There are almost as many different ways to make money and do deals in real estate investing as there are people. Here’s one more.
My son got a call the other day from a woman named Marge who has a house to sell. Her house, located in the city, is in a school district that Marge isn’t happy sending her daughter to. Prices in that neighborhood are in the low $60k range for a three bedroom home like Marge’s
In a down market, Marge knows that it will take her a long time to find a buyer using traditional means, and she really wants to get her daughter into a better school right away. That’s why Marge called my son after reading his ad.
After talking to Marge for a few minutes, my son determined that she was thinking about asking $60,000 for her home, but she “might take $45,000.” That’s a $15,000 drop inside of about 90 seconds! How do you spell M-O-T-I-V-A-T-I-O-N ?
My son knew he needed to get together with Marge at her home right away and get her house under contract. The only problem is, my son is cash poor right now and not prepared to assume any long term debt. He needed to do some fast thinking.
After touring the house and affirming that, yes, Marge would accept a low offer for her home, my son called another investor he knows and asked if he might be interested in the house. They agreed to meet at the property to look it over.
My son and the other investor met at Marge’s property, and the other investor decided to offer Marge $35,000 on the spot. Marge took her time, but eventually said yes. Only one problem. She wanted help finding another home she could lease/option in the town where she wanted to send her daughter to school. If my son could find her a new home, she would let her house go for $35,000.
My son went to work, calling every investor he knows to find a new home for Marge. After many calls and a lot of digging, he found a likely property in the town in question in Marge’s price range. Only one problem. The owner was not open to selling the home on a lease option.
Are you sensing a theme here? Everywhere my son turned there was “only one problem.” He was quickly learning that being able to solve people’s problems sets the successful investor apart from the “wanna be’s.”
My son set a time to meet with the seller. He sat down and explained the lease option process in detail, letting the seller know how to protect himself and how to set up the lease option to make it profitable and beneficial for all parties. After a little back-and-forth, the seller agreed, and my son learned another great real estate investing lesson.
The long and short of this is, Marge will move into her new home next week. My son and his investor friend will close on her house and my son will get a $1,000 finder’s fee. He will also collect a $2,000 referral fee from the seller of Marge’s new home. My son’s investor friend will most likely realize a $15,000 to $20,000 profit from Marge’s home.
See what a few hours work and a little tenacity can do? Real Estate Investing Success is all about combining knowledge with effort… and many times the knowledge will come as you are making the effort.
Now, go make more offers!
Need a quick jumpstart for Beginning Real Estate Investing? Tom Dunn writes "DealFiles - Real Estate Investor Stories"... stories of real investors just like you and their real deals. Why not check it out right now? It's FREE! You are welcome to share this report, unedited and in it's entirety, with anyone you like. This text, and all live text links, must remain intact. © 2007 by Tom Dunn.
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