Thursday, January 15, 2009

Real Estate Course: Day Eleven of 30 Day Action Plan

Day 11
  1. Talk to one person every day about your private money program
  2. Answering calls
  3. Talking to sellers
Day Eleven: Private money! Review your warm list and how they responded to your offer.

Your marketing through direct mail should be getting some calls from sellers. Take those calls live and talk to sellers. Get the information on the property and check for equity. How do you check for equity? Well let’s first define what equity is; equity is the difference between what the market value of the property and what the seller owes. It is not the difference between what the seller thinks its worth and what they owe. We have spent many an hour with sellers educating them on the changing market value. Sometimes it works and sometimes it does not. How do you obtain the market value? The best way is looking at comps from the MLS. That is why we are making contacts with Realtors they are a valuable asset so treat them well. (BTW a Starbucks gift card goes a long way) But if you can’t get a value from a Realtor in time there are several websites I use to get values. Be warned I use these sites as a check and I will frequently take the lowest one. They vary by a wide margin. Check back here on my Blog – I will post a video on the steps I go through for checking comps.

You should also be calling sellers who advertise on craigslist, rental signs in your farm area and properties that look neglected. You are collecting information for the property information sheet so you can check for equity. Work on structuring your deals and write offers. Writing offers is the name of the game and the game runs much smoother with private money.

See Ya,

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