Motivated Sellers

The key to success for real estate investment business is how you can find motivated sellers.

Usually Motivated sellers are in certain urgent circumstances and then they want to get mind of peace by getting rid of their properties right now. Sometimes they give up some equity in those properties. Sometimes even they give some money to buyers to sell.

How to find a motivated seller through MLS

Usually investors don’t buy properties MLS for a market price but sometimes you can find a motivated sellers to buy a discounted price on MLS.  If you look at the remark section, listing agents say “Motivated Seller” or “ Must Sell Quickly.’ Even that listing price is a little bit a higher, there is a possibility to get a discount for investors to buy.

Also if you can get “Expired List on MLS” and can contact with those owners, they might be a motivated seller. They listed their properties to sell but in 3 month or 6 month or so, they could not sell for some reasons. Most cases the price is an issue. If you can have a certain creative acquisition strategy, you can buy those properties in your term.

• There are people who have to move to somewhere else due to a new job or for some other reasons.

They cannot pay rent or new loan for a new place and current mortgage both. They want to get rid of the current mortgage payment ASAP.

• There are smaller number these days to compare with 2010-2015 but still there are people who cannot pay a mortgage. Some got downsized or some got sick and could not work. There are plenty of homeowners who face circumstances that their loan is in default.

When they receive a notice or default from the court or summon from the court, they are so motivated to do something. That is a good opportunity for investors to buy as a short sale.

• sometime people are getting divorced and they don’t want to keep those houses any longer.

• Another group of motivated sellers are those owners that are tired of owning rental properties. Some people want to enjoy retirement without having to take care of a property investment portfolio. Some people are just tired to take care of tenants. Some people aren’t physically able to take care of properties anymore. Or perhaps they need to cash out to cover medical expenses or do something else.

• Sometimes I have met people who inherited assets from parents or other family members. But they don’t want to keep those properties and they want to get rid of those properties and cash out and go because they are not living in those area.