We all have heard of the investor that made $100,000 on one house. That is the kind of story that gets told, but what about the investor that makes $15,000 on all his houses? We don’t hear as many stories about that as is deserved. Think about it. How often can you expect to find the $100,000 dollar profit? Not often, maybe never. Most houses, however, offer the potential to make $15,000. If you buy 4 houses a month and net $15,000 on each that is $60,000. A good month for most of us! How do you do that?
First, you need to realize that this takes work and the longer you work at it the more you have in your pipeline. Deals that you tried to make several months ago will surprise you and come to fruition when you don’t expect it. This is a good reason to not overpay. The seller that says he will not take your price today may well call you in a month or two to ask if your offer is still open. But how do you find motivated sellers?
By driving neighborhoods you are interested in and identifying abandoned houses you will build a list you can contact by phone or mail. Get a $35.00 tape recorder and a $250 dictating machine and drive recording the addresses you like. Then use the tax appraisal district’s list of owners and make contact. You will find that some of these owners want to sell.
Code Compliance Officers
Code Compliance Officers routinely identify problem houses and contact the owners to request that the house be brought into compliance with city codes. They can be an excellent source of leads for those houses that an owner has a problem with. Some of these owners lack the means to bring the house into compliance and will entertain your offer to buy. Our website provides info on sell Portland house for cash
You can contact the surviving member after a death and find properties that need to be sold. This is touchy and requires finesse, but can net you some good properties.
Direct Mail is tested and true. It works! Make a regular mailing part of your plan for success. Mail non-owner occupants as well as owner occupants. Be sure the house has been owned for at least 12 years or longer. That improves the likelihood that there will be enough equity for you to make a profit. You will have trouble buying houses for less than the mortgage balances, but these owners have paid down their mortgage and appreciation has increased the value so that the equity is sufficient for you.