Real estate has always been one of the more competitive industries out there. This trend shows absolutely no signs of slowing down anytime soon.
Sometimes, it’s a simple matter of more people wanting to purchase a home than there are homes for sale. Other times, the reverse is true. Regardless, if you’re selling real estate, whether for personal or professional reasons, you need to be able to understand the climate you’re currently operating in and know exactly how to act to make the most of it.
Case in point: finding a potential seller as a wholesale real estate investor. You know that if you could find that one piece of property in a hip new area, you’ll be able to turn a profit. Finding a seller willing to let go of a property in such a competitive market is much easier said than done. But “difficult” doesn’t mean “impossible,” and by keeping just a few basic tips in mind, you’ll significantly increase the chances of finding that motivated seller you’ve been waiting for.
- Research Potential Leads
One of the best ways to find motivated sellers in the modern era involves taking the time to research potential leads. If you’re trying to get the right message in front of the right person at the right time, the Internet has made that easier – and faster – than ever.
Start by making a list of properties you are interested in that fit your investment strategy. Once you have identified properties and are ready to contact the owners, consider skip tracing or using real estate apps to provide you with names and contact information. If you don’t have the budget, you can also seek out information from public property records.
Once you have some names for potential leads, you can turn to social networking sites like Facebook to learn more about them. Think about the sheer volume of information that you can learn from someone based on their Facebook profile. You know their age, their education level, where they work, where they live. What they like and dislike, what they need and want. Next, you’ll be able to craft a message that speaks uniquely to each lead based on the information you find. It’s not necessarily going to happen overnight, but with the right approach, you will come to realize that it is a lot easier than you think.
- Timely and Personalized Communication
Now that you have thoroughly researched your leads, you should have a good idea of what messages might resonate. Remember that finding motivated sellers is ultimately all about communication. But it would be a mistake to turn this into a “numbers game.”
Sometimes, real estate professionals attempt to send out fliers, postcards, or other printed collateral to virtually everyone who lives in a specific area. They outline what they’re looking for in a seller and include their contact information. The theory is that if you blast that message to the largest possible audience, someone is definitely going to call you, right?
The issue is that this “one size fits all,” generic approach to communication fails to see the forest for the trees. Think about every time you’ve ever received marketing materials addressed “Dear Sir or Madame” or “Dear Friend and Neighbor” in the mail. Now, think about how quickly you ignored or threw those materials in the trash.
What you need to emphasize is timely, personalized communication. Get those messages to potential sellers quickly and make them feel like you’re speaking directly to them. Use their name. Talk about their property. Let them know what you can do for them specifically.
- Relationship Building
Finally, finding motivated sellers involves focusing less on the immediate transaction and more on building a mutually beneficial long-term relationship. If you’re having difficulty finding exactly what you’re looking for by targeting sellers directly, switch your focus to other real estate professionals in your area. They may know of some great off-market opportunities that you might not have access to.
Are you going to be able to cold call a real estate agent or investor, tell them what you want, and have them immediately serve it up to you on a silver platter? No, of course not. You must cultivate a relationship with these people that benefits both of you. You need them to help you find A) a seller with a situation that matches exactly what you’re looking for and B) one that they also don’t want anything to do with in a professional capacity.
This, too, isn’t necessarily going to happen incredibly quickly. But if you build a strong network in your community, you’ll be able to leverage the power of collective expertise and connections to your advantage.
All this is crucial in terms of not just finding a motivated seller, but for getting them to take your desired action as well. You don’t just want them to confirm that they’re out there. You want them to take the next step to your mutual benefit.
Invest Time and Energy into Potential Sellers
Overall, it doesn’t really matter what effect supply and demand appears to be having on the surface. Those motivated sellers are always out there, even if there will be times when their numbers are a lot smaller than you’d like.
It’s your job not just to find them, but to do so efficiently. Every day that goes by where you don’t is a day you’re A) not making money, and B) potentially giving someone else the chance to get to them before you can. But by following tips like those outlined above, you’ll have the foundation in place to enable the most successful real estate transactions possible.
Having a motivated seller in place early on lets you avoid a lot of potential issues later. Plus, it helps protect both you and the transaction from constantly fluctuating market conditions and demands as well.
