Let’s say that a buyer’s in foreclosure. You’ll probably want to go the short sell route. Once the seller is three months behind, you kick this into gear and you’ll be in a position to negotiate.

So you have a property at $20,000. The owners had a first and second mortgage and you’re going to negotiate a short sell.

On the second mortgage; you paid $0.10 on the dollar. The short sell goes well but you end up with a problem that you didn’t expect. The owners were particularly slow in moving out.

You go through all of the rigmarole and then go out to the house and the people are still living in it. They might be getting their things or just stalling.

This person has already given up the house but he doesn’t want to give up the house. They are dragging you down in a big way.

You have to start prepping the house for your next move and you have this person holding you up. It’s unacceptable.

I had this happen once. When we were getting the man out, I tried talking him out of his guitar. I guess I thought I needed a guitar that day. I guess I was trying to get some free stuff.

I got him out by showing up with a contractor and giving him a date when we would change locks. I said it’s my house on Monday and I’m changing the locks.

You’re going to have a problem with this. You got to get your stuff out of the house. In this case, he got it out. He saw that we were serious and put his stuff in the garage. He knew better than to put the guitar there because it would have been mine.

I wanted him to do the move out so it was free. The interesting thing is we bought a second property from the folks; had a side by side double that we bought and sold.

Sometimes we make the exact same offer twice. We make the offer we want and it gets turned down. Then we counter with the same offer again. This happens a lot with bank repossessed homes.

You’ll be surprised how often an offer is taken on the second time around. In fact, sometimes rather than making the same offer the second time I’ll drop it and then they take it. Isn’t flipping houses for profit fun?

They think I’m going to raise the price and then I drop it. I just take $100 off and they take it. On an average I buy properties within four percent of my initial offer.