making an offer??

Question

I need assistance in how to go about making an offer on a property. This is a property that is near my home that I just stumbled upon. I was taking a drive one day and noticed an abandoned home that is in pretty rough shape but I am a do it your self type guy so it sparked my interest. Fresh off of a rehab of my own home, I am looking make an investment but I am unsure of how to aproach the situation. Heres the deal. I found a house that looks to be at least 2 br 1 bath home in my neighborhood. It needs alot of work to be put on the market, but I feel that I have the potential to get the property for a steal. I researched the registry of deeds and found that a woman who owns the property lives at the other end of the state. The deed shows that she owns the property free and clear. I have her address and phone number but I am unsure of how to approach her.

I think that if I can get the home for the right price it would make a great rental property.

Thanks, Eryk

I think that if I can get the home for the right price it would make a great rental property.

Thanks, Eryk

Ryan Webber · Answer

I would always recommend that whatever story you do choose, make sure it is an honest one. Don't lie to people. Building a reputation of being a liar is never a good one to have.

Dick Green · Answer

Establish what price you need to be at for profit. Then as for talking to the seller, here's how I would approach him/her.

When I call, I would first make a list of all the negative factors and all the positive factors. I would spend as much time in the "Greeting and Warm-up stage of the sales process. I would ask plenty of open ended questions solicitated extending responses from them thereby increasing my odds of obtaining positive results once we get to the landing and closing stage of the process. I would ask questions like a data miner. I.E. Where do you live now? Are you originally from there? How did you end up with a property located________? What type of work do you do? How did you get into that? I would try not to talk Real Estate as long as I could to build rapport. The more you can get them to talk about themselves, the more they will tend to like you. And people like doing business with people they like.

After this the next step is to tell them a story. People base their decisions on emotions then later justify their decision based on logic. Yea....sometimes people buy based on goods and services. But if you have a good story along with goods and services you can increase your closing percentage 75%. The key is to give them the correct blend of hype and fact. Your story should incorporate the reason that makes you different from all the other people wanting the house. One technique for a new person in the business is to explain that they are new in the business, working thru college, paying for xyz to help out xyz, and are glad that they are starting out work with nice honest people like........yaddi, yaddi, ya.....

After the story next is qualify....who, what, why, how come, how many, when, why not, ect.... this is where you gather all the info on the transaction you catch my drift.

Next land Note: during the landing stage is where you begin to propose the offer, this is the same place where you remind them about all the bad stuff wrong with the house.

Next is the Close.... later got to go to work

N/A N/A · Answer

You can tell her you would like to buy her old fixer house to start a home for your family. If you are too old for that to fly, then you want to buy the house to fix up for your daughter's new family. you get the picture....

N/A N/A · Answer

a property will sell or not sell depending on math...

if others see that property making great returns...it will have no problem. now or later in the future....

if the price is too high...well you have to just move on...

the key to real estate is NEVER fall in love with a property...it will hurt you. think of it as business and do the math and everything will be okay... thanks

sunsmicro

Tom McGiveron · Answer

run a cash flow analysis -

see where you need to be to be at a positive cash flow, then just work the numbers til you hit your optimal level of revenue.

no fluff either -

just fyi, 2 br are tough to sell...i know you're looking to rent it out, but if you ever want to sell it - they're tough to move.

Ryan Webber · Answer

I would just call the owner and ask if they would like to sell their house. If they say yes, I'd try to get a ball park of what they expect and then go from there. I would research the tax rolls and find the square footage and go research comps for your neighborhood. If you are looking for it as a rental then your numbers will be more of whatever you determine your desired return to be.

Under normal circumstances when I do a cold call to buy a house, I atleast know generally where I need to be at on price before I talk to the seller. Now I take about 5 minutes before I call them to figure that number from comps. I shy away from telling people to go research and crunch general numbers on the house before you call because you might take the next two months to research comps and then by then they've sold the house to someone else.

I have made so much money just because I jump faster than the next guy. I have lost so much money learning that lesson the hard way.

making an offer??

making an offer??

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