All Forum Posts by: Chris T.

Maybe the rules are to protect people from themselves! I've seen a lot of additions onto a house that I just can't believe.

Hey Bill, I noticed that you like to pick up properties from the court house. Are there not a million investors swarming around these auctions? In my area, if it makes it to the courthouse steps with out having been picked up already then it most likely isn't a deal. Court house properties in my area have way too much competition!

Hey Daniel, what specific areas, neighborhoods, cities, zips are you targeting and why?

It seems to me that it would increase your inflow of leads as the trainees would bring them to you.

I can also see how it might turn into a couple of sales when they run across a deal you have on the market that they want to try and rehab or buy as a rental.

I can also relate to the desire to pay it forward!

Sage, to give you my opinion about your original question. I was influenced by Robert Allen's book "Multiple Streams of Income" as I was building my foundation in investing. Creating these other sources of revenue seem to be in line with the teachings of the book and fairly passive.

Do you guys ever worry about "cannabalizing" your market?

Sage,

When I make a phone call I usually tell them, "I was driving around the neighborhood looking for some properties to purchase. I don't have any idea who would be interested in selling so I just wrote down some addresses of houses that I like and thought I'd give you call to see if you would be interested in selling."

They usually say, "well maybe, it depends on the offer." What they are saying is, "Yeah, if I can get rich off the deal!" From that point, any offer I make them is just going to offend them. But, someday, you might get lucky and call someone needing to sell yesterday.

It's like panning for gold! You sift through a lot of junk before you ever find that nugget you were looking for.

I prefer mailing because your message on the post card can target their motivation. If they respond to the message by picking up the phone and calling me then it's down to business from that point. Analyzing the property!

When people call from one of my postcards I instantly know two things, they have equity (because I targeted people with equity) and they think they are motivated to sell (how motivated is yet to be determined).

You are going to end up talking to prospects on the phone one way or the other but I prefer to be talk to someone who has been pre-screened (responders of my postcard).

Earlier in my career I bought properties for a large company and I didn't really feel any pressure because I always had to get an approval and I wasn't using my money.

I thought of the "using higher authority" strategy while I was trying to relate to my previous experiences.

Ecc 1:9 "What has been will be again, what has been done will be done again; there is nothing new under the sun."

I wasn't there, and it was a GREAT game, but it sounds like there are a few things that might help the next chat.

The moderator should just go down the list of attendees and say, "Ok, Bob, what question do you have?" Then, Mod can answer that question then move on to the next person's question.

Or, if you've ever been on a chat room before then you can just free flow as they usually do and mingle with whomever you would like and participate in whatever conversation you feel inclined.

You can't really run a chat like a conference call because every one is trying to type simultaneously.

Of course, I wasn't there, so I really don't have the right to say much! :D

I as a wholesaler am always trying different things to improve on that which I am trying to accomplish. One of those things is negotiating. I usually give a ballbark figure over the phone after analyzing a deal on paper. If we're close then I go see it. Then, I readjust my figure by actually seeing the repairs that need to be done. At that point I start negotiating with the number I would like to be at, sometimes lower.

Here is my new angle.
I am going to try my best to get it for what I want to get it for, but when I get stuck I'm going to tell them that I'll have to get my lender to drive by and tell me what he'll do on it. Then, I'll call them back and tell them that my lender will only do "such and such."

Do any of you use similar techniques and or what do you think about the "lender approval" technique I mentioned?

And here's the thing, if you are marketing a property to several landlords, who may or may not use the 50% rule or the income/expense approach, that you purchased using the 50% rule then how awesome is this deal going to look to them!

If they were willing to pay $80,000 for that $100,000 property then how are they going to feel about getting it for $50,000? They are going to love you and will always be looking for your next offering.

Now with your self-interest in mind, once you figure out what they'll pay for a property you can adjust your price point accordingly.

The main thig is that the 50% rule should be what you use if and when you ever purchase rental properties to buy and hold.