7 Types Of Motivated Sellers To Buy Properties From Now
Winning in real estate is all about making your money when you buy, and helping others. So, if you are buying property it makes sense to search out the motivated sellers.
Here are seven types of property owners investors should be looking for now…
There are many older property owners out there who have held onto their real estate for a long time. This might be a family home which is now too big, and too expensive to maintain. It could be a multifamily property owner who just can’t keep up with the maintenance any more. It may be someone who needs to cash out to move into a nursing home. You can help them. Often, they’ll have a substantial amount of equity, and their priority in the deal isn’t just to net the most money. Find them and create a win-win.
Some property owners don’t pass on their estates and real estate assets before they pass on. Then new heirs all of a sudden find themselves with this property. Often they don’t want to keep the parents’ home, they can’t afford the repairs to an older property, they need the money, or it’s an investment property that they just don’t know how to manage effectively. The longer they hold onto that property the more it costs them, the higher the odds of losing it, and the less they’ll walk away with. This can be a sensitive time for some. For others, they just really want the help. Step up, sensitively, and walk them through it.
There are still thousands of American homes and commercial properties in foreclosure. These owners need help. They often haven’t been helped by lenders or other lien holders. Some have equity. Some don’t know how to sell their properties with a variety of liens on them. Too often they lose their properties and get nothing. You can help. You can get them out of the debt, free them to start fresh, and put that property to better use than sitting abandoned for years.
Auctioneers are eager to move inventory fast, and often at attractive discounts. Many foreclosures, REOs, tax delinquent homes, condemned properties, and others with motivated sellers wind up on the auction block. These may be local or online auctions. This can be a risky venture for some buyers given little time and room to complete due diligence. You’ve got to know what you are buying, and make smart and secure buying decisions, but there can be discounts and good rehab opportunities here.
It’s great to see so many individuals and families getting into real estate investment. For many it is changing their lives for the better as no other path can. However, many have also rushed in, without investing in their education. All they’ve got is a couple of episodes of ‘reality’ TV under their belts, and maybe a 90 minute seminar. They don’t know what to look for, or how to run the numbers. Too many run out of money and find themselves facing bankruptcy fast, and holding properties they can’t sell or rent. Bail them out, partner with them, take over the deal and make a fair profit.
There are a lot of aging and damage homes out there. Sometimes maintenance has just been deferred too long. There could have been neglectful or malicious tenants in the property, it could have been left empty, or there could be storm or fire damage. Often owners don’t have the funds or skills to make the repairs. Meanwhile code violations and liens can be mounting up. Equity is shrinking, costs are rising, and they could lose the property. A good real estate wholesaler or rehabber could help them out, make a nice pay day, and improve the neighborhood too.
The last few years have seen a lot of moving activity. People have had to move for jobs, to be near family, to find more affordable cities, and many have taken to the nomad lifestyle. Many haven’t yet sold their old places. Some can’t rent them out or don’t have the time and skills. Having an extra mortgage on a property you don’t live in, and all the other bills, or not being able to move to get that job or be with a loved one in an emergency can be a tough burden. They need assistance, and fast.
This is just the tip of the iceberg too. There are many other motivated seller situations too. Find them, help them, get paid well for your service.
Kent Clothier is President and CEO of Real Estate Worldwide (REWW), a highly sought-after speaker, the owner of three multi-million dollar a year Internet marketed brands, and proud husband and father. Kent is motivated by his love of family and freedom, creating products that enable people to live their lives the way they choose.