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Distressed Doesn’t Mean Motivated
Finding a Distressed Property Is Easy. Finding a Motivated Seller Is Different.
One thing I’m starting to understand about off-market acquisitions:
A distressed property doesn’t automatically mean a motivated seller.
A property can have deferred maintenance, code violations, an overdue mortgage, or even sit vacant—and the owner may still have no reason to sell.
The real question is:
Why does the seller want to sell?
Some signs of genuine motivation can include:
• A major life change creating a need to sell
• A property that has become a financial burden
• Long-term vacancy or ongoing maintenance problems
• An owner who has been trying to sell without success
• A desire for a faster or simpler transaction
• A clear timeline or reason behind the sale
But I’m realizing that identifying these signals is only the beginning.
The acquisition process isn't just about finding properties with problems. It's about understanding the person behind the property and figuring out whether there is a legitimate reason for them to consider a deal.
That seems much more valuable than simply building a massive list of “distressed” properties.
For the experienced acquisition professionals here:
What are the biggest signs you look for when qualifying a lead before deciding whether it's worth making an offer?
And what’s one motivation signal you learned to recognize only after doing a lot of deals?