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Total votes: 2

Working With Motivated Sellers

Submitted by seth on January 31, 2006 - 10:49pm.

I have decided to start logging my daily real estate sales experiences. I spend most of my work time knocking doors of potential motivated sellers. I get their names from foreclosure lists compiled from the courthouse’s database. Foreclosure lists seem to be an effective way to locate motivated sellers because those on it with equity have a limited time frame to liquidate their equity.

I spend most of my day searching for motivated sellers willing to work with my terms. Today I ran into a “for sale by owner� property which is asking for $393,000 for his house. I discovered that he has had 2 other properties, which have gone through foreclosure in the last year. I decided that I would make him a $333,000 cash offer. I haven’t heard back from him yet. I anticipate him telling me that he has received several offers and that he will sell it at full price in “this market�. I will agree that his possibility for selling exist and explain that we are creating a safety net offer in case the auction creeps up on him. I anticipate keeping in touch with him and if he happens to not find a buyer within the next 6 weeks than he always can use me as a second option.

I have never secured a deal quite like this because I plan on being an alternative to the best-case scenario. Almost all my previous deals have been to offer homeowners the ability to exit the foreclosure with some money in their pocket even though they don’t have enough equity in their house to sell it to break even. I would then get a discount with the mortgage company as an alternative to them losing money by retaining the house at auction. The mortgage companies have been very flexible with the short sale. Lately, however, the market has sky rocketed 25% and homeowners now have an option to sell their house without the aid of an investor.

I offer to net homeowners the same equity they would receive using a realtor. The response is still not where it was before the market surged but is nonetheless offering some favorable opportunities.



Submitted by brian on February 1, 2006 - 10:14am.

do you get the foreclosure list online? or does your company provide them for you? It sounds like you could run into some interesting people knocking on doors.

Submitted by seth on February 1, 2006 - 10:35am.

We send an employee to the courthouse to gather the data and they create a list which they email me. There are companies that sell lists. There is a local company which goes to the courthouse frequently to update their lists which they distribute to paying investors. The set back is that it isn't always the most current lists. We like being the first ones to the door. These list providers don't update the list daily, thus preventing a list subscriber the capability of competing for first contact. Not to worry if you use foreclosure list, however, because you can definetely benefit even if you aren't first. I would say only 10% of all homeowners in foreclosure are even personally approached by an investor. It is the luck of the draw as to when a homeowner is home and when an investor stops by. I have noticed that an investor's chance of success is greatly enhanced by face to face contact with the homeowner. So if subscribing to a list frees more of your time to knock doors, by all means, it is more profitable than going to the courthouse and gathering the data yourself.

I have run into alot of interesting folk knocking doors. I will have to write some of the more memorable stories.

Submitted by Anonymous (not verified) on February 10, 2006 - 6:51pm.

hi,Im 15 and I think that it would be scarie to go to peaples houses. How can I be brave enough to do somehting like this so I can make some moneyto help my mom. You seem really smart and I like to read your things because they are really smart and I hopeone day I can be really smart to. I liked your stuff on the books you must read alot, do you go the library. I like the library but I cant take books home because I need a card. How do I get a card, i need to find out so i can read more like you. K I gotta go helpmy mom cus she is sick and the docters aren't sure if she will get to see my school play. Thanks you, Frankie

Submitted by seth on February 11, 2006 - 10:40am.

I am terrified when I knock doors. As a matter of fact, I will drive up to a house that looks like a good prospect and I will sit in my car for several minutes before mustering the courage to get out and knock on the door. Tons of stuff go through my head. For example, I start to think the worse case scenario. I say to myself, Seth, they don't want what you are selling. They are angry people and what if they had a gun and what if...Its crazy but that stuff goes through my head more than I would like to admit. The way I fight it is just face it. I say to myself there's only one way to find out. I just accept the worse case scenario. I say there exist a possibility that something bad will happen and I accept that. I want to improve myself though so I take the risk. It is super scary. It is empowering when you face your fears and do it anyway. Somehow, I think it builds my character to do it. Thanks for all the compliments. Best regards to your mother. Hope she gets well very soon!

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