THE CURRENT HOUSING AND MORTAGE CRISIS
HOW ARE THESE TIMES BETTER THAN NORMAL FOR THESE METHODS?
These times are actually ideal for this system to reap greater rewards than under usual circumstances. As has been mentioned, this business model is perfect for any time, any place and under any market conditions. The fact that there is so much available and things are so unstable, it allows you to get the best lowball prices possible. Also, the tightening of mortgage criterea disqualifies that many more people from obtaining conventional mortgages. Add them to the millions of people who have a downpayment but can't qualify for various reasons and you've got a gold mine of potential buyers THAT CAN ONLY BUY FROM SOMEONE LIKE YOU!!! Let's not forget, the majority of people still want to be homeowners, and you're going to help them get there. Here are some extremely important points to remember. I actually live by them:
**What ultimately determines the success of your deal is your purchase price** If you get a great price going in, you're never going to have a problem making money. This is a very key point. Even if prices go down, if you got a great deal they will likely never drop to your purchase price. You're going to be selling above market anyways, but the price you buy for ultimately is the most important thing. I'LL SHOW YOU HOW.
**Sometimes the best deals are the ones YOU DON'T DO**I first heard these words from a very dear friend of mine and they are so true. You can get caught up in a situation where you really like the property but you're just not getting it for the price you want. Establish how high you're willing to go (it's got to be a low number that makes sense ONLY TO YOU, NOT THE SELLER) and if you can't get it for that price, WALK AWAY. You'll be glad you did. Which leads to the next crucial point.
**The deal of a lifetime comes along every two weeks**You can always walk away from a deal, because a new terrific deal will be there waiting, ESPECIALLY IN TIMES LIKE THESE. It may seem unfortunate, but you don't care what the seller thinks or feels. Unless it's a for sale by owner, you won't be dealing directly with the owner anyways. So if there's no deal, walk away and another one will show up soon.
Right now there is an abundance of properties for sale at bargain basement prices. In a sense it's good and not so good. The good thing is it might be almost too easy for you to work this system in these conditions. The not so good is that sometimes it's better to learn when times are tougher, but hey, let's not look a gift horse in the mouth. When you sell these properties over market you'll be amazed at the response you'll get, because you'll be selling to people who can't buy the conventional way. Look at it this way:
Pretty well everyone would rather own than rent, but there are all kinds of reasons why people can't qualify the conventional way. I don't know how many houses I've sold to people who are self- employed. Being self-employed is a curse if you want to borrow money. These people are mainly good people and have a downpayment. There are people who were bankrupt who are good but can't borrow for 5 or 6 years. There are all kinds of people out there who can give you 10 or 15 grand who can afford the monthly payments. AND YOU USE A CONTRACT THAT GIVES YOU COMPLETE CONTROL AND PROTECTION. You can even make the conditions tighter if you want to. Believe me, people are so happy to finally get into a house of their own you'd be surprised. I actually had a young self-employed guy, his wife and two little daughters at my home with their downpayment and picking up the keys, and the guy actually started to cry. He just thanked me for giving him a chance. I SHOULD HAVE BEEN THANKING HIM. But seriously, THIS IS THE ABSOLUTE BEST MARKET YOU COULD POSSIBLY HAVE FOR WORKING THIS SYSTEM.