Real estate is one of the few fields the average person can make thousands of dollars per month in, working part time. Not as a realtor, as a real estate investor.
You dont need a lot of money, you dont even need credit. You do need knowledge and time. Well supply the knowledge you need in this article to get started. Youll have to supply the time.
Your job will be to find Motivated Sellers. Motivated Sellers are those property owners that need to solve a pressing personal or business problem by getting rid of their property, fast.
Here are a few examples:
Someone paying two mortgages because they bought their new house before the old one sold and the double payments are killing them.
A divorced person facing bankruptcy because of the loss of spouses income.
A business person whose business failed and cant pay his bills.
A landlord, who is losing money every month on their small rental property and is being hassled by tenants.
I think you get the picture.
The pain can actually get so bad that a Motivated Seller will Pay you to take their property to stop it!
The first question is how to find these people?
Unfortunately, there is no central place to find them, milling about. They generally do not advertise the fact that they laid awake in a pool of cold sweat last night worrying about their problems.
They continue their daily activities as parents, sports fans, your kids teacher, etc.
You have to find a way to let them know that you have an answer to their problems.
The easiest and cheapest way is to make up flyers and business cards saying something like, Local investor will buy your house, fast! Rent a separate voicemail service to receive calls.
Place your cards in those card holders in restaurants on the cigarette machine. Put flyers under windshield wipers in malls. Hire kids to put them under every door in the development, etc.
While you are getting your marketing material out, run an ad in your local newspaper like this:
Bargain Real Estate! All properties in East Stamford, 25% or less than market! Quick closes only. Info: Your voicemail#
This will let you build up a list of potential buyers. When someone calls, ask what they are looking for and their price range. Can they pay cash and close quickly or do they need financing? Tell them you are expecting a property shortly and will get back to them.
When someone calls on your property-buying ad, get back to them immediately. After the usual introductions, tell them that you are an investor and while you cannot pay retail price, you can buy their home quickly, with no realtors commission.
Ask how many bedrooms and baths there are and why they have to sell. Then ask what is the lowest price they can accept for the property. No matter what they say, reply, Youll have to do better than that!
When you get their lowest price, tell them you will have to check the price on comparable properties and will get back to them shortly. Call a local realtor or go online to http://Domania.com or a similar site to check values.
If their price is 25% or more below the prices of comparable properties, you may have a deal.
Set up an appointment to see the house. If it looks good, have them sign a 30 day option agreement (Go here to get a copy of one: http://MotivatedSellersOnline.Com/Opt). This will give you the right, but not the obligation to buy the property and eliminates the need for you to have a realtors license.
You explain to the seller that you need up to 30 days to check everything out. Oh, you will pay the seller $10 as consideration for the option!
Start by calling your buyers list and presenting the property to them. And/or, advertise the property in your local paper. Depending on how good a deal you have, an investor will pay you from $3,000-$20,000 for your option. Not a bad start on a $10 investment. Repeat!
Bill Young Biography:Author
Bill Young can help you eliminate your financial problems and show you how to stop work in a few short years. He is a former bank mortgage officer with the Dime Savings Bank of Brooklyn and licensed financial consultant. He is an active real estate investor and personal financial consultant. Bill writes and lectures on various real estate investing topics such as foreclosures, tax liens, land trusts and asset protection. He is available by appointment to speak to your group or for private consultations.