A good friend of mine likes to say, “You can’t steal in slow motion”. Now this is not what you think it is. This retired police detective who is now an extremely successful real estate investor is referring to capturing good deals. What he means is that a sharp investor will nail down a good deal while most folks are still caught in the “paralysis of analysis” stage. It is critical to your success in your real estate investing business, to learn to quickly identify a good deal and act on it.
How can you ease their pain?
We all need one thing to create deals; that is a motivated seller. Without a motivated seller, putting together a great deal is a very difficult thing to accomplish. It really doesn’t matter what the source of the seller’s pain is. Motivated sellers all want the same thing. They want their problem solved; they want it to go away. If you can make that happen then you’re in business.
This brings us back to another point. What constitutes a great deal differs from one real estate investor to another. You can sell a house all day long to an experienced real estate investor for 60-65 cents on the dollar. But what about the person who wants to sell quickly that wants close to full price? You know; the one that has an updated house in a great neighborhood. How can you create a “win – win” in this instance? With great terms!
If you are a buy and hold landlord, do you think you could pay this person their price if they would give you great terms that would save you money another way? There are lots of ways to create terms that would allow you to pay more for a top notch property. You just need to get creative.
Creating your opportunities
Savvy real estate investors are able to create opportunities where others see only marginal deals. So what separates these two groups?
- I believe that it is two things: Knowledge and asking the right questions.
You have arm yourself with the right information in order to help these folks. Never forget what business you’re in.
You are in the “problem solving business”.
Do you have a property information sheet?
In my next post I will go over what questions you should be asking every potential motivated seller that you speak with. Knowledge is power, and if you are armed with the all the facts, it will help you create those killer deals.
Check back in a couple of days, and in my next post I will go over the questions that every real estate investor should be asking. I will also give you a copy of the property information sheet that I use when I talk with these folks on the phone.