How To Purchase Real Estate | 10 Types Of Motivated Sellers | Part 1
If you want to learn How To Purchase Real Estate, make sure you know the 10 most common types of motivated sellers.
While buying a property can happen quick, it is also perhaps the most important part of the house flipping process. If you wish to make a profit at the end of your project, you need to buy the right house.
What most real estate investing experts will tell you is to find a motivated seller. Easy enough, right?
But what is a motivated seller?
In essence, a motivated seller is a person who wants to sell his or her home as quickly as possible, and is less concerned on getting the full value of the property. For this reason, you as a buyer might be able to get a great deal on a property through these people.
The 10 Most Common Motivated Sellers | How To Purchase Real Estate
To put this strategy into action, you need to know the types of people you should be looking for. Below is part one of our two-part series, The 10 Types Of Motivated Sellers. Here you will find types #1-5: Landlords, Heirs, Homeowners Under Threat Of Foreclosure, Banks Who Own REOs, and People Who Are Transferring Jobs. If you want to know how to purchase real estate, you need to learn about these sellers!
1. Landlords
Sometimes, a landlord might not be making as much money as he wants to on a particular property and wants to sell. He might do this because the house is continuously depreciating in value, or because maintenance is exceeding the amount of money he is making each month from rent.
Unlike standard personal-owned properties, lease agreements allow the landlord to evict the tenant at the end of their term, making for a much quicker process. This fact is even more of a factor when the lease agreement is monthly or at-will.
If you’re thinking of purchasing a cheap property, this might be the right route.
2. Heirs
After an individual dies, the person’s assets can be passed down to his or her heirs through the will. One of the main assets is usually the home of the deceased.
The heir or heirs often do not want the property and choose to sell it. Since no one will be living in the home, they are only losing money on it the longer they hold on because of insurance and taxes, and they will want to sell it as soon as possible.
If done through probate court, and the heir does not want to property, the court will assign a representative to sell the home. The representative will usually be willing to negotiate down considerably on the price of the property.
3. Homeowners Under Threat Of Foreclosure
You might find the deal you are looking for in a pre-foreclosure, or short sale. A short sale is when...
Like this post? Stay tuned for Part 2 of The 10 Types Of Motivated Sellers, which you can check out on Friday, August 16th!
