The first thing you must know is that smoking deals on real estate have never landed in my lap. I have a program I developed and that I follow for myself as well as for the investors I represent. Second, this program works not just in St. Louis but anywhere on the planet. Lastly, this program works well for me because I’m actively involved in real estate every day of the week and I am patient with my offers, that is to say, I make a lot of offers and eventually I get a hit.
In a nut shell, here is the program…
Foreclosures, HUDs, and Short Sales are all fantastic ways to find homes at bargain prices. However, these sales rarely produce SMOKING DEALS when it comes to home purchasing. For that, I turn to regular every day homes that ARE NOT distressed property. What I look for are homes that appear to be vacant and have been on the market a long-long time.
For instance, in September of 2010 a home went on the market in my local market and was listed in the $180k range. By January of 2011 it had been reduced to $160k, which is when I took notice of the home. I went to the home, liked the potential I saw, and wrote an offer for $125k. The seller did not accept my offer. I kept offering and eventually, weeks later, the home owner accepted the $125k price. Prior to closing I discovered some other demerits with the home and renegotiated the price again and closed on 03/31/11 for $117,500. I rehabbed the home and sold it for exactly $100,000.00 more.
