The reason some Realtos flourish in changing markets is that they change with it. They discover a need that needs to be filled or they discover a new way of marketing themselves or their listings. No one will deny that our market has changed. Successful Realtors will change with it. This is a story of one of the greatest salesman I have ever heard of that found a need and filled it.
I have written posts before and mentioned national real estate trainer Howard Brinton. Howard has had some awesome interviews in the past but there is a few that stand out in my mind. One story I heard back in the mid 90's stuck with me for many reasons and I have never forgotten the impact it had on my life.
Howard interviewed Ron Campbell of Albuquerque, New Mexico http://www.sherlockhomesnm.com/ . Ron was raised by a father that was a car salesman and Ron learned at an early age how to sell and boy did he. He put himself through college by selling RV's like travel trailers and Motor Homes. He continued selling RV's after college and branched out big time with something like 5 stores. Tough times hit in the mid 80's and the oil business going in the toilet left Albuquerque in economic turmoil. Ron's RV business went south due to no fault of his own and filed a 20+ million dollar bankruptcy.
All Ron knew is that he could sell and had to make some money fast. He obtained his real estate license and started selling homes. He always had a creative financing mind on him and decided to use it in real estate. He asked a local Realtor if he could advertise one of his listings where the seller was offering seller financing. The listing agent agreed and Ron ran an ad similar to this.
4 bdrm, 2 bath home
1400 square ft.
$5,000 dn.
$450/month
Call now
His phone ran off the hook and he had multiple offers in a market where few homes were selling. He sold that home the first day the ad came out.
Ron decided he had something here. He decided to start educating sellers on the value of seller financing and he did a great job of it. He mentions during his interview with Howard that at one time buyers were lined up in double lines outside his office at a chance to buy a home as if they were auditioning for a movie! Some days people were lined up for a block! The way it worked he would have his buyer's agents show homes during the week and on Saturday's offers were written which Ron wrote himself. I don't remember the numbers but I remember that in one of the toughest years in the late 80's Ron sold over 300 homes in a single year.
I used Ron's idea for awhile and it worked. The last few years interest rates have been so low that seller financing was rare at best. Well I got to thinking about Ron the other day and asked a widow seller of mine if she would consider owner financing on her free & clear home. After weighing all the pluses and minuses she enthusiastically agreed.
I ran the ad:
Home with shop
½ acre lot
3 bdrm, 2 bath
Over 2,600 sq ft.
$25,000 down
$1,064/month, P&I
Call now
This isn't the whole ad in its entirety because I had the HUD Logo and APR information in the actual ad but you get the general idea.
This home had been on the market for nearly 2 months with only 2 showings. I had 15 calls on my ad and 5 offers in the first 48 hours the ad ran!
Needless to say, my seller is thrilled and has thanked me for coming up with this creative idea. My seller is happy, buyer is happy and I am happy to have helped my seller and a good buyer.
Many buyers just don't want to deal with banks. There are also self employed people that are a great credit risk but are penalized by mortgage lenders which I have never understood. These buyers are excellent candidates for seller financing.
Even if there is debt on a home there are ways to structure seller financing with Wrap-around contracts, all inclusive deeds of trusts and owner carried 2nd deeds of trust.
Talk to your sellers and at least give them the information to think about. Have them talk to their accountant and or attorney. In my case my seller was a recent widow and money was not an issue for her. All she wanted was a steady income with a good rate of interest which is better than she would earn in a CD or money market fund.
Markets change and when they do successful Realtors change with it. No one will argue that our current real estate market HAS CHANGED. There is a market developing in seller financing that will work for some sellers. Those Realtors that educate themselves and tap into this market will make a lot more sales this year.
Ron created a team calle The Campbell Team and has closed over 3800 transactions worth in excess of $543 million of residential real estate since 1990. Ron Campbell, is the only New Mexico real estate professional to be ranked in REALTOR Magazine's Top 100 for the last three years.
Ron Campbell is a SuperStar because he "Changed with a Changing Market". He saw a need and created a product the public embraced.
;)
;)
