Because I have been investing for a long time, many new investors assume that I have always known how to buy and sell investment real estate. Absolutely not true. No one is less experienced than I was when I started, but I had an absolute goal and was willing to work hard to achieve it.
Let me tell you about my first deal:
Jim and I knew we had to let people know we wanted to buy houses if we were ever going to find deals to buy. So we started some very cheap marketing to get the phone ringing: we went around neighborhoods putting up flyers, we put magnetic signs on our car doors, we put an ad in the local Nickel Paper (a three-line ad was only $265 for a anus). He had printed questionnaires stacked by the phone so that if a salesperson called, he’d remember what questions to ask.
Like most new investors, he was terrified. Since I didn’t know what he was doing, I really didn’t want the sellers to say “yes” to my offers, so I always did very low offers. Investor ignorance is not always a bad thing.
Almost the first call was from a woman calling from out of state. At the time, our phone had caller ID and it said the call was from “US Government Baltimore, MD”. I was convinced that I was being arrested for doing something illegal, but I quickly realized that I couldn’t have done anything seriously wrong at the time, so I answered the phone.
The woman’s voice said, “Do you buy houses?” Than? Did the government already know you were buying houses?
It turned out that his son lived near us and had written our phone number off the magnets on my car doors while I was parked at our local grocery store. The condo he was selling was actually in our neighborhood, and he was calling from Baltimore, MD! This was so weird.
It was vacant anyway and had been on the market with a realtor for a year. I asked for the details of the property and promised to call him back. After doing my due diligence, I called and offered 65 cents on the dollar. She said, “Honey, I’ve owned this condo for six years and I still owe more than that.” I told her that she totally understood, that it wasn’t going to be her best offer but it was a solution, and that she could call back at any time if she had any more questions during her sales process.
I was so relieved that he didn’t accept my offer. That night, she called again…
She asked, “If we did make the deal, how would it be carried out?” I explained it to him, told him that we would settle with our lawyer and that he would have to write a check for the difference between what I was offering and what he still owed. She thanked me and hung up.
The next day, he called again and accepted my offer.
She hadn’t even seen the inside of the property and was scared to death. Later that day I put her son on the property to check it out. It was spotless – all new carpet and paint, all appliances including washer and dryer, a 2 story living room with a 2 story stone fireplace, an upstairs office area that opened onto the family room. be from below It was incredible. Since it was my first offer and the seller actually paid for me to take it off my hands, I took this as a sign that I was on the right investment path!
Moral of this story?
- Don’t think you need to know everything before you start investing. You really learn what you need to know as you trade.
- Do not think for the seller. Many assume that if the seller owes too much, he won’t accept their low offer. Is not true! Many sellers pay to sell. If their need to sell is great enough, they write a check at closing.
- Don’t let fear stop you. No one knows what you’re doing at first, in any job, but surround yourself with people who know the business so you always have a place to turn for answers.
- Always be a resource for the seller. Most sellers need help. Offer them. You are forming relationships that will lead to great referrals. Be willing to help, even if you’re not the one they’re selling to.
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