(Newswire.net — September 12, 2013) {City}, {State} — I recently interviewed Richard Roop about invesing in hot real estate markets and how his strategies and ideas work today. He is best known for his unique marketing methods but also for his revolutionary free and clear real estate investing model know as “The Ultimate Strategy” a proven and safe approach for generating cash now, cash flow, and cash for later… regardless of what’s happening in the economy.
My question for Richard. With housing prices rising, many investors and wannabes are concerned about what techniques work in a hot market. Can you share some insight into investing in hot markets?
“..all real estate investment strategies work in any market, so they all work in a hot market. However, in a hot market, you have sellers with less motivation, so if you’re for example trying to buy houses at a discount, there are going to be less people that will be inclined to take a discount because in a hotter market, they figure that they can just go ahead and put it on the market and they don’t have to take a hit on the price.
Richard corrected my assumption about investing in hot markets. There are motivated sellers in all markets. You need motivated sellers to get either price or terms. “So you either need price or terms to make money on a deal and you’re going to sift and sort through potential sellers to find someone who has a reason to take your price or to take your terms.”
Mr. Roop informed me that most markets in the U.S. are not really hot. They are getting better. “I work with investors across the nation and there are only a few markets which I would consider really hot, like Long Island, New York, areas near Washington D.C., San Francisco, your traditional hot markets as well and it is harder to find motivated sellers, but you can still buy houses. So what I recommend folks do is if they’re in what’s considered a hot market, if they’re willing to go out 30-45 minutes or an hour away from where they live to find people that are less … where it’s less hot, you’ll be able to do more deals.
Richard says the key to successful investing in uncovering the sellers non-financial reasons to sell, or hot buttons. You are trying to find out wha you can do for them other than just buying the house. when ou focus on the emotional reasons you get more deals accepted. The reasons can be save money on commissions, tenant hassles, and a lot of people don’t want to fix the house up for a retail buyer. these are some of the reasons they will sell to an investor.
Mike Hendo Henderson G+