Sixty Days to Your First Bargain Purchase
Finding a good real estate deal these days is an art that takes time to master. Like any business, the driving engine are customers. The seller is your primary customer with motivation to sell at prices lower than the appraised market value. Finding motivated sellers requires good advertising, marketing, salesmanship, and, like any other business, keeping your nose to the ground.
Nothing happens and nothing matters in real estate until you find a good deal. You cannot put together a good deal without a motivated seller and you can only convince a motivated seller to do something creative or that involves a discounted price. A motivated seller is the one with a very good and pressing reason to sell below the market value.
Scouting for cheap properties is the most common problem faced by new investors. Many who start out in real estate investing quit without ever buying their first property. They go through the motions of looking for deals for a few weeks or months and then decide that it just doesnt work out. They forget that scouting for motivated sellers is similar to the process of a salesman finding his first customer it takes persistence and hard work.
Find the Motivated Seller
At the cost of sounding redundant, the concept is simple: find motivated sellers that are willing to sell their properties at a discounted price or soft terms. At present, the prospect of the real estate market is some places in the country is very encouraging Many people are complaining that the strength of the market precludes investors from finding good deals on properties. The popular misconception is that in a rising market, even the most motivated seller can find a buyer for his property at full market price.
The fact is, you can find decent deals in “ANY” market. Real estate legend A.D. Kessler once stated, There are no problem properties, just problem ownerships. The definition of a motivated seller fits sproperly within Kesslers idea. A logical person knows that time, money and effort can solve virtually any real estate problem. However, some individuals turn too emotional about their real estate issues or have other motivating issues to contendl with.
Some of these issues include:
Divorce
Lack of concern
Inexperience with real estate repairs
Time constraints
Death of a loved one
Job transfer
Landlording headaches
Impending foreclosure & other financial problem.
Farming Neighborhoods
Productive real estate agents make use of farming technique to increase their productivity level. They pick a neighborhood or two and focus all their marketing efforts within that particular area. You should try to use the same technique. Jump start with a neighborhood that is relatively convenient for you.
If you intend to contact the owner, it takes a little more digging. Try speaking with the neighbors or asking the post office for a copy of a changeofaddress form on file for the property. Online services, such as www.infousa.com, will search public databases, such as the Drivers License Bureau and the Department of Motor Vehicles.
Some cities, towns and counties will tag a house with any code violations. This is often a sign of a neglected or vacant property. Ask your city if you can obtain a list of such properties or find where this information is publicly recorded.
