Leads who paid more than their property is worth (but have high equity!)

[Michael Spencer]

Hey BP,

I'm encountering a lot of leads who have high equity in their homes but the current value is a lot lower than what they purchased it for, so they are reluctant to sell at a price that works for me (60-75% minus repairs of market value).

My question is, is there a strategy out there to try to convert these leads to a deal or is this just the way of the land and a deal will come when proper motivation is present?

I'm trying to not waste any leads as much as I can and have tried offering lease options as an alternative without any success.

So what do you tell them?

Any and all input is appreciated!

My current lead criteria is as follows:

Absentee Owned (in & out of state)

Equity > 50%

No Trust

No Corp

Ownership > 7 years

[Account Closed]

High equity isn't an indication of anything. If they're not ready to sell, they're not ready to sell. The motivation that necessitates or forces a sale will be greater than the issue of selling for less than they paid. I bought a property last year that the seller purchased with cash in 2008. It was worth less in 2011. I bought it for 75% of what she paid, not including the significant repairs she had made (new roof, paint, etc.) Her motivation was her need for the cash and to relocate. So she could see clear about selling for less than she paid. You're not dealing with motivated sellers if they will only sell for what they paid for the property.