|
How to Find Motivated Sellers
What
makes a real estate deal, a deal? Well there are many
reasons why, but one of the most significant sources
of great real estate deals has nothing to do with the
real estate itself. Sure...there are rundown homes that
are selling for pennies on the dollar, but its selling
for pennies on the dollar for obvious reasons!
Where the hidden "gems" are found is within
the people who own the home. It's actually the situations
that they are in, such as foreclosure, divorce or maybe
a death in the family that present the opportunity.
It's the situation that gives the real estate investor
a chance to get the property cheaper than it's actually
worth. Why are these situations so valuable? They present
a possible problem to the current owner, where they
may need to sell the property very quickly and at a
price more favorable to the buyer, namely you!
The
urgency to solve their existing problem gives you a
chance to be a problem solver. This generally creates
an opportunity if you know how to solve problems.
Uncovering
The Hidden Gems!
======================
Since
the majority of the time, "distressed sellers"
aren't in plain view, we have to search for places that
will provide us the information that will gives us hints
as to their possible situation. These "hints"
of information can be found at your local County Recorder's
office.
The
County Recorder's office has a myriad of information
that can lead you to where the deals are. Here's some
of the examples of listings that you may investigate
through public records and some other tips that don't
require research via public records:
1)
Notice Of Default - this is a notice that the
bank sends out to the borrower notifying them that they
are delinquent on their mortgage payment. This information
is readily available as it is public record. Ask your
County Recorder clerk to assist you on finding this
valuable information.
2)
Notice To Condemn - this is a notice that is
sent out to the homeowner notifying them that all or
a portion of their property doesn't meet building or
zoning code for that particular county. The homeowner
has a certain time frame to fix it, or the County will
force the owners out and condemn the property. You don't
want to deal to much with the major fixer upper type,
but sometimes people put on add-ons to their homes,
without hiring a contractor to do the work. The results
are sometimes not up to building code, which if not
fixed within a certain time frame, can lead to the County
to condemn it.
3)
Notice Of Divorce - this is a preliminary filing
to an inevitable divorce. Usually before the actual
divorce, there is a hearing, and that hearing produces
a formal date in which a divorce will be finalized.
4)
Delinquent Property Taxes - these are self explanatory,
however there are certain laws on how the State proceeds
on recouping property taxes. You would do best to talk
to an attorney about the process in your State.
5)
Pending probate court cases where the beneficiaries
live out of State. These cases are assigned to an
"executor" to liquidate the assets for the
beneficiaries. They can be a relative or possibly an
attorney. You would simply contact the executor to see
what price range the beneficiaries are asking for. Most
times, the beneficiaries want to sell fast, because
they have no interest in handling the affairs in a different
State or they don't have the time to.
6)
Out of State owners can usually qualify as a possible
lead to a good deal. The property or situation though,
has to dictate the reason as to why these owners would
be motivated.
7)
Rental houses - the idea behind rentals is that
some rentals are on the market, because owners may have
tried to sell in the past with no success, and are no
stuck with a property that they really don't want. A
good indicator you might want to look for, are houses
that may have uncut trees or grass within the front
yard. Broken window or graffiti may also be a good indication
of an unwanted property. These are all things that are
cosmetic, and can be fixed up with a clean up crew.
8)
For Sale By Owner - some of these homes may not
have enough equity to pay a realtor. These are prime
candidates for a subject to type deal.
When
doing any of these deals, you should always let the
seller talk more, while you listen to their situation.
People who are in difficulties tend to talk about their
problems to make them feel better.
If
they don't like to talk much, ask pertain questions
as to why the house is selling or how quickly do you
need to sell the house. By understanding their situation,
you can better understand how you make an offer on the
property. As a real estate investor, you are always
looking for a reason to give you, the real estate investor,
a benefit in the deal.
Here's
some of those benefits you are looking for:
1)
Lower price offering.
2)
Subject to deals (see my other article on this topic).
3)
Flexible pay plan or price offering.
4)
Low to no downpayment required.
The
main theme in these techniques, are two fold: getting
a good deal for you the investor, and picking up the
property before it becomes known to everyone else!
Another
good idea is to have a handyman check the property to
ensure that it is in good condition and if repairs are
necessary, to get an estimate on the cost. This combined
with the seller's situation, gives you a better idea
on what your offer is going to look like.
Happy
Property Hunting!
1howto.com
--------------------------------------------------
Please
Share Your Tips with Us
|
