I just posted another thread about my pipeline bursting like a fire hydrant.
Well, here's another one who just called me!
This guy has real estate in the prime rental area of town. Said he has around $3 million in property throughout Lubbock, Texas, and from the list I got on ListSource, I know he has from 70-100% equity in his property (as that was my requirement).
None of his property is listed on the MLS, and he says he doesn't want to get rid of just one property. If he sells, he wants to sell a lot of them together.
No, I haven't negotiated the price or anything. When he called, I didn't remember what property was his (I sent out close to 100 letters in my last campaign.)
Essentially, there are a lot of options on what to do with this lead. I could get them under contract and assign them out as turn key investor properties. I could take them on myself with owner financing and manage the tenants. Obviously, the strategy depends on the property condition and current status, but just knowing he has at least 7 units in arguably the best rental area of town and $3 mil total elsewhere, I know there is potential for something to be done here.
I just don't know how to approach it. He knows I have no properties (oops) and I'm new (oops)...but I was just being honest with him. I believe that's the only way I'm going to grow my business as big as it can be.
So help me with some ideas people!
A couple of other strategies
1) you can do "lease to own" where you pay him a monthly fee for X years and the properties are essentially yours until the "lease" expires, where you have the option to cease or extend the lease or purchase the property for $X. Save up all the cash flow for a down payment and buy the property outright
2) Do a syndication: raise private money for a down payment or for the whole portfolio
3) Find out the numbers and post to the BiggerPockets marketplace
4) You can do a combination of different methods
I would take a look at Brandon Turners "How to Invest in Real Estate with Little or No Money down" for more ideas!
I am a newbie as well and haven't done a venture like this but have been wanting to ever since I started investing so feel free to DM me if you would like to discuss more ideas regarding this deal!
Thanks for the input. Yes, I have read the book.
You bring up a good point. I need to relax and FIGURE OUT THE NUMBERS. I'll know where to go from there. Thanks
Might sounds simplistic but did he make any mention of what he might be looking for out of the properties ? Might be worth knowing that before even getting too excited. Not being a negative Nancy, but wouldn't want to waste too much time if he's in another world. Does he sounds any kind of motivated? Just some thoughts in my mind, i have done direct mail and have gotten the person saying oh id sell in this situation and such, but they are just tire kickers fielding calls. AKA wasting my time, but i hope this person is motived. Good Luck
That's a great point Ceasar. I didn't gauge his motivation level, but I don't think it was very high. Does seem like a good owner finance candidate, but you're right, has to be a good deal. Since talking to him, I've created a script to use with people who respond top my direct mail.
I followed the guidelines I found from a blog post on creonline
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