I am in the Albuquerque area, and the investor group that I have linked up with are really looking to focus on owner financed deals/land trusts, and dumping them off lease to own.
I have been running through the newspaper, and looking onlnine for owner finance deals, and havent found any specifically. Been calling on many (at least 50-75 diff properties), and havent had much of a positive response when bringing up owner financing.
I am still very new to this, but I have successfully taken a couple great steps in the right direction, such as finding investors to work with, and setting up an LLC. Now I need to find some deals for the investment group, and I am having problems.
When you call on properties, looking to introduce, or inquire about owner financing, what techniques do you use? Really looking for tips in working with the homeowners to get the necessary information without seeming to forward, or aggressive.
Help is appreciated!
You need to make sure to look for motivated sellers. There is no reason for most people to work with you because they aren't very motivated to sell.
Focus your efforts on finding motivated sellers. Then, when you are taling with them, don't just jump into the "owner financing" discussion. Ask them a lot of questions about thier situation and go to see the home. Talk with them some more and develop a rapport with them. Ask them if they would take a purchase price of $X and when they agree ask them if they would be willing to take payments directly. Then you will have to do a lot of education with them so that they feel comfortable with the deal.
Don't get discouraged because you can do it, but make sure that you are spending your efforts on motivated sellers and not just anyone.
Prohabber is absolutely right, motivation is the ex-lax of RE investing; it can move mountains.
I have found that FSBO's or properties listed through an agent are poor candidates for owner financing. A good place to look for don't wanters is the for rent listings. Often times these owners are in the mood to sell and will entertain seller financing possibilities.
First, they probably didnt want to be landlords in the first place, but got stuck as such because they could not sell there home and had already purchased a new one, what else could they do? Now they are faced once again with getting the property into renting condition, carpeting, painting, etc. and if they had their druthers, they'd druther not.
Another potential source for owner financing is cruise the neighbohood you want to buy in and look for vacant/abandond properties. Check the public records at the courthouse or county recorders and find the owners. Write them a letter.
Hope that helps some. E-mail me at [email protected] and I'll send you a report that might expand on these ideas.
I have been trying to avoid agents as often as possible, and I really like that available rental idea... going to look into that one.
Thanks for adding your ideas, I am always interested in hearing new ideas and new ways to locate opportunities!
Miles, did you ever have any luck. It's been a couple years and it would be interesting to hear if you made any progress in the ABQ market.