Finding Motivated Sellers - A Crucial To Purpose Placing For True Property Investors

If you are a real estate investor or considering becoming one, you realize (or soon will know) that real estate investing is focused on finding truly great deals and that starts with motivated sellers.

So, why does it surprise people when I speak on goal setting that I spend lots of time on goal setting regarding motivated sellers. If you want motivated sellers, to accomplish most or even all of your other goals, then doesn't it seem sensible to focus on the motivated seller part of your goals, at the least at the beginning?

Anyone considering my portfolio of audio CDs and courses will begin to find a structure; over 50% of the titles are about finding motivated sellers. Exactly why is that? Let's consider it.

Let's say you have an objective to produce $10,000 each month from owning rental property. To find rental property that will provide you with excellent cash flow, you'll need to get the houses which have strong rents and try to get them as inexpensively as possible. How will you buy houses inexpensively? You need to locate sellers who have reasons to trade you equity they have in their residence for a remedy to their problem.

The cheaper you can purchase the home, the more cash flow you are able to generate from the home and the quicker and more safely you are able to achieve your goal of generating $10,000 in rental income. Try buying houses for top dollar and generating rental income from their website quickly. In every but several markets, it is very difficult to do (if not impossible).

But wait! You say your goal is always to generate income from wholesaling property... you do not need certainly to generate cash flow as a rental. Well, motivated sellers are a lot more very important to you.

Perhaps you have tried to place a residence under contract with a un-motivated (read that as inflexible) seller? It could be tough. In the event that you are trying to put a residence under contract so that you can wholesale it to another investor for a 4 or 5 figure payday, you NEED to perform two things:

1. Make the deal very attractive to the investor you're wholesaling it to (low price, great terms or both)

2. Gain control of your home so that you can "show it around" without danger of losing it

I'm suggesting that you'll require motivated sellers--sellers with a have to sell--to manage to buy houses at a discount or who'll enable you to put the home under contract with a 30 or 60 day closing period so that you have time to locate your buyer.

Motivated sellers must be the key to your real estate goal setting. So, do you imagine me? Great, so listed below are 3 recommendations on motivated seller goal setting.

Tip #1: Motivated Seller Quality Comes From Quantity

While you might have goals about converting x number of potential sellers to actual sellers, you'll need to appreciate that you'll require to sift and sort through lots of sellers to locate truly motivated ones. The possibility of you finding a motivated seller after speaking with half dozen sellers is pretty low. Even with super marketing materials and a wide selection of what I will work with, we typically need certainly to undergo about 10 sellers to locate 1 that is motivated enough that individuals may make the deal work.

Tip #2: Write Down A Specific Number And Track It Daily

"My goal is always to speak with lots of motivated sellers." Utter nonsense. You need to have a certain number to speak with in a certain period of time and track the outcome daily.

"My goal is always to speak with 50 motivated sellers each month." Getting better. Daily you'll need to see if you are on track to achieving your goal of speaking with 50 motivated sellers that month. If not, you'll need to ramp up your marketing to get more motivated sellers calling.

On our Real Estate Investor Database (the ULTIMATE contact and business management tool for Real Estate Investors), we have a little graph towards the top of almost every page that teaches you the "goal line" for how many motivated sellers you'll need to reach your goal and where you are. If you are not meeting, the target it appears red. When you yourself have met your goal for your day, it is green.

Tip #3: It Is Far Better To Sift and Sort

If you've have tried to create a marginal deal work and learned the hard way that it could cost you large amounts of time, money and energy you might start getting more selective in your deals. Here's some great advice that I received from many of my mentors:

"Don't try to create a marginal deal work, go look for a better deal."

When you yourself have 10, 20 or 30 sellers calling in each week, it is a lot easier to say no to a house that you will be not 100% sure of... maybe the worth of the property is questionable. Maybe you do not like the looks of the situation of the roof. Perhaps you don't trust what the seller is telling you. When you have lots of other sellers to speak with, it is easier to say, "I'm planning to pass" and move on.

Incidentally, you'd be surprised at simply how much better the deal gets when you really do leave and they get back to you per week, month or several months later.

So, as you begin to set your goals, remember that while other goals are very important, probably the most critical and key goal for real estate investors is the target you add for motivated sellers.

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