I'm looking for a duplex downtown to buy it so that I can live in 1 unit and rent out the other. My plan has been to find "for rent" signs in the neighborhoods I want, call the Landlord's and basically ask them to sell. I've stuck out a few times and am wondering what are some methods you guys use to increase your chances of conversion with these owners? It's difficult to create demand for an offer when the seller has no urgency, but I am sure there are certain things you can do to increase your chances just a bit?
I saw a great quote on here once that said something to the effect of "you can't motivate an unmotivated seller".
Patience is the key to finding the Goldilocks deal that's just right for you.
Thats a good quote, thank you.
In general anything listed for less than 30 days, the landlord won't be too motivated. I would look at rental listings in reverse(longer DOM).
One option that may ease a landlord into letting go of the property would be to propose a lease/option. That way they maintain the income stream for a little until they sell it to you.
Purchase a list and send direct mail to the owners of duplexes in the target area. Marketing to a list of 100-500 shouldn't be too hard. By doing this, you'll be able to get them calling you with interest in selling.
I think what you're trying to do is play a numbers game. If you prefer to stick with calling from signs, call as many as possible.
How is the rental market where you live? In the areas I have rentals it is less than 1% vacancy. If it is the same where you are operating you may be fighting a losing battle. As someone above noted patience is the key. Don't buy something overpriced you may regret wait for the great deal. Good luck.
I guess I'm stuck in a situation where I need to move out of my current property (living at a friends after a breakup) and really don't want to rent for obvious reasons. I really want to buy, but shouldn't just buy anything I first lay hands on or else I may end up over paying like you guys are already saying.
After posting here, it almost seems like I should get myself into a m-2-m rental as I search for a property to buy?
I have approached off market sellers a few ways in the past...
1 - letter campaigns...I try to look unsophisticated. Just a true hand written note about how I am considering buying a property in the area and heard they may be interested in selling. They key is not to sound like a company or a pro. You want them to think you are capable but let them think they know a lot more than you.
2 - Call on rentals, ask if they would consider selling it. Again let them think you are capable but not sophisticated investor.
3 - go to small claims court and talk to landlords leaving that just had to deal with a formal unlawful detainer proceedings. Sometimes these guys are the ultimate "motivated sellers".
I think there are other options, I live nearby and know the rental market around here is not the best. You can find better returns looking elsewhere, and live in a decent rental to save up money to buy more investment property. Buying property around here will probably tie up a lot of your purchasing power (although I don't know your financial situation). Food for thought.
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.