By Jeanette Joy Fisher
Real estate investors have made money by buying unloved houses, fixing them up, and then selling them for years. It's not a new real estate investing method. But what if you live in an area where homes sit on the market and sell at less than full price? Can you still make money fixing houses under such market conditions? The simple answer is yes, if you do your research, find the right seller, and follow proven strategies.
Research Your Local Market
It's been a sellers' market in America for a number of years, with more buyers than houses, which meant that sellers weren't as motivated as they were back in the 80s, when interest rates were sky high, inflation was running rampant, and mortgage lenders were more cautious. Today's market is shifting towards a buyer's market and real estate investors find home sellers more willing to bargain, because like in every age, people get into trouble for various reasons.
You must know what houses sell for, under what terms the property sells, the conditions of houses sold, and how long the average home sits on the market. Once you know your market, you will know how much to offer a motivated seller.
Find the Right Home Seller
You might think you're looking for a bargain house, but what you're really looking for is a motivated seller. Look for sellers that have found themselves in financial distress, for whatever reason, and need to sell quickly. Sellers with difficult situations have motivation, and will be willing to work with you to overcome the difficulties they face. Those are the houses that will make you money, regardless of the overall market in that area.
If you look at houses on MLS, tell your agent to request that the seller be present. This way, you have the opportunity to talk to the home seller and see what problems prompted the home sale. You can also run ads that say "We Buy Houses."
Regardless of how you find your sellers, always emphasize that you want to help them. If you're sensitive to their needs and make a genuine effort to do your best to solve their problems, you'll find many sellers quite willing to work with you. You're not trying to steal their property. You've genuinely trying to offer your help. That instantly puts you ahead of your competition.
Are you thinking: "That's the same B S all the late night infomercials push!"
You're right. Every real estate investor wannabe runs ads, week after week. But wait, (are you laughing?) aren't some of those ads the same ones from last year? That's right. These investors still make money, year after year, running the same ads. The only way for you to compete is to really sound sincere when a distressed seller calls YOU. Try to answer the phone instead of relying on a message. I promise; this makes a huge difference. Distressed sellers just go down the list until they get a live person to talk to.
Regardless of the market conditions in your area, there ARE sellers out there who are in need of your help. If you can give it to them, you'll find yourself profiting handsomely, too, in more ways than one!
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Copyright © 2006 Jeanette J. Fisher