7 Powerful Steps to Finding Motivated Sellers Without Having to Cold Call

Transcription

1 7 Powerful Steps to Finding Motivated Sellers Without Having to Cold Call

2 Do you want to live the life you ve always dreamed of? No longer having to worry about having more month than money or worse yet, trading the special time you could be spending with your family, your children, your friends for money. Are you tired of working for someone else s bottom line, while you are struggling financially and emotionally? Stop dreaming and start doing. Do you want to live an independent, financially free lifestyle? The truth is you can get your life, your health, your dreams back and leave a legacy for your family. To achieve this phenomenal life, all you need is take this simple 7 step action plan and start doing today. You will soar to new heights and begin living the truly joyous life you have only dreamed of. You only need to be willing to spend an hour a week to get started. I know, because I was there.

3 My Journey Like you, I was brought up to believe in the American Dream. We were told to get good grades, go to college or find a good trade school and you will be able to take care of you and your family. It wasn't until I was a divorced, single mother with a disabled daughter, college educated nurse and couldn't provide enough food or warm coats in the middle of winter, that I realized the system is flawed. Like so many of you, I needed to make a change and the answer is real estate. I knew real estate has created more millionaires and billionaires than anything. However, every person I spoke to told me, I couldn t do it. That I was foolish. All the mentors I went to didn t know what it was like to have nothing and be a divorced single parent. I felt like such a failure. Worse yet my family was suffering for it. So, I created a simple system. A system that has allowed me to retire in less than 6 months through investing in real estate using little to none of my own money and regardless of credit. I want to help you achieve that too.

4 Why you need to read this guidebook? Are you like many other new real estate investors out there and can t find profitable deals? Have you been told or made to think, all the profitable deals are gone? Why not learn how to find the hidden real estate deals that most seasoned investors overlook every day? There are thousands of motivated sellers out there, you just need to know where to look for them and how to fish outside the pond. These are the skills that most real estate investors aren t taught and instead they are standing around scratching their head wondering why it s not working and ultimately giving up on themselves and their dreams. How sad is that? What if there is a better way? In this simple easy to follow step-by-step guidebook, I m going to gift you with the exact techniques I use to find my most profitable deals. You do not need any additional software or expensive system. Imagine what it will do for your business when you find motivated sellers in just a couple hours per week. In fact, if you are super busy, I will even show you how you can hire someone on Craigslist for pennies on the dollar to do this for you. This one strategy will save you even more time and money. Why spend thousands of dollars on systems that don t work, when you can do this yourself for free?

5 Step #1: Farming the Hidden Market One of my favorite ways to find any deal is driving for dollars, also called the hidden market. Driving for dollars is when you drive a neighborhood that meets your investing criteria. Typically, these are good, solid neighborhoods, with low crime and good schools. When driving these neighborhoods, you are looking for the following:! Properties that look vacant! Boarded up plywood over the windows and doors! Overgrown weeds and shrubs! Peeling paint! Poorly maintained rundown and dilapidated! Newspapers or flyer piled up on the front porch or driveway! Code enforcement, etc. notices taped or stabled to the house or property Advice: The harder it is to find the property owner, usually the less competition and money that can be made from these hidden gems. They can be the golden eggs. Like anything else, there are certain times of the day that work better for driving neighborhoods than other times. I have found the best times to be when kids are in school and most people have left for work. It is during these times distressed properties tend to stand out even more than at other times. Once you start driving neighborhoods you will find it to be quite easy to spot these properties. In fact, this is something that you can teach friends and family to help you with. The next step is to write down the address of every distressed property you see. It takes a very short time to come up with your first ten to twenty-five properties. Once, you have your list of distressed properties, the next step is to research the owner for each property. In most areas of the country you can easily bring up your county assessor's website and look for the property owner of record. The best way to look for who the owner is, is to find the tax record for the property. Usually the taxes have the owner s name on it as well as the mailing address of the owner. Many of these distressed properties may not have the same mailing address for the owner as the distressed property s address. If you are unable to find who the property owner is or the correct mailing address for the owner you may need to talk with the neighbors, leave a note at the property door or do a skip trace for the owner.

