Make the deal yourself!

There are two types of properties my investors are considering right now.

1.  The properties that are “deals” as they are advertised.

2.  The properties that become deals after negotiating.

Can you guess which category holds the most deals?

Too often, I encounter pretend investors who tell me to call them when I find a screaming deal.  My response is always, “I’d be happy to.  Can you tell me exactly what a ‘screaming deal’ looks like to you?”  I don’t want to assume anything.

I know they’re pretend investors when they can’t answer my question clearly and concisely.  The person who says something about, “a little old lady that’s going into a retirement home and wants to give away the equity in her property” is not the investor for me.  That person clearly watches too much late-night television.

The person who tells me, “3 bedroom, 2 bathroom, brick house, in X school district that can be purchased for 80% of market value or less” is the investor for me.

Do you see the difference?

Occasionally, I do find properties that are great deals just as they are.  These properties go fast because the rest of the world can also see them.  The gold is in the properties where you have to negotiate a little bit.  My favorites right now are short sales because they’re a total hassle most of the time.  Most agents don’t like them, don’t understand them, and won’t be able to get them closed.  Buyers are told by their uneducated agents that short sales are too much work, so they shouldn’t bother.  I love them for those reasons.

Anywhere you find HARD WORK in the real estate sales business, there is usually a great opportunity.  Most agents in my life are not interested in hard work, so I don’t have much competition.

Foreclosures, on the other hand, are not the types of deals that excite me right now.  Most of them are in poor condition and will take too much time and capital to return to market value.

If I can get a better discount on a short sale, and the short sale doesn’t need any work done to it, why would I bother with a nasty bank-owned property that has no appliances and trash everywhere?

My investors have all asked the same question and are now on the short sale bus with me.