12 Reasons You DON'T Sit On Your Hands in a Downturn

Bruce Norris - SDCIA Speaker

"Lenders Have Radically Changed Their Approach to Investor Offers." -Bruce Norris

Topic for Meeting:

Specific examples of deals Bruce recently purchased
Negotiation strategies that took place between Bruce and the broker representing the lender.
Negotiation Strategies with the Auction Companies
Which auctions are producing results
Which auctions you should watch out for
How premium prices exist for fixed inventory

Overview:

The Norris Group purchased over 20 properties in 60 days. On 20 of these properties, lenders were owed $6,781,750. The Norris Group purchased them for $2,122,550. The lender took a 69% hit on these houses!

Everyday I receive calls from discouraged investors. One of their favorite sentences is, “So, should I wait?” In what I hope will be a very uplifting and motivational talk, I’ll give the top twelve reasons why you don’t sit on your hands in a downturn.

By sitting on the sidelines, you rely on other people for first hand knowledge. Because I’m in the trenches everyday as an investor, I know things you couldn’t possibly know. I know the lenders have just about given up on things. They are walking away from properties, giving huge discounts. I know the lenders have radically changed their approach to investor offers just in the past 60 days. How do I know that? The answer is because we continued to make offers; even when they “knew” it wouldn’t work.

I’ll give some specific examples of deals we’ve purchased and the negotiation that went on between us and the broker representing the lender. I’ll update which auction are producing results and which ones to avoid. Our little pile of properties will produce about $350,000 of net profit. When we sell these properties, we will have comparable sales that will establish where the upper limits are for price. The wholesale purchases we made will establish the lower limits of value. By being active, I don’t have to rely on anyone to tell me what something is worth.

As a buyer, you go from:

I’m uncomfortable with the market to…
I understand the market to….
I am the market

When you control the destiny of 20+ properties, you become the market!

And don’t forget investors create comps for each other to use in offers. Everyone has been having trouble getting deals. Well, the day’s of begging for discounts is over!

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