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Beginners Real Estate Investing Guide
Real Estate Investing - Ask
Questions Before Making an Investment
First Time Real Estate
Investor
Real Estate Investing - Planning
Your Investment Strategy
How to Find Real Estate
Investment Properties
Getting a Professional Home
Inspection
Large Profits From Inexpensive
Real Estate Repairs
Real Estate Investing - Costs
and Fees
Real Estate Insurance
and Risk Management
Real Estate Investment Risk
Part 1
Real Estate Investment Risk
Part 2
Getting The Best Return For
Your Investment
Creative Financing
For Real Estate Investors
Real Estate Investment Tax
Considerations
Real Estate Rental Properties
- Great Investment or Nightmare
Real Estate Foreclosures - Great
Deal or Headache
Flipping Real Estate for Profits
Slow Return On Real Estate
Investments
Negotiating for the Best Possible Real Estate
Deals
Real Estate - A Time to Buy and a Time
to Sell
Creating Your Real Estate
Investment Strategy
Investing and Growing
Your Real Estate Portfolio
Commercial Real Estate
Investing
Real Estate Marketing
Understanding Real Estate Law
Do You Need An Real Estate Agent?
What The Real Estate Mortgage
Lender Sees
Do You Have A Career In Real
Estate?
Rural or Urban Real Estate
Investments?
Real Estate Investing on the
Internet
Real Estate Investing
- Property or Paper? |
Real Estate Investing - Introduction
How to Find Motivated Sellers
Many real estate deals often don't have anything to do with the actual property
that is being sold. In fact, when there is a motivated seller, the motivation
has nothing to do with the property, and everything to do with the need to
get rid of the property for financial reasons. When these situations exist,
you can often pick up a property for mere pennies on the dollar.
You may think that the most profitable properties are those that are run-down
or abandoned. This isn't necessarily true. The greatest find is to find a
seller that needs to get rid of his or her property quickly, no matter what
the situation is. The situation may be a divorce, a death, a marriage, a
foreclosure, the loss of a job, or the need to relocate. When situations
such as this exist, the buyer has the opportunity to get the seller to agree
to a much lower price than the actual market value of the property.
The seller, in these situations has a problem, and you are the answer to
their problems. This essentially creates a win/win situation for you and
the seller.
So, how do you find these motivated sellers? They don't walk around with
'motivated seller' stamped on their foreheads. There aren't signs in their
yards that say 'motivated seller.' Instead, you have to look for clues that
indicate a seller is motivated. The first place to start your investigation
is at the county recorders office.
Numerous great deals are found through this office. Let's look at some of
the information that can be obtained here:
1. The country recorder has records of all of the Notice of Defaults that
are sent out to homeowners from banks when the homeowner is behind on their
payments. This information is a matter of public record, and the county clerk
will help you to find this information for the asking.
2. When a property is being condemned by the county, the owner of the property
is sent a notice, and a copy of that notice also goes to the county recorders
office. Properties can be condemned for several reasons, such as zoning or
structural problems. The owner is given a specified period of time to do
what is necessary to correct the situation, and if they don't the property
is condemned.
3. The county recorder knows about divorces as soon as they are filed...they
have to record that information. When property owners get divorced, the property
is often ordered to be sold, because both parties are owners. The money from
the sale is divided between the two parties.
4. When property owners fall behind on their property taxes, the county recorder
is notified. Note that the repossession of property due to tax deliquency
varies from one state to another, and it is important to understand the process
for the state that the property is located in.
5. The county recorder knows about deaths, and probate of wills and estates.
While property is often handed down, and retained by an heir, this isn't
always the case. The heirs may live out of state, or have their own properties
that they do not wish to leave. They are in the market to unload the property.
Contact the executor of the will to find out if the property is going to
be retained or sold.
6. You can find properties through the county recorders office that is owned
by people who do not live in the state. You can then contact the owner to
see if they are interested in selling the property. Often, they are indeed
interested.
7. The county recorder has a list of rental houses in the county - regardless
of whether or not they are occupied. Rental properties may be rentals because
the owner didn't have any luck in selling the property. A good sign that
there is a landlord who doesn't have any desire to be a landlord is houses
that need cosmetic repair.
8. The county recorder knows about homes that are being sold by the owner,
without a real estate agent. Usually, these people are motivated sellers.
Learn to find the public information, and when you contact property owners,
just be quiet and listen. Let them talk. The more they talk, the more you
learn, and the better you will be when it comes time to negotiate a price
- because you have a great deal of information about their situation.
Be cautious, however, when a price is selling undervalue, and the seller
isn't saying much. Now it's time to talk and ask questions to try to ascertain
why the price is so low. Always be on the lookout for motivators that will
give you more bargaining power in the negotiation.
By listening to the situation that the seller is in, and understanding what
is motivating them to sell, you can easily get a lower price offering, get
'subject to' deals, obtain ideal payment plans, or pick up the property with
little or no money down.
You have a better chance of cashing in on these types of deals when you are
able to obtain the information before it becomes known to the general public
- or to other investors. Plan to spend a great deal of time in your county
recorders office! Get to know the county clerk on a first name basis!
• More
Articles
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Beginners Real Estate Investing Articles
How to Advertise a Rental
Property
How to Build Equity
in any Real Estate Market
How to Find Motivated
Sellers
Developing a Profitable Real
Estate Investing Strategy
Bird Dogging: Getting Started in
Real Estate Investing
Buying Your First Home
Using Lease Options to Purchase Real
Estate
Real Estate Foreclosures
Increase Your Net Worth Through
Real Estate Investing
Interest Only Mortgages
Real Estate Investing
No Money Down Real Estate
Investing
The Power of the Lease Option
Real Estate Investing Tips
Real Estate Investments
Refinancing Your Mortgage
Loan
Paying Your Mortgage
Selling Your House without a
Realtor
"Subject To" Real Estate
Financing
Using Trusts as a Real Estate
Alternative
Search for Beginners Real Estate Investing Information
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