Can You Take A Minute and Explain What Motivated Sellers Are?

You here it from all of the gurus…”Find motivated sellers and they will give you their house.” You say: “That’s great! Now what is a motivated seller again? And once I find one, then what???”

Motivated sellers are the best kind to deal with, because helping them solve their issues only leads to your success. Don’t let the fact that you are currently experiencing some issues with money (or lack thereof) deter you from going after these sellers. Your primary concern is negotiating creatively (isn’t necessity the mother of invention?) and positive thinking.

Be a problem solver! Work on a “win/win” basis!

People often hear me say this is NOT a transactional business. Yes, the numbers have to ultimately work for you but this business is about problem solving plain and simple. A “motivated seller” is experiencing some sort of pain from their property. I tell people who work with me that individuals who come to us either have a “people problem” (divorce, job loss, etc) or are experiencing a “house problem” (inherited the house, house is such disrepair that they can’t afford to fix it or don’t know where to start).

Creative negotiating is king!

Your only job is to find a creative solution that will benefit both sides! You do that by working in a manner that will help them solve their problem, knowing that at the end, you are probably (but not always) their best option. Listen to what their needs are and find a way to get them that. Can you do that every time? No. Just remember that, negotiations must be two sided in order for you to be successful. Also keep in mind that price isn’t the only thing that is negotiable. Terms may be important. Perhaps they need help moving or finding a place for their pets. Listen and when you want to talk, listen some more.

Find out what the seller wants!

Some homeowners just want out. Their payments have overwhelmed them. Other sellers will want a steady income and don’t need front money in the form of a down payment. Most buyers never consider asking a seller what they want! Find out what the seller really wants! How? By asking and listening!

So now I know what the seller wants. Now how do I present that?

If you listened to the seller and found out what their needs are, there is no end to the creativity of what you can offer them. Some buying options might include any one or combination of the following:

1. It could be as simple as simply taking over their current mortgage.
2. Giving some up front cash and taking over existing mortgage.
3. Seller financing.
4. Cash down with seller providing you with a second mortgage (which might represent their profit.
5. Lease with option to purchase.
   

There simply is no end to creativity. I have several homeowners who actually PAY ME TO OWN THEIR HOUSE! Yes, you heard me right. I receive anywhere from $250 - $450 a month from the owner for me to own their house! Why would they do that? Because I heard what they needed and provided a solution that may not eliminate all of their pain, but substantially “dulled” it.

That is why I said earlier your lack of money is not an issue. Your ability to solve their problem is. And once you have it under contract, if the deal is good, the money will be there. If you don’t have it, contact me.

John Panico is the author of this article. John is an active investor of properties throughout NE Georgia. He is the General Manager of Local Guys Equities, LLC, one of the fastest growing real estate investment companies in Georgia. John founded the NE GA Real Estate Buying & Investing Group and wholesales properties to real estate investors around the country. Feel free to contact John about selling your house or other information.

Keywords: motivated sellers, real estate investing