A lot of people have bought houses for resale that they now can’t sell. As a result, they are making payments on their own homes plus the home the bought. It’s only a matter of time before they run out of money and patience, and stop making payments. In California, about all that happens is that they bruise their credit and disappoint their lenders when the home goes into foreclosure.

The break through concept that I chanced upon was this: When an owner decided to see if I could produce a buyer within a few days, I immediately entered into a standard sales contract with him which gave me, or my assigns, the right to buy the house at a stated price and terms within a specified time period, subject to financing. My contract specified that I intended to resell the house for a profit within one week. If I failed to open escrow within that period, the contract was rescinded and my earnest money deposit was returned.

Somewhere along the line while I was learning the tricks of the trade as a real estate Broker, I discovered that I had been working for the wrong side of the deal. A Broker typically represents a seller by getting a listing, then trying to sell it. To do this he incurs a fair amount of expense consisting of office overhead, advertising, and attracting buyers in competition with all the other Brokers.

10. BEING PREPARED TO MAKE A DEAL

A. Identify, Research, and Know Your Market

B. Cell-phone Techniques to Capture Leads

C. Qualifying Buyers/Sellers as to Credit and Motivation

D. Establishing Time Frames

E. Getting Buyers/Sellers to Come to You

G. Sight Unseen Deals and Fail Safe "Quick Kill" Contracts

H. On-Site Negotiations

I. Curbside Appraisals

J. Inspecting the House

K. Verifying wholesale and retail fair market values

L. Verifying Existing Financing, Loan Currency, Balance

M. Having the Right Documents When You Need Them