Thursday, October 23, 2014

Finding Red Hot, Cash Paying Prospects For Real Estate

     Today is October 23rd.  It is Thursday.   If you are participating in the Income Increase Challenge, you are probably tired of me starting every day with the same old instructions.  Here is something different for today.

     Could you go into MLS and find a house that is worth $100,000 but you can buy it for $50,000?  Often bargains like this exist because there is no financing available for some reason.  Often these bargains exist because  the owner needs the money RIGHT NOW.  Sometimes these real estate bargains exist because there is a commercial potential for the property that the residential sales associate that listed the property did not recognize.  We don't care what the reason is.  Just know that these bargains exist.

     Let me re phrase my original question.  Could you go into MLS and find a property that, if you had the cash, you would buy today and could sell tomorrow for a handsome profit?

     Maybe MLS is not the place to look for these bargains.  There are plenty of them in MLS.  Maybe, if you went to the court house and looked in the probate files that are being processed, you could find some heirs in Chicago that have inherited a house in Orlando.  The heirs don't want the house.  They want some money in their pocket.  Call them.

      It doesn't matter where you find them.  Maybe you could find such a bargain by contacting those empty house owners that I mentioned in the earlier article.   http://rondclimer.blogspot.com/2014/10/do-you-own-empty-house-in-another-city.html 

     When you find this super bargain, I want you to take your Who You Know list and start calling these people and ask them if they know anyone that has the financial ability to take advantage of this super duper bargain. Tell them that you have to pay cash and you have to act quickly.   I want you to tell them that you would buy it yourself if you had the ability.  Do not say this if it is not true.  If it is not true, it is not enough of a bargain to warrant your calling.  Don't you agree?  Ask your Who You Know list if they know anyone that can take advantage of this amazing opportunity.  How many do you think you would have to call before you hit a winner?

     Don't waste your time or your acquaintance's time with luke warm mamby pamby maybe bargains.  Find a super duper extraordinary it makes me sick that I can't buy it bargain.  If no one on your list knows someone that can buy this bargain, you need a new list.

     In the daily instructions for the Income Increase Challenge, I have urged you to call forsalebyowners.  If you will start calling forsalebyowners, you will find that a lot of forsalebyowners are investor types that buy and flip houses.  When I first started selling real estate a hundred years ago, this aggravated me because most of them are not prospects to list their house with a Realtor.  In fact, I considered them a competitor.  After a while, I learned that these folks are prospects.  They are buying prospects.  I started to chat with them about what they like to buy, what neighborhoods do they like etc.  I kept their information on file until I found a super bargain. I have sold many house to the buyers that I found while calling forsalebyowners.

     This works equally well in a social situation.  You meet someone in a social situation.  What do they usually ask when they discover that  you are a Realtor?  "How's the market?"  How is this for an answer?  " I just ran into a property that is worth $200,000.  It can be bought for $100,000.  I am so frustrated because I can't find a buyer for it. Do you know anyone with $100,000 cash that would like to take advantage of this desperate situation?  I know it will sell before I can find a buyer."  Don't say this if it isn't true.

     Have you read the book,"The Millionaire Next Door"  by Thomas Stanley?  If you are in real estate, you better read this book.  The main lesson from the book is it is hard to recognize a millionaire.  Your neighbor down the street that drives the F 150 pick up truck just might have a few hundred thousand in the bank.  He might just be looking for the opportunity you described. Ask. We can close next Friday. Go find a bargain and sell it.

     Also today, run yesterday's expired listing off the MLS.  Send them mail.  Call them.

     Also write a blog post about how frustrated you are because you found this fifty cents on the dollar bargain but you could not find a buyer fast enough.  Someone else took advantage of that situation.  Your "call to action" in this blog post is if you would like to be on my list of super bargain hunting, cash paying, quick decision making buyers, contact me and expect my call when I find the next one.

     That is the instructions for October 23rd.    

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