you are doing research, I am sure you can figure out a way to do it without a license.  The more knowledge you obtain the better.  Definitely listen to the pod casts here on BP.

Keep in mind that real estate takes time, dedication and patience, which it sound like you got it.  Once you get your first deal under your belt, you will want to keep going.

Amanda Cadena · Answer

I do not have a website set up for sellers to submit their information. I was informed that it was a waste of time and money to set up a website and that it was better to contact the sellers personally. I had business cards made and flyers to give to home owners, mostly pre-foreclosures. I have also been hoping for exposure through word of mouth.

My objective is to approach each motivated home owner as a helping hand, not just an investor... I want to make my approach as comfortable as possible, this way people will not be turned down because they feel it is a scam.

Barry Ratliff · Answer

Send me a link to something online you are using to attract leads or what is your tools and strategy you are using? I am very creative.

Is the time for Creative Financing over?

Most Popular Reply