Every real estate investor must be able to identify a motivated seller. If you do not understand what makes someone motivated to sell a property for wholesale, you could waste a lot of time on a seller who is not REALLY motivated. There are two main reasons why people are motivated to sell a property for a discount, which are situations and conditions.
Sellers that have situations that motivate them to sell will typically have one of the following:
- Job transfer
- Business failure
- Live out of state
- Poor budgeting skills
- Own more than one home
- Tired landlord
Sellers that have conditions that motivate them to sell will commonly be facing one of the following:
- Unemployment or under employment
- Market depreciation
- Long days on market or a lot of local competition
- Mortgage interest rate gone bad
If you can identify one of the factors identified above, you have a good chance of being able to negotiate a great wholesale property deal. It is crucial to speak with the seller and completely understand what they need out of the property for them to let it go for a discount. Essentially, we are going to be problem solvers for this motivated property seller. If we can figure out their needs and offer a solution that will help them and work for us, we have jsut created a WIN-WIN for all parties.