Deals aren't found. They are created...

I wanted to chat about finding deals today. There have been occasions where a deal wasn't a deal at all when I put it on contract. However I cashed in huge later on because I was willing to work with the seller and listen to their needs.

A deal is made. It's not found. You make a deal out of thin air by talking to the seller and taking the time to find out what it is they need. I have one on contract now we'll use as an example.

There's a house just outside of a town in Missouri. An older woman owns it. It needs NO WORK WHATSOEVER. In fact it has many new updates and features. The woman's daughter calls me up and says we need to sell this thing. It's been with an agent, it hasn't even had a bite.

- I said well why do you need to sell?
- What's the urgent reason to get rid of this?

Her reply was... Mom is thinking about renting it out to grandchildren and they will take total advantage of the situation. I want to make sure she gets money for this so she can have a cushion in her retirement.

This house is on the market for $90K. I said well, we can move it for you but you'll have to take a hit on the price.

- How far down can you come and still be good to go?

She countered with a "just let me know what you think".

Immediately I took 30% off the retail price. She said that is doable. She wanted to chat with her mother and get all the numbers together.

A few days later she calls back and says... We want to start at $75K and see what happens. (Lightbulb: They aren't that urgent to get rid of it just yet, they have time to play). I told her we can market it at that, but it's still a retail price. Only now it's a discounted retail price. That's not really a healthy investment that will generate interest. I said I'll work with you though. We'll market the area and see what comes up. I know your agent probably just stuck it on the MLS and wished it luck. She was GRATEFUL as can be that I was willing to actually do work.

Now for the fun. I can read the future on this... The agent contract runs out in November. Over the course of the next 2 months we'll get very little hits on this property, especially at the asking price plus my profit. They'll start to drop. Remember an agent has done NOTHING for them. The price will drop and drop and drop until it's perfect and an investor will snatch it up.

Just before Christmas I'll be cashing a $10K check and taking a random ski trip to Colorado.

This deal is being created. At first glance it's not a deal at all. I haven't found anything. Just a house on the MLS at retail price with an agent. Most wholesalers would turn away. A couple key questions used to IDENTIFY THE SELLERS NEED and you can bet we've created a deal. It may not pay this month. We'll keep it on the books and a few months down the road we'll cash in and it will be a great way to kick off the new year.

That said... a deal is created, not found.

Own Your Situation,
Ben