Tips for Placing Your Deal for Fast Sale

           If you’ve been consistently working with your local newspaper’s classified section to sell properties, you’re stuck in a time warp.  One that will cost you in the long run. 

More and more people today are searching online for anything and everything.  The Internet has become the current marketplace.  Other investors are browsing online looking for properties to buy, and property owners are using the Internet as they look to sell. 

There are a number of advantages to advertising online, not the least of which is a much broader audience.  If your real estate investing business has always been local, the Internet will help to expand your horizons.  Why not do business around the country?  Advertising online can accomplish that.

Another advantage is that online advertising is extremely flexible.  Unlike a newspaper ad, you can change, edit, and adjust your online ads at any time and as often as you’d like.

Many online sites offer FREE spots to run ads.  If you know how expensive newspaper classifieds can be, you’ll know what a big advantage this is. 

Check out these websites for free ad placement:

http://www.craigslist.org/

http://www.backpage.com/

http://www.kijiji.com/

http://www.rent-to-own-ads.com/

Leave your ad up and running even after the property has sold.  This allows you to continue to build a list of interested buyers!  When they respond, send them a message saying that property has already been sold, but that you will keep their information and contact them when another becomes available. 

As you build your real estate investing business, look for every possible way to work smarter not harder.  Free online ads will help you to do that.

The Best Real Estate Investing Strategy to Use in a Down Market!

             Many individuals involved in real estate and real estate investing are somewhat confused and bewildered because of all the bad news about today’s real estate market.  But think about it.  Aren’t there still people out there who need to sell a house? And aren’t there still people out there who need a place to live – who are ready to buy a house? 

If that’s true, then the best position to be in during a down market is where you can “connect the dots.”  In other words, you want to be the person who connects the buyers with the sellers and the sellers with the buyers!  And you make a profit in the process.  It’s called wholesaling.

Wholesaling is when you take control of a piece of real estate (in our discussion, we are referring to houses) with a set price and set terms.  This is what makes it valuable to another investor.  You are no doubt familiar with the types of RE investors:  those who are in the Buy and Hold business; those who are in the Rehab and Retail business; and those who are in the Rent to Own business.  Still others may be in the Wholesale business just like you are.

In order to make the deal attractive to all participants you will be purchasing a distressed property below market value and then make a profit by reselling it for a higher price to an investor as described above. 

What does the seller have to gain?  In nearly every case, it’s peace of mind.  You are helping them out of their distressed situation.  Behind in payments, can’t afford the needed repairs, moving and need a quick sale.  Additionally, we’ve found that often out-of-town owners are looking to get out from under a property that has ceased to be an asset for them. 

To find your sellers, the simple “We Buy Houses” ads work best. 

You locate buyers with ads such as:  

·      Thousands Below Market Value

·      Investor Special

·      Great Rehabbing Deal

As the responses begin to come in, this is how you build your buyers list.  Never throw away any contact information.  You never know when you might need it in the future.

The thing that sets wholesaling apart is the speed with which the transactions take place.  On any given deal, you may make a little, or you may make a lot; but it can happen at the speed of light. 

So why stand around wringing your hands?  A down market only means many others have been frightened off the playing field.  That gives you more room to make deals.

Never Get Stuck on a Deal Again

If you’ve ever been there, you know how awful it feels.  If you’ve never experienced it – be grateful and learn from this article

What am I talking about?  Getting stuck in a loser deal.  It will make you want to slam your head against a wall. 

But there’s a way not to get stuck.  Instead of painting yourself into a corner with a binding contract, use what is called a Letter of Intent (LOI).

The properly worded LOI gives you the right, but not the obligation to sell a property.  And the good thing is that it allows you to market a property in which you have no controlling interest.

The LOI spells out exactly how you want to purchase the property, and under what terms.

This can be worded in a casual, personal tone.  This is the best way to spell out your intentions to purchase a property.  You’ve seen those multi-page, non-binding contracts that are stuffed full of legal jargon.  If used at the outset, such documents may intimidate the seller.   All the seller needs to know at this point is how the buyer will be purchasing the property and he or she can then determine if the terms are acceptable or not. 

Negotiations are much smoother and simpler when using the LOI.  This means you are not wading through pages of formal contracts to make any changes.  It is the responsibility of the investor to word the LOI as clearly and succinctly as possible so that nothing is misunderstood.  Be honest and forthright and add all needed details such as

·      Purchase price

·      Down payment

·      Terms

·      Conditions

·      Due diligence time

·      Closing time

·      Other clauses or provisions

This is particularly helpful when working with a distressed seller who is already under a great deal of stress.  This type of transaction is highly non-threatening.

Once the seller accepts the terms, the time of due diligence begins.  With the LOI in place, you can now locate your buyer and not a penny of your cash is tied up in the interim.

The time of due diligence continues until the end of the term that has been agreed by both.  Only then will a binding contract be created.   Also keep in mind that a non-binding agreement means if you need to drop it, you can.  Of course this is not something you should habitually do; otherwise, your reputation could become compromised.  But in a pinch, you might be forced to back out of the LOI.

            The LOI requires a minimum amount of time, includes no legal fees, and can be easily read and understood by all interested parties.  If the Letter of Intent has not been in your toolbox of REI strategies, it should be!

Once you learn the basics of using an LOI, your REI business will explode.