How to Cut out the MIDDLEMAN and find DESPERATE SELLERS!
Often for a variety of valid reasons a person feels they are going to need to sell their property some time soon. Often they are petrified to tell anyone and hope no one will find out that they are in "money trouble" and consequently need to sell. However if you the buyer go the normal route and approach a real estate agent and naively ask the agent to find you a "motivated seller" they will never present you with a genuine response to this request. (If the deal is that good they will keep it for themselves or palm it out to their friends or family!) Real estate agents are more or less like firewalls in that they block you from getting to the bargains each and every time. So where does that have you? You need to find the bargains out there, but how? By what method? By what Strategy? Can it be done? YES! Heres how:
Firstly you require a business card - As good a quality as you can afford and lots of them. Specifically this is your calling card which you will be placing in letterboxes of houses you wish to own.
On this card you have printed a message to the effect "I buy property quick and for cash" and include: "No commision!" " Sell direct to a private investor and save on commision!"
Further, as you go about your daily routine keep an eye out for really run down neglected houses in really fantastic affluent suburbs. When you spot one such property, walk up to the letter box and simply leave you card. Remember these deals when put togeather can put real cash in your pocket. And as long as you include "subject to" clauses in you pre-drawn contract which you have ready as your stock standard instrument of the deal, you can pull out ahead of settelment any time if you decide to.
Following this strategy works best at times such as these very days, when prosperity is everywhere and in no small part to the "all ships rise with the tide" notion that has lead to baby boomers suddenly regarding themselves as property tycoons. In this environment you will NEVER find a bargain if you ask a real estate agent to dish one up for you. Whats more, I have noticed a striking paradigm shift has occured since about 1999. Hitherto a relatively small core of canny smart people knew the secret of property as it relates to getting wealth into one's life. However mention property investing to the average person before 1999 and the average person would respond as though you had just asked them to join a pyramid scheme, or to help save the wife of the cook of the former president of Nigeria (See the Nigerian scam)... Anyhow the salient point is that property investing was formally completely unknown to the majority. Even during the irrational exuberance of the 1980's it was more about Alan Bond and America's cup than the obscure notion of property investing. People would say: "Houses? How boring! Hey have you heard of Bond corporation? They just bought the south island of NZ."
Well not quite, but the truth is the consciousness of the public up until recently (about 1999) was devoid of thoughts of property and capital gains. Ironically that was an ideal time for investing although few did. And now everyone is involved in property; that should send a red alert signal to the canny investors out there to hold off and stay away from the main stream deals and the main stream real estate machine. My how things have changed! The difference between then and now 2007, is huge and the difference is that now every man and his dog are mad keen property investors or aspiring property investors. Have you ever questioned wheather this is true and if so is it significant? Yes it is true and yes it is significant. The consciousness of the general public is now super saturated with dreams of property affluence property investing and negatively geared pro activity. Even my lawn mower man reads the financial review. Things have changed. Bear in mind that this is a purely Australian phenomenon. Yes its happening in the states and UK and spain thanks to cashed up brits spilling into the old continent, but go to berlin and you will find apartments for sale for only $22000 Australian bucks! Different cultures view property differently. AND right now it is so obvious that we have become complacent to the pitfalls of investing in a mature market. Even Blind Freddy can tell you this. I laboured the point to drive home the fact that you will not find a bargain in the aussie market unless you go out and find one yourself. The days of surface gold are over, to find a bargain is still possible however it will require some diggin'.