Finding Motivated Sellers - A Key To Aim Setting For Actual Estate Investors

If you are a real estate investor or considering becoming one, you understand (or soon will know) that real estate investing is all about finding truly great deals and that starts with motivated sellers.

So, why does it surprise people when I speak on goal setting that I spend plenty of time on goal setting regarding motivated sellers. If you need motivated sellers, to reach most if not all your other goals, then doesn't it sound right to focus on the motivated seller part of your goals, at the least at the beginning?

Anyone looking at my portfolio of audio CDs and courses will begin to find a sample; over half the titles are about finding motivated sellers. Why is that? Let's think of it.

Let's say you have an objective to produce $10,000 each month from owning rental property. To find rental property that will give you excellent cash flow, you'll need to purchase the houses which have strong rents and try to purchase them as inexpensively as possible. How will you buy houses inexpensively? You'll need to get sellers who've a reason to trade you equity they've in their house for a remedy for their problem.

The cheaper you should buy the home, the more cash flow you are able to generate from the home and the quicker and more safely you are able to achieve your goal of generating $10,000 in rental income. Try buying houses for a high price and generating rental income from their website quickly. In every but several markets, it's very hard to accomplish (if not impossible).

But wait! You say your goal is always to generate income from wholesaling property... you don't have to generate cash flow as a rental. Well, motivated sellers are even more crucial that you you.

Perhaps you have tried to put a home under contract with a un-motivated (read that as inflexible) seller? It may be tough. If you are trying to put a home under contract so that you can wholesale it to another investor for a 4 or 5 figure payday, you NEED to perform two things:

1. Make the deal very appealing to the investor you're wholesaling it to (low price, great terms or both)

2. Gain control of the home so that you can "show it around" without risk of losing it

I am suggesting that you might want motivated sellers--sellers with a need to sell--to manage to buy houses at a discount or who will allow you to put the home under contract with a 30 or 60 day closing period so that you have time to get your buyer.

Motivated sellers should be the key to your real estate goal setting. So, do you imagine me? Great, so listed below are 3 advice on motivated seller goal setting.

Tip #1: Motivated Seller Quality Comes From Quantity

While you might have goals about converting x number of potential sellers to actual sellers, you'll need to understand that you might want to sift and sort through plenty of sellers to get truly motivated ones. The chance of you finding a motivated seller after speaking with six sellers is pretty low. Even with super marketing materials and a wide selection of what I will assist, we typically have to go through about 10 sellers to get 1 that's motivated enough that individuals may make the deal work.

Tip #2: Write Down A Specific Number And Track It Daily

"My goal is always to speak with plenty of motivated sellers." Utter nonsense. You have to have a certain number to speak with in a certain time period and track the outcomes daily.

"My goal is always to speak with 50 motivated sellers each month." Getting better. Daily you'll need to see if you should be on the right track to achieving your goal of speaking with 50 motivated sellers that month. Or even, you'll need to ramp up your marketing to obtain more motivated sellers calling.

On our Real Estate Investor Database (the ULTIMATE contact and business management tool for Real Estate Investors), we've a little graph at the top of almost every page that demonstrates to you the "goal line" for the amount of motivated sellers you'll need to attain your goal and where you are. If you are not meeting, the target it appears red. If you have met your goal for the afternoon, it's green.

Tip #3: It Is Far Better To Sift and Sort

If you've have tried to create a marginal deal work and learned the hard way that it could cost you large levels of time, money and energy you might start getting more selective in your deals. Here's some great advice that I received from several of my mentors:

"Don't try to create a marginal deal work, go look for a better deal."

If you have 10, 20 or 30 sellers calling in weekly, it is easier to state no to home that you are not 100% sure of... maybe the worth of the property is questionable. Maybe you don't such as the looks of the situation of the roof. Perhaps you don't trust what the vendor is telling you. When you have a large number of other sellers to speak with, it's easier to state, "I am planning to pass" and move on.

In addition, you'd be surprised at simply how much better the deal gets once you do disappear and they get back to you per week, month or many months later.

So, as you begin to create your goals, remember that while other goals are essential, the most critical and key goal for real estate investors is the target you add for motivated sellers.

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