This afternoon I’m going out to see 3 different properties that are acquisition targets for me. I have no idea how any of the properties will turn out, but I’ve got to tell you this:
It was easy to find good properties in good locations with creative financing. In fact, all I did to find these 3 opportunities was to look on CraigsList.com in the area I’m focused on and looked for properties “for rent”. For the properties that matched my interests, I contacted the owners to see if they’d be willing to do a creative transaction with me.
I contacted 3 owners with that proposition. All 3 of them agreed.
And the target area is a very desirable, middle-class area (Kennesaw/Marietta, Georgia). It’s exactly the type of place where it’s quite reasonable to expect slow, steady growth and property value improvements.
In other words, it’s the kind of place that will make me very happy 5-10 years from now as I have a huge profit waiting to be accessed.
In truth, the odds that I’ll want to take action on one of these 3 properties is below 50/50. That’s because I’m very picky. But the beautiful thing is that I can – and you can – afford to be picky in this market. There’s no reason to buy a property unless you can get BOTH a good price AND good financing.
The deck is stacked in your favor. Enjoy!
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1. I’d be interested in hearing how these appointments went.
2. What did you say on the phone to get the appointment?
3. What options were discussed at the appointment? Types of offers, etc.
If things turn out well, this seems like a low-cost strategy to get appointments with sellers.
Sounds like a great idea. Let us know how it when. I too will try it in my area.
Bryan,
When you say ‘creative transaction’, do you mean some kind of
owner carry back?
Reason I ask – last night sometime I read that there is some
change in the law regarding owner financing – that it is about
to made illegal. I have to go to work soon – so it would
be tonight before I could find the source (wow – wouldn’t it
be embarrasing to me if it was somewhere on your blog!).
How would this affect things? It’s supposed to happen this October…
Joe – there are laws being passed and/or advanced in various states that will limit and/or eliminate some creative strategies. For example, “subject to” is for all practical purposes worthless in Maryland. I’m in Georgia where we still largely have the freedom to do as we please. That’s true for most states too – but decreasingly so. — Bryan Ellis
Thanks – how do u construct your offers for landlords?
thanks w
Texas has also enacted stupid laws against creative financing, like lease+option is not allowed when there is existing debt on the property *and* the entire monthly payment must be credited to the purchase price. YIKES.
While not quite as stupid as Texas, my state of Colorado also enacted a stupid “Colorado Foreclosure Protection Act” to protect naive homeowners from unscrupulous evil investors. The real result is to increase the number of banked-owned properties, because it’s far too difficult for good investors to buy properties in accordance with the stupid law.
Investors are a necessary and good component of the real estate market. Of course, there are a few bad apples, but the vast majority of investors are good decent people trying to earn a fair living by turning lemons into lemonade.
I think “percentage-wise” there are far more bad real estate “gurus” (who are peddling nonsense at ridiculous prices) than there are real estate investors who buy “problem properties” from distressed owners.