What makes a real estate deal, a\ndeal? Well there are many reasons why, but one of the most significant sources\nof great real estate deals has nothing to do with the real estate itself.<\/p>\n\n\n\n
Sure…there are rundown homes\nthat are selling for pennies on the dollar, but its selling for pennies on the\ndollar for obvious reasons!<\/p>\n\n\n\n
Where the hidden “gems”\nare found is within the people who own the home. It’s actually the situations\nthat they are in, such as foreclosure, divorce or maybe a death in the family\nthat present the opportunity.<\/p>\n\n\n\n
It’s the situation that gives the\nreal estate investor a chance to get the property cheaper than it is actually\nworth.<\/p>\n\n\n\n
Why are these situations so\nvaluable? They present a possible problem to the current owner, where they may\nneed to sell the property very quickly and at a price more favorable to the\nbuyer, namely you!<\/p>\n\n\n\n
The urgency to solve their\nexisting problem gives you a chance to be a problem solver. This generally\ncreates an opportunity if you know how to solve problems.<\/p>\n\n\n\n
Uncovering The Hidden Gems!<\/strong><\/p>\n\n\n\n =========================================<\/p>\n\n\n\n Since the majority of the time,\n“distressed sellers” aren’t in plain view; we have to search for\nplaces that will provide us the information that will give us hints as to their\npossible situation. These “hints” of information can be found at your\nlocal County Recorder’s office.<\/p>\n\n\n\n The County Recorder’s office has\na myriad of information that can lead you to where the deals are. Here’s some\nof the examples of listings that you may investigate through public records and\nsome other tips that don’t require research via public records:<\/p>\n\n\n\n 1) Notice of Default<\/strong><\/p>\n\n\n\n This is a notice that the bank\nsends out to the borrower notifying them that they are delinquent on their\nmortgage payment. This information is readily available as it is public record.\nAsk your County Recorder clerk to assist you on finding this valuable\ninformation.<\/p>\n\n\n\n 2) Notice to Condemn<\/strong><\/p>\n\n\n\n This is a notice that is sent out\nto the homeowner notifying them that all or a portion of their property doesn’t\nmeet building or zoning code for that particular county.<\/p>\n\n\n\n The homeowner has a certain time\nframe to fix it, or the County will force the owners out and condemn the\nproperty.<\/p>\n\n\n\n You don’t want to deal too much\nwith the major fixer upper type, but sometimes people put on add-ons to their\nhomes, without hiring a contractor to do the work.<\/p>\n\n\n\n The results are sometimes not up\nto building code, which if not fixed within a certain time frame, can lead to\nthe County to condemn it.<\/p>\n\n\n\n 3) Notice of Divorce<\/strong><\/p>\n\n\n\n This is a preliminary filing to\nan inevitable divorce. Usually before the actual divorce, there is a hearing,\nand that hearing produces a formal date in which a divorce will be finalized.<\/p>\n\n\n\n 4) Delinquent Property Taxes<\/strong><\/p>\n\n\n\n These are self-explanatory;\nhowever there are certain laws on how the State proceeds on recouping property\ntaxes. You would do best to talk to an attorney about the process in your\nState.<\/p>\n\n\n\n 5) Pending probate court cases where the beneficiaries live out of\nState.<\/strong><\/p>\n\n\n\n These cases are assigned to an\n“executor” to liquidate the assets for the beneficiaries. They can be\na relative or possibly an attorney.<\/p>\n\n\n\n You would simply contact the\nexecutor to see what price range the beneficiaries are asking for. Most times,\nthe beneficiaries want to sell fast, because they have no interest in handling\nthe affairs in a different State or they don’t have the time to.<\/p>\n\n\n\n 6)<\/strong> Out of State owners can usually qualify as a possible lead to a\ngood deal. The property or situation though, has to dictate the reason as to\nwhy these owners would be motivated.<\/p>\n\n\n\n 7) Rental houses<\/strong><\/p>\n\n\n\n The idea behind rentals is that\nsome rentals are on the market, because owners may have tried to sell in the\npast with no success, and are now stuck with a property that they really don’t\nwant.<\/p>\n\n\n\n A good indicator you might want\nto look for, are houses that may have uncut trees or grass within the front\nyard. Broken window or graffiti may also be a good indication of an unwanted\nproperty. These are all things that are cosmetic, and can be fixed up with a\ncleanup crew.<\/p>\n\n\n\n 8) For Sale by Owner<\/strong><\/p>\n\n\n\n Some of these homes may not have\nenough equity to pay a realtor. These are prime candidates for a subject to\ntype deal.