Answer
May 24, 2018 - 03:13 AM
The real estate business can be very lucrative, especially when you can locate motivated sellers who are willing to deal primarily on your terms. It's not always easy to locate them, but when you do, striking a win-win deal with a motivated seller can grow your real estate portfolio substantially.
A motivated seller is a property owner who can meet at least one of the two following conditions:
1. They are willing to sell the property at a very favorable price: Usually this means 10-30% below market value.
2. They are willing to sell the property at very favorable terms: This includes things like no money down, 0% interest, financing, etc.
Many motivated sellers will be more interested in dealing with you if your clear about your motives and you don't make them feel cheated because of their circumstances. Always show respect to these individuals and be open and honest with them in an attempt to gain their trust.
Here's a list of some of the most tried and proven methods of locating motivated sellers.
1. Section 8 Landlords: Each county maintains a list. Locate them and find out as much information as you can about a particular property.
2. TV and Radio: Many local stations and cable providers offer free or low-cost spots. Contact the sales and marketing team to see if they are willing to negotiate a deal in exchange for airtime.
3. Title Companies: Are usually the first ones to know when a closing does not work out. Contact one to see if you can get any leads. Here are 30 title companies located in the Pittsburgh region https://www.yellowpages.com/pittsburg...
4. Tax Deed Sale Properties: It's easy to get a list from county and state resources. Check out https://www.tedthomas.com/faq/tax-dee... for a complete list of tax deed States or visit the Allegheny county sheriff's office http://www.sheriffalleghenycounty.com...
5. Social Media: Stay active on social media. Sites like Facebook, Twitter, YouTube, Pinterest, Instagram are valuable resources for connecting with real estate agents or directly connecting to a motivated seller.
6. Small Home Builders: Often buyers trade up and may have trouble selling their current home. Contact them to see if they are willing to negotiate a deal.
7. Retirees: Are excellent prospects for seller financing and homes with equity.
8. Rental Agents & Property Managers: Have a list of non-owner occupied owners and can identify landlords eager to get rid of cash-flow property.
9. Nursing & Retirement Homes: Locate elderly residents or their family members that need to sell a house or don’t want to deal with tenants or the cost of maintenance.
10. Networking: Connect with Investors online, Call "We Buy Houses" ads signs, Investment Associations & Clubs.
11. Mobile Homes: Get to know park managers. Many times, sellers have hard time dealing with banks and would rather deal with private individuals for more flexibility.
12. Market Bulletin Boards: Try your local coffee shops, Restaurants, gyms etc.
13. Car Signs and Wraps: If it's in your marketing budget, buy removable magnetic signs to place on your vehicle or get a complete car wrap to let people know that you “buy houses” while driving neighborhoods.
14. Local Fast Food restaurants: Many of them sell advertising. Pick a target of your choice and test it out.
15. Lis Pendens is Latin for "suit pending" : Notice of a law suit, usually a foreclosure. This can be a valuable resource.
16. Lenders: Banks / REO’s: Mortgage Brokers, Private Lenders, Hard Money Lenders.
17. Judgments & Liened Properties: Check public county or city records, Mechanics Liens, HOA Liens, Tax Liens.
18. Investor Packages: May be able to negotiate seller financing as well as terms.
19. HUD (Government Owned Properties) check the site https://HUD.GOV for listings.
20. Physically distressed properties:
Whether due to property age, deferred maintenance, storm damage, fire, flooding, vandalism, or buying a property with hidden issues, there are millions of distressed properties out there. These issues can quickly accumulate costs, fines, bills, and violations. Many people can’t afford to fix these issues.
21. FSBO Signs and flyers: scout your local shopping centers, Wal-Mart, Home Depot, Malls etc. Put these signs and flyers on car windshields or hire someone to do it for you. I know this method may seem outdated and old fashion, but you have to put in the work to get the results you seek.
22. Insurance Brokers: Policy changes from owner occupant to landlord or vacant house coverage.
23. Bird dogging: Study local neighborhoods and establish yourself as the go-to person for distressed owners and distressed property.
24. Military Bases: Great market for those who need to sell quickly.
25. Builders and investors:
Builders and investors can also be highly motivated sellers. Builders and developers are on tight timelines to move units. Investors of all types can come under pressure to shift assets off their books too. This may be due to regulations, poor marketing, rising costs, changing market dynamics, or personal issues. This may bring the opportunity to pick up deals in bulk.
