Real Estate investing is about understanding people, their needs and SOLVING their problems whether it is a first home buyer with not enough deposit, a retiree wanting to downsize into a new home, someone that wants to sell quickly, an investor facing cash flow problems etc etc,
I think if people just grasped this one concept (be people focused not profit focused), they could make lots of money in real estate despite of the “tool” they used.
When we buy, we try to speak to the vendors directly and we “tailor make” offers to suit their needs, in exchange we make money and get what we want too.
For example, a week ago we were approached by an agent with a 3-site development block, the vendors wanted $500,000. Our feasibilities showed that paying over $300,000 for the block will not result in a profit.
A comparative analysis of the area also showed that the house was valued at $350,000 (can’t believe the agent actually listed it for that much).
Instead of telling the agent “no way, its over priced, how did you even dream up that ridiculously high number, what on earth did you base that on….
We asked to speak with the vendors and found out they wanted to sell their current home to buy a new smaller home in a nicer suburb. We also found that they didn’t need any cash and giving them any would hinder their pensions.
We recommended a swap for their block with a new home we were building in a more up market area. (we solved their problem, and ours too [biggrin])
They gave us a wish list of features they would love in their new home, pergola etc. Easy! since its not built yet. We even recomended that they meet with our interior decorator and have their new home in the colur scheme that they want.
In exchange, we will pay their agents commission and take title to our new development site.
This deal is not completed yet, but even if it falls through, it just goes to show that instead of telling people their home is over priced, and insult them by low ball offers, there are other alternatives!
If you make it easy for people and give them what they want, its not always money, you will always have something to work with.
[biggrin] just my little story for the day.
Xenia Ioannou-Mena
Property Manager
Cash Flow Solution specialist
E: [email protected]
M. 0412 437 582I like the way you think Dr X. If more people were like you this world would be great.The win/win you created I think is ideal.
Kudos to you.
Maybe you could take something from this for your new business name.CATA
Asset Protection Specialist
[email protected]Yes, it’s a good story.
It’s a creative example of finding a problem and giving a solution! as Steve always preaches.
It also reminds me of ‘RichDad’s (R. Kiyosaki) saying, something like ‘with property investing the limit is your own creativity’.
Please keep us posted of the progress Dr.X.Cheers,
Brilliant. This principle is so critical. Thanks for sharing.
I love it! Thanks for sharing.
Just one question, do you find agents reluctant to give you access to the vendor? If so, how do you overcome this?
Rgs
QL
Hi QL
if it is owner occupied then simply knock on the door or get their address off the contract & mail to them or drop it in
good luck!Troy
TroynBec
You can have more than you’ve got because you can become more than you are
Great to hear of these creative solutions!
Good stuff, thanks for sharing
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