Finding sellers

General Real Estate Investing
1

Hello to all;

I would like some advice on the best way to find sellers in your area??? :help

2

The best way to find a seller is to find one that doesn’t know they’re a seller yet. What you want to find is indications of motivation. If you have more time than money, drive neighborhoods and look for don’t wanters. If you have more money than time, do some direct mail to targeted lists.

3

Thanks for the reply.

What are some indications of dont wanters?

4

Well, thats pretty much what the marketing section is all about

5

Thanks, fadi.

6

Full Circle,

I have the opposite view. I think the best way to find sellers is to look for people who are DESPERATE TO SELL. I’m not talking about someone who doesn’t yet know they want to sell, or are simply “motivated” to sell, but rather someone who is DESPERATE! Many things can make a person desperate. Inexperienced landlords who have just enountered the tenant from hell; people getting a NASTY divorce; greedy children after the death of a parent; etc are all examples of people who can become desperate. Desperate sellers will do whatever it takes to get rid of their problem.

How do you find these desperate sellers? You get out of the house and meet people. Tell everyone you know (except tenants) that you buy houses at a discount. Join your local REIA and make friends with the SUCCESSFUL investors. Talk to realtors. Talk to lawyers. Talk to city officials. GET INVOLVED!

Good Luck,

Mike

7

Well, to a certain extent anyways. I agree, look for the highly motivated seller. Anything else leas to wheel spinning.

8

It’s now in the marketing forum, good call Fadi.

9

Finding deals highly depends on what you are looking for. For example:

If you are a landlord, you need to find houses:

  1. within certain price range
  2. Rent income above PITI + Expenses
  3. In good rental market/area

If you want to do lease options/sub2

  1. Within certain price range
  2. Newer homes or occupancy within the last x years (1 to 5 depending on your area)
  3. In good/fair condition

If you want to do rehabs

  1. Within certain price range
  2. Older neighborhoods
  3. not recently occupied (not enough equity)

Knowing what you are looking for will help you narrow down your search. I never go after foreclosures because everyone and their mother mails to them, calls them, knocks on their door. I do however, get calls from people in foreclosure.

Now, do they need to be desperate to sell? probably not… if they have a shitty house, they may just want out because they can’t sell it any other way so you just make an offer and they accept it. If you want a pretty house for a good price, then motivation is most likely needed to take a discount otherwise they can place it on the market and wait for it to sell, specially if doing sub2.

How do you find them? you mail them consistently, you put bandit signs up, you run ads (yuck). How do you know who to mail to? you get a list of people who fit your criteria and you mail them. Trial and error…

I know this does not answer your question since everyone wants to know the EXACT HOW TO without spending money, but there is no magical equation to it.

10

Fadi,

Do you know where I can find lease option government regulations in the state of Texas?