First Cold Call

I’m actually a cold call kind of gal.  I approach strangers all the time about things.  My something-is-turning-in-my-stomach-and-I-can’t-breathe fear about doing REI cold calling is the thought that I might not know how to talk to them and answer their questions.  That’s seriously frightening.

But today I called a guy about an ad on craigslist.  It’s now under contract, but ta da!  He has one last property he needs to unload (tired of being a landlord and opening another business).  He hasn’t listed it yet!  I went to see it, and I think the poor guy paid way too much ($115,500 in 2006).  It’s a duplex with 2/1s, and a 3 car garage with a 1/1 apartment up top.  Total monthly income is about $1500, so I don’t think anyone should pay more than  $75k or so (using the 2% rule).  He said he would take $105k cash.  At least he’s willing to take a loss.  I have a feeling he’ll need to take a bigger one.  I told him I’d get back with him tomorrow. 

But what did a cold call get me???? A lead that NO ONE ELSE HAD!  Yay!

I also submitted two more offers on properties from the MLS through my agent.  I decided to focus only on properties that are vacant.  My agent got back to me and said that one has gone short sale pending (with no offer), so I wanted to jump on that (DEAL! EXPERIENCE!), but didn’t know what in the world to do!  I knew it would involve at least a prequalify letter, which I don’t have yet.  So I emailed an investor friend of mine who does lots of short sales and passed it on to him.  I’m assuming that I’ll either get a) an education on how this is a bad deal or b) a referral fee.  I’ll take either one!

My really nice buyer’s agent decided that we don’t have to sign an exclusive agreement until one of my offers is accepted (look how longsuffering she is!).  I thought that was gracious of her, considering she originally asked for one.  She’s been great so far.

I’m going to ask her to change my mls search criteria to: 180 dom (which it already is) and to also search for words that include: vacant, handyman’s special, tlc, fixer upper, etc.  I’m not sure if she can put that in the automatic search, so I’ll be asking her to do actual manual work.  We’ll see how she responds.

I’m feeling good today, because I made a call, and talked with a seller.  I want more of that!

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5 Comments

Filed under Fear, Marketing

5 responses to “First Cold Call

  1. Sam

    You’re taking great steps. Try to learn from every experience. If you’re going to do a keyword search on the mls some of them I use are as-is, tlc, cosmetic, needs work, short sale, and bank. Those words seem to get me just about every bank owned property or distressed property. Keep up the great work!

    • Thanks, Sam! As-is, cosmetic and needs work – those are great!

      After deciding to go with that criteria, I was afraid I would get the short sales and REOs, so I guess that’s right. I’m nervous about making offers on those because they seem so complex.

      Yesterday, one of the houses I wanted to offer on went short sale pending (no offers) before I could put it in. I told my agent to hold off until I could do a bit more research…

      • Sam

        I try to stay away from short sales myself mostly because of the time they take, but I think REO’s are very simple to deal with. There’s absolutely no emotion involved in negotiating with a bank as the seller. It’s all about the numbers.

      • Sam, that’s the pull I feel toward REO’s! I like the idea of having at least one source of leads where I don’t have to stare at someone who has their life savings in this place. But you’ve had all of your deals from there, so that’s great!

        Any ideas on where and how can I get prequalified/approved? I’m thinking of transactional funding as a last resort. We have W2 income and good credit, and already have a fair amount of money in lines of credit available (but not enough to purchase outright).

      • Sam

        From what I understand banks are still real tough to work with. I say it that way because I use private lenders and haven’t really talked with a bank about financing in a couple years. But I think you’re on the right path if you’re looking for bank financing, stick with the small community banks. You’ll have a much better chance with them.

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