Today, so many real estate sales agents are leaving the business, it's not only alarming but actually welcoming for some of us. Let me explain. Ten years ago when we sent letters and postcards to owners of multi-family wanting to buy their properties, we received responses that were pretty good I'd say. We bought a property like this in 2005 that I still consider one of the best I've been a part of. But as the years went on and real estate investing became more and more popular, letters and postcards became less and less useful. That was because there were so many real estate agents out there wanting to list properties for top dollar. And they did! I was one of them I must admit. But all good things must come to an end or at least to a change.
Here we are today. Agent numbers are dwindling hourly. Buyers have disappeared in droves. The one constant remainder are OWNERS and their properties! They haven't gone anywhere. In fact, they're sitting at home wondering why no one is calling them any more to purchase their properties. Do you see where I'm going? If not, it's ok, please read on.
Owners still want to sell their properties. Some of them NEED to be sold or else. That's where you come in Mr. or Mrs. Investor. There is a need here and you need to fill it. Right now, as I write this, supply of good deals are exceeding the demand of good deals. Do you smell opportunity here my friends? This is economics 101 staring us in the face.
The best is yet to come. This is what you need to do to get the best deals out there. You need to start sending letters and post cards out to owners again asking them to consider selling their properties direct to you. It's time! They're waiting! Real estate agents have given up on them because their last listing with them expired due to their last four contracts not going through. It may have been due to financing, appraisal, fear, cold-feet, or whatever. The fact of the matter is that owners STILL want to sell. And you are part of the solution. There is a NEED to be filled here.
Here are several advantages of going direct to the owner:
1. You'll get straight to the point on the owner's motivation. The middleman, the agent, is gone.
2. The owner will not have to pay commission to a broker. That savings is money in the bank for you.
3. Creative financing is a lot easier to do when there is no agent mucking up the water. You basically find out what the owner's needs are and once you have yours, you simply construct a deal that satisfies both.
4. It has been said that if you can get in direct conversation with the owner, your chances of closing your deal has gone up by 75%. That's huge and I believe it.
Are you sold yet? I hope so.
Here are a few tips when sending out letters. One, I have found the best and cheapest source of owners information is from tax records which are public record (internet). Two, keep the letters short and sweet and to the point. Letters with life stories and of how nice you are, will go straight into the recycle bin. Three, send follow-up letters to good addresses. There's nothing like persistence. Your persistence and diligence may be rewarded with a deal of a lifetime. Lastly, it's a numbers game. The more letters you send out, the more likely you are to get calls back from interested owners. And the more interested owners you speak to, the closer you'll get to that incredible steal of a deal. And that one special deal can dramatically affect your life and your family's lives forever.
Until next time….happy envelope licking!