The Key is Finding MOTIVATED SellersPosted on March 21, 2011 by
As folks pass from their thirties into their forties, they suddenly realize that sixty-five and retirement isn’t that far away. They also realize that Social Security is a great retirement plan…if the thought of living under a bridge and eating cold beans out of a can is appealing.
These realizations are why Kim and I are asked to speak to groups around the country about real estate investing. Most folks know that more people achieve financial freedom through real estate than from any other type of investment.
There are lots of reasons why real estate is a great investment/retirement vehicle. Here are just three: 1) Rental income has a very low tax rate. Remember, how much you keep is more important than how much you make. 2) Everybody needs a place to live and about 37% of Americans rent, not own, a home. 3) In the end, the tenant pays off the property for you!
We’re often asked, “To be a successful real estate investor, what is the MOST important thing that I need to do?” Easy answer: Meet regularly – face-to-face – with MOTIVATED sellers. There is NOTHING more important than this!
There’s a BIG difference between sellers and motivated sellers. A seller is someone who would like to sell his house but isn’t pushed or rushed. If the home sells, that’s great. If the home doesn’t sell, that’s great, too.
A MOTIVATED seller must sell his house YESTERDAY! Maybe he’s been transferred, or lost his job, or is facing foreclosure, or just won the lottery, etc. No matter the reason, the key is the owner MUST sell right now!
We know investors who are a hundred times smarter than us but went belly up because they didn’t see enough motivated sellers on a regular basis. We also know investors who are dumber than bricks but they do circles around us because they meet with twenty motivated sellers each and every week!
How do you find motivated sellers? It’s pretty simple – but hard as heck! Our goal is to meet face-to-face with ten sellers each week. When we meet, we ask a lot of questions. Their answers tell us whether they are motivated to sell or not.
We ask questions like: “Why are you selling this beautiful home?” “Do you need to sell or do you just want to sell?” “If we were able to come to an accord, when would you like to close?” “Would you consider owner-financing the purchase price or maybe including the furniture with the property?”
When we’re meeting with someone who isn’t motivated, we quickly go on our way because we are not the solution to his real estate problem. However, if we’re talking to someone who is motivated, we roll up our sleeves, get out the pad and pen, and work to creatively structure a win-win deal.
Remember this: Every successful investor we know meets regularly with motivated sellers. This should be your primary goal!