Finding Motivated Sellers Of Multi-family Homes
Hi Everyone,
I hope everyone is having a great weekend and enjoying the last days of what summer has to offer. If anyone can shed some light and help me on this topic it would be much appreciated. Im looking to find motivated sellers of 3-4 unit residential family homes located near where I live in the suburbs or Chicago area. The only ways I know of is via a RE agent, newspaper, and word of mouth. I am having no luck as of present finding any, most of them are sticking to their asking price or coming down just 5%. Any iformation would be much appreciated.
Sean
Dear Sean,
I know I know, so frustrating I had a long talk with Olga and yes that is the way it goes. People have consulted the God Head or their Navel whatever and have decided on a price so high that you have to learn Greek to carry on a conversation.
Kid Yellow Gloves, told me when I was 11 and I could not get a nice little girl to go to the movie with me. "Ya doin it all wrong. Ya gotta to let her say wot she wants and then give it to her. Then latter on, you take it all back bit by bit. This is called Transacttion."
Example: "I want $450,000 for this wonderful property built by Gypsys way back in 1905. It is four units and each unit rents for: $500
a month. If the wind changes prepare to evacuate, cause it is coming down.
But you love it, it reminds you of your early life in a haystack whatever.
You agree, yes you will pay his price. It is just you do not want to get involved with all those sharp people who work in banks, wear ties and yes it is true Shoes. So you offer him $5000 down in cash. He /She will get his price. All he or she has to do is take back a mortgage for 35 years at no interest. Lets see that is 420 payments at $1,059.52 a month.
Now just for kicks lets figure you made a normal sale at $1,059.52 a month at 6% interest for 35 years. That would be $185,819.53. Now thats a fair price. Add in your $5,000 down payment and you bought it for $190,819.53. Guess what you just got it for that. Congratulationa my you really can close them.
Cheers Lucius
Thanks Lucius,
I appreciate your output, I have read many of your forums and they are great, living in Sherman Oaks, a very nice suburb of CA, you really know your stuff in REI. I just have to keep going out there and find that motivated seller wherever they are.
Proactive, try your county property appraiser website. Some have nifty search mechanisms to only see multi-family units or ones where bedrooms are greater than a certain number. Then try sending postcards, letters or get the owners phone number and start rapping.
GL
Thanks GL,
never thought of the county property appraisal website, I will look into that. I also thought of sending out flyers in the local newspaper so they get distributed throughout the county. If anyone else has any creative ideas, it would be appreciated.
Use the County to get the names of owners of Units that look like they need some TLC. If the owner is behind on maintenance that could be sign they are motivated to get out.
My method has been working out great. I ordered a list of out of state multi unit owners from my title company ( the tax bill is sent to another state) and sent out postcards. The list cost $5.
thanks guys for the input I appreciate all of your ideas and experience. I want to buy a multi-unit fairly quickly before winter kicks in but the deal has to be worth while before I make the plunge.