If you get put on a realtors email list for properties under $25,000 can you get the bank to really sell them for around$5,000?

[Alexaundra McCormick]

I recently finished watching larry goins video on how to get houses for $5,000. Never heard of this strategy but pretty much hes saying you can get on a realtors email list for the properties they have under $25,000 listing. Then when they send you one you can put in an offer for $5,000. If it doesn't get excepted you keep putting it in until they except your offer.

Now my question is can you do this as a wholesale. Once you get the offer excepted can you immediately have your cash buyer buy it for like $15,000 or more from you and then close the bank listing that way or must you show proof of funds to the agent before even making an offer on these types of properties?

It seems like this is the better way to go in starting out as a new investor because you can strive to get the properties for dirt cheap and then wholesale them. I know banks go down about $3,000-$5,000 a month if its not selling so would you recommend trying this strategy as a newbie.

[Derreck Wells]

@Alexaundra McCormick, REI isn't "Get rich quick" or even easy. It takes work. There's an old saying "The harder I work, the luckier I get." And that definitely applies here. You work hard at making connections, learning real estate values in different neighborhoods, learning the processes involved, learning the paperwork, and basically educating yourself so you can recognize, and act on, that "lucky opportunity" when it comes in front of you. You know, the kind that people say "She was lucky to find that!". Well, if you hadn't worked so damn hard, you wouldn't have been able to recognize it.

A tip. Always dress and act like your working a deal. (Dress for Success) Even going to the grocery store. Dress like someone that a person would want to invest in. You never know when you're going to bump into an investor with money to burn. You might be standing in line and hear a cell phone conversation in front of you with some guy in a suit complaining to someone about a deal that didn't work, or something like that, and that's the perfect opportunity to create a little luck. "Excuse me, I couldn't help but overhear, I'm in real estate too." and you just got an investor to help you with money. Always be ready to work. Always look for opportunities to sell yourself. Always work your REI into conversations no matter who your talking to, be it your priest, rabbi, doctor, auto mechanic, or anyone else. You never know who just inherited a house and needs to move it or who just inherited a bunch of money and wants to invest it in RE. We create luck, it doesn't just happen.

Also, listen to the podcasts. I have learned something from every one. There is a bunch of stuff that I will never use in my situations, but I have still picked something out of EVERY podcast that I can use.

There was one where someone was telling about their method of "driving for dollars" and what they look for. They're not looking for FSBO signs on lawns. They're looking for roofs that need replacing, garage doors that are damaged, unkept lawns, and basically run down houses. They then write down the addresses and do the research to get homeowners addresses and mail them letters saying I'll buy your house at 123 Any St. They get responses from some that are grateful for the offer and sell right away. Maybe the person is behind on the mortgage, or lost their job and need a quick close. Maybe they're retired and can't afford the place but are too stubborn to ask for help, so when a lifeline is offered and they can sell the house that they can't afford to fix and maybe move to a smaller cheaper place, they jump. Whatever the sellers motivation, it's a win/win for seller and buyer and knowing that it works for someone else tells me that it will work here as well.

People are all essentially the same, if we weren't the field of psychology wouldn't exist. If you take people from all over the world and place them in similar situations, they will all basically act the same. So, if it works in one part of the country it will work in another, just the numbers will be different. You can learn a ton from the podcasts! I put them all on my ipod and will listen to 4 or 5 of them while I work. I just let it shuffle. I've heard them all a few times now and will continue to listen.

Don't give up, but do understand that it might take a year to make that first deal happen. Sometimes the deal that you need just isn't there. Obviously you need to eat and pay bills, so like someone suggested above, try for a job where you can learn something useful. Try to find something as a laborer for a construction company. It's called an unskilled laborer- unpacking and setting up the tools, moving the lumber, setting up the jobsite with tarps, running and getting coffee, running to Home Depot for that piece of trim that just broke, etc. But if you ask, you can learn how much each job costs so you can properly evaluate your purchases when you get there. If you explain to the boss what you're doing and why, he'll probably tell you the numbers because you're never going to be competition for him, you're not starting a construction company, and you might even hire him to fix your houses in the future. It'll help pay your bills and teach you a much needed skill in REI, you need to know what it will cost to repair houses.