If you are a real estate investor or considering becoming one, you understand (or soon will know) that real estate investing is all about finding truly great deals and that starts with motivated sellers.
So, why does it surprise people when I speak on goal setting that I spend lots of time on goal setting regarding motivated sellers. If you want motivated sellers, to reach most or even all of your other goals, then doesn't it seem sensible to concentrate on the motivated seller part of your goals, at the very least in the beginning?
Anyone considering my portfolio of audio CDs and courses will begin to find a design; over 1 / 2 of the titles are about finding motivated sellers. Exactly why is that? Let's think about it.
Let's say you have an objective to produce $10,000 each month from owning rental property. To locate rental property that will give you excellent cash flow, you'll need to purchase the houses that have strong rents and try to purchase them as inexpensively as possible. How do you buy houses inexpensively? You need to find sellers who've reasons to trade you equity they've in their property for a solution with their problem.
The cheaper you can get your house, the more cash flow you can generate from your house and the quicker and more safely you can achieve your goal of generating $10,000 in rental income. Try buying houses for a high price and generating rental income from their website quickly. In all but a few markets, it's very difficult to do (if not impossible).
But wait! You say your goal is to generate income from wholesaling property... you do not need certainly to generate cash flow as a rental. Well, motivated sellers are even more very important to you.
Maybe you have tried to place a residence under contract with a un-motivated (read that as inflexible) seller? It may be tough. In the event that you are attempting to put a residence under contract so you can wholesale it to some other investor for a 4 or 5 figure payday, you NEED to accomplish two things:
1. Make the deal very attractive to the investor you're wholesaling it to (low price, great terms or both)
2. Gain control of the home so you can "show it around" without danger of losing it
I'm suggesting that you might want motivated sellers--sellers with a have to sell--to be able to buy houses at a discount or who will allow you to put your house under contract with a 30 or 60 day closing period so you have time to find your buyer.
Motivated sellers must be the key to your real estate goal setting. So, do you think me? Great, so listed below are 3 advice on motivated seller goal setting.
Tip #1: Motivated Seller Quality Comes From Quantity
While you might have goals about converting x quantity of potential sellers to actual sellers, you'll need to realize that you might want to sift and sort through a lot of sellers to find truly motivated ones. The chance of you locating a motivated seller after speaking with six sellers is pretty low. Despite having super marketing materials and a wide selection of what I can use, we typically need certainly to proceed through about 10 sellers to find 1 that's motivated enough that people will make the deal work.
Tip #2: Write Down A Specific Number And Track It Daily
"My goal is to speak to lots of motivated sellers." Utter nonsense. You need to have a specific number to speak to in a specific time period and track the outcomes daily.
"My goal is to speak to 50 motivated sellers each month." Getting better. Every day you'll need to see if you should be on course to achieving your goal of speaking with 50 motivated sellers that month. Or even, you'll need to ramp up your marketing to get more motivated sellers calling.
On our Real Estate Investor Database (the ULTIMATE contact and business management tool for Real Estate Investors), we've a little graph at the very top of almost every page that shows you the "goal line" for how many motivated sellers you'll need to attain your goal and where you are. If you are not meeting, the goal it appears red. When you have met your goal for the day, it's green.
Tip #3: It Is Far Better To Sift and Sort
If you've have tried to produce a marginal deal work and discovered the hard way that it could cost you large amounts of time, money and energy you could start getting more selective in your deals. Here's good quality advice that I received from a number of my mentors:
"Don't try to produce a marginal deal work, go look for a better deal."
When you have 10, 20 or 30 sellers calling in weekly, it is a lot easier to express no to home that you are not 100% sure of... maybe the value of the property is questionable. Maybe you do not like the looks of the situation of the roof. Perhaps you don't trust what the seller is telling you. When you have dozens of other sellers to speak to, it's much easier to express, "I'm going to pass" and move on.
In addition, you'd be surprised at how much better the deal gets once you do disappear and they get back to you a week, month or almost a year later.
So, as you begin to create your goals, remember that while other goals are very important, the most critical and key goal for real estate investors is the goal you place for motivated sellers.
You will get a free of charge real estate course and fully analyzed real estate deals or visit scam risk the for more great articles and information.
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