You want excellent properties owned by people with problems.
4. Analyze each potential deal by asking five key questions:.
Poor Avg Excellent.
What is the price? 1 2 3.
What is the condition 1 2 3.
What are the terms? 1 2 3.
How about the location? 1 2 3.
Is the seller highly motivated to sell? 2 3.
.
Whether calling on the phone or face-to-face, ask these five .
questions of the owner or agent. Score each answer 1 to 3., ex. If .
price is below market value, give an excellent score of 3 pts. If the .
price and value are equal, score it average with 2 pts. If the price .
is above the market value, give a score of 1. Do the scoring before .
going to look at the property. Each score is just an informed .
guess, but saves time and leg work. Total up the scores from all .
five questions. If the total is 10 or less, move on. If the score is .
11 or higher, go see the property. If a property still scores well.
after inspection, you may consider writing an offer to purchase.
5. Decide which Nothing Down technique to use. Nothing Down is an attitude or mindset. It just means you want to use OPM or OPR ---Other Peoples Money or Other Peoples Resources whenever possible for you to do so. Your challenge is not to always have adequate credit, cash flow, or collateral --- but to find other people who are willing to lend them to you. When you get good you will eventually run out of money before you run out of good deals. The best scenario is to find motivated sellers who will sell the property to you without the problems that come with dealing with banks and realtors. However, if a conventional loan is needed then a partner can qualify if you cannot. However, if the deal is good enough, you may not need to come up with any cash to close it. .
6. Write offers on all properties that score 12 or above. When you have found a creative way to buy the property, make the offer in writing.
