Bad Name For REI's
I have come across some recent events that although have made me some money because other investors lost out on deals, have made me not want to be associated as a "REI". I love to close a deal with 30K in equity to find out that another REI lost out because they insulted the owner by offering $500 or so on such a large equity deal. I also love the REI who calls preforeclosures and the first question out of their mouths is how much do you owe and then offers again a couple hundred bucks over the payoff. I recently ran an ad and to get some hype I put at the top pending foreclosure must sell. I got alot of calls some of which were investors, without even asking me if I was the person in foreclosure they would jump in about how my credit will be shot, how they can save the day with their loopy bs contracts. Then I drop the hammer on them after they think their crap doesnt stink and let them know their talking to an REI / Agent that I have an 800 credit score and that Im not the one in foreclosure then they shut up real fast. I also love the ones who lie to homeowners and tell them that they will get paid big bucks when the investor resells the house fast, but the investor doesnt have the guts to tell the owner fast to them is two years while they rent it out, etc. Or maybe its the ones that lie about how they are looking for a house for their family or that they have a friend who is looking for just that type of house to try and get in the door. I wont stereotype investors because I am one myself but some need to get off the high horse and realize they are dealing with people who have emotions and are catching on quick to investor scams. I increased my mailing response rate 2% just by exposing some of the scams REI's are pulling in my area. To those who want to cheat and lie to sellers please keep doing it because you are making us good guys some big money. WOW! Thanks for letting me vent a little, I think I will stop watching those DVD episodes of the Sopranos now
Good for you!!!!!!.
I've been more than successful and I've dealt fairly with these distressed property owners. I'm sure it's because of of that fact.
I think (i hope) that most of the scoundrels who've been around as long
as I have- are in jail.
I imagine with the huge popularization of real estate that there are a lot of scam artists, pirates, and vultures. They want to recover their $5000 boot camp fees and hit nothing but home runs.
I remind everyone on this site that real estate is the majority of most people's wealth. There is no reason to rape these distressed property owners.
Don't leave them bloody and penniless.
Wow, I like it. Reading that makes you feel good to be a good guy, and do business morally. Thanks for the post!!!
Sam
Right on. I like the idea of exposing the scams in your marketing plan, which shows goodwill towards the distressed seller, and also builds trust with them. I too believe in treating the seller fairly, as long as they treat you fairly. Some of these jerks do forget that they are dealing with people and must approach it from that aspect first, which also goes back to the philosophy in CRE that it's about the seller first, then the property.
Good words.
Im very glad to see support from other investors. I was concerned that I would get some backlash for such an emotional post. Im glad to see that this site has members that are honest and believe in treating sellers fairly. I wish all you honest and ethical investors the best of luck in your ventures.
Hey,
That was a great post and I could not agree wih you more on most of your comments.
"Investor" is a dirty word for most people; it means cheating low life scum. The same way that Landlord means slum lord.
But why is that?
I think it is because anyone who can dial 11 digits in a row succesfully can order the Guru du Jour course off the TV. They then read this nonsense and try it for 30 days.
So for 30 days you have some newbie fool running around and trying to buy an Option on every house he sees for $10. After 30 days, he gets bored and buys some other Get Rich Quick Scheme, but the damage is done.
Or maybe he signed 10 purchases contracts with the idea to flip them to a wholsaler. But he couldn't find anyone to buy, so after 45 days he used his clever weasel clause and got out of the contract. He got his $10 Earnest money back, but that homeowner was counting on a sale and is now in real trouble.
Or maybe he contacted a RE Agent and put in 50 blind offers on houses at 50% of the asking price
Or maybe he contacted 25 Pre-foreclosures and offered then "moving money" ($500) for their house.
And the really bad news is I have seen every one of these ideas endorsed and recommended on this website.
On some other thread someone said "The worst they can do is laugh at you" concerning an incredibly low offer. No...the worst that can happen is you give every single investor a bad reputation.
To give a slightly different example, there are hundreds of posts for Newbies saying that RE Agents will not give them the time of day and they can't understand why. The reason is because the Agents have dealt with unprofessional "want-to-be" Investors.
If we really want to help ALL investors, we need to stop giving out bad advise.