This is a continuation of “The Great Escape” audio podcast reality show with Eric Thiele. Eric has been given assignments each week to help him get his wholesaling business started. In this episode, Eric catches us up on the challenges he has faced and the successes he has achieved over the last few months.
Eric: I’m not finding them low enough to be attractive to other investors. So I guess I’ve got to learn how to go after auctions and get properties at auction.
Sean: No, not getting properties at auction. You get buyers at auction.
Eric: Oh, right.
Sean: Get the buyers at the auction that will come in and they’ll see the value. Then almost reverse engineer it and find out, “If my price is too high, give me some examples of some properties you bought recently that I can compare it to, so I can go find them for you.” I do that when buyers call in and I talk to them. If they disagree with my pricing on a property, I’ll say, “Listen. What works for you? Or give me an example of a couple of properties you closed in the past three months that I can use as a source.”
They’ll give you a couple of properties and then you cross reference it. It’s not that far off. It’s a negotiation tactic to try.
Have you tried marketing to cash buyer realtors?
Eric: No, I have not. I do remember you had mentioned that to me a couple of months ago, probably the last time we had a Great Escape call. But I have failed to do that. So, I should do that.
Sean: That would definitely be something. Even before you decide to go put a bunch of money into these properties that you’re going to be closing, what I would do is go through the MLS. Have your realtor go on the MLS. Do a three mile radius and pull all the cash transactions. Make sure they’re cash. Then you look in there for the person who brought the buyer to the table, the selling agent.
So, that person has now brought that cash buyer to the table that purchased a property within the vicinity of your subject property. Now, you can call them or they have an email and you can just shoot them an email with a property flier or something like that. It works really well because now you have a buyer that’s bought in a particular area and they might have an appetite for more. And you have a seasoned realtor that knows comps, they know the area, they know what is going on with availability and inventory levels. They can educate your buyer that this is a potential good deal and you get a lot of good feedback. If I’m having trouble with a property, the first thing I do is go in and do a one to three mile radius of all the cash transactions, pull the selling agent and capture that information, make some phone calls or send them an email regarding the current property I have for sale. For some reason, I get the property sold. It’s weird.
Eric: Oh, fantastic. I will follow-up on that strong recommendation.
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