26. Eviction Court: great place to find landlords.
27. Estate Sales: sometimes tied to probate and chances are the real estate will also be available soon or be transferred to an unwanting relative.
28. Door Knocking: I know it sounds annoying or intrusive, but go door-to-door asking residents if they know of anyone planning to move or trying to sell their home because you are interested in buying a house in their neighborhood. Leave your card or flyer with them. Chances are, many people will contact you if they can provide any information in the future. Leave door hangers if necessary.
29. Direct Mail: send Pre-Foreclosure Letters, Probate Letters, Out of Town Owners, Bankruptcies, Divorce, Delinquent Taxes, Military Owners.
30. Mail or package carriers: Postal workers, newspaper delivery drivers, Fed-EX, UPS, water delivery, lawn care or property maintenance professionals can all be a huge help when trying to locate potential properties. They can let you know who is moving, vacant houses, financial trouble, who's looking to sell.
31. Credit Repair Agencies & Counselors: Many times the only way someone can get their spending under control is to sell a house they can no longer afford to manage.
32. Courts: Eviction Filings, Probate, Divorce Cases, Tax Liens, Code Violations.
33. Condemned Houses: Many counties will provide you a free list.
34. Classified Ads: Browse both internet and print ads to look for specific keywords that could possibly mean the seller is motivated such as: transferred, motivated, divorce, owner financing, must sell, etc.
35. City & County Inspectors: Code violations and red tags. If you develop a reputation of buying distressed properties and improving them, you become an asset to that community. More than likely, they will contact you first about a particular property.
36. Auctions: Often times, you can catch a good deal in a tax sale by beating the Auction deadline. List provides property addresses so you can contact the owner directly.
37. Professional property cleaners or Carpet Cleaning companies: Many of their customers are preparing a house for sale. Check with them to get information on a particular area.
38. Accountants and CPA Firms: They have a long list of clients that might be looking to get rid of assets (houses) for tax purposes and can identify clients that have unwanted property or rentals. Also great place for getting a list of retirees with free and clear homes open to seller financing.
39. Abandoned Houses: Looks for blue tarps on roofs, boarded up windows, overgrown yards, etc. Contact the owner to see if they want to sell the property.
40. Withdrawn MLS Listings: Get automated email list from a real estate agent.
A motivated seller is a property owner who can meet at least one of the two following conditions:
1. They are willing to sell the property at a very favorable price: Usually this means 10-30% below market value.
2. They are willing to sell the property at very favorable terms: This includes things like no money down, 0% interest, financing, etc.
Many motivated sellers will be more interested in dealing with you if your clear about your motives and you don't make them feel cheated because of their circumstances. Always show respect to these individuals and be open and honest with them in an attempt to gain their trust.
Here's a list of some of the most tried and proven methods of locating motivated sellers.
1. Section 8 Landlords: Each county maintains a list. Locate them and find out as much information as you can about a particular property.
2. TV and Radio: Many local stations and cable providers offer free or low-cost spots. Contact the sales and marketing team to see if they are willing to negotiate a deal in exchange for airtime.
3. Title Companies: Are usually the first ones to know when a closing does not work out. Contact one to see if you can get any leads. Here are 30 title companies located in the Pittsburgh region https://www.yellowpages.com/pittsburg...
4. Tax Deed Sale Properties: It's easy to get a list from county and state resources. Check out https://www.tedthomas.com/faq/tax-dee... for a complete list of tax deed States or visit the Allegheny county sheriff's office http://www.sheriffalleghenycounty.com...
5. Social Media: Stay active on social media. Sites like Facebook, Twitter, YouTube, Pinterest, Instagram are valuable resources for connecting with real estate agents or directly connecting to a motivated seller.
6. Small Home Builders: Often buyers trade up and may have trouble selling their current home. Contact them to see if they are willing to negotiate a deal.
7. Retirees: Are excellent prospects for seller financing and homes with equity.
8. Rental Agents & Property Managers: Have a list of non-owner occupied owners and can identify landlords eager to get rid of cash-flow property.
9. Nursing & Retirement Homes: Locate elderly residents or their family members that need to sell a house or don’t want to deal with tenants or the cost of maintenance.
10. Networking: Connect with Investors online, Call "We Buy Houses" ads signs, Investment Associations & Clubs.
11. Mobile Homes: Get to know park managers. Many times, sellers have hard time dealing with banks and would rather deal with private individuals for more flexibility.
