After finishing lunch yesterday I walked by a realtors office, dropped in and chatted for a while. This realtor has a place for sale that I have had my eyes on for a while, but always found too expensive. As we talked about that property yesterday he told me it wasn’t being sold because of some problems that got potential buyers to walk away.
I love problems. Seeing past them and taking on fights everybody else avoid is a great way to create amazing values. Since the property isn’t getting sold we are now discussing a price below what the sellers initially wanted and I might be able to make a purchase at a price that makes it possible for me to bring in a substantial positive cash flow from day 1.
Once I find a property I might invest in I always “make a lap”. That means visiting and talking to all the instances that might be a part of the project. I go to the bank and find out how much financing I can get, run by the municipal office and get all information they have about the place, talk to potential investors, find someone who could help solve the problems (when there are any) and then try to arrange a meeting with the sellers.
Once done with the lap I wait for it all to happen. If it does, I’m the owner of another place, if not, I leave a low offer and move on looking for the next deal.