I still have yet to find a property that makes sense. I'm working on it thought. Let me ask a question. I'm reading a book and it strongly suggest to contact the owner of the property as the very first step. Is that normal practice?
Hey Tony, well yes and no. First you want to have an end game. Does the type of property fit into your overall plan? Then contact the owner. Then convince the owner to tell you about the property and convince them that you're the right person to buy it from them.
@Tony Velez , I bought a 200+ unit apartment complex using direct mail and I was direct to the seller. So I encourage you to locate the owners as you will get a better deal. Don't get me wrong though I have bought assets using a commercial broker though, but you are paying the broker for the contact.
Like what @Justin Fernandez stated, before you contact the owner make sure you have a clear idea on how you will buy the property because the seller is going to ask. Are you 100% cash, using a combo of debt and equity, hard money, etc. You don't need to share all the nuts and bolts with the seller, but you have to have your buy strategy thought out.
If the property is listed with an agent, you should contact the listing agent. If it is not on the market, contact the seller. The worst they can say is no.
@Account Closed , the asset is located in Dallas, TX.
Justin is spot on about doing some level of due diligence on a property. However, I would not - and don't - limit myself to only properties that fit my criteria. Why? Because I always like to have multiple exit strategies for every deal anyway. If I get a lead or see a potential property that isn't - for whatever reason - right for me, I'm not going to walk away, because there's likely 50 other people it would work for. For instance, if I was able to wrap up a property in the Southeast part of Dallas, I'm not interested in a buy & hold there, and that area isn't a great flip space. However, I know 3 cash buyers who will buy just about anything in that area. Done. I'm going to make a profit on any deal I find, if it's a real deal. So, if it doesn't fit my model, I will sell the deal to someone who's model it does fit.
In general, unless a property is listed with a Realtor, your ultimate goal is to get time with the property owner. The faster you can make that happen, the better. I've recently gotten much bolder in my attempts, and I've actually started knocking on some doors. As Mindy said, the worse they can say is "no". (OK...they can say really bad words, but the message is still "no"!!!) In the end, you'll never get a "yes", unless you're willing to risk getting a "no".
Thank you for the responses. I have a property the realtor says the home owner is willing to owner finance. But I'd love to speak to the owner of the property myself. Will the realtor feel threatened?
what's the best way to find owner contact information? I've used the assessor website to get names and addresses. But cannot get any phone numbers. Should I send them a letter?
Write a professional letter and include some information about yourself. You want them to like you before meeting you. Unless you want to call them, then you can do some detective work via Google. If you can't find it then a skip trace is your next bet.
Hope his helps
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing