Hello, …this is my first posting… cool.
OK…. There’s a suburb i”d like to buy an investment property in. I’m thinking of riding around on my tredly and putting a flyer in each letterbox.
I’ve 2 houses now, the most recient i kind of stumbled into (friend put me onto it). I got a real good deal. I serious don’t wanter.
This has made me think, “i no longer want to purchase a property for its true market value. I wish to purchase it for less.” How can i find others like this (that elusive 1% of sellers)
I’ve read a few books where they talk about flyers in letterboxes, but the example flyers in the books simply say something like, “I buy houses etc etc so call me etc”.
Here’s whats buggin me… 99% of the people who might ring me are chasing full market value. Telling these people over phone that i’m not willing to give them anywhere near what they want, and having them either get pissed at me or ridicule me at my very low offer doesn’t appeal to me.
What i’m thinking of doing is stating up front in the flyer that i’m an investor, i want to rent it long term (which is true), and that i’m willing to pay up to 85% of market value. So if you want to sell quickly/hassle free etc then call me.
What do you guys think? Am i shooting myself in the foot by being up front? Has anybody out there tried this approach before? Will this up front approach piss people off?
Here’s a thought… How come in all my years i’ve never seen a “i’m a problem solver, and i wanna buy your house tomorrow” flyer in my letter box?
Thought, ideas, impressions?
Will i have to change my phone number cause i end up being stalked and telephoned in the middle of the night by affronted miffed grannies with oozies?
Hmmmmm…..
Cabo Wabo
Hi there Cabo Wabo,
Welcome to the forum and thanks for your post!
What you’ve outlined is commonly known as buying wholesale, that is, (usually) before an agent is engaged and a commission payable. The reverse side of things, where the vendor sells privately, is called ‘For Sale By Owner’ (FSBO).
I have tried this in the past to mixed success. My first point would be to suggest being careful about the wording you use as my attempt nearly had me being sued for defamation by the local real estate agents who thought my words about avoiding agent’s commission were a little strong.
Another knock-out factor in my case was the increasingly hot r/e market. I mean, why would someone sell to me for < market price when properties were selling themselves for top dollar?
The way around this problem is not to focus on what you can’t do, but to instead focus on what you can do. For exmaple, you may be able to settle very fast, provide a higher deposit etc. In business terms, what is your sustainable competitive advantage?
The masters of the system that you are seeking to adopt are without doubt based in the US. Do a search in google for ‘We Buy Houses’ and get some ideas from the wording on other sites.
Finally, a good book I can recommend is from Ron Le Grand. It seems the latest version looks like this. You will probably need to pick it up from Amazon.
Hope this has helped!
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Cabo Wabo
We have done the letterbox drop and have had good results. We tend to just write that we are looking for a property in the particular area and if anyone is interested to give us a call.We have tended to get replies from people who were thinking of selling and this just prompted them. We dont mention price until we have looked at a property and evaluated what we think is the price we are prepared to pay. We have managed to buy undervalued because every so often a gem turns up. For example we purchased a unit that had had a fire in the kitchen but hadnt yet been fixed. The current owner had had it with tenants and after some negotiations we paid the price we wanted he got to keep the insurance money for the kitchen and three yrs later it has doubled in price and due to its location hasnt been vacant.
I guess what I am trying to say is I dont think people will respond to 85% of market value after all who says what market value is but if you are fair little gems will appear.
Erikawould you sell for 85% of market value?
IMHO in most cases anyone who thinks of selling will then look around for prices in the area, pick up the paper and have a look (community papers are free so it doesn’t even cost anything and shows houses in the area) or at least speak to a REA about what thier houses are worth.
I’d concentrate on the99% ringing you and having a reason “why” they should sell to you..and there’s quiet a few reasons if you think about it as you can make it attractive to do business with you (next- think about what kind of person everyone would refer to do business with)be prepared to negotiate, loose deals have tyrekickers and even a genuine bargain amongst the mix..
I have a riend who’se letterdropped areas he’s interested in and he’s had some success, like anything though it takes time effort and the ability to pounce when you can.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by redwing:would you sell for 85% of market value?
IMHO in most cases anyone who thinks of selling will then look around for prices in the area, pick up the paper and have a look (community papers are free so it doesn’t even cost anything and shows houses in the area) or at least speak to a REA about what thier houses are worth.
REDWING
Most people ( IMHO ) who sell a house do minimal research and don’t have much idea on what their house is worth.
We’ve done this ( Flyer ) and picked up one good buy and missed out on a better one because I didn’t move fast enough. Did it all long distance, buying in Townsville while living in Sydney and bought subject to inspection.
The buy was a good one ( probably 10 % below market ) , but Townsville was already taking off at the time so I was happy with that. The main reaons to do it was to see how it worked.
In the Flyer I didn’t put down that I was an investor . I said I was looking for a family home ( I was , but to rent , not to live in ). I was very carefull to make sure everything I wrote or said was truthfull, though it wasn’t the whole truth , but what adds are . I did make the point about avoiding realestate agent fees, but I didn’t make any judgement comments about agent fees though. I deliberatly wrote the flyer so that it didn’t sound like a sales pitch / add but more like a conversation.
I had a mobile number on the add, and most people thought I was a local.
About 1/3 of the replies were people curious about what I was doing, probably including some agents , 1/3 were people who wanted to sell their property for an over the top price, and about 1/3 were people who were of interest to me.
These tended to not trust agents and thought they knew the market very well, though they weren’t aware that the market had taken off in the preceeding months [blush2] I asked them what they wanted for their house and at no time resorted to heavy ” negotiation tactics “.
I will do flyers again , however if the market is dead, I would take a different line , along the lines of I am a Investor prepared to pay cash etc….along the lines of what you are talking about.
See Change
Thanks guys for your advice.
I’ve had a look at “We Buy Houses”, and have tried to incorporate their kind of open approach into my flyer.
As you all emphasised, I’ve tried to concentrate on what i can do for the seller in my flyer, not what i can’t do. There ARE indeed many ways to make things attractive, just needed to think outside the square a lil bit.
I’ve decided not to go with stating a value such as 85%. Instead, i’ve stated in as condensed a form as possible, why and how rental properties need to balance, and that depending on the property, i’m willing to pay within a ceiling that will ensure a balance.
I’v been as polite as possible, and very “not in your face”.
Will put em out in a few months time, when the ol’ numbers tell me i can.
Till then…
Many thanks
Cabo Wabo
Will let you all know how i go.
Cabo Wabo
Hiya…. I have had a friend who is a property finder do that and do door to door knocking! She got some good leads though it was time consuming. I guess it does come down to the ole saying ‘ if you don’t ask you don’t get’ If you did this one day a week on a sunday arvo and you got a good lead which ended in a sale would it have been worth it? Who knows who is sitting at night in their kitchen wondering about how they can sell and recolve some of their issues???
Put yourself in the potential sellers shoes… what would interest you and WHY would they sell? what is in it for them to sell to you instead of an agent….. think of ways to add value.
Good luck
Have a MOST OUTSTANDING Day
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