Hi,
Yes, I do have spreadsheets…I have simple ones all the way up to some pretty sophisticated software where I simply plug in my numbers and it will tell me what I need to buy the property for….If you send me your email I will email them to you.
As for getting started finding properties…There are so many ways. There is an abundance of deals out there. I think that many new investors (who watch too much late-night TV) are under the impression that if they decide to become investors, the “investor fairy” will drop deals out of the sky.
That's not true, if you’re going to do this you’re going to have to work just like the rest of the world. The difference is that we are not stuck in a nine-to-five rut and bound by the “bosses” rules. My job is fun, profitable, I make as much as I am willing to work for, and I get to help people along the way.
So, not knowing what type of thing you’re focusing on I’ll tell you what I did to get started. And trust me it didn’t happen overnight…But I will tell you this much. When I began investing, I used to teach at a major University, I made as much in 3 months investing as I did an entire year teaching. Guess what I do fulltime now! It works, but you’re going to have to work really hard and not give up.
Finding real estate deals is an art that takes time to master. Like any business, customers are what drive it. Your primary customer is the seller who is motivated to sell below market value. Finding motivated sellers requires advertising, marketing, salesmanship, and, like any business, keeping your nose to the ground.
Nothing happens and nothing matters in real estate until you find a deal. You cannot put together a deal without a motivated seller, and you can only convince a motivated seller to do something creative or at a discounted price. A motivated seller is one with a very good and pressing reason to sell below market.
Find motivated sellers who are willing to sell their properties at a discounted price or "soft" terms. Some of these issues include:
Divorce
Landlording headaches
Lack of Concern
Inexperience with real estate repairs
Time constraints
Death of a loved one.
Job Transfer
Impending foreclosure or other financial problems
This is just to name a few. This information is all readily available at your courthouse. It’s all under public disclosures, you just have to go and look.
Another thing is to do what successful real estate agents do…They use a technique called "farming" to increase their business activity. They pick a neighborhood or two and focus their marketing efforts within that area. You should try the same technique. Start with a neighborhood that is relatively convenient for you.
1. Drive the area: Spend a few weekends driving around the area. The goal for you at first is to learn about the area, the style of houses, and the average prices. Over time, you may expand your farm area, but stick with areas that contain the type of homes you plan to purchase.
It is not necessary to begin your investment career by learning every square mile of a large metropolitan area; it is important to learn the value of "typical" homes in your target areas. This knowledge will enable you to make quick decisions about whether a particular prospect is a bargain.
2. Attend open houses: Visit open houses and "for sale by owner" (FSBO) properties on weekends. Speak directly with owners and their agents. Pass out your business cards. Make friends. Word of mouth and referrals are a big part of any business.
Part of the process of finding a deal is to know how to recognize one. Take a good look at the property and its physical features. After viewing a couple of dozen open houses in the neighborhood, you will get to know the value of the properties and the different styles of houses. When someone calls you about a house in that area, you will know the value by its description.
3. Look for ugly and vacant properties: While you are driving around neighborhoods, look for vacant, ugly houses. How can you tell if a house is vacant? Look in the window! Of course, this practice may get you shot, bitten by a dog, or arrested. The very first deal I ever made was a vacant property with an out of state owner. We did the deal, but had no keys. I go over there with my ladder, climb in through a window and when I come out I’m met with 3 cops all pointing guns at me. That was a couple of years ago, I thought it would never happen again. It did. This year I evicted a tenant, who locked the doors. Again, with my trusty ladder climbed in and when I came out the Sheriff (who had moved in next door a few months prior) was standing there waiting for me to come out. Make sure you have ID and sales paperwork with you when breaking into vacant houses! Anyway, first thing to look look for are the obvious signs of vacancy: overgrown grass, no window shades, boarded windows, newspapers, garbage, mail piled up, etc.
If you are not certain whether the property is vacant, knock on the door. If the owner answers, be polite, respectful and ask if he is interested in selling. In many cases, it may be a rental property, so ask the occupants for the name and telephone number of the owner.
If the property is vacant, ask the neighbors if they know the owner. Most neighbors are helpful, as they know "rundown, vacant" houses hurt their own property values. In addition, ask the mailman; they know all of the empty houses on the block. Leave a business card and write down the address of the ugly or vacant properties. When you get home, look up the name and address of the owner.
Some cities, towns, and counties will "tag" a house with code violations. This is often a sign of a neglected or vacant property. Ask your city if you can obtain a list of such properties or find where this information is publicly recorded.
Speaking of knocking on doors. First and foremost, I’m to tell you that knocking on doors is still the best way to find deals because other investors hate to do it. The biggest problem is that investors don’t know what to say.
It's simple, just tell the homeowners that you were at the courthouse doing some research and noticed that they have a pending problem with their property or it was vacant, whatever the case may be, and you’d like to help. NEVER mention the “F” word--foreclosure. Ask them if they took care of it.
Typically they say, “yes.” Ask what they did (filed an answer, sold it, brought the back payments current, what?). You can tell by the blank look on their faces that they haven't taken care of anything. Offer your assistance and move forward with your deal.
Postcards are another favorite method. You can mail them to folks in foreclosure, people in probate; going through a divorce; in bankruptcy; and landlords who just walked out of eviction court. This information is public knowledge, and the typical investor doesn't tap into it. NEVER be typical.
For $10 I can buy a CD from the various county assessor’s offices of all the property owners in the county. I can then separate it into what category of homes I’m looking for, how long they’ve been there, but most especially out of state owners or those who are behind on taxes, etc and mail out information. Bulk mail is cheap. Do I get responses, oh yeah.
But most importantly run ads. Especially those Thrifty Nickel’s all over the place. It’s cheap to sign up for a corporate discount. I get charged $10 for any length ad and the requirement is one ad a week….$40 bucks a month. I’ll give you a little known tip: Place your ads under “money to lend.” Many times the homeowners first choice is to save their house, not sell it. Once you have them on the phone you can negotiate your way into the deal.
You will make as much money as you are willing to work for. The sky is truly the limit. The bottom line is this: There are thousands of deals out there. If you don’t make the effort to find them, other investors will.
Message Edited by Jacque383 on
07-25-2007 08:45 PMMessage Edited by Jacque383 on
07-25-2007 08:46 PM