6 Step #2: How to pull a targeted motivated list with little to no money Like farming a neighborhood, being able to pull the right type of list of motivated sellers is extremely important. There are many different types of lists to pull. Some of the more common types of lists are:! Attorneys (probate, divorce, estate, etc.)! Realtors! Absentee owners (owner s that don t live at the subject property)! Out-of-state landlords (also sometimes called out-of-state absentee owners)! People who own homes free-and-clear (100% equity in their property)! Foreclosures (Both pre-foreclosure and foreclosure)! Properties with liens (can be tax liens, code enforcement liens etc )! Homeowners in probate (when the owner has died and left property)! Eviction notices

7 Step #2 - Continued: How to pull a targeted motivated list with little to no money It s not just good enough to run a huge list. Don t send out 1,000 mailers to just anyone. It s always better to send out 200 mailers that are targeted and very specific to your market. Even if you pay a few cents more per lead for it, then to run a nonspecific list of 1,000 properties and blanket an area. The non-specific lists are the ones that will be full of unmotivated sellers and a waste of your time and money. Another low-cost way to get lists is to go to your county courthouse and get a list of probates. Probates leads are people who have died and their personal representative is handling their estate. When you pull these lists from the courthouse, most county records offices will only make you pay for the leads you want and that is the cost of printing the page. This is a very low-cost way to get leads and can be done with divorce notices and evictions too. Aside from these free to low-cost resources for pulling lists of motivated sellers there are several services across the country that offer list services to send you prescrubbed probate, foreclosure, bankruptcy and other types of list. Most of these services are for a monthly fee and can range anywhere from $79 per month to well over $100 per month. Its up to you to decide if the service is worth the cost and the time it will save you. Remember: It only takes one motivated seller lead to make you tens of thousands of dollars or to wholesale the property for several thousand dollars. Remember the old saying, The money is in the list.

8 Step #3: Networking with a purpose How to talk to people at networking events. For many people networking is the last thing they want to do, but networking is vital to your success. A good place to start is at your local real estate investment club. Real estate investment associations (REIA s) are a great place to learn about your market especially if you are a new investor. As a new investor you need to know if your market is appreciating or depreciating? If now is a good time to be doing fix and flip or buy and holds. Are you in a seller s market or a buyer s market? This information will help you tremendously when it comes to your investment strategies. The other thing REIA s are good for is networking to find people that can help you and you can help them. If you are interested in wholesaling a property, you should be able to create your buyer s list and sell just about any good deal at a REIA meeting.

9 Step #3 - Continued: Networking with a purpose How to talk to people at networking events. Other than real estate events you need to be able to network with people at other non-real estate meetings. The trouble with networking at only real estate meetings is people at these meetings tend to all be looking for the same two things. It is either money or investors to fund their deals and profitable real estate deals to invest in. Just like when you are driving for dollars and farming neighborhoods you need to network in places that not all real estate investors are. Some of these places include: Kids sporting events (little league game, gymnastics, soccer practice, etc ) Meet-ups hosted by self-directed IRA companies (Full of people looking to invest) Educational events hosted by law firms (High net wealth people and businesses) Other types of investment events such as stock trading or mortgage lender events) Estate planning and financial planner events (High net wealth people looking to get a safer return on their money) Volunteering at your kid s school (Great way to meet with people who may know of distressed properties, probate or properties that need to be sold because of divorce) Educational meet-ups on buying and selling mortgage notes (Note buyers may have properties that are not performing and they may need to foreclose on and sell off the non-performing asset) Church socials (Great way to find people who are retired looking for safer investments and returns than the stock market also, great way to meet with people who may know of distressed properties, probate properties) Title company seminars (Sometimes title companies know investors looking for deals or agents with distressed properties for sale, like pocket listings. Title companies are also a great resource for marketing.) These are all great examples to get you thinking outside of the real estate circle and how you can start finding unlisted properties and private money investors. When going to these networking events you must be able to network with a purpose. If you are an introvert or simply not sure what to do, look for other people who are standing around the room towards the periphery or by themselves. Chances are, they don t like networking either. Start by approaching them and asking them what they think about the speaker. You are looking for something you have in common with that person. Ask them about what they do for a living. People love to talk about

10 Step #3 - Continued: Networking with a purpose How to talk to people at networking events. You must go into these events with a purpose. Set a goal. If you are going to an event on buying and selling notes, your job should be to find one or two note buyers minimum and ask them what they do with their non-performing notes. Do they keep the properties that are non-performing? Ask them what you can do to help them. Tell them what types of properties you are looking for and how the two of you can work together. You need to approach these events not from the standpoint of what the event can do for you but how you can help others who are attending the event. Become a radical giver. This technique works for church groups, schools, little league, etc. Someone who is underwater on their house or can t afford the repairs isn t going to come straight out and tell you that they are losing their house. You need to first let them know what you do and how you help people who have distressed properties. Start by putting together a very short sixty-second or less elevator speech that you can use to introduce what it is you do when someone asks you at one of these events. The secret is in what you can do for someone else, not what they can do for you. Your Assignment: Go to one networking event per week. That is four events per month. At each event start by finding just one person to make a real connection with and follow up with that person after the event and continuously throughout the year. People who say networking doesn t work, are people who don t know how to network and aren t making a real connection. They are just gathering business cards and expecting people to follow up with them. From just this one properly executed technique you should be able to find one property per month.

