How To Buy Houses From Motivated Sellers In Real Estate Investing

How To Buy Houses From Motivated Sellers In Real Estate Investing

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Motivated sellers remain the number one source of the most profitable deals no matter what your real estate investing business model is. Efficiently locating good deals from motivated sellers and closing them must therefore be a part of successful real estate investing.

In this article, we point out important areas you must focus on in your business.

To learn how to attract motivated sellers, see one of my previous articles. Once you have identified motivated sellers, the next step should be to secure and close the deal.

In my business, I get all my leads through my real estate investor website. Approximately half the motivated sellers submit their information directly through the website. The other half are entered by my virtual assistant who calls back motivated sellers who choose to use the phone, and she pre-screens them for me.

I therefore receive all my deals fully pre-screened, and pre-negotiated. I can therefore tell in a few minutes if I have a deal or not.

You must then set up an appointment to see the house as soon as you identify a good deal. This is mainly because you must estimate repairs. If you have bought a few houses, then you know you need about 10 minutes to come up with a fair ball-park repair estimate.

You just need a rough estimate, you do not have to break it down to the nail.

If the numbers look good, always make sure you always carry a purchase / sale agreement (contract) so that you must lock that deal as soon as you see the house.

If you later happen to crunch the numbers and find you cannot make the deal happen, you can always cancel the sale.

If the deal works, fax the contract to the title company so they start title work. Remember to deliver or mail the earnest money so the contract becomes binding. Earnest money should go to the title company, not the seller.

depending on your exit strategy, the next steps are determined by your business model:

1)Wholesale the deal
This is when you market the deal to other real estate investors if your exit strategy is to wholesale the deal. With a good real estate investing website that builds a buyers list for you, you would just need to email your new deal to your wholesale buyers list.

If you do a simultaneous closing, you then sign a contract for you to sell the house. Alternatively, you can assign the contract for an assignment fee.

The title company conducts the closing and disburses the money according to the contract.

2)Lease option / Lease to own
If your exit strategy involves taking over existing payments, then your title company should conduct the closing.

This is why it is important that you select a title company that works with real estate investors and understands various real estate investing business models.

3)Straight buy
If you plan to buy fix and sell, or keep as a rental property, then this is a straight traditional transaction that any title company can close.

Other business models would follow similar steps; these 3 are just the main ones.

When all is said and done, your success in real estate investing, largely depends on the efficiency with which you pre-screen your leads, follow up with them to tie up the deal, and efficiently close the deal.

About the Author:
Find out how you can run your real estate investing business from an interactive real estate investor website that automates most aspects of your business delivering pre-screened and pre-negotiated deals so you spend less money, time and effort while you close more deals.



Article Originally Published On: http://www.articlesnatch.com


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