In the blog post “Finding Distressed Properties When Driving Neighborhoods In Areas Where Cash Buyers Are Buying“, you learned how to identify distressed properties to pursue. In this blog post, I want to introduce a way that you can approach these people & determine their level of motivation.
The first thing to keep in mind is that not ever person is going to be fond of you approaching their home and asking them if they want to sell, so I do not recommend that approach in most cases. However, if you are dead set on approaching these sellers of distressed properties face to face, you might try the following:
- Approach not only that distressed home in the neighborhood, but a few others, so you do not look like you are targetting just them
- Introduce yourself and let them know you really like the neighborhood and you are looking forward to finding a property in the area you can buy
- Ask them and the rest of their neighbors if they know of anyone who is selling or might consider selling in the neighborhood sometime soon
- Wait for them to offer a response. If tjhey say no, you can offer a referral fee for anyone they refer to you who is looking to sell a property
It is a less intrusive way to approach and gain information about the sellers motivation to sell or gain referrals in your target area. It can be a very successful technique if you implement it in the appropriate locations (where you are not putting your life in jeopardy) and in a non confrontational way. It is a great way to find wholesale properties that your competition does not know about yet. It is a great way to be more appealing to your cash buyers, because you are finding and negotiating wholesale deals that they can’t even find, but they can definitely benefit from simply by knowing you.