All Forum Posts by: Robert Wilson

I concur with what Andrew said... in our market builders sometime will write offers contingent upon the award of building permits from the city. That would allow you to tie up the property for a reasonable amount of time to get through the red tape and possibly build.

That said, Florida is a lot more friendly to development than California... so part of your research has to be finding out who else is building in your market and asking how long it takes them to get a permit in your market, or if it's feasible at all.

I would probably cold call them... use whitepages.com... or some of the other background check websites to find contact information.

The key when you get them on the phone is to find their motivation... perhaps they need money and would sell... perhaps they are struggling to find a deal and you can put them on your buyer list.

By all means, mail them as well. But there is no magic letter bullet... just include them in your regular direct mail and make sure you mail property owners in their position more rather than less.

I have something that could be of interest will PM you.

Is that even a good deal for the investor?

In my market costs of sale hover around 7-8% for a broker and seller paid closing costs.

So in your example.

Front End Purchase Price: $118K
Shine:                                     $4K
Total Investment:                $122K

Back End Sale Price:          $130K
Cost of Sale:                         $10K
Net Proceeds From Sale     $120K

Net Loss                                 $2K

There is simply little to no margin in the deal you describe.

This podcast has 8-9 lists that you can start building.

https://www.biggerpockets.com/renewsblog/2016/05/26/bp-podcast-176close-100deals-18-months-tom-krol/

It's kind of a mash up on how to get a FSBO to list if you're an agent and some of the Michael Quarles stuff from a recent podcast. You're there to find motivation... from motivation comes good opportunities.

There are folks out there who use inflated ARVs to flip a contract to a bigger fool. It is absolutely a business model in play in Tampa and other markets.

The way to win is beat the other guy to the relationship... because in many cases the newbie can't perform and then you have a back up offer in place.

You might want to partner up with someone... but remember you have a huge unfair advantage. An appointment with a distressed seller.

Your number one objective is to find her motivation to sell... some questions and tips that will help.

1. Build Rapport - Get to know the seller like you would anyone else...
Pro tip: Mirror how she speaks. If she speaks quickly... speed it up... if she speaks slower... slow down. It's the fastest way to help others feel comfortable

2. Ask about property
"Tell me about the house."
"What are some of the challenges you're running into with the property?"
If you come across something needing repair in the home...
"That looks interesting... what's the story there?"

3. Ask about motivation
"Once you sell your home, what's the next step for you?"
"If you weren't able to sell, what would that mean?"
"If we were able to come to an agreement today, how would you feel about that?"

4. Ask the seller about price
"Did you have a price in mind?"
"How did you come up with that number?
"How much do you owe on the property?"
"How much do you need to get to the next place?"
If she wants a price first... play dumb simply explain that you need to run the numbers before you give her something exact.
If you find her motivation... understand her challenges... you increase the chances of getting a number from her first, and increase your chances of getting a better deal.

Hope that helps.

Looks decent... except for the renter.

I would do your due diligence on the renter during your inspection period, get a lease in place, and perhaps have the tenant put a deposit in escrow that would be released to you at closing.

If the tenant does not qualify, or there are big red flags. Don't close unless the home is vacant. Could be a giant headache to evict and have 30-90 days with no revenue coming in.

EDDM is a terrible waste of money... because of the amount of printed material that you just waste on renters... people who just purchased the property... and in your case people that don't have a mortgage at all.