One thing that can separate a successful investor from a struggling investor is perfecting a system to find motivated sellers. I’m not even talking about those who are highly motivated. I mean those who are somewhat motivated, and simply need someone with a certain skill set to negotiate with them.
As a property investor who wants to use my Unlimited Funding Program, it is essential that you follow a blueprint for how to find motivated sellers. Now, it’s not rocket science, but it will take some effort on your part. Good news is that once you discover how to reach these sellers, the process becomes less time consuming and more automatic.
What is a motivated seller?
Now, before I show you how you can find and reach motivated sellers within 30 days, I want to explain to you a little bit about what causes a seller to become motivated. What would make a seller want to work with you, as opposed to a real estate agency?
A motivated seller is someone who is willing to sell their property for a certain percentage below market value. That percentage usually falls between 10 and 30 percent. Why are they motivated? Because they are experiencing some sort of problem or “pain point” and need to sell their home fast. This could be due to divorce, sickness, relocation, job loss, etc. The thing is, they’re at a point where they are very open to negotiating terms of sale, including the price, financing, and interest rate.
Good news for you is that there are motivated sellers in any market. It may be a small percentage, but they’re there in hot and cold markets. You just have to know where to find them.
Week 1: Where to find motivated sellers
During Week 1, you’re on a mission to get “lists” – All sorts of lead lists that will lead you right to those who are motivated to sell ASAP. There are many lists out there of motivated sellers and your goal is to get your hands on as many of them as you can.
Granted, you may not be able to get ahold of a lot to begin with, and that’s alright. Start off with just one or two for now. The more familiar you get with investing, the more lists you’ll find out about and some may even fall into your hands.
Need a motivated seller lead list? Here’s your homework:
- Contact realtors for expired listings
- Look for 30, 60, 90-day late lists
- Get foreclosures, defaults, out of state owners lists
- Check Craigslist for FSBO
- Check FSBO websites
- Get ahold of recent divorce list
- Call For Rent ads
- Look for vacant homes
- Look for properties with liens
- Get ahold of lists attorneys will have
- Look at some of the companies who cater to this, such as Listsource or Brokers Data.
Week 2: Get Busy Marketing
When you get your hands on your lists, it’s time to get down to marketing business. You’ll need a strategy for marketing, and this strategy you can continue to fine tune as you grow as an investor. Many successful real estate investors start off with three key marketing angles:
- Direct Mail (perhaps a postcard, brochure, or letter)
- Phone calls
- Using a website squeeze page
This isn’t a “one size fits all” approach. Some will have better success with one marketing tactic over another. Some will use all three, and some will use one or two. The key is to just start something, and work from there.
Week 3: Send your direct mail out
Marketing is a numbers game, so keep this in mind as you create your direct mail pieces. This week, go ahead and mail your direct mail pieces out to your list of motivated sellers. Keep in mind that it often takes more than one contact for someone to “bite the bait”. Don’t grow disappointed if you don’t hear back from as many people as you’d like. Marketing takes time and patience on your part. Stay optimistic.
Week 4: Following up with leads
For those who contact you, set up a phone appointment where you can get more familiar with them and their property. Don’t focus so much on this first phone call with trying to sell them. You want to build trust with them. Begin building a relationship with them. Be genuinely concerned about their plight at the moment. When you can make an emotional connection with the sellers, you have a much better chance at them inviting you to sit with them and have a conversation about business. They’ll be more apt to trust you with the sale of their precious home.
Ask them questions like:
- How are you doing? (Don’t get right to it. Create rapport.)
- What is the reason you want to sell? (Let them talk. This is their beloved home, and they’re in a bind.)
- How long have you lived there?
Keep in mind that you’ll have a specific presentation for the phone, the first face-to-face meeting, and the closing. You’ll learn these skills, as it is a system. You’re presenting, educating, and negotiating, but your first contact will be to build rapport and trust.
In your marketing materials and in your conversations, you should be spending some time focusing on how you can ease their pain and struggle. You want to relay to them that you can provide them with a helpful solution or service for the predicament that they find themselves in regarding their home. This will help you establish trust, and ultimately, help them trust you with selling you their home.
The key to my Unlimited Funding Program is to target those who are motivated to sell. I assure you there are always a segment of people out there who are motivated and ready to sell immediately. Now, move forward with your goals in the forefront of your mind, doing the necessary work to manifest those goals. You really can create the kind of lifestyle you desire, and I’m happy to help you along the way.