Is Now A Good Or A Bad Time To Find Motivated Seller Leads?
Generally, motivated sellers are not governed by the season or a hot or cold market so the answer is... it's more important to consider what you plan to do with the property.
If you're plan is to find a motivated seller, buy property, fix it up and then flip it in about a month, then the current state of the market is important. But if you're plan is isn't to sell the property for profit within a month or two but rather to live in the house for a year or so, then the current market isn't as much of a factor as it would be if you were turning the property over quickly.
The trend will change and, at some point, a strong market will cool off and a weak market will get hot. Whether the housing market is going up or down, using modern real estate marketing techniques can turn you into a motivated seller magnet by getting property owners, eager to sell, calling you for help.
Simply sending out newspaper ads in hopes of getting motivated seller listings is a hit or miss effort at best. Direct mailing is now one of the more successful strategies used by real estate investors tuned to the insurance of health of the Real Estate market to find motivated sellers across a given area. It may take a little more time and effort but the payoff is worth it.
No one really knows when the housing market will turn but you can always find people that claim they have the inside track. But... just knowing the state of market is about to change doesn't give you an advantage when finding mativated seller leads anyway. There are many other factors to consider when you plan to flip real estate property for profit.
Let's say you've found a motivated seller lead in California that looks promising. California's soft regulation enforcement could be a big part of the picture. What could be a sweet real estate deal in one state could be nothing but a headache in another state.
So what's important when finding a motivated seller? First of all, take a look at how the neighborhood is appreciating compared to the surrounding neighborhoods. A good idea would be to start with a neighborhood that appreciates more quickly than it's neighbors.
Next, look at houses in areas prime for development or transitional neighborhoods. If you're willing to sit on your investment for a while before flipping real estate, your equity will increase in proportion the to the improvements in the surroundings. Property purchased relatively cheaply could become a real investment property gem.
Are there schools close to the property or is a fire house near by? Is there a new housing development in the area? How about an old, broken down warehouse that may degrade your property value? Many variables can influence the profitability of an investment property.
It's difficult to predict the turns a deal can make when you're following up on motivated sellers but if you do your homework and compare the appreciation of the neighborhood to the expected profit, you'll be able to weather the hot and cold cycles of the property investment market and come out a winner in the end.
Comments...
It's relatively easy to make a great deal of money in real estate when you have an endless supply of motivated seller leads. A quality motivated sellers service is a mandatory marketing necessity and newer investors will find it a cost effective way to start buying houses.
I've been around long enough to know that motivated sellers are key to success as a real estate investor. They can also be very difficult to locate. Newspapers, yellow pages and radio ads can cost a ton of money. Be careful... you can waste days on the phone with sellers on the fence. You want to talk with motivated sellers that need to sell and not just sellers that just want to sell.
It's not uncommon for agents to be unaware of motivated seller Real Estate leads. That type of property is not often listed due to the motivated sellers state of mind. If you want to flip houses focusing on motivated sellers, understand that it's a low volume market and although motivated to sell quickly, homeowners are often overwhelmed and not prone to taking action on their own. Nevertheless, they need their situation resolved as soon as possible. Ultimately, it's up to you to find investment property not listed in the usual manner.
Placing ads in the local newspaper is a common method of finding motivated seller leads that is often overlooked. The idea is that if you place enough ads you will eventually come across e seller with a deal. While it's true there are hundreds if not thousands of ads in the paper, you may not find a motivated seller for quite some time let alone close a deal. Newspaper ads are not a circulation answer and motivated sellers are not likely to sift through ads in the paper to find buyers. They are often overwhelmed with their problem and don't know what direction to take. Trial and error with your ad wording is key to success although not a high volume answer.
