As a real estate investor, if you can find motivated sellers, you’ll get a constant flow of great deals – they are gold to real estate investors.
A motivated seller is someone who really NEEDS to sell their house because it has become a liability they can no longer afford. Motivated sellers are willing to sell well below the market value of the property. This is because they’re motivated to sell by factors beyond their control, such as facing foreclosure, or it needs repairs and they can’t sell it on the regular market, etc.
The more motivated a seller is, the better the deal they’ll give you on their property. Consequently, if you can find real motivated sellers whose properties have equity, you’ll make some good money in real estate investing. There are various reasons why they are motivated to sell, such as:
- They’re behind on their mortgage payments or even facing foreclosure.
- They have unsuccessfully tried to sell and see no other way out.
- Some of them just want to get out of the mortgage – such as after divorce.
- They have more than one property, and paying an extra mortgage, such as if they moved to another city.
- Or they have inherited a property and they have to sell it.
- Bad tenants cause them losses they want to get rid of.
These people really need to sell, and they’ll bend over backwards to sell the property. This is the only type of seller I deal with in my business. And you should too.
Here are the 6 top places where you’ll find motivated sellers:
1) Online Search
Motivated sellers start looking to sell their house on Google or other search engines.
The end result is that your website will be attracting motivated seller leads hands-off. This alone can bring you lots of lots of great real estate deals indefinitely.
How to find motivated sellers from online search:
This way, motivated sellers will find you in your local market when looking to sell their houses.
2) Expired Listings
Another way to find motivated sellers is through the MLS. Sellers whose listings expire in the MLS become very motivated. Such houses can fail to find a buyer because their asking price is too high, or they need updating or repairs.
How to find motivated sellers from expired listings:
Find a real estate agent who can be sending you expired listings. Then filter them by price range or neighborhoods depending on the type of properties you buy .
Then target them with post cards or yellow letters. From these you’ll find motivated sellers willing to cut great deals for you.
3) For Sale By Owner
Lots of FSBO listings are too expensive and can stay on the market for a long time with no buyers. This makes them very motivated sellers.
Target them from FSBO sites, including Craigslist and you could land some pretty good deals.
4) Probate Properties
People who have inherited property get really motivated to sell, and they have by far some of the most profitable deals. This is because they don’t want to maintain the property, they cannot raise the mortgage payments they inherited, or they have to cash out and share among the beneficiaries.
Some of these properties have no mortgage, and they need repair making them hard to sell.
How to find motivated seller through probates:
To target probate leads, check your court house probate postings, then search your county records if they own real estate property. Then send letters to the trustee, and even beneficiaries if you get their names and addresses.
However, the process of probate can take a few months to complete, so I send a letter each month for 3 months. Even so, it’s well worth the wait as you’ll get really great deals.
Sometimes, landlords find themselves losing money on their property and they need to sell. This can happen when
- Maintenance costs exceed the money he’s making from rent
- Bad tenants who tear the property down
- Tenants who are late in paying rent or not paying at all
- A high mortgage payment that leaves little or no profit after rent payment.
Lease lease agreements allow landlords to quickly evict the tenant after their term expires, leaving the property vacant. This means you can find motivated sellers from these landlords and great real estate deals.
5) Property Owners In Legal Trouble
Another way to find motivated sellers is targeting people in legal trouble who own property.
This includes people going through divorce, bankruptcies, those who’ve received notice of default from their mortgage companies, etc.
These properties will be a long way from foreclosure, and you’ll have enough time to get the deal done.
How to find motivated sellers from property owners in legal trouble
Since this is a long topic, we’ve written a comprehensive Ebook about how to find these people, and automate the entire process from finding them to pre-screening them.
Download our free Ebook for detailed instructions on how to target these people.