When someone answers an ad....

Question

I posted a very quick ad on craigs list (titled "is your house weighing you down). i KNOW theres plenty of ways to make money even with no equity in a home (sandwich lease option to a slightly credit poor person).

It was very general...basically saying I will try to help and take a look at whatever they have. I didn't really specify regions of the city just that it be in tucson.

My question is how to go through and look at the deals. Am i being to wide? I am interested in SFH, condo's, and TH...rehabs, wholesaleing, and lease options. Is this to wide for a newb? I figured with the market being crummy and slow i have to branch out instead of being focused on one thing that will be harder to get started.

The first email i got in response to my ad (which has only been up 1 day) was a condo (no specifics...guessing 2/1 by mls listed stuff is the smallest). its a resort condo and the writer just pasted a pic and they don't occupy the condo and want to get rid of it for what they owe... $145k. lowest one for SALE (not cma) is $149k so its not a steal or anything. I don't mind saying "sorry its won't do us any good to do the dance" (in a nice way).

Gut feeling is that as a resort condo people who want a place like that are going to have good credit so lease option isn't going to help. No repairs needed going by the one pic (kitchen) so no rehab opportunity, seller does not mention distress but could be a short sale if they are falling behind.

First lesson learned: ask for interested party's to provide more info. :lol:

as a seasoned investor how do you deal with peoples props. that you can do nothing about?

Jill Md · Answer

too much information.

Danielle Hinderliter · Answer

ok i understand the viewpoints on these ideas. i know that i CAN'T look at all propertys and certianly only a small percentage are going to be even feasable to make an offer. i want to let a property owner that thier price is to much for an investor without putting a set number in their head without haveing to go through all the nitty gritty, looking at the house, getting hopes up and wasteing time. essentially i think the best email would read as: While looking at some comparable propterties I see that the price you have set is much higher than an investor (I) would be able to pay and still make the property worthwhile. Although there are no repairs to be made (on this current one) there would still be costs and a falling market to think about. There would need to be at least a 30K (or whatever #) drop in price for it to be a good investment. If you are willing to look at a significant drop in price then please let me know and I will look deeper into the property you have. BLAH blah blah this doesnt put to much of a point on a number but gives them the idea that their "i'll look at any reasonable price" thing isn't going to work b/c i am not offering what they think is "reasonable"...

Michael Rossi · Answer

They're not in reality land in this case, so I would just tell them about what you might be willing to pay and tell them to call you if they change their mind. Mike

Account Closed · Answer

I would agree asking hte "Right" questions is extremely important... Having the information about the prospect is extremely important... Understanding how to make a presentation is extremely important... But make your presentation in person... You can find the "Rat" easier in person... All I care about is that the seller is in reality land... Michael Quarles

Danielle Hinderliter · Answer

ah...put the ball in their court! sounds great! thanks!

Danielle Hinderliter · Answer

understandable that they would then get stuck on the offer made over email/phone but what about wasting time? i can tell by the email they sent they were just "testing the waters" and looky loos. i did send a quick note saying that this type of property i would only be able to offer around 80-90k if the property was a 2/1 and in good shape. since i know they owe more than that its in their court as to whether they want to wait more or not. 70% of 130k made it a 90k price. 130k would be the max i would guess it would sell for though. i doubt anything will come of it but i will take both ideas with a grain of salt!

Jason Wheeler · Answer

The best way that I have found to not waste time with a lead is to simply ask provocative insightful questions. Find out where their pain is, find out what will make that pain go away. Then of course have to get more info with things like current mortgage situation, market value, repairs needed. If you have a short conversation with someone and find out what is hurting them you can find out if you can help or not much faster! You also waste less time talking to dead end leads :superman:

Account Closed · Answer

My rule of thumb is that as long as the seller is in reality land and not fantasy land from a price perspective then I am not saying a thing on the telephone. I will wait until I get to the house and make my presentation... Although you can close on the telephone you can negotiate better in person... You should always leave the negotiations for personal contact and never educate the sellers on your style of buying and at what price you’ll buy at during the call. Michael Quarles

Michael Rossi · Answer

The vast majority of contacts you get from this type of ad are going to be dead ends. I would simply tell the seller what my typical offer might be. For example, if you might pay $80,000 for this property, then just reply that I normally can't pay more than $80,000 for a property like this. When they say "no", tell them to contact you if they change their mind. It's just that simple. Mike