Just like with any other type of business, in the real estate market you have your prospects and you have your suspects. Knowing which you should spend your time with is critical. At the risk of being blunt, wasting time on suspects rather than prospects then you risk losing more profit than you gain. It pays to wait patiently for a real estate deal that is sure to make you more money. Suspects will do nothing except eat up all of your free time.
It is easy when you first start out with your real estate business to be stuck spending hours talking on the telephone with sellers who are just not motivated. These people could not care less if you buy their property. The key to success in the real estate investment business is to free up as much of your time as possible for spending time with motivated sellers.
A simple, yet effective real estate investment strategy can be put in play that will provide you with results that will truly amaze you. Keep in mind that it is your job as an investor in the real estate market to be able to spot true motivation when you see it. Once you are able to spot true seller motivation, you will be able to make astonishing profits. With just a little bit of training and education in the industry, you will be able to spend more your time making a profit with motivated sellers and less time wasted with suspect sellers.
Understanding motivated sellers does not mean that you have to swindle anyone into selling you their home in order to turn a nice profit. When you use an effective strategy that helps you focus on individuals who are motivated to sell you their property, such as homeowners facing foreclosure, retirement or a sudden loss of income. Once you take the time to learn how to talk to motivated sellers and really understand what makes them tick, you will be well on your way to becoming a successful investor in the real estate market.
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Hi Sean,
I can see where it would be really advantageous to be able to pick motivated sellers and it sounds like a great real estate investment strategy. Becoming a successful investor is a goal of mine; I’m just not sure I’d have the heart for this strategy.
Have you ever seen the movie, “The House of Sand and Fog”? It’s a fantastic movie where he used a similar strategy to this with tragic consequences. Again, I’d want to capitalise on this strategy but I’d need someone else to handle the negotiations.
To become a successful investor you need to be able to spot an undervalued comodity…wether it is bricks and motar or stocks. Motivated sellers, like people who are getting divorced are keen to sell, you just have to be market ready to seal the deal
Hi Sean,
Comprehending Seller Motivation in the real estate market can lead to some remarkable deals. Some types of deals that may be possible are vendor finance (at favorable terms), Long dated contracts, rent back agreements etc.
As a Real Estate Agent or a property investor would say “Time Is Money!”.
As a first time property investor, being stuck with suspect sellers could be very disheartening so getting experienced in understanding seller motivation would be paramount for success.
I have many friends who are successful property developers or in the Real Estate business. They have quite a knack of comprehending seller motivation. They know when their time is being wasted and have put into place great ways to lessen the impact on their time and resources.
My husband has always been interested in real Estate, so I think this is a strategy we will use in the future to build our investing portfolio.
Cath
You need a motivated seller like the Internet Marketer needs the hungry crowd. And as long as you make sure that it is a good deal for both sides and you are not taking unfair advantage of the situation the seller is in I think this is an important tip/strategy to follow.