Every investor wants to find property that can be turned for a profit, right? That’s the goal and the dream! But, not every investor knows what to look for to find a property that will actually achieve that goal.
Now, I’ve learned the hard way what does and does not work and it cost me TENS of THOUSANDS of dollars to do it. But today I am teaching you this information for FREE because I know how important it is.
How to Find Property Owned by Motivated Sellers
Before we get started I want to go over a few phrases that we will be using in this post. The first one is “motivated seller.” A motivated seller is the owner of a property who is just ready to be done with it and get it off of their hands. They could own the property outright; maybe they inherited it or something. Or they could be paying a mortgage on it, but need to move fast. Sometimes they are even landlords who own an apartment building and they hate being a landlord! These people exist all over the place, so you need to know how to get out there and find them.
Second, we are going to talk about “creative financing.” To keep things simple, creative financing is basically everything other than your standard mortgage loan or cash payment for a property. This includes owner financing, subject to, lease options, wraps, etc.
Creative financing changed my entire investing process and is exactly the style of investing I have used for years.
It is also what I teach my ladies in the flock and it is GOLD!
So, what we need to know is how to find the owners who would be open to this kind of deal and that is what I am going to talk about today.
Now let’s get into it.
#1 Find Empty, Vacant, Abandoned Houses
Y’all, I know this is not glamorous, but it works. These houses that you see all run down and busted up are usually ones people inherited, sometimes from two or three states over. Often I find the owners don’t even know where the house is! No one lives there and it is just an eye sore and headache for everyone involved.
If you can get a hold of the owner, make an offer with a bit of money, and start making payments, BOOM! This is how you find property that is likely even free and clear. Then you can set up an owner financing deal SUPER fast! It’s awesome.
Remember, if they own the property, even free and clear, they still need to pay property taxes on that baby.
And they don’t even live in it! People HATE this! And you get to be the one to come help them out of this annoyance in their life.
Did you know that people even forget that they own houses? I’m serious. There are people that actually forget that they own a house. If you can find that house, talk to that owner, and make a deal to help them unload the property, you have it made!
#2 Find “Bridge People”
Okay, so let me explain who these people are. “Bridge people” are usually college graduates who buy a little house but after getting married, and maybe having a kid or two, they need a bigger house. But, instead of selling the first house, they keep it and rent it out. Well, now they own two properties and have basically become “accidental landlords.”
And as life goes on the same thing occurs again. They outgrow their second house, but instead of selling it, they rent it out again. Now they own three properties and are living in the third one. This might happen another time or two, but either way these are owners who have not sold off the properties they live in.
Somewhere down the line, though, they realize how overwhelmed and stressed they are with all of these properties.
This is a great way to find property as an investor. These people need help to unload one or more of the properties and you can help them solve their problem! It is SUCH a blessing for people when they get that relief. This is why I see investing as a win-win-win. When you do it right, everyone wins!
#3 Find the “Broke” People
Life happens, y’all, and when it does a lot of people tend to go through a series of events that could lead them into a path of foreclosure and bankruptcy. It is very sad, but you can still sometimes help these people to work out a solution so that everything does not fall apart. These are not my favorite deals, but it is possible to figure out a way to help these people with creative financing, too.
If you find property with overextended owners, you can structure a deal where you get 10-20 years to pay them back for the property. Think of how much of an answer to prayer that is for them! They don’t have the money for an agent or to market it themselves, etc.
You can be a HUGE blessing for them in a really difficult time.
No, we are not talking about taking advantage of people. We are talking about using the knowledge we have as investors to help keep the bottom from falling out on people when we can. That is what we are all about here in the flock. Again: win-win-win.
Are you ready to find property that you can have under contract FAST?
These deals exist, y’all. They are everywhere, but you need to get out there and do some driving for dollars to find them. So many people all across America are hurting financially and need the help only you can give. If we do this right, we will all be swamped with business.
Don’t overlook these deals. Remember what Thomas Edison said, “Opportunity is missed by most people because it comes dressed in overalls and looks like work.” The opportunities are out there, but you have to be willing to do the work. Now, get going!