- Two critical things to understand about potentially motivated and distressed sellers
- How you will actually find deeply discounted real estate deals to acquire or wholesale
- Why you can’t help everyone
- How to go about properly identifying pain points with motivated sellers
- How to shift your mindset from desperation to efficiency.
If you’re a real estate investor, a real estate wholesaler, a landlord, or a rehabber, I know you’re looking for deeply discounted deals. This is why I want to share with you a belief you must adopt.
Motivated Sellers Desperately Need You!
I know that when you just get started and when you’re trying to build that momentum in your real estate investing and wholesaling business that it’s a challenging belief to really have because all you’re talking to are people who want full retail price. They want that full market value for their property.
They’re not interested in selling for a discount.
You might be scratching your head thinking “Steven, what are you talking about, man?”
I get that frustration, that “sellers needing you” may not have been your experience thus far. That’s why by uncovering two main points about the majority of most sellers will help you operate in a more efficient way from a business standpoint:
- Most sellers don’t even want to sell their house in the first place, therefore they’re not even a seller.
- For those that do want to sell, they usually don’t want to sell for any sort of discount. Even if they do? It’s typically a few thousand dollars off the market value of the property.
What does that mean? Should you not be a real estate investor?
Does that mean you should just give up and quit now?
No! Real estate investing and more specifically wholesaling real estate is still one of the most proven routes to financial freedom and becoming a millionaire, or whatever that may mean to you.
What this does mean, instead, is that you have to get really good at finding discounted real estate deals.
The first step is asking yourself “Do I believe that there are quality deals are out here in my market?”
A lot of times, a limiting belief is such as “my market is special, it’s different. It’s too competitive”
Maybe you’re in the middle of Montana or in a small farm town of 100 people, but there is still likely one or two premium buyers that are just buying up everything. There are ways to even profit in those markets.
“How can I start to hone in on that small percentage of people who do want to sell and are willing to sell their property for a discount?”
One thing you have to accept is that not everything is a deal and you can’t help everyone.
Read that again.
Heck, go ahead and write that on a sticky note or put it up on your whiteboard.
If you try to help everyone, if you try to cast such a wide net, a lot of times you will end up spreading yourself too thin. You end up focusing on things that are not going to lead you to get results in the first place. This is especially true if you are juggling a full time or even a part-time job while working your real estate business.
This is challenging in the beginning because you have so much motivation and desire to change your circumstances. You’re so hungry and sometimes so desperate that you don’t care what it is, you want to make something into a deal.
The truth is you can’t make something into a deal.
You don’t have enough creative speech in you to change an unmotivated seller into a motivated one. I hate to break it to you, but you’re not that slick! 🙂
That doesn’t mean you can’t be respectful or add value to the seller’s situation. You can still be honest and point them to the right direction that will serve them better.
You can’t help everyone and everything won’t always be a deal.
This was hard for me too. When I got started, I was like “well, if I just have the right strategy. Maybe if I really study up on the lease options and seller financing or owner financing,” and so on. I wanted to reach out and get good at different things, like mobile home, land, apartment, and other categories because there are so many different options.
That was my thought process. I was trying to be a jack of all trades until a mentor shared something super important with me and I want to share with you know.
The person who tries to be a jack of all trade ends up being a master of nothing.
If you try to do everything at once, especially in the beginning and even in the intermediate phases of your wholesaling business, you’re going to spread yourself thin and you won’t get good enough deals to justify the time and effort you’re investing.
You have to put your blinders on and truly accept that not everything is going to be a deal. Even sellers that appear motivated aren’t always truly motivated and you could be wasting your precious time.
So by now, you might be wondering the obvious question:
How do you get really efficient at finding good leads and knowing if someone is motivated enough that it becomes a great discounted deal for you?
By asking the right questions and doing enough and the correct marketing to generate enough phone calls so that you can speak with enough people. Yet, even with all those calls, not all of them will sell to you for a discount.
If a seller doesn’t have a pain point or a problem, they will not be a motivated seller.
What are pain points?
Think of a tired landlord. Maybe this property is one of ten they have, and the tenants just wrecked it. Maybe they’re emotionally fed up and they’re ready to dump it.
Maybe another property has a hoarder living in it and the property is in horrible shape from the lack of care and maintenance.
Maybe it’s an inherited house, and it’s 40 years old and too dated to sell for market value.
Pain points can be anywhere from personal distress to physical property distress, such as foundation issues or fire damage.
For those sellers, they usually do not necessarily put the property on the MLS because it won’t sell fast enough or their situation is too painful to wait around for a potential buyer.
This is where YOU come in.
When you’re asking the right questions and building rapport, you want to identify whether they fall into the following categories:
- “Do they want to sell somewhat soon and do they have motivation?”
- “Are they part of the 95% that just want to sell for full retail and they’re not in a rush?”
If they don’t have a problem, you can’t help them. There is no sense in wasting their time or your time.
Operating your business this way frees you up from trying to make everything a deal and from wasting everyone’s time needlessly.
Motivated sellers are those who need us to solve their problems, to help alleviate their pain points.
They need a cash buyer. They need someone who actively listens and shows empathy while bringing them a solution.
In this industry, there are a lot of one-off situations so you have to get creative and offer a solution to the seller to help them solve their particular problem. By doing this, you add so much value to their situation.
I promise you that by adopting the belief that motivated sellers desperately need people like you and me will help you so much. You will truly be able to drive your business forward.
Again, I wholeheartedly understand how challenging it is, in the beginning, to believe in that, when you fall into the pattern of “nobody is selling. I’m tired of talking to people where there’s no equity. They don’t want to sell.” It’s easy to feel frustrated, but when you switch your mindset and frame and try to focus on the people who you can actually serve and help, it will go a long way.
It may take a leap of faith, but once you get through a couple of deals, you’ll realize that what I’m saying and what I had to learn myself is the truth.
It is so empowering and I hope you can really use this belief to improve your business from here on out!
It’s my hope that this video brings you a ton of value and helps you to excel in your business. Remember nothing will change if you do not act on the concepts in this video.
If you enjoyed today’s video in blog post I’d love to hear from you in the comments. Let me know what resonated with you the most!
See you in the next one 🙂
To your success,