The Millionaire Blog

There are two key conditions that must exist in order to the fixer-upper investor to the purchase of a property. One is the condition of the property; if it needs work to bring it up to market conditions then you’re likely to get a good deal. However, if the second condition does not exist then you may be wasting your time.

Finding a fixer-upper property is not too difficult. Drive your selected neighborhoods; check the classified, talk to a Realtor. The hard part is finding a “motivated seller”. A motivated seller is the second and most important condition that must exist in order for you as an investor to get the best possible price. Remember you make your profits when you buy, so the lower your purchase price the more profit you will make, assuming you haven’t underestimated repairs and can sell at a good price in reasonable amount of time.

What is a motivated seller?

A motivated seller is someone who has a very strong need or desire to sell his or her property and nothing else but selling will work for this individual. If you’re chasing a seller who has no motivation to sell you are wasting your time.

During your initial meeting or phone conversation with the seller you need to determine the real reason the seller is motivated to sell. This is a very important part of your negotiating strategy. Once you know the seller’s real motivation for selling you will be in a better position to structure an offer/solution that meets their need and yours.

The Fixer-Upper Investor is also a problem solver. Solving other people’s problem is the key to our success. Ask questions to help you understand the seller’s situation. Dig deep, without being intrusive, be attentive, be creative.

If you have a truly motivated seller you will have the most success if you can help them and provide a solution that meets their needs. Don’t forget motivated sellers are also very emotional and you will need to keep this in mind when dealing with them. Treat them with respect and empathy and you will gain their trust and their business.

11 Common Reasons That Motivate Seller

1) Financial difficulties: The owners of the property have money problems and are unable to pay their mortgage. People have money problems all the time due to a host of reasons. This shortage of capital creates a situation that prevents them from paying their mortgage and forces them to sell their home. These sellers are motivated by their need to save their credit and or their relationship.

2) Seller may have problems within the family such as a death, divorce, illness:
2. Seller is a “ For Sale by Owner”
3. Owners have lost their jobs or are about to lose their jobs.
4. The property was inherited and they want nothing to do with it.
5. House for Rent or Lease Option ads.
6. Owners live out of town-absentee landlords.
7. Owners have moved or changed employer. Usually means two house payments.
8. Owners are ill, in poor health, elderly, retired or disabled.
9. Their investment plans have changed.
10. Code violations the Owner cannot or is unwilling to correct