<\/p>\n\n\n\n When doing any of these deals,\nyou should always let the seller talk more, while you listen to their\nsituation. People who are in difficulties tend to talk about their problems to\nmake them feel better.<\/p>\n\n\n\n If they don’t like to talk much, ask\npertain questions as to why the house is selling or how quickly do you need to\nsell the house.<\/p>\n\n\n\n By understanding their situation,\nyou can better understand how you make an offer on the property. As a real\nestate investor, you are always looking for a reason to give you, the real\nestate investor, and a benefit in the deal.<\/p>\n\n\n\n Here are some of those benefits you are looking for: <\/strong><\/p>\n\n\n\n 1) Lower price offering.<\/p>\n\n\n\n 2) Subject to deals (see my other\narticle on this topic).<\/p>\n\n\n\n 3) Flexible pay plan or price\noffering.<\/p>\n\n\n\n 4) Low to no down payment\nrequired.<\/p>\n\n\n\n Other approaches to finding motivated sellers;<\/strong><\/p>\n\n\n\n The list of motivated sellers can\ninclude landlords that are out of state, absentee owners, longtime property\nowners, landlords with delinquent taxes, landlords in probate, pre-current and\ncurrent foreclosures and more.<\/p>\n\n\n\n As said earlier, the data of\nprospective motivated sellers can be found at the local county recorder\u2019s\noffice and the court house among others.<\/p>\n\n\n\n Apart from there, they are a wide\nrange of other places you can find the data of motivated sellers these include;<\/p>\n\n\n\n A wide variety of real estate\ndata providers can assist in finding the list of a wide variety of motivated\nsellers. <\/p>\n\n\n\n These companies offer very\nup-front data but definitely the quality of the data depends of your price.\nHence, they offer their as regards to the price you pay.<\/p>\n\n\n\n Because the information from the\npublic records might not be very recent, using these data providers can go a\nlong way in helping you ease the stress of looking for recent motivated\nsellers.<\/p>\n\n\n\n Some specialized websites can\nalso assist in getting a compiled list of motivated sellers. You only need to\nbe specific by typing type of property you need, the market value of the\nproperty, the zip code among others.<\/p>\n\n\n\n You just have to use keywords\nthat will improve your search results to be able to get the list of motivated\nsellers that you desire.<\/p>\n\n\n\n After the earlier stage of\nfinding the data of motivated sellers, there is therefore the need to create marketing\ncollaterals for yourself. Your marketing collaterals will include;<\/p>\n\n\n\n Before you go over to this stage,\nyou must have already had an established group of motivated sellers. These\ngroups of sellers are the people you will have to send the direct mail.<\/p>\n\n\n\n Ensure the sent mails are\nthoroughly followed up with schedules. This also implies you should await\nresponses.<\/p>\n\n\n\n Many a times, sending just one\ndirect mail will not instigate a reply. You need to send more than one; just as\nmany as necessary. It does not just end at writing anything and sending, your\nemail content should be very compelling.<\/p>\n\n\n\n The direct mail should\nadditionally be personalized so as to encourage response. Usually, responses\nare at about 5% in all. For instance, if 300 direct mails were sent, about 15\nresponses will be received.<\/p>\n\n\n\n Certainly, you will fail in your\ndirect mail campaign if you do not filter your leads. It will not make great\nimpact if you send the mails to the wrong persons.<\/p>\n\n\n\n You can begin by understanding\nvery well the type of property as well as the size of the property involved.\nYou also need to be aware of the market value of the property.<\/p>\n\n\n\n From the various sources you gathered your list; it is possible that there will be duplicates. Look into this and eliminate every duplicate property listed.<\/p>\n\n\n\n Be very certain that the sellers are willing to really sell their property and focus on those serious sellers.<\/p>\n\n\n\n Conclusion<\/strong><\/p>\n\n\n\n The main theme in these\ntechniques, are twofold: getting a good\ndeal for you the investor<\/strong>, and picking\nup the property before it becomes known to everyone else!<\/strong><\/p>\n\n\n\n Another good idea is to have a\nhandyman check the property to ensure that it is in good condition and if\nrepairs are necessary, to get an estimate on the cost. This combined with the\nseller’s situation, gives you a better idea on what your offer is going to look\nlike.<\/p>\n\n\n\n Happy Property Hunting!<\/p>\n","protected":false},"excerpt":{"rendered":" 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 […]<\/p>\n","protected":false},"author":2,"featured_media":25751,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":""},"categories":[31],"tags":[],"yoast_head":"\n