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“What is easier to do, finding buyers or finding sellers? Do you recommend doing the “For Rent Method” on a $10,000 house?” – Lolo Hay Wolfgrim
Joe: Let’s answer the second one first. On a $10,000 house, it’s unlikely that that house is habitable. If it is habitable, great – you can do it. If it’s not habitable, you can’t do a rental in a house that’s not habitable – you’ll do a land contract or some other zero down structure instead.
Joe: You can still do seller financing on cheap properties and absolutely, you can make a lot of money doing land contract deals on $10,000 properties – they can be wonderful. But you can’t do it if it’s not habitable, which means that if they went to a judge, the judge would say, ‘This is a rental and it doesn’t have a furnace? It doesn’t have any copper in it? There’s no electricity? There’s no plumbing?’ – You can’t do that. but you can sell it on a land contract and it doesn’t have to have a roof – it can be vacant land if you can sell it on a land contract, so you can do that, so the price isn’t the issue – its whether its habitable or not.
Joe: What’s easier to do, finding buyers or finding sellers? This has actually changed since we did the “Automarketer” and actually since we started doing the For Rent Method. It used to be that when we would run classified ads, it would cost us $100-$200 a week to run classified ads in a local newspaper and then people would respond. Typically, our leads would cost us $20-$30 apiece as long as we had a good responsive ad, and we’d be able to put deals together. These things would trickle in at four or five a week and maybe we’d put together one every week or one every two weeks or one month, depending on the person and how good they are and how good the leads are.
Joe: That’s changed. At that time, it was always more difficult to find sellers than it was to find buyers. Finding buyers is actually simple. If I ran a classified ad: “No Credit, Bad Credit you still qualify for a house” – I’d get a ton of calls from that ad, so we’d get buyers all day long. We’d have lots of buyers and we could fill those properties very quickly, usually within 30 days. We’d find a new buyer usually within 30 days.
Joe: Now that we’re using the For Rent Method and the Automarketer, we can change all of this. We can get a seller in minutes. So I can go over to the phone and start making calls on Craigslist right now and put together a deal probably in 30 minutes. In 30 minutes, I’d have a seller that was ready to go with a lease option memo that I could turn around and sell. Now, it still only takes me two weeks to a month to sell a lease option memo, and it’s still as simple as it always was – it’s just that it seems more difficult to find a buyer than it used to be because it used to be more difficult to find a seller.
Joe: Now that we know how to talk to these sellers how to put these deals together and how to structure them, the seller part is simple. Now, the hard part for you as a beginner will be learning how to talk to these sellers so that you can do it in half an hour like I can do it. And once you have that down, finding the sellers is going to be the easy part. Until you learn how to do that, working with sellers is still going to be the more difficult part of this process.
Joe: And, when you outsource it and find somebody else to do this work for you, which ultimately you want to do (find somebody to talk to the sellers and someone to talk to the buyers), first, you’re going to outsource talking to buyers because talking to buyers is easier than talking to the sellers. When talking to buyers, all you have to do is show the property then negotiate a price. When talking to sellers, you have to help them understand why it makes sense, you have to show that you’re competent and capable and that what you’re offering makes sense for them, and then if you can do that, then you’ll be able to put those deals together. I hope that answers the question. Thanks.
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