11 Step #4: Talking to Route or Delivery Drivers A route driver or delivery driver is someone who drives a set route every day. This includes your mailman, Fed Ex, UPS, water delivery guy, etc. These drivers go through a ton of different neighborhoods. Your job is to build rapport with them and form a relationship. After all, isn t real estate a relationship business? These drivers see a ton of properties every day. They know what houses are vacant, which properties are distressed, other neighbors even talk to them and tell them about their problems. Tip: You need to start by letting these drivers know you are looking to buy a house in that neighborhood. Start by asking them if they know if it is a good school district? How is the crime in the neighborhood? Once you build the rapport with these drivers and they know that you aren t looking to break into a vacant property, but want to find a property to buy they will start to give you information on where you can find properties that are distressed or who may be interested in selling their property to you.

12 Step #5: Servicemen I found a goldmine when I was talking to an HVAC repairman. Pay a referral fee. Like route drivers, servicemen/repairmen are also a great source of property leads. I came across this quite by accident one day when I was having a few of my rental properties A/C units serviced. I got in a conversation with the repairman about real estate and what types of properties I like. He started to tell me about all the distressed properties and hoarder houses he goes in every month. Instantly, the wheels started to turn. I asked him if he would be willing to find out more about the needs of the owners. Casually bring up the conversation with them about their property. He told me the owners are often apologizing for the condition of their property or the amount of stuff they have scattered everywhere. He said, many times the owners have a difficult time paying for the service call and even when they really need to replace their A/C units they just can t afford it. From this one conversation, I asked him if he would mind giving me the addresses of the distressed properties he comes across or giving my name to the owner s as someone who may be able to help them. Once I receive the address for the distressed property I would send the homeowner a letter letting them know I m interested in buying their property. If I m able to close on any of the properties I give the service person who gave me the lead a finder s fee.

13 Step #5 - Continued: Servicemen I found a goldmine when I was talking to an HVAC repairman. Pay a referral fee. As you can imagine, servicemen go into many different properties every day. For instance, an HVAC repairman may come across a property that has a bad A/C unit and the owner is unable to pay to fix it. The property may also have a bunch of other differed maintenance issues. The serviceman can offer to help the homeowner by telling him he knows people who buy properties just like theirs without the homeowner needing to spend any money on repairs or real estate commissions. This can be very appealing for the homeowner. It makes an otherwise bad situation into a win-win for both the investor and the homeowner and the repairman gets a finder s fee for spotting the deal. Another great source of referrals is serviceman who deal with remediation. Every day he is going into a property that has been damaged and is in need of repairs. Remediation from water damage or fire damage can be a huge headache and take weeks or months to fix and bring the property back to its former livable condition. If the homeowner doesn t have the right insurance coverage and is unable to pay for the repairs the homeowner may not have any other choice than to sell the property at a steep discount. Also, many homeowners don t want to go through all the hassles of doing the repairs and renovating the property back to a livable condition. Tip: Once you get a couple of these guys as referral sources this can lead to several easy leads per month without the hassle or aggravation of driving around and trying to find these properties yourself.

14 Step #6: Neighbors What do you say to the neighbors? When driving neighborhoods and looking for distressed properties it s a good idea to get out and talk with neighbors. If you find a distressed house that looks abandoned or doesn t appear to be occupied, knock on the neighbor s door and ask them about the property. Typically, people know a lot about their neighbors. The neighbors can tell you how long a property has been vacant or abandoned. They can tell you if the person has died, gotten a divorce, if it was a rental property and the tenants damaged the investment or if it is a vacation home. If you are interested in purchasing the property they may be able to give you information on the property s owner and where they can be found. Neighbors can also tell you about who use to live there. How long the property has been vacant and what condition the house is currently in. If the house is really a mess and an eyesore, they may be upset enough to fill you in on everything about the owner and the property. They may even tell you who owns it and how to reach them. If the property is occupied speak with the homeowner. Tell them that you were in the area and looking for a property to purchase. Ask them if this is a good neighborhood and if there is much, if any crime. Then ask them if they might know of anyone who would be interested in selling their property. Tell them that you would even be willing to make any needed repairs and pay closing costs so they wouldn t need to. Pro Tip: Be sure to have a pen and pad of paper to take notes, especially if they give you a bunch of useful information about the property and the owners. Don t be timid. Make sure you ask them for the owners contact information so you can get in touch with them about their property.

