Advice

[wmr1845]

Hi all, great new site Thanks Dan As stated in another post having a hard time finding good deals.Buying to close to FMV.In order to make this a profitable business I must learn to sell my homes myself.Any thoughts,comments or advice would be greatly appreciated THANKS M.R.

[Dan Auito]

Download the book and read the tutorial on the homepage here William "Magic Bullets Kill Sacred Cows" You will see how the entire process of FSBO gets done. My 2 cents. Dan :biggrin:

The book is attached to this page in the top right hand corner when you get there. Happy reading! :SM110: :SM029: http://www.prweb.com/releases/2005/2/prweb206557.htm

[REIaddicted]

After you read dan's book. Check out this thread and it will be a great help.

http://www.magicbullets.com/forum/showthread.php?t=395

Lisa

[bigp]

Hi all, great new site Thanks Dan As stated in another post having a hard time finding good deals.Buying to close to FMV.In order to make this a profitable business I must learn to sell my homes myself.Any thoughts,comments or advice would be greatly appreciated THANKS M.R.

I'm confused. Are you having trouble finding deals because you don't understand how to, or is it because you just haven't found any?

Folks Josh here has some great resources, git on over there and say hello to his crew and have a look see. Thanks for coming by Josh. Love your site! Dan

[wmr1845]

As stated in another post what I am buying I have a very small profit margin and need to learn how to sell FSBO.As I gain more knowlege and experience I'm sure I'll be able to increase the percentages.P.S. just checked out your site pretty cool, see you soon. WMR1845

[dealmaker]

OK wmr this is going to sound waaaaay too over simplified but here goes. Also it's not meant to criticize your thinking or methods, OK.

Profit is made WHEN YOU BUY, not when you sell. It's true of automobile manufacturers, produce wholesalers, lumber yards and INVESTMENT REAL ESTATE.

Example: You find a place for $70K FMV and buy it for $60K, flip same day for $70K, profit $10K on $60K = 16.6%

But, if you negotiate another 6% discount, you've bought for 56.4K, sold for 70K, profit of 13.6K on 56.4K = 24.1%. So by negotiating the 6% up front your profit has increased by 36%.

One big problem with FSBOs is that the buyer expects to get the place for a 6% discount, and the seller expects to save the 6% commission, they can't both win.

If you're good enough to convince a seller to discount a place by 14% you should be good enough to convince him to discount it a bit more.

dealmaker

[Las Vegas Real Estate]

As stated in another post what I am buying I have a very small profit margin and need to learn how to sell FSBO.As I gain more knowlege and experience I'm sure I'll be able to increase the percentages.P.S. just checked out your site pretty cool, see you soon. WMR1845

You may want to align yourself with a realtor who would take your listings at a reduced commission on a vollume basis.

[Tom Henderson]

Hello Advice,

Dealing with FSBOs can be very profitable. Before I get into a technique I have been using for 25 years, I want to point out the most common mistake I see newbies make, and that is anticipating "equity". Equity is a mythical figure that is not realized until you actually sell. "Appraised value", "Fair Market Value", "After Repair Value" are but guesses on what your property will sell for. With that in mind, if you remember nothing else, remember that the first 10% "equity" does not exist. It will get eaten up like Pac Man in closing costs. For example, if you buy a house that has a "FMV" of $100K for $80k, the beginner will assume there is a $20k profit. This is an illusion. The first $10k is going to be eaten up in closing costs. This leaves you with only $10K as a profit. If you hold the property for any extended period of time, holding costs will start to eat away at your profits. It does not take long before you have no profit.

Take into consideration also, if the seller could not sell his property for $100k, what makes you think you can?

With that being said, I find if I can get FSBOs to agree to owner financing, I can often structure the deal to make it profitable to me. With owner financing, I have options that are limited only by the circumstances that arise.

If you are going to invest in real estate, you need to know how to benefit from both buying with owner financing, and selling with owner financing, or "papering out". Knowledge of paper will set you apart from 90% of the wanna be's, and allow you to make deals that others will pass by.

If I can help in structuring a note deal, please do not hesitate to contact me.

Hope this helps.

Tom Henderson
H&P Capital Investments LLC
www.hpnotes.com

[BCC]

Just wanted to thank Tom for his time today in helping me strategize on moving a property I've had for awhile. And in explaining discounting notes to me. :SM025:

I would also like to thank the professor for taking the call! :praise: