Being a real estate investor, I’m always on the lookout for a good deal. That’s probably no surprise but if you ask 99% of all real estate investors I bet you the #1 important factor in real estate to them is location location location. Although this may be true for finding a property you want to live in, it’s not always true in finding a seller who has strong motivation to sell. This is really the first key ingredient in finding a good deal to invest in.
So what are some key things to look for when searching for a motivated seller? First of all I look for the obvious hints either online or in the classified ads where sellers say things like “must sell… another country next month” or something like “currently paying two mortgages and must sell home immediately”. Now those are the easy ones but for the more typical properties you usually have to call several sellers and ask them some questions such as
- Are you under any time crunched to sell your home?
- Is there anybody living in the property currently?
- How long has the property been on the market for?
- Why in the world would you consider selling such a wonderful property such as this?
all these questions should give you a pretty good clues as to why and if the seller has a strong motivation to sell. If you do discover one of these properties on your list could be a real bargain you then take the next step and talk with them about pricing and terms. For any real estate deal to ultimately be a winner the numbers must make sense. And lastly take into consideration where the property is located and what condition it currently is in. If all three of these factors add up than it probably makes sense to move forward and make an offer on the property.
Now remember the #1 factor great real estate deals are built on is motivation. The #2 and #3 factors are also important (pricing and location) but don’t fall into place unless the #1 factor comes first.