In my quest to become a successful real estate investor, I have been attending CAREI meetings and anything else they offer. I've met several already successful investors to add to my buyers list and made a connection with someone who is working to put together a package of bulk REO properties (REO means real estate owned by a bank - generally, it's properties taken back in foreclosure) that they are selling at .60 on the $1.00, according to the bank's BPO value (BPO is broker's price opinion).
Since that seems like a very good deal, I've contacted several folks, including a wonderful realtor who answered an ad I put in Craigslist. These people want to buy 13 houses (so far) and I could probably get at least 3 more by making a few more calls. What can I say? Apparently no serious buyer turns down that kind of deal.
So, tonight I talked to the guy and he is emailing me the paperwork to give to my buyers. They need to put the money in escrow for the properties, then will get a list of properties to choose from and must close within 7 days. Frankly, I'm not too clear on how I'm going to get paid on these deals... though a few of the buyers have offered to pay me a finder's fee.
I'm probably not the Queen of Negotiation in this case - but it's really exciting to see this happening. If it works the first time, I'll be able to contact several more people to buy properties... talk about the ability to make a profit with no money out of pocket! This rocks. Even though it's nothing that was even addressed in any of the courses that I've gone through.
Eventually, I will get some of my own properties. My main goal is to have a steady passive income. They tell me that some of these properties are multi-families... which is what I want. So, this is kind of like Dave Lindahl's chunker strategy - buying single families to flip in order to get multi-families to hold.
This first house buying spree is supposed to go down on Friday. I'll definitely be on top of it! If it works, it can happen every week or so - this is so exciting!
Until next time.