Rental Property Investor · Fort Worth, TX · Member since 2019 · 38 posts · 7 votes
How do you get a seller to sell 20% below value. Most of them list way above value as it is. What is the easiest way to do this without turning off your seller?
Real Estate Broker · Vancouver, WA · Member since 2018 · 168 posts · 120 votes
6y
Hey Alexis,
You don't.
Any property that goes on the MLS is off-limits to opportunistic investors as normal home buyers will outbid them 99% of the time. If you want to find sellers willing to sell well below market value, you need to find homeowners who need money ASAP, or who inherited the home via a death in the family and just want to cash out and move on.
Real Estate Broker · Vancouver, WA · Member since 2018 · 168 posts · 120 votes
6y
Hey Alexis,
You don't.
Any property that goes on the MLS is off-limits to opportunistic investors as normal home buyers will outbid them 99% of the time. If you want to find sellers willing to sell well below market value, you need to find homeowners who need money ASAP, or who inherited the home via a death in the family and just want to cash out and move on.
How do you get a seller to sell 20% below value. Most of them list way above value as it is. What is the easiest way to do this without turning off your seller?
Alexis, it depends heavily on the seller's motivation and/or level of rehab required. If their motivation to sell is high, they are more inclined to accept an offer below what the property is worth.
Is there anyway quicken the search for these types of sellers? Or would it just be boots on the ground, cold calling and sorting them out?
There really isn't, unfortunately. What I always recommend is to start making friends around town. You never know what situation a person is in, you may not be aware they would never sell a home through a Realtor, and you may not know they've had their home listed as a FSBO for the past two months with zero traction.
On top of that, mailers, bandit signs, canvas neighborhoods looking for the odd house out of the bunch are your best bets as well.
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
6y
The MLS sucks in this regard but there are still opportunities. If the property has been listed for months that's a good sign. Maybe the motivation to sell will be high. Maybe not. Point is don't be afraid to make low offers. If you can't buy the property right it's a gamble, not an investment.
How do you get a seller to sell 20% below value. Most of them list way above value as it is. What is the easiest way to do this without turning off your seller?
Alexis, it depends heavily on the seller's motivation and/or level of rehab required. If their motivation to sell is high, they are more inclined to accept an offer below what the property is worth.
Rental Property Investor · Fort Worth, TX · Member since 2019 · 38 posts · 7 votes
6y
Thanks for all your expertise.. in conclusion, the answer is to just do the dirty work and find the deals/extremely motivated sellers. Does anyone happen to have any suggestions in software made for this exactly?
Real Estate Investor · Fort Lauderdale, FL · Member since 2009 · 14 posts · 9 votes
6y
We do a major amount of deals straight from the MLS and never less than a 20% discount. Real Estate is about volume and motivation points... you can layer motivation data to pin point better prospects. That being said just like chasing off market sellers require consistent marketing campaigns, going after MLS properties requires making a lot of low offers consistently...
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
6y
We used to go in low & then just sit & wait. In fact I watched one for 18 months & we got it after being told to 'expletive' ourselves on our first offer 40% below asking & we did get it for that original price. We flipped it for double & have held the note for 8 years.
Now days it's a lost cause as people are jumping in without any regard to margins, rehab, or operating costs & will accept the equivalent of a 'prime rate' return after expenses????
@Wyatt Franta And exactly how do you find these sellers?
Hey Loren,
I replied to Allen who asked a similar question, I'll post that response below.
What I always recommend is to start making friends around town. You never know what situation a person is in, you may not be aware they would never sell a home through a Realtor, and you may not know they've had their home listed as a FSBO for the past two months with zero traction.
On top of that, mailers & canvassing neighborhoods looking for the odd house out of the bunch are good options as well.
I've personally never wholesaled before as I got my license when I first started out, but a wholesaler's method isn't much different than a Realtors at the end of the day.
Real Estate Broker · Vancouver, WA · Member since 2018 · 168 posts · 120 votes
6y
@Loren Bedward
Absolutely. My inbox is always open.
Just remember that this isn't a rat race. It will start as a side hobby that you pursue, and it will pad your income & get you into better avenues over time. Don't burn yourself out like most new agents & wholesalers do. Work hard and take breaks when necessary!
@Alexis H. I would search the forum for investor friendly realtor. The Association normally have tools that will help identify distressed property such as remine.
Rental Property Investor · Oklahoma City, OK · Member since 2018 · 10 posts · 3 votes
6y
@Wyatt Franta
When you find a property that appears vacant in a neighborhood not posted for sale. How do you typically get in touch with the owner to see if they’re interested in selling?
When you find a property that appears vacant in a neighborhood not posted for sale. How do you typically get in touch with the owner to see if they’re interested in selling?
Generally, cold calling is going to be your best best. Redx is a dialing software for $50/mo that I believe is still able to filter homes by ownership types.
Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
6y
You shouldn't have to "get" anyone to do anything. You should be finding people who have problems you can solve. You want owners to be excited to sell to you because you're relieving a headache. Explain the value you can provide. If they refuse, you need to either refine your value proposition or accept that they weren't a truly motivated seller; you can only lead a horse to water.