How To Buy Property For 50% Off The Asking Price
People have different motives for buying real estate. Some want a home, some want to invest. The bottom line for everyone is to make money at some point in a real estate deal. Things like equity, appreciation and all the benefits of home ownership are important. But, the most important is EQUITY and the ability to convert that equity to cash when needed. So, how does a person develop a lot of equity instantly? By being a smart businessperson. Boil all the junk out of real estate and you will find that buying any real estate is a BUSINESS DEAL. You either make good business decisions or poor ones. You either win or you lose. You either make money or you lose money. The name of the game is buy low, sell high. Thatís the bottom-line right? Want instant equity? Here's one strategic approach:
1. Get you financing together and know exactly how much you can borrow for a home loan.
2. Write all your offers on properties for fifty percent (50%) of the asking price.
It is critical that you have gotten your financing together and are ready to go. When you write your offer, have a "this offer automatically expires within 24 hours" clause on your offer above your signature.
Agents MUST deliver all offers to the seller of a property. They have a legal duty to deliver the offer to the seller no matter how much the offer may be. They may act insulted, shocked, appalled, nevertheless they have to give the offer to the seller. This will result in two possible outcomes:
1. The Seller rejects the offer.
2. The seller accepts the offer.
If you are looking at a 0,000.00 home and you write the offer for 50% or ,000.00 and the seller accepts--you just made ,000.00 instant equity!
Why this can work: You donít know what is going on behind the scene with the sellers. Agents arenít going to tell you if the seller is weak. There are a number of reasons why a seller will "dump a property" for example 1. Tax problems. 2. Job loss 3. Inherited property, which they donít want or is to far away to maintain. Many times when a person is about ready to get foreclosed on, they will list the property with a real estate company for sale to prevent the lender from evicting them and seizing the property. Lenders are not property managers and this is a stalling tactic by those under economic duress.
Remember: Real estate agents are on mission-commission. They want to sell the property for as much as they can. The higher the selling price the higher the commission. This concept will result with your offers being rejected by sellers far more then accepted. In fact, you might write 50-100 offers before it works for you. Business is business. However, if you can make an instant ,000.00 on a deal with this strategy, itís worth a few red faces! Better to try and fail then fail to try!
This is just one tip from our ebook "101 Power Tips Real Estate Agents Don't Want You To Know"
Copyright © 2006 James W. Hart, IV All Rights reserved
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