Finding Off-Market Deals & Motivated Sellers

[Pages:15]Finding Off-Market Deals & Motivated Sellers

: the real estate investors marketplace and community

There are a lot of properties out there for sale but savvy investors know that some of the best buys on investment real estate aren't listed by a real estate agent. The best deals are the off-market, motivated seller properties that have to be discovered ? and it takes diligence, ambition and a hunger for the big payoff. It's not impossible to get good deals on listed properties, too ? but there's a whole host of things getting in the way of the really GREAT deal. Instead, when you focus your efforts on nding off market properties...

? There's less Competition ? when you're looking for off market deals, your competition is limited to other investors who may be using the same deal nding strategies as you. When you use the advanced deal

nding strategies we've shared here, you can keep great deals coming across your desk and cherry pick only the best.

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? There's no middleman. Listed properties ? especially the good deals, have lots more moving parts ? in essence, too many people in the middle of the acquisition process. There's the seller, the listing agent, the buying agent and most likely their staff members. Too many cooks in the kitchen ? but when you're focused on off market deals, it's you and seller. Making the effort to nd off market deals pays off with even better back end pro ts. ? When there's too much competition and too many cooks in the kitchen, you lose exibility to negotiate. And one of your biggest advantages in acquiring great deals on investment real estate is the ability to be nimble and negotiate your deals to a win-win outcome ? whether it's price or terms or even better -- both! Without a doubt, the most successful people in the business work to create their own deal nding pipeline. They use multiple strategies their targets are those high margin, off-market properties that can consistently produce deal after deal ? whether the end goal is wholesaling, x and ip or buy and hold.

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RESOURCES:

No matter which strategies you use, you need the basics:

? A Mobile phone ? Internet Access ? Business Cards ? while we're on the subject of business cards, when

you are focused on buying houses, you need a card that clearly states that! A quick internet search will get you some very good examples of "We buy houses" type cards. Once you've determined a design, there are great online sources where you can easily design and order affordable cards.

For some of the strategies, you'll need more resources to get your deal pipeline going.

? Marketing materials ? you may need yers, postcards for mailing,

direct mail letters, and mailing lists. We go into detail with each strategy, so as you determine YOUR best approach, you'll know what you need to make it happen.

? A team ? whether you've got bird dogs working with you, bandit

signs being placed, or a real estate broker scouting for deals, it pays to build a team to help you keep deals coming in.

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STEPS TO SUCCESS:

The great thing about off market deals is that there are so many different ways to nd them. Sure, the MLS may be "easy" and you may nd a good deal every now and then, but it won't get you consistent results. So, getting to the great deals simply means you're going to get focused and create your own deal pipeline. You're basically using your determination, skill and knowledge to create your own personal "for sale by owner" buying opportunities. Depending your personal and nancial goals and your resources, you can use as many or as little of the deal nding strategies we've outlined here and covered in detail in other segments.

Before we start taking a look at all of the different ways to nd great REI deals, a couple points are critical. The person who consistently

nds great deals can be even more successful than the person with A+ credit or those who can't successfully market for quality leads. That said, you've undoubtedly heard that the number one rule of real estate is location.

Not so for the successful real estate investor. The number one rule of investment real estate is motivation. Not your motivation though that's important - it's the motivation of the seller that underpins some of the best deals in real estate.

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There are a lot of reasons that a seller might be motivated ? too many repairs, bad tenants, pending foreclosure, relocation, divorce, inheritance and many, many more. So nding properties whose owner is motivated to sell is the key. So other than seeing a "for sale by owner" sign stuck in the yard, how do you nd these off-market, motivated seller deals? Not every home that can be purchased will have a sign ? but there a lots of ways to nd these hidden gems. Create your own "for sale by owner" opportunities and you'll have a winning formula for taking down great deals.

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HOW TO:

One of the most cost effective ways to nd off market deals is through your personal network ? and the networks of those you know. In the Networking segment, we've outlined some great information on the subject ? and as you get the word out that you are buying houses, you'll be surprised at how many leads you can generate by simply purposefully working your network for off market deals. Whether it's the mail carrier, your banker, your professional group or the pizza delivery guy ? you can engage your network in building and maintaining your deal pipeline.

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As you are engaging your network, you don't want to exclude real estate agents ? while they traditionally list and sell "typical" properties, there are also agents who specialize in certain segments of the real estate marketplace. Some focus on foreclosures and the really ambitious agents take properties not yet foreclosed on, whose value is less than the mortgage owed and sell them as "Short Sales." In essence, the bank will (in best case scenarios) accept an offer that is "short" of the mortgage payoff. For the real estate investor, short sale listings can give you an advantage. Most home buyers cannot deal with the uncertainty of when or if the bank will accept their offer. As an investor, you can make short sale offers without this overriding concern. We've taken a look at using Short Sale acquisitions ? check it out to see if it's a strategy that could work for you and your end game.

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