Homereal estate investingZero in On Motivated Sellers

by William Bronchick, Esq.

When investing in real estate, you
want to focus your efforts on motivated sellers. This is true especially
if you are just starting out. and dealing with motivated sellers makes the process go even faster, which
means cash in your pocket sooner rather than later.

Motivated sellers are people
who MUST sell their homes. So…what motivates a seller to have to sell his
home? Financial distress for one. Maybe he is behind on payments. Maybe he is
facing foreclosure. Maybe even bankruptcy. Maybe he is facing a huge medical
bill. Or a divorce settlement is looming on the horizon.

Positive reasons can force
the need for a quick sale. A job relocation and not wanting to deal with a
vacant house, let alone rent it out and have the value plunge. Getting married
and having no need for two houses.

 You may think you are taking
advantage of these homeowners. Actually, you are doing them a favor. Think what
happens if the homeowner does not make the sale. He could be foreclosed upon,
or worse, forced into bankruptcy. Or an empty house could be destroyed by
vandals. Renters could wreak havoc on the value of the house.

It's easy to see, then, that
these sellers need you. You are, in fact, a savior of sorts.

O.K., now how do you find
these motivated sellers? Some tips:

1.  Build a website, or have one built for you,
announcing that you buy houses. Not a techie? Then have someone from www.elance.com build one for you.

2. Run classified ads in
your local newspaper. Place your classifieds in dailies, weeklies, even free
newspapers. Hint: advertorials(looks like editorial copy; reads like an ad;
purports to educate but is really an ad)

 3. Set up bandit signs,
those little signs on stakes and phone poles, announcing that you buy houses
for cash, fast. Warning: Don't get carried away creating these until you find
out they are legal in your area. If they are not, you can always place them
after 5P.M. Friday evening through Sunday evening, because the sign police are
not out and about then.

 4. Put signs on your car.
You are now a rolling billboard. You'd be surprised how many people will
approach you when you are parked somewhere.

 5. A bit more expensive, but
take out a Yellow Pages ad. Hint: Use the advertorial approach to stand out
from competitors.

6. On line, go to classified
ad sites, especially free ones, like www.Craigslist.org

7.
Once you get going, and
can afford it, going the direct mail route can be quite profitable. 
Mail to people within a zip code (shotgun marketing) or get a list of
particular people, such as those in foreclosure (targeted marketing).

The
bottom line is you can't sit around waiting for deals to come to you,
you must go out and find them and/or do things to get people to call
you.  90% of sellers are not motivated, so be patient and be willing to
weed through a lot of unmotivated sellers before you get that one that
is dying to sell his home for cheap.

Nancy Geils/Owner

Investing with the Stars



Comments

Zero in On Motivated Sellers — 1 Comment

  1. YOU HAVE BEEN PLAGIARIZED AND DESERVE RECOGNITION:

    Here is the link to the online version…. http://greenepublishing.com/realestate.html
    This is the article title and claimed author:

    Entitled: MOTIVATED SELLERS OFTEN KEY TO REAL ESTATE INVESTORS
    By Michael Curtis
    Published July 24, 2009

    Investing in real estate in this challenging market requires finding every advantage, and a motivated seller is likely crucial to the deal. This is especially the case if just starting out. Dealing with motivated sellers makes the process go faster as well, which means cash in the pocket sooner.
    Show story

    Investing in real estate in this challenging market requires finding every advantage, and a motivated seller is likely crucial to the deal. This is especially the case if just starting out. Dealing with motivated sellers makes the process go faster as well, which means cash in the pocket sooner.

    Motivated sellers are basically people who must sell their homes. Financial distress is the common scenario, but not always. Maybe behind on payments or facing foreclosure, others are facing bankruptcy or medical bills. Divorce is another. Positive reasons can also create the need for a quick sale, as from sudden job relocation or getting married.

    Whatever the reason, real estate advisors urge purchasers not to think of it as taking advantage of these homeowners. On the contrary, many times it’s doing the seller a big favor.

    Here are a few tips offered by an industry specialist:

    1. Build a website, or have one built for you, announcing that you buy houses. Not a techie? Then have someone build it or purchase a simple template from any Internet Service Providers or other Internet companies. They are very inexpensive.

    2. Run classified ads in local newspapers. Place classifieds in dailies, weeklies, or even free newspapers. Hint: advertorials (looks like editorial copy; reads like an ad; purports to educate but is really an ad)

    3. Set up bandit signs, those little signs on stakes and phone poles, announcing that you buy houses for cash, fast. Warning: Don’t get carried away creating these until you find out they are legal in your area. If they are not, you can always place them after 5 p.m. Friday evening through Sunday evening, because the sign police are not out and about then.

    4. Put signs on your car. You are now a rolling billboard. You’d be surprised how many people will approach you when you are parked somewhere.

    5. A bit more expensive, but take out a Yellow Pages ad. Hint: Use the advertorial approach to stand out from competitors.

    6. On line, go to classified ad sites, especially free ones, like http://www.Craigslist.org

    7. Once up and running and can afford it, going the direct mail route can be quite profitable. Mail to people within a zip code (shotgun marketing) or get a list of particular people, such as those in foreclosure (targeted marketing).

    The bottom line is don’t sit around waiting for deals to come to you, go find them and/or do things to get people to call you. 90 percent of sellers are not motivated, so be patient and be willing to weed through a lot of unmotivated sellers before you get that one that is ready to sell the home at the price that makes the deal work.

Leave a Reply

Your email address will not be published. Required fields are marked *