I did driving for dollars, wrote down addresses and sent out letters. Received a call from the owner who wants to talk. I have no idea what to do next.
Talk to him. Ask him, 'What would you like to see happen to the property?' If you get stumped, simply say, 'Let me check with my partner and get back with you on what we might be able to do.'
So i don't need to know how to find the value of the property at this time?
You can just ask him what he thinks its worth and what work needs to be done. Let him set the asking price, then ask to go see the place. You do need to start figuring out what the comps in the area are so you will be able to figure out the ARV.
Thanks, will call him first thing tomorrow and ask what he thinks the place is worth and what repairs are needed.
have you checked with the city or county to see what the Tax Assessment is on the property? That usually helps determine whether the asking price is fair.
will go line now to see if i can get the tax assessment now
I'm not a fan of stumbling forward when it comes to business. I think you need to know what you are doing and why you are doing it when making any business decision. You've taken some initiative and found a lead, but you need help with the next step. Word of mouth travels faster now than at any time in history - this is business and your reputation matters.
I recommend that you share the lead with a local wholesaler or other investor who knows how to handle a warm lead if they agree to let you see how it's done. You'll do much better to learn from an experienced investor and take a finder's fee or split the deal if it turns out to be one, than to have an encounter with a potential seller that you aren't ready to deal with on your own.
Where will you find that investor? Search by zip code here on BP. At your local REIA. If there's no meeting in the near future, call the organizer of the group and ask for their advice.
Where there's a will there's a way, but you don't have to go it alone!
When I first started talking to sellers I was terrified. I was scared they were going to think I was some salesman or something. But practice truly is the only way, get a good lead sheet with the important questions you need to know in order to evaluate the house and ask the most important question, "why are you thinking about selling?" That will determine how much effort you put into that lead. A truck I think I learned on here is to call a friend and have a few laughs and then once you hang up immediately dial the lead and then you will be in a better mood to talk and hopefully help the conversation flow better. But like others have suggested, once you get a motivated lead and a good price negotiated, it's a good idea to work with an experienced investor to guide you through the first few deals.
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