Here’s a scenario you might be interested in. Suppose you are getting a lot of response on a property-it's not just from the ad in the paper, it's also from additional marketing. The issue in this scenario includes a high dollar amount loan (say $600,000.00) with a $4,000-dollar a month payment. This means the market rent would not be supporting this. So the strategy would be to take offers as often as possible. You would want to, as long as the offers make sense.
What if you are receiving offers from your listing with a realtor? That is your first problem-it's listing with a realtor.
They're not going to let you do an option. So you can forget that. That's not where you go to do option deals. Secondly, they are listing it for a retail price. Just because your realtor says someone is motivated, doesn’t really tell you anything. So what do you do at this point?
At this point, you should tell the broker you may be interested in buying the property, but you wouldn't come anywhere near their asking price-not even close. And then ask, should we proceed with this or not?
You also may have added stress because you may find you are getting so bogged down with talking to all kinds of people and you might find it difficult to differentiate what you should be spending your time on and what you shouldn't be spending time on. You shouldn't be spending your time on properties listed with realtors.
If they call you, there are things you can tell them. Say listen. I can probably get this property bought, but a couple of things have to happen. Number one, I have to buy it a lot cheaper. Number two, I have to take over their debt and pay them the balance of what I owe them in the not too distant future, but they're going have to take back a second mortgage on the property; with no payments and no interest, till I get the property... till I get it paid. And you tell the realtor; I either do that by refinancing or selling it. You know you don't need more than a year. Why?
Because all you're going to do is buy it. Or you're going to do some kind of deal that makes them feel comfortable that their payments are going to get made. You make the payment to them and they can pay the bank. If you just take over their debt and you'll probably have to pay the realtors commission up front. Then all you have to do is put it back on the market and get aggressive about selling it. That will make the first mortgage payment while you're doing it!
When it comes to real estate investing, I highly recommend information from Ron LeGrand . For vauable information regarding investing in homes visit
RonLeGrand.com. You can also find useful investor resources in the free newsletter at
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