How do you know a good deal?

Numbers are like people -- If you torture them long enough they'll tell you anything you want to hear!

Moral of the story: Don't force a deal to work on paper; if you need to sharpen your pencil, it's probably not a deal.

This week's activities

So far this week I mailed several I Buy Houses postcards to various properties I discovered while driving my neighborhood gridmap. (I printed this on graph paper from Google maps.)

I also received a call from a motivated seller and called her back. This is a Sub2 or short sale lead, and right now I'm not sure I want to tackle that - plus it is pretty far out of my areas where I know the values. I forwarded this lead to another investor - (I am asking $300).

It seems that there is definitely a possible deal in this one.

Motivated Seller Questionnaire

If you call a seller on the phone, here are some questions to extract their level of motivation and determine if there is a deal in it for you as well:

1) Name and Phone Number
2) Complete Address of Property
3) Are you the owner? (Who else is on title?)
4) How long have you owned the property?
4) What are you asking for the house? How did you arrive at that price?
6) How long have you been trying to sell?
7) Are you listed with a Realtor?
8) Tell me about the house...(shut up and listen)
9) What repairs are needed to put it in top condition?
10) Why are you unloading this property?
--- Financing Questions ---
11) How much is your monthly payment?
12) Does that include taxes/insurance?
13) What are the annual taxes?
14) Is this an adjustable or fixed?
15) Are there any other loans or liens on the property?
16) Are you current on all payments?
17) How much do you think you owe on each mortgage?
18) Do you need top price or a fast sale? (they better say fast sale here!)
19) Would you sell it for what you owe?
If NO then -->
20) If I offered you all cash and a closing in 7 days, what's the least you would take?
(Always respond with 10 seconds of silence and 'Is that the best you can do?')
21) Would you consider owner financing?

Now you should have enough information to determine if they are motivated and what offer options are open to you! Good luck.

Build Your Own Bandit Signs

Here is a great resource for you REI signs, whether they be bandit signs, For Rent, For Sale, Rent to Own, etc. Build A Sign lets you create or upload a design and then you can have them turned into yard signs, magnetic signs, license plates, and more.

Check out the site for cost info...

EPA Lead Brochure

Don't forget if you rent to someone, you must give them this lead pamphlet:

epa.gov/lead/pubs/leadpdfe.pdf

10 Ways to Build a Buyer's List

Here is how I am going about building my buyer's list for wholesaling. My goal is to get to 100.

First the obvious stuff:
1) Word of Mouth - my mouth, that is, I tell people about the property and ask if they know anyone interested in wholelsale property and give them my card
2) Property Brochure - leave brochures at the property in question just like a retail listing

Now do networking and calling:
3) If you already have a small buyer's list - ask current buyers for referrals of other buyers if they aren't interested - pay them a fee if deal closes
4) Ask Realtors if they have any cash buyers for discount properties
5) Use local REIA group both online forum and at meeting networking
6) Call every We Buy Houses sign you can find
7) Call every We Buy Houses ad in the local papers

Now do online/internet stuff:
8) Put an ad on craigslist looking for cash buyers
9) Put an ad in the local paper (also goes to online classifieds)
10) Also, check out RehabList.com

So far my list is 22.

Checking for Stolen Identities

The site StolenID Search allows you to enter a Social Security number or Credit Card number to see if it has been compromised. This can come in handy for the 'professional tenants' who pretend to be someone else (because they have bad credit, or just dont plan on paying you anyway).

Note that this information is only good for that which is stolen via computer-related scams (e.g. phising, etc.) It does not include stolen identity information from the guy who digs through the restaurant dumpster looking for credit card receipts; unless, that is, he posts that info to the internet in where these type of scammers hang out.