15 Step #7: Expired Listings Expired listing is another great source for finding investment properties. You know these prospects already have a property that they want to sell. Chances are they are either asking too much for their property or it needs repairs and updating and they don t have the money to do the repairs. This is where you can really come in and help these home owners out while making a good profit for yourself. When dealing with these types of homeowners you need to emphasize what you can do to help them by first finding out what it is the homeowner wants. It isn t always about the money. For example, I had a homeowner I was dealing with that had the sale of her property fall through twice with two different agents and two different buyers. All she wanted to do was sell her house and move to Texas where all her relatives live. Not one of these realtors bothered to find out what the seller s real motivating factor was. It wasn t price, it was a quick sale. I was able to buy her house for almost $90,000 below market value. Now at first glance you would think her property must have been distressed since it fell through for two separate sales and she was willing to sell it to me for such a steep discount. This couldn t be further from the truth. Her property was immaculate. It even had custom Thomasville cabinetry and the homeowner had her property painted less than two years earlier. I didn t even have to lift a paintbrush to get this property in move in condition. To make this deal even sweeter. The seller was so motivated to sell she even did her own move out cleaning.

16 Step #7 - Continued: Expired Listings This is a perfect example of a pretty house. All I did was the follow-up work that most real estate agents fail to do. The best part of this expired listing is that the homeowner had two other agents that failed to close on her property. As a result, she didn t want to deal with any realtors. She loved the fact that I was an investor. Following-up on these expired listing is a potential investor s gold mine for deals. Expired listings are a great source for doing creative deal structuring too. It is much easier to suggest a creative deal or seller financed deal to someone who wants to sell their property but is unable to. These homeowners are not receiving the money they want or need for their property. When you explain to the seller exactly how a seller financed deal can benefit them and how they can start to receive monthly payments for their property like an annuity, suddenly it doesn t seem to be such a bad idea. Sometimes these sellers are just not interested in speaking with you at first and who can blame them. Often, they are angry and frustrated because they can t seem to sell their house. You need to create a database for these sellers and make sure you reach out to them every week to every other week. This may seem like you are harassing them, but it s not. You are in the relationship business and it often takes multiple calls to get them to talk about their needs. This isn t about the first one to two calls, this is about the 7 th, 8 th, and 9 th contact. Tip: Focusing your energy on these expired listings and making multiple contact with the seller can make a huge difference in your business. When working with expired listings make sure you are not taking a shotgun approach but are looking at your investment criteria. Stay within your price range and market and work on converting them into clients and sellers.

17 Take Action - Step One, Begin! Now its up to you to take the next or first step. It only takes a small amount of time each week to become a profitable real estate investor. In order to be successful you need to treat this like a business and right now schedule the time to take the first step. Either on your way to work or on your way home from work, plan to drive through a neighborhood and look for those distressed properties. Look for the FSBO and rent by owner signs. Have a yellow pad and pen and plan to write down your first ten houses. This will take you less than 15 minutes. Its up to you to do it. If you are really serious about becoming a real estate investor and getting your next deal, click the button below to see if you qualify for my help. Help Me!

18 About Maria Giordano, RN, BSN Co-Founder Real Estate Profit System In a former life, Maria was a trauma nurse for Scottsdale Healthcare working days, nights, weekends, holidays and not seeing much of her family. She s been a divorced single mother, her oldest is disabled and Maria knows all too well what it is like to have more month than money. Maria learned early on that real estate is the answer creating more millionaires and billionaires than any other industry. Once Maria and her husband Gary started investing in real estate Maria was able to replace her income as a trauma nurse in less than 45 days and made over $200,000 in her first 6 months investing in real estate. Together Maria and her husband Gary created a multi-million-dollar real estate business using exclusively other people s money. Maria is the author of 4 books on real estate, interviewed in many news articles and websites, including RealtyTrac, Investor s Business Daily and The Wall Street Journal. They have been featured on ABC s Nightline and Good Morning America to name a few. Maria is passionate about helping people learn to invest in real estate using little to no money of their own. Creating an investment portfolio, which will allow you to create the life of your dreams, a life on your own terms. Check out her website and see how you can get started investing in real estate today. Learn the techniques to get started investing in real estate using little to none of your own money. You can find out more about Maria and her system at Maria is opening up her calendar to a select few people who are committed to learning what it takes to become financially free through real estate.