1. Motivation, Motivation, Motivation
We’ve all heard how important location is in real estate investing.How many times have we all heard, “It’s all about the location? Location, location, location.”
Well, I’m here to tell you it’s not about location, its about motivation.So say after me, “motivation, motivation, motivation.”
No matter your experience level in real estate investing, the fundamentals are the same for all of us.
Buy the best available property at the lowest possible price.
How do great real estate investors find the best deals in town over and over again? I thought you’d never ask.
In order for the savvy real estate investor to buy investment property at a deep discount regularly, he or she must look for people who have compelling reasons to sell.You might be thinking, what do I mean by compelling?
These sellers have to solve their problem with the house or risk losing it to the bank or lien holder.
So instead of looking for properties in good locations, why not look to help motivated sellers out of bad situations? Help the seller first, and as a result, you end up with the investment property at a very good price.
What kind of seller situations do experienced real estate investors always look for?
1. Divorce
Divorce is a major factor in our society and sadly affects many of us.This situation causes many homeowners to fall behind on the mortgage payment.A big mistake married couples make (over and over again) is to buy a house based on both incomes.So in this case, both incomes are needed to pay the big mortgage.Guess what happens when one of those incomes disappears?
2. Unexpected Job Loss
In our current economy, job loss plays a major role in the real estate investing market. So when someone losses their primary source of income, it affects everything in that person’s life.The house is usually the first item on the list.When the income is cut off, pre-foreclosure is usually right around the corner.
3. Prolonged Illness
It’s never a good time to get sick.Good things rarely happen when the primary bread winner goes down with an extended illness or sickness.Cancer and a multitude of other major health problems can hit us at any time or stage in life.If the seller doesn’t have disability insurance, he or she cannot pay the bills
Any remaining money would go directly to pay the medical bills.
4. Job Transfer
Sometimes that great job opportunity comes with a price.For example, Bob who now lives in Houston, Texas finally gets that big break.This new job opportunity will require him to move to Atlanta. Bob happily accepts the new job and moves to The Peach State without first selling his house in Houston.
Bob buying a new house in Atlanta is a really big mistake. The two payments crush Bob and this so called “new opportunity” suddenly sinks him.Poor little Bobby.
5. Drug and/or alcohol addiction
When you’re addicted to drugs or alcohol, it’s very hard to remain productive.When someone let’s this sickness in, it’s all down hill from there.
When buying investment properites, search out these particular seller situations. When a seller fails to solve the problem with the house or apartment building, come to their rescue and help them out of their situation.You will be rewarded after helping others out with their problems first.
Look for these seller situations in your future real estate investing efforts and you will be handsomely rewarded. I promise.
Related Reading:
Tags: buying investment property, foreclosure investing, income property, pre-foreclosure, pre-foreclosure investing