All Forum Posts by: Derek Guyer

I am a real estate agent, but I understand those fears completely. That's why I suggested that you go to another Ohio realtor and have them represent you and write the contract in a way that you think is most beneficial to you. The trust factor has to be there and asking one of them to represent you will greatly help you relax...and they get paid.

I haven't seen any good free videos online that I would suggest. I've seen some videos on youtube, but nothing of any value, in my opinion. For a good laugh, check out http://flippernation.com/ ...they've got some hilarious videos.

NYCinci,

That has nothing to do with the agent being eager, rather it has everything to do with representing his client as he is legally bound to do. That purchase contract should cover everything required under Ohio law and therefore, it has everything that needs to be clear in an agreement between the two.

I don't know about Ohio law, but in Indiana, the contract is not binding until the earnest money is submitted. Everything can be signed, but if you don't submit the earnest money within 48 hours, the contract is no longer valid.

Submitting the offer with everything clearly established in the authorized purchase agreement will help to make the sellers, and the agent feel better about the offer and you're much more likely to establish credibility going this route. I'm not saying submitting your offer in a letter of intent or anything other method won't be valid, but you're doing the same thing you would be in a purchase agreement, only with everything clearly stated.

If you're concerned about the sellers agent representing you well, find another Ohio realtor and ask them to represent you in the transaction who write the contract for you. Neither route should cost you anything.

Good questions, Fernicus. The biggest problem facing most cash flow investors, is that there are only select areas of the country where you can usually find cash flow properties that will do anything other than take cash flow out of your pocket. I'm not suggesting that there aren't any properties in your city or in any around you, but they aren't always easy to find. There are numerous cariable that affect whether you can find them in any given city and they range from tax rates, prices for property, affordable property management, and whether you're market rents are commensurate.

I don't think you're running your numbers too conservatively though. I do think you may have to look for other cities in which to invest in cash flow though if you continue to come up against brick walls. Depending on the prices, areas of the country, economic conditions and so on, it can be very difficult to find cash flowing properties.

I want as many details as they can give me about the property. I want to know what they owe, how long they've owned, what they've done to the place in terms of rehab, if they have any recent appraisals, what they want for the place, wether they'll do any seller financing and how, and most importantly in my eyes, why they're selling (not in any particular order).

I don't usually talk with them about what I could pay them for it right then. I focus on percentages of value that we're usually buying for in particular areas or the particular price we've paid for a property in the area. Going that route, I find out real quick whether they're interested in talking any more at that point without them feeling under attack or insulted. I know whether they're realistic and how much they're willing to talk.

I ask them to give me a little bit of time to pull comps and run the numbers and then if I think it makes sense, I'll get back to them. It's very non threatening and helps them to relax as we're talking as they realize I'm being straightforward. I then go pull comps and if we're close, I call or email and talk it through.

That first conversation is about getting as much information as possible and trying to take down some barriers. Then, when I call them back fairly quick, they see I'm responsible and someone of my word as well. Those are all factors that help them to let go, even if they really don't want to do it.

I know their are other ways of handling it, but that's worked well for me.

I'm very candid from the very beginning. I tell them they're probably not going to get what they really want for it with me and my investors. I don't want to spend the next ten days trying to negotiate something with someone who thinks they're going to get something they're not...

So, I'm with Mike in that I don't want to waste the time with someone who isn't motivated and willing to work. I would rather just talk very up front from the beginning to make sure the cards are on the table.

Funny thing is that when I'm honest like that and up front and the desperation finally sets in, I usually get a call back.

Andrea, welcome to the forum. Give it a little time and do some reading. There's a good chance some of your questions have already been answered. Welcome to Biggerpockets!

Hey newguytx,

Welcome to Biggerpockets! It looks like you've already got some help. Good luck! We look forward to seeing you around.

Derek

I personally have done some great deals through craigslist in finding property and selling some.

Great point, Ryan.