If you should be a real estate investor or considering becoming one, you realize (or soon will know) that real estate investing is all about finding truly great deals and that starts with motivated sellers.
So, why does it surprise people when I speak on goal setting that I spend a lot of time on goal setting regarding motivated sellers. If you need motivated sellers, to reach most if not all of your other goals, then doesn't it seem sensible to target on the motivated seller part of your goals, at least at the beginning?
Anyone considering my portfolio of audio CDs and courses will quickly find a structure; over 1 / 2 of the titles are about finding motivated sellers. Exactly why is that? Let's think about it.
Let's say you have a target to make $10,000 monthly from owning rental property. To find rental property that will provide you with excellent cash flow, you will need to get the houses which have strong rents and try to get them as inexpensively as possible. How do you buy houses inexpensively? You'll need to get sellers who've reasons to trade you equity they have in their residence for an answer with their problem.
The cheaper you can buy your house, the more cash flow you can generate from your house and the quicker and more safely you can achieve your goal of generating $10,000 in rental income. Try buying houses for a high price and generating rental income from them quickly. In every but a few markets, it is extremely tough to complete (if not impossible).
But wait! You say your goal is always to generate income from wholesaling property... you don't have to generate cash flow as a rental. Well, motivated sellers are even more very important to you.
Maybe you have tried to put a house under contract with a un-motivated (read that as inflexible) seller? It can be tough. If you are trying to put a house under contract so you can wholesale it to another investor for a 4 or 5 figure payday, you NEED to complete a few things:
1. Make the offer very appealing to the investor you're wholesaling it to (low price, great terms or both)
2. Gain control of the home so you can "show it around" without threat of losing it
I am suggesting that you need motivated sellers--sellers with a have to sell--to manage to buy houses at a discount or who'll allow you to put your house under contract with a 30 or 60 day closing period so you have time to get your buyer.
Motivated sellers ought to be the key to your real estate goal setting. So, do you imagine me? Great, so here are 3 tips about motivated seller goal setting.
Tip #1: Motivated Seller Quality Comes From Quantity
While you might have goals about converting x amount of potential sellers to actual sellers, you will need to realize that you need to sift and sort through a lot of sellers to get truly motivated ones. The chance of you locating a motivated seller after talking to six sellers is pretty low. Even with super marketing materials and a wide variety of what I could use, we typically have to go through about 10 sellers to get 1 that is motivated enough that people may make the offer work.
Tip #2: Write Down A Specific Number And Track It Daily
"My goal is always to speak to a lot of motivated sellers." Utter nonsense. You have to have a specific number to speak to in a specific period of time and track the results daily.
"My goal is always to speak to 50 motivated sellers each month." Getting better. Every day you will need to see if you are on the right track to achieving your goal of talking to 50 motivated sellers that month. If not, you will need to ramp up your marketing to obtain additional motivated sellers calling.
On our Real Estate Investor Database (the ULTIMATE contact and business management tool for Real Estate Investors), we have only a little graph at the top of almost every page that shows you the "goal line" for the amount of motivated sellers you will need to attain your goal and where you are. If you should be not meeting, the target it appears red. If you have met your goal for the day, it is green.
Tip #3: It Is Far Better To Sift and Sort
If you've have tried to produce a marginal deal work and found out the hard way that it could cost you large amounts of time, money and energy you might start getting more selective in your deals. Here's some great advice that I received from a number of my mentors:
"Don't try to produce a marginal deal work, go locate a better deal."
If you have 10, 20 or 30 sellers calling in weekly, it is a lot easier to express no to a house that you're not 100% sure of... maybe the worth of the property is questionable. Maybe you don't like the looks of the situation of the roof. Perhaps you don't trust what owner is telling you. When you yourself have dozens of other sellers to speak to, it is easier to express, "I am likely to pass" and move on https://www.scamrisk.com/find-motivated-sellers/.
In addition, you'd be surprised at just how much better the offer gets whenever you do walk away and they get back to you per week, month or many months later.
So, as you begin to create your goals, keep in mind that while other goals are very important, the absolute most critical and key goal for real estate investors is the target you place for motivated sellers.
You will get a totally free real estate course and fully analyzed real estate deals or visit the for more great articles and information.
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