Rental Property Investor · Member since 2021 · 423 posts · 190 votes
When sourcing deals, is it more important to ask when they’re going to sell or is it more important to ask the property condition?
I heard somewhere that the more distressed the property is the easier it is to get a wholesaling deal.
I heard elsewhere that motivation is the single most important factor in any deal. The more urgent the seller is, the better the wholesale deal is going to be.
If you know the property is distressed or they say they need a lot of updates but they want a high price, do you still KEEP THEM on your list?
Likewise, if they say they’re going to sell in the next 3 months and have an underlying motivational factor (probate, tired landlord, foreclosure, etc), but they want a high price, do you TAKE THEM OFF your list?
Let me show you the difference between condition and motivation:
What Most Investors Do Wrong
⦿ Vacant House = Motivated = Deal
⦿ Foreclosure = Motivated = Deal
⦿ Probate = Motivated = Deal
⦿ Tax Liens = Motivated = Deal
etc. etc.
Instead, This Is The Truth:
⦿ Vacant House + Motivated = Potential for a good deal.
⦿ Foreclosure + Motivated = Potential for a good deal.
Yes, there is a big, fat, old, huge "PLUS" in that formula, as in, BOTH conditions need to be met for this formula to hold true, not just one.
A vacant house/someone in foreclosure/someone dealing with a probate/tax lien, DOES NOT IN ANY WAY imply "motivated seller" or a “good deal”... or that they even WANT to sell at all. So.. people that go after "vacant" houses... or foreclosures or absentee owners or probate or..... need a bit of a primer on deal generation which I will be happy to provide.
I am actually writing a book on motivated sellers, where I explain this in full detail!
Motivation is the single most important factor of a deal. Price, condition, situation is all secondary. If the motivation is there, all other objections and obstacles can be solved.