A little encouragement, please.

19 Replies

Hello all. So I drive by these two properties on a daily basis that are obviously vacant. I tried sending letters to the address of the owner listed on my local tax roll but didn’t get a hit. I recently found a “land guy” who got me phone numbers and previous/current addresses of the owners. I’ve been sitting on this information as I’m nervous to proceed. If they are willing to deal but I don’t have the funding yet am I shooting myself or can I expect a field of dreams scenario of if I get the deal then lenders will come? Any advice is appreciated. Thanks. 

@Riley Holt your question should be, "how can I help these people with their problem?" Only by solving their problem, do you get to make money. Calling them and asking how you can help them is a good start. A lender may not finance it if there are too many repairs. Do they have a mortgage on the property? If so, what is owed? Have you determined what the ARV is? Have you inspected the exterior for signs of foundation problems? Estimated rehab costs? Have you determined a price that is acceptable to you for these properties? Where else could you get funding? Will they owner finance it to you? Can you wholesale it? How much will it rent for if you hold it? You are not the only one who has noticed these houses. How long do you think it will take for another investor to take action?

Thanks for the responses. I’m sure I’m not the first guy to notice these houses but I’m hoping I can make a better offer as I will hopefully be holding onto these properties instead of wholesaling. I’m sure I’m putting the cart before the horse but I would love to make the rough properties shine and get a good cash flow going. 

Just do it. You might be pleasantly surprised, or not. Either way, if you make contact with them, you can proceed with a deal or move on to another property and forget these ones. 

I get a couple of letters in the mail every week from people wanting to buy my property, "cash, quick close" blablab straight to the trash. Obviously knocked out on a printer trying to look like handwriting. 

You know what gets attention? A hand written letter, addressing the person by name - as opposed to a generic "Hi, we are looking for properties blablbab." Tell them a little about yourself, perhaps. 

Don't know if you have any properties or not, but the difference between someone who says they want properties, and he who has properties, is action. You've already experienced the worst they can do to you; not respond.

Now go get them under contract and report back.

Your getting discouraged because you can’t find out who lives in two vacant properties Or how to find them ? Your going to have a tough time in this business if that concerns you lol look man When folks on here do direct mail they will literally mail out thousands a month because they know the response rate is 1% . If you expect to find great off market deals your probably going to have to scale this out much better and much bigger to accomplish any kind of success going forward . 

@Riley Holt

@Dennis M.

X2 what Dennis said.

Its fine to chase these but to think that A. They’re willing to sell to you

Theyre willing to sell at a discounted rate

They are even looking to sell is slim.

Id apply that passion and willingness to a larger pool of properties.

How can you get funding if you dont know what theyll sell for or if theyre even willing to sell.

Organize the order of steps in acquiring properties.

If theyre worth 100k what is your offer?

60k/70k? Ok can you get funding at that ltv? Yes? Ok whats the issue? Following me?

Those properties could be in probate or have 200k worth of liens or 100 other issues.

I've called lots of people in your very same scenario. Most likely he wont say yes right when you call him anyways, so having the financing right away isn't a big deal. Cold calling sellers usually takes time, and a few no's before you get to that yes. GL and don't hesitate to call and get rejected!

As long as the property is a "good deal" just add a longer study period so you secure financing. 

The key is figuring out exactly what you are going to say to the owners.  Once you have that in hand, calling is easy.  What's your pitch?  I bet that's your real hang up here.  

Thanks y’all. I do actually have one property right now and am looking to acquire more. I’m gonna call tomorrow at lunch and will report back what happens. Thanks for the encouragement. 

@Riley Holt

Worst case, they say no, and you don’t get the properties. Which has a really stunning resemblance to the way it plays out if you don’t call.

Good luck! Your gonna crush it!

“I apologize for calling out of the blue like this, but I was wondering if you would be interested in a cash offer, just to see what you could get for it?”

This post has been removed.

Well as a quick update I called on both properties today and got their voicemails. I left a message so hopefully I will hear back. I will give it a few days before calling again as I don’t want to be a nuisance. Thanks again for all of the support. 

@Carlos Salazar So as a quick update I never heard back so I called both people again and left another message. I am also going to send them hand written letters to the addresses I have on file. If I don't get any hits from that then I'm going to try and email them. I haven't given up until I finally get in touch with them!!

I figured I would post again in case anyone came back to this. I finally reached one of the owners but they are about to start rehabbing so that one is out. But I did talk to another guy and he is interested in selling!!!!!!!!! I am meeting with him next week. Fingers crossed that it all goes well but I'm excited at the possibilities.

@Riley Holt that's great, a start in the right direction! Great persistence, that's inspiring. Worst case scenario, don't get discouraged if you can't make a deal, but taking a big step like that is what keeps a lot of people out of this business. You're a 'do' type person, you have proven. I like 'do' types. 

Thanks for the update; come back to update when you've met the guy. This is a very similar way to how I got my 4 plex under contract; I close on it on Monday.

Well I met with the owner and he seems interested in selling. The property needs a lot of work but I can imagine it being a great rental when it’s done. After I talk with my contractor I will give him an offer. Stay tuned. 

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