Stay rich, even during a downturn

“Below is the plan we are going to follow to hopefully pick up some good deals and help the homeowners solve their dead property problem,” Weum writes.
  1. Have a conversation with the owner.  Figure out their wants vs. their needs.  Ask questions and listen closely to their answers and the opportunity will reveal itself.  Prepare them for a deal in the private sale arena. Word of caution—make sure they are released from their obligations to the selling agent, often times these contracts extend even beyond the listing time frames.
  2. Make an all-cash offer*, with an escape clause (subject to inspection).  An offer that has no financing condition carries a tremendous amount of weight to a distressed seller.  By offering cash and a quick closing, you have more grounds to seek a discount on the property.
  3. Try and seek terms that are favourable as early possession.  I found this extremely handy over the last couple of years when I needed to get my tools in there and renovate, or to show the place to potential tenants. It’s nice to have a property on closing day that your tenants (who you’ve already lined up….because this is your business!) can move into straight away.
  4. Offer to be of service to your seller.  This may sound strange, but if your seller is sacrificing some equity to you, be the person who offers to take their ratty old furniture to the dump, or perhaps pay up to a certain amount of their closing legal fees.  These little things will carry you for miles reputation-wise.
  5. Advertise your new acquisition on the rental market, during the pending time, like there’s no tomorrow.  Step into the niche markets.  “Pet friendly” in this market is a powerful boost to your unit and will manifest itself in the cash flow you will see.
  6. Make good on your offer.  This is the most important part.  You’ve entered into this deal to be the person to help solve a problem for a seller, so help them and then thank them for the opportunity to do so.  Send them on their way with a thank you note and a gift card to a good restaurant where they can enjoy being rid of their property that they “couldn’t sell.” 

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