| In real estate there is a saying that you | | | | sold without an agent. Technically, real |
| don't make your money when you sell, you make | | | | estate agents must state that they are agents |
| your money when you buy. The name of the game | | | | in all advertising materials, but the less |
| is finding amazing deals and then keeping | | | | scrupulous ones frequently disobey this rule. |
| them for the long term or turning around and | | | | Also look for key phrases such as "must sell, |
| flipping for a handsome profit. Of course, if | | | | fix-up, needs work, vacant," and of course, |
| great deals were that easy to find, everybody | | | | "motivated sellers" (although agents often |
| would be doing it. The forces of supply and | | | | advertise "motivated seller" when in fact |
| demand would inflate the price of properties | | | | their client isn't all that motivated!). Be |
| to the point that there would be no deals | | | | prepared to make a lot of calls and not to |
| left! Naysayers claim that this is true of | | | | spend much time with each seller - finding |
| today's housing market, but in reality, there | | | | deals is a numbers game, and you have to make |
| are endless deals to be found almost anywhere | | | | a lot of calls to find that one special deal. |
| at almost anytime. Finding these deals takes | | | | |
| experience and talent, but this article | | | | But you shouldn't limit yourself to FSBOs |
| serves as a head start for novice investors, | | | | (homes that are "for sale by owner"). |
| or a refresher course for old pros. | | | | Instead, draft a letter on professional |
| | | | letterhead and fax it to all of the real |
| Distressed Owners Make for Distressed | | | | estate offices in your area. Explain that you |
| Properties (And Vice Versa) | | | | are a real estate investor looking for |
| | | | distressed properties and that you can close |
| What is a great deal? Quite simply, it's when | | | | quickly if the price is right. This way, you |
| you buy a property for well below its actual | | | | can have an entire army of real estate agents |
| value and/or with favorable terms. The only | | | | working for you, free of charge. If one of |
| way this can happen is for the seller to be | | | | them finds a property for you, the seller of |
| ignorant of the market, completely | | | | the home will pay the agent's commission. You |
| uninterested in profit motives, or extremely | | | | owe them nothing, it comes off the seller's |
| motivated to sell. Your chances of making a | | | | side. |
| career out of finding homes owned by people | | | | |
| who don't know any better or who don't care | | | | Another idea is to call the owners of rental |
| are slim, so it's best to concentrate on | | | | properties and offer to buy. Many income |
| identifying motivated or "distressed" | | | | property owners are reluctant landlords and |
| sellers. After all, only someone who | | | | will certainly entertain the offer. If they |
| absolutely needs to sell is going to price | | | | say no, leave them your name and phone number |
| his or her home well below market value and | | | | and tell them to call you if they're ever |
| or accept unusual financing arrangements. | | | | interested in selling. |
| These are the ingredients of a great deal! | | | | |
| | | | Finally, you can place your own classified |
| So what makes a person a motivated seller? | | | | ad. A simple headline like "We Buy Houses for |
| Divorce, death of a relative, job transfer, | | | | Cash" works best. Don't worry that other |
| and serious financial distress are the items | | | | investors use the same ads, it's a numbers |
| that top the list. While you might feel | | | | game. Sometimes people will sell to you |
| guilty for "taking advantage" of people in | | | | because they like the way you sound or they |
| such a situation, you shouldn't. After all, | | | | trust you over your competitor. How many |
| they need to sell - you are helping them! You | | | | advertisement do you see in the paper for |
| and the seller are finding a mutually | | | | mortgage companies, car dealers and retail |
| agreeable price point and terms. You are | | | | stores selling the same product? There's |
| getting a great deal and they are unloading a | | | | enough business to go around, and so long as |
| headache. It's a win-win situation. | | | | you get the phone ringing, you'll learn to |
| | | | get good at converting them into deals. |
| How to Find Distressed Sellers | | | | |
| | | | By knowing what you're looking for - |
| The first place to look is the newspaper. | | | | distressed owners - and following these |
| Don't bother searching through the fancy ads | | | | strategies, you will already be way ahead of |
| with pictures placed by real estate agents; | | | | most beginning real estate investors. It |
| go right to the classifieds instead. Look for | | | | takes work, and lots of it, but the rewards |
| listings with "for sale by owner" in the | | | | are worth it. |
| text, or that appear as though they are being | | | | |