Why calling high equity list is a good strategy?

Question

Hi there.Newbie here, start to studying about listsource and propstream. A lot of advice to start calling high equity owners.

Help me please to understand why this is a good strategy. Because it's more likely they can give me more discount?

Scott E. · Answer

Put yourself in the shoes of a high equity owner. If you got a call from somebody out of the blue who said:

"I want to buy your house. I can pay cash, close quick, help with your moving expenses, and you will walk away with $300,000 cash when the deal closes!"

That's a pretty attractive proposal compared to:

"I want to buy your house. I can pay cash, close quick, help with your moving expenses, and you will walk away with $30,000 cash when the deal closes!"

Peter M. · Answer

No its so you can make more profit. Take the same 2 distressed houses with the same ARV but one owns it free and clear (high equity) and the other owner is underwater (negative equity). If you spend time trying to buy the latter owner's house only to find out they can't sell it without taking a loss then you just wasted your time. Same applies if they only have 10k in equity, they have to sell to at least pay off their debt which means you have less margin. Now there are ways around this of course but the advice for newbies is that way for a reason-its easier.