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Hello everyone,
I joined yesterday after reading Jackie’s HBS e-book. I have no experience with real estate but learning all I can right now. I am 20 years old, currently in college at Sacramento State. Hopefully I will be able to do one successful HBS so I could gain the confidence and experience I need to go full throttle.
Some basic questions I have (sorry if it has been answered before).
Most of the homes I’ve found on FSBO websites are 200k-500k in good condition. I was wondering if it is possible to do a successful HBS with move-in ready houses. If so, what would I have to negotiate for it to be of value? Or is HBS mainly just for run-down, rehab houses? Sorry if these are common questions. I wanted to start cold-calling these owners with move-in ready houses but not sure if it is worth it. Also, would I need a LLC or any type of business licenses to do this? Thank you!
HI Nayr
My most successful Highest Bidder Sales have been for homes in perfect condition, move in ready. So YES, the Highest Bidder Sale method will work for them too.
There are two ways you could approach the FSBO pwners.
1. Try to negotiate a price that is 20% below market for your option. Tell the sellers you will give them 50% of what you sell the house for over the strike price and you get 50%. This will be easier to negotiate than you getting all the profit.
2. You could offer to do the Highest Bidder Sale for a flat fee of $5000. This is more risky because they won’t want to pay you unless you do a great job and get the house sold. If you just follow the instructions in my book you will have great success.
Either way takes all the risks away from the seller. So it should be an easy sell.
You do not need to set up an LLC yet – get a deal or two under your belt then set up an LLC. They are expensive in California. No license is needed to do a Highest Bidder Sale – just make sure you have an option on the property.
Welcome to the CashFlowDepot famiily!
Let us know if you need anything else.
Jackie
Hey Jackie,
I went to the probate office for my county today and it required me to know the participants name to search up cases. I asked the lady at the counter if there was any way to know if someone has a probate real estate and she said the only way is if you know the name of the participants.
Do you know any way around this or know how to find names for these probate cases?
Thank you!
[quote]
Posted By Jackie Lange on 17 Oct 2014 11:03 PMsearch ESTATE in the country tax records online
find the court dockets – search probate
[/quote]Hey Jackie,
Should I base the house market value on the value that is shown on tax records?
This was harder than what I was expecting. I am having fears with making a call and then the potential client will have questions I won’t be able to answer. Do you have any tips to get through this?
I am also a little iffy with seller financing. Is that the mortgage company you were talking about bringing to an open house? Sorry, I had no clue what seller financing was until now (still doing more research to wrap my head around it fully).
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