OfflineI found a FSBO sign in my area that is a multi family, the sign was 1 10 foot by 6 foot wooden sign. With the phone #, sales price 350k and bold letters that said NO REALTORS also has a area code that is about 200 miles away!!! Seem like he may be pretty motivated, my problem is I have no Idea how to approach or even begin a deal. I would appreciate any help from the DG family. Thank You a bunch in advance!
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Ok buddy this is my first post in years but Im gonna try to help you. My computer's key pad is all messed up but i wanted to respond so please forgive typing errors. As far as your deal is concerned, I would approach it like this:
Call the number and in your friendliest tone, with a smile on your face tell the person who answers that you are calling about the ad they had up. The best way to get them talking is to ask open ended questions. I always say something like" Would you mind telling me about the situation with the propery?".. most people will open right up and begin tellng you all about it. Take notes and listen listen listen. A lot of the time we stress what we should say when really we just need to listen. I try hard to not even talk for a while and this gets their guard down and builds report and trust. When the time is right Tell them that you are a real estate invstor and you invest in properties with cash yourself as well as represnting other cash buyers. After finding out important info ask the owner how they arrived at the asking price, if they would be open to terms and probing questions like this. The sign said "no realtors" so that should indicate something about the owner as well. Ive found in my experience(I am just beginning too) that keepn it short is best for the first call if you dont know what to really say. Let them do the talking, ask some well formed questions, and then say "thak you so much for takng the time to chat with me! i'm gonna speak this over with some cash buyers and call you back" or something like that. Keep them interested. Even if you dont have the confidence, you gotta act like you do. Fake it till you make it brother :)You will get better at speaking with people u just have to do it! Be genuine and honest, but confident. I called a ton of random cash buyers a few days ago, and so many times i hung up the phone and just laughed at myself for how stupid I must have sounded! but i got better each time and thats what it takes:)oh and I ended up with 5 SOLID leads! Also, I had some people ask me how I got my leads, I felt like a deer in the headlights as I felt complelled to answer, but then I took a deep breath and responded by telling them in a laughing tone that if i old them my secrets I wouldnt be of much value to them now would I? this made the buyer even more interested
If you haven't already, you MUST build a cash buyers list! Call other "for rent" signs and tell them you find amazing deals would they be interested in more properties, have your realtor pull up a search for all the cash transactions in your area in last month and contact these people, go to local REI clubs and network with people, look on CL etc... Its really startng to click for me that if you find a great deal,the $ is out there! Like Deans education program says the money will always flow towards the deal!! Thats why stores like Costco succeeds, they give such deals that you cant aford not to buy it right?! haha just sayin.. Get buyers!
Then you turn around and come back to DG website and ask more questions and we will all try to walk you through it together! This was a very simplified answer and I hope others chime in too, but this is what id do. Hope this helps a little. Good luck PM me and we can chat more! God Bless
Everything comes to him who hustles while he waits.
Thomas A. Edison
Be not the slave of your own past. Plunge into the sublime seas, dive deep and swim far, so you shall come back with self-respect, with new power, with an advanced experience that shall explain and overlook the old.
Ralph Waldo Emerson
Like Vaughn (taketheshot) said, make the call, get to the owner and LISTEN. That's really all you to do.
But here is what buyers will want, so listen for the owner having the following:
Even a one-time or rather novice MF landlord will have this info:
- a pro forma, this tells all the deatils about the property. It includes the basics, units, unit mix, type of construction, general location.
The current condition of the building(s),the maintenance or capital expenses that have been made or need to be done.
The income from rents, occupancy and income from other sources like laundry vs the expenses.
The net income vs expenses provides a Cap rate
Most Pro Formas have a 5 year projection on them.
What he doesn't provide off the bat, ask for-- just say you need more info to discuss with your partners.
When in doubt, listen.
Let us know how it goes.
-Tina
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
Thanks for the advice guys and the boost of confidence. The land is zoned for up to 11 units, but currently a small house that his wife lives in is on the land. I just listened like you guys said, he talked about half of last week lol. I let him know I would talk to my partner about property and would get back to him. It is in one the best parts of the st. louis metro area, he said it took years to get it rezoned for multi-family. But It may be some money there for someone.
I agree with Taketheshot...Take his advice
My best advice is...don't over think it..just do it!
Most people feel like is very difficult to talk to sellers or find cash buyers. When you actually take action, you may giggle on how simple it is.
Good Luck!
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