As an investor in the real estate industry, it would be best to find motivated sellers to expand your network and hopefully in return build on your profit. A motivated seller is willing to sell their property to you within the range of 10%-30% below the market value and in return favorable to your needs.
The term could also refer to someone who would sell their property with terms that favor you, the investor, considerably. These could include the lower cost in the down payment, little to no interest, or a solid financing plan that suits your payment style. In some cases, you’ll find a seller that meets many of these criteria.
With all honesty, a motivated seller has a strict timeline that they are trying to meet in which it would fall favorable on your end. Their goal is to move the property quickly at the cheapest rate possible, which is part of the reason why you can easily gain access to the property.
Finding a motivated seller proves to be beneficial for investors just like you, here are 5 easy steps that can assist you in finding leads just like this.
Step 1: Find The Data Needed
The first step in finding motivated sellers would of course mean that you are maximizing and utilizing resources that fit your needs. This would mean that you aren’t supposed to be looking in all the wrong places wasting valued time and effort.
- The Court House
Admittedly, your local courthouse will have a ton on file that could lead to great lead, whether or not a homeowner may be a potentially motivated seller. This is because they are willing and ready to rid off their property or that they are no longer capable of keeping such on their end. A delinquent tax list is one of the greatest examples, the list provides you with a plethora of information about prospective sellers, including their names and addresses available at your local county. Another example would be the list they have on probates that are up for grabs as well.
Working with your local county may not be a walk in the park, since their data may not be sorted out in the way that you would expect them to be. Then again, a potential sale is within your fingertips is still close to the next best thing. Be prepared to go through a tedious process of seeking and validating information provided to you.
- Specialized Websites
Luckily, with the technological advancements, we are currently going through there are websites that focus and provide you with the necessary information to build your list. There are websites such as ListSource, and of course, yours truly Real Estate IQ which exists to help you find the motivated seller you need. Filter your search by typing in a certain zip code, property type, market value, and other significant factors to easily find a list that suits your needs.
So after accomplishing this first step, it becomes easier and more accessible for you to market and use these leads.
Step 2: Develop Your List
It may be pretty obvious that after seeking the data needed or knowing where to find them, the next step would mean that you should develop the list made. Once you find these property owners, it’s time to put these negotiating skills you have to good use.
Here’s a quick list on how to develop your leads:
- Property owners with delinquent tax records
Delinquent taxpayers are only on the record if they failed to pay their taxes for at least two years. These individuals need the capital to save their property rather than losing it to tax fines and penalties. They would rather sell their property knowing that they can once again claim it in the future rather than losing it entirely.
These owners do not have the liberty of time to wait and sell their properties for a higher offer as they have no choice but to sell at a lower or discounted price. Then again, you must also consider that you are going to have to pay for these taxes once you have acquired the said property. Nonetheless, since they are already behind in taxes, the price will be extremely lower than the market value. Computing both the price they sell it at including unpaid taxes will in the end, still be in your favor.
- Out of county owners
Keeping an eye for owners that acquire property across their respective county can be of good use on your end. This is because the owners do not show attachment to these assets and will be willing enough to sell them at the lowest price possible should they wish to rid themselves of the added expense holding on to the said property.
- Longtime property owners
Owners that have held onto a specific property for several years now and would rarely want to flip or renovate the said property would choose to sell. This would result in them selling it lower than the market value.
- Absentee owners
These are owners that have chosen to purchase properties elsewhere and have left their property vacant and would connote to added expense. Leading them to sell immediately, which in return will benefit you as an investor.
Once you have subcategorized your list on which would take the highest priority, you would then have the advantage of taking the next steps.
Step 3: Filter Your leads
Since you have already found resources on where to generate a list for your planned investment and have developed them with regards to their level of priorities, it would be best to filter them as well. Filtering would mean that you are capitalizing on sure sales rather than just having a vague list of who would sell. Know which property owners need the capital more and build accordingly.
Step 4: Create Your Marketing Campaign
After building your list of potential clients, the next step would be to create a campaign showcasing what you have to offer in words that would of course lead to a conversion of a sale.
There are some varieties in expressing your interest to buy a certain property to the members of the list, including yet not limited to email, through the phone, on your website, or via other digital solutions such as Real Estate IQ. Find a method that works best for you and be diligent in pushing your campaign.
Step 5: Communicate In The Best Way Possible
After all the effort that you have gone through in seeking these potential sellers, it would then lead to a conversation between the two of you. If you aren’t capable of communicating to the extent that they would be willing to sell, then the whole point of creating and seeking these sellers would be put to waste.
Know their reason behind the sale, build that relationship, and get the best deal possible. A quick tip would be never to settle for less and neither should you take advantage of the seller. They are selling the property for reasons only they would deem worthy and necessary, understand their claim, and work your way around it.
Truth be told, these quick and easy steps are geared towards creating and generating a list that would best suit your needs. It would still solely be your responsibility on how to convert these potential sales. Rest assured, consider these steps and you will be building a network you never thought you could.
If you are just getting started in the real estate industry and market, you may join our REIQ community and learn from our team of experienced investors!
Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.