You are about to learn about one of the best-kept secrets in creative investing. This hidden source of motivated sellers can be one of your biggest money-makers ever!
People who own property in your home town but who live out of the area are great leads for you to talk with for three reasons. First, they are having to deal with the property long distance as either a rental property or as a vacant property. This means more headaches, hassles, and bills for them to deal with.
Second, they already have another place to live in their new location. This means that they donít absolutely have to have all their equity out of the property you are negotiating on. The real benefit to you is that they seller can be flexible on the terms of sale. You can structure a long-term lease option, owner carry financing, or a land-contract.
Third, most times you are the ONLY person talking with them about buying their property. And any time you are the only buyer around the price always drops and the terms always become more flexible. This means you will be able to structure a win-win money-making deal.
The best part about out of state owners is that they are easy and cheap to find and contact. You just need to find a property in your town where the tax bill is being sent to an address far away. This usually means that youíve found yourself an out of town owner. The best part is that on the tax records, which are public records, you will usually find the owners phone number too! You can do your own research in your local county records (too time consuming in my opinion.) or you can just buy the names, addresses and phone numbers you want.
Simply call up a local information source provider (see below on how to find one.) An information source provider is a business that has gone to the effort of putting all the county property information onto a huge database that is easier for you to access. You can dial in to this pool of information and download it over your phone line and into your home computer. Or you can simply call the company up and ask them to create a list of out of state owners for you that you can buy from them. Typically this costs between 10-15cents a name. When you find out how much money you can make by buying properties at incredible prices and terms you will realize that this is the greatest bargain youíll have ever made.
6 Ways to Find an Information Source Provider:
When you get your names you can send out a letter or postcard to entice interested owners to call you. If you choose this route feed these incoming calls into a "24 hour recorded message." This message should be 60 seconds of the biggest benefits you can offer to an out of area seller. The sole purpose of this message is to motivate the seller to leave their name and phone number so you can call them back.
The best way to turn your list of out of town owners into cash for you is to pick up the telephone and call the owners direct! Your conversation will go something like this:
The biggest objection you will get on the phone is, "Where did you get my phone number?" Just tell the truth: "I hired a researcher to put together a short list of people who owned property in areas Iíd like to buy. They gave me the list and your name and phone number were on it. Is there a reason for us to spend two minutes talking about me buying your property, or should I cross out your name and never call you again?"
Of course youíve noticed the use of the negative sell. Iíve found that this approach will give you the best results.
The final secret to putting together a deal with an out of town owner is to slow the whole thing down. Make sure you donít ask to many detailed questions on the first phone call. Things like what the loan balance is and what the monthly payments are are better left to the second phone call.
The first call is just to find someone who is motivated to sell. Once you find that person get off the phone with them fast. Tell them youíll drive by the property if you have a chance and give them a call back in a day or two.
Then on your second call you can get into the details. This allows them time to get to know you and feel comfortable working with you.
If you do come to an agreement, OVERNIGHT them the contract donít fax it! Faxes are no longer important or treated special. But when you get a fed ex envelope it catches you attention. Also, put a return overnight envelope from the seller back to you inside and make sure it is PREPAID. This helps to create a sense of urgency to get the deal done.
Finally, make sure you arrange a telephone appointment time with the seller the day they get the agreement. This way you can talk with them about any final snags that might come up.
So just how effective is this strategy? One of my students used it and found a retiring landlord who sold my student THREE properties worth a total of $480,000Ö and all three of these deals were nothing down owner financed deals! So what are you waiting for?
Get your FREE copy of this Best Selling 288 Page Book! "How to Create Multiple Streams of Income Buying Homes in Nice Areas with Nothing Down" by David Finkel and Peter Conti HERE
Peter Conti is the best-selling co-author of, How to Create Multiple Streams of Income Buying Homes In Nice Areas With Nothing Down (ISBN: 1893384152). An ex-auto mechanic who is now a self-made millionaire, Conti has taught thousands of students across the country how to be more successful investing. In fact, his students have bought, sold, and lease optioned over $100 million worth of property over the past decade. You can visit him on the web at www.resultsnow.com.
|© 2001, 2002 The Real Estate Investing Depot|