Buying

      Landlords get burned out and can no longer deal with problem tenants or properties, even though they may be profitable. They also get old and want to retire, go fishing with grandchildren or travel. When either happens, existing landlords are one of the the best possible sources for getting a fair deal on rental property, with favorable terms.
      An experienced real estate investor knows what their property is realistically worth. They also know that it must cash-flow for a new owner, particularly if they offer seller financing, so they are likely to structure a sale that also works for a buyer.
      The best place to find existing landlords is at a local rental housing association meeting. Make friends with the pros and let it be known that you are a hard working and enthusiastic buyer.

Design an attractive flyer that tells the world you are a real estate investor interested in buying troubled property. Always carry them with you and post copies on every bulletin board you see. Leave a few on the counter at neighborhood hardware and building supply stores. Most importantly, put one on the door of every vacant property that appears to fit your needs.
You will soon have more calls than you can handle and a few of the sellers will be very motivated.

I Buy Problem Property

If you have real estate you want or need to sell,

call me today.

810-984-3939

I am fair, honest & hard working.

You'll like doing business with me.

John Q. Investor
John Q. Investor

Call or write to everyone who advertises a property for sale or rent in your local paper. If you are reluctant to cold-call on the ad, use a City Directory (reverse directory) to get the owners address from the phone number.

A cordial letter is a cheap, fast and non-confrontational way to make new friends in the rental housing business, and acquire properties. Even if the landlord you write to is not ready to deal, they will often pass on your letter to someone who is.

You will never buy if you don't try. Making very low written offers on a lot of different properties is a great way to find motivated sellers. Find yourself some hungry real estate agents to be your buyer brokers. Instruct the agents to write a 50 to 60% low-ball offer on every property in the MLS (Multiple Listing Service) that may fit your needs, subject to an inspection and satisfactory financing.
Ask your agents to attach your cordial and non-threatening cover letter. It should explain that you have no intention of offending any seller, but your business is buying property that someone needs to sell.

Remind the brokers of their obligation to present all offers, but give them an out if they are not comfortable presenting them. If agents remain reluctant to present your offers, tell them that they may attach a cover letter of their own to the listing agent explaining that they are not recommending the price you instructed them to offer. They can also just fax the contracts instead of delivering them if they are too embarrassed. Lean on your agents, and remind them that you use more than one buyer broker.

      If you are a scrupulous real investor and landlord, you should get to know the personal in your local building inspection department. They often know property owners who are unable to deal with their problems and will give you the names and addresses.
      Inspectors may even be willing to pass on your name when an exasperated owner indicates that they want to sell.
      Remember, it is illegal to offer officials money in exchange for leads. Their motivation must be confidence that you will be a more responsible property owner that will contribute to neighborhood improvement.

Property owners who live out of town are often motivated to sell their real estate. Local governments have enacted rental registration and inspection laws that are particularly hard on absentee landlords. Additionally, tenants may have stopped paying the rent or started trashing the property. There may be additional families or pets in the home. Or, the property may even be vacant.

It is difficult to control rental property if you live very far away from it, and most absentee owners become motivated sellers at some point. If you are a motivated buyer, it is a relatively simple matter to locate the out-of-town property owners. Check the municipality's rental property registration lists, or visit the Tax Assessor's office and scan the tax rolls. When you locate a property with an out-of-town owner, jot down their name, current address and the address of their local property.
Drive by out of town owner's property on a regular basis. If it begins to look run down, and it looks interesting to you, write the owners a cordial letter stating that you may be interested in buying their property if they are interested in selling, now or in the future. Be sure to include your address and telephone number so they can contact you.

      Establish a Credit Line with a lender so that you can offer cash, whenever possible. The best offer to purchase is for cash and contains no contingencies.
      "Mr. & Mrs. Seller, if we reach an agreement on price today, your problems are over. I will take the property as is, pay you cash, and close as soon as you wish."
      Once you have negotiated your "low cash offer", you may not need to pay cash. With the price hurdle out of the way, you will have an opportunity to explain the tax and investment advantages to the property owner of offering "seller financing". .