All Forum Posts by: Zlatan Omeragic

+1 for do it right and rip it down to the subfloor

Hello friends,

I have a lead on a possible investment property that I picked up from my neighbors. Its a actually the house that is next to my residence - estate inheritance, absentee owner etc...

My neighbors know the owner, who is an elderly lady, and they know the house as they cared for it for a couple years. They were able to tell me about the house a bit as well, and its sounding like it may be possible to make a deal on it.

They have provided me with a phone number where I can reach the owner. I really wanted my first contact to be a letter (just seems 'easier' for the first lead) but I did not want to pry too much for a strangers address. 

So I am hoping some of you could give me some tips before I call this lady that may help me increase my chances of getting her what she needs and making a deal that's worthwhile for me.

Inspiring story man. Keep up the great work!

@Ana G. Way to take action! Please keep us posted!

@Joseph Coach After checking the materials on BP, check out Cole Hatter and his podcast site (look around). He has a lot of great content as well. A lot of it is not REI oriented specifically, but I have found most of it useful.

Also, welcome to the site!

Hey Stephanie, good for you to make a decision like that. 

Many investors continue to work at their W2 jobs until there is enough income to get out of that horrible world. If you are already working at a steady job that hopefully pays well, I would say keep it, and work on saving as much as possible, and learning as much as possible, until you can do your first investment deal. 

I used to dread coming to my W2, but nowadays I come with an air of excitement because I know its a temporary thing which will ultimately help me get where I want to go.

One more thing - I have stopped sharing my aspirations with people who are not entrepreneur-minded. You cannot blame them, but the only way they know to live is "working for the man" and waiting for Friday to come. Hearing the snickers and negative feedback from these people will eventually start to eat away at you, and you will start to doubt yourself. So in your heart, KNOW that you are doing the RIGHT thing, and they are doing the LEFT thing (not wrong, but not right for us). 

With such people, discuss the weather, or some other interest you may share in life.   

Good luck in your REI career...it should start today!

I use "Founder"

Depending on who the seller is, you may be able to try and educate him, and break down the formula behind your offer. Many sellers just dont have a clue about real estate, and just need some education. It always helps to have a notepad and calculator so you are able to put real numbers in front of the seller. That is your job as the investor.

On the other hand you may have someone who's head is up their rear, and they are not open to any sort of education or discussion.

But, at least put a feeler out there and see what's up - there is only one way to find out!

Always be upfront with everything. First negotiate a price and have the seller tell you himself that he is happy with it. (If he won't say he is happy with is, go to another prospect) 

If the seller has an issue with your profit margin, always do your best to reiterate and make him understand that he will still be getting the agreed upon price in cash. The buyer will cover your assignment fee.

It also pays to educate the buyer on the cost of your time and investment, marketing etc.  

@Jay What sort of numbers did you put in front of the HMLs that you tried already? Maybe that is where the issue is?