12. Market Bulletin Boards: Try your local coffee shops, Restaurants, gyms etc.
13. Car Signs and Wraps: If it's in your marketing budget, buy removable magnetic signs to place on your vehicle or get a complete car wrap to let people know that you “buy houses” while driving neighborhoods.
14. Local Fast Food restaurants: Many of them sell advertising. Pick a target of your choice and test it out.
15. Lis Pendens is Latin for "suit pending" : Notice of a law suit, usually a foreclosure. This can be a valuable resource.
16. Lenders: Banks / REO’s: Mortgage Brokers, Private Lenders, Hard Money Lenders.
17. Judgments & Liened Properties: Check public county or city records, Mechanics Liens, HOA Liens, Tax Liens.
18. Investor Packages: May be able to negotiate seller financing as well as terms.
19. HUD (Government Owned Properties) check the site https://HUD.GOV for listings.
20. Physically distressed properties:
Whether due to property age, deferred maintenance, storm damage, fire, flooding, vandalism, or buying a property with hidden issues, there are millions of distressed properties out there. These issues can quickly accumulate costs, fines, bills, and violations. Many people can’t afford to fix these issues.
21. FSBO Signs and flyers: scout your local shopping centers, Wal-Mart, Home Depot, Malls etc. Put these signs and flyers on car windshields or hire someone to do it for you. I know this method may seem outdated and old fashion, but you have to put in the work to get the results you seek.
22. Insurance Brokers: Policy changes from owner occupant to landlord or vacant house coverage.
23. Bird dogging: Study local neighborhoods and establish yourself as the go-to person for distressed owners and distressed property.
24. Military Bases: Great market for those who need to sell quickly.
25. Builders and investors:
Builders and investors can also be highly motivated sellers. Builders and developers are on tight timelines to move units. Investors of all types can come under pressure to shift assets off their books too. This may be due to regulations, poor marketing, rising costs, changing market dynamics, or personal issues. This may bring the opportunity to pick up deals in bulk.
26. Eviction Court: great place to find landlords.
27. Estate Sales: sometimes tied to probate and chances are the real estate will also be available soon or be transferred to an unwanting relative.
28. Door Knocking: I know it sounds annoying or intrusive, but go door-to-door asking residents if they know of anyone planning to move or trying to sell their home because you are interested in buying a house in their neighborhood. Leave your card or flyer with them. Chances are, many people will contact you if they can provide any information in the future. Leave door hangers if necessary.
29. Direct Mail: send Pre-Foreclosure Letters, Probate Letters, Out of Town Owners, Bankruptcies, Divorce, Delinquent Taxes, Military Owners.
30. Mail or package carriers: Postal workers, newspaper delivery drivers, Fed-EX, UPS, water delivery, lawn care or property maintenance professionals can all be a huge help when trying to locate potential properties. They can let you know who is moving, vacant houses, financial trouble, who's looking to sell.
31. Credit Repair Agencies & Counselors: Many times the only way someone can get their spending under control is to sell a house they can no longer afford to manage.
32. Courts: Eviction Filings, Probate, Divorce Cases, Tax Liens, Code Violations.
33. Condemned Houses: Many counties will provide you a free list.
34. Classified Ads: Browse both internet and print ads to look for specific keywords that could possibly mean the seller is motivated such as: transferred, motivated, divorce, owner financing, must sell, etc.
35. City & County Inspectors: Code violations and red tags. If you develop a reputation of buying distressed properties and improving them, you become an asset to that community. More than likely, they will contact you first about a particular property.
36. Auctions: Often times, you can catch a good deal in a tax sale by beating the Auction deadline. List provides property addresses so you can contact the owner directly.
37. Professional property cleaners or Carpet Cleaning companies: Many of their customers are preparing a house for sale. Check with them to get information on a particular area.
38. Accountants and CPA Firms: They have a long list of clients that might be looking to get rid of assets (houses) for tax purposes and can identify clients that have unwanted property or rentals. Also great place for getting a list of retirees with free and clear homes open to seller financing.
39. Abandoned Houses: Looks for blue tarps on roofs, boarded up windows, overgrown yards, etc. Contact the owner to see if they want to sell the property.
40. Withdrawn MLS Listings: Get automated email list from a real estate agent.
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