If you should be a real estate investor or considering becoming one, you know (or soon will know) that real estate investing is focused on finding truly great deals and that starts with motivated sellers.
So, why does it surprise people when I speak on goal setting that I spend a lot of time on goal setting regarding motivated sellers. If you want motivated sellers, to attain most if not your entire other goals, then doesn't it seem sensible to concentrate on the motivated seller part of one's goals, at least at the start?
Anyone taking a look at my portfolio of audio CDs and courses will quickly find a pattern; over half of the titles are about finding motivated sellers. Exactly why is that? Let's think of it.
Let's say you have an objective to make $10,000 monthly from owning rental property. To find rental property that will provide you with excellent cash flow, you'll need to purchase the houses which have strong rents and try to purchase them as inexpensively as possible. How do you buy houses inexpensively? You will need to get sellers who have reasons to trade you equity they've in their residence for a remedy with their problem.
The cheaper you can buy your house, the more cash flow you are able to generate from your house and the quicker and more safely you are able to achieve your goal of generating $10,000 in rental income. Try buying houses for a high price and generating rental income from their store quickly. In every but a few markets, it's very difficult to accomplish (if not impossible).
But wait! You say your goal would be to generate income from wholesaling property... you may not need to generate cash flow as a rental. Well, motivated sellers are a lot more important to you.
Maybe you have tried to place a house under contract with a un-motivated (read that as inflexible) seller? It may be tough. In the event that you are trying to put a house under contract so you can wholesale it to some other investor for a 4 or 5 figure payday, you NEED to accomplish a few things:
1. Make the deal very attractive to the investor you are wholesaling it to (low price, great terms or both)
2. Gain control of your home so you can "show it around" without risk of losing it
I'm suggesting that you need motivated sellers--sellers with a need to sell--to have the ability to buy houses at a discount or who'll permit you to put your house under contract with a 30 or 60 day closing period so you have time to get your buyer.
Motivated sellers should be the key to your real estate goal setting. So, do you imagine me? Great, so listed here are 3 recommendations on motivated seller goal setting.
Tip #1: Motivated Seller Quality Comes From Quantity
While you may have goals about converting x quantity of potential sellers to actual sellers, you'll need to realize that you need to sift and sort through lots of sellers to get truly motivated ones. The opportunity of you finding a motivated seller after speaking with half a dozen sellers is pretty low. Despite having super marketing materials and a wide selection of what I can assist, we typically need to undergo about 10 sellers to get 1 that's motivated enough that individuals could make the deal work.
Tip #2: Write Down A Specific Number And Track It Daily
"My goal would be to speak to a lot of motivated sellers." Utter nonsense. You have to have a particular number to speak to in a particular time frame and track the results daily.
"My goal would be to speak to 50 motivated sellers each month." Getting better. Each day you'll need to see if you're on course to achieving your goal of speaking with 50 motivated sellers that month. If not, you'll need to ramp up your marketing to get more motivated sellers calling.
On our Real Estate Investor Database (the ULTIMATE contact and business management tool for Real Estate Investors), we've only a little graph at the top of virtually every page that demonstrates to you the "goal line" for how many motivated sellers you'll need to reach your goal and where you are. If you should be not meeting, the target it shows up red. If you have met your goal for the afternoon, it's green.
Tip #3: It Is Far Better To Sift and Sort
If you've have tried to make a marginal deal work and discovered the hard way so it could cost you large amounts of time, money and energy you might start getting more selective in your deals. Here's some great advice that I received from a number of my mentors:
"Don't try to make a marginal deal work, go locate a better deal."
If you have 10, 20 or 30 sellers calling in each week, it is a lot easier to express no to a house that you will be not 100% sure of... maybe the worth of the property is questionable. Maybe you may not just like the looks of the problem of the roof. Maybe you don't trust what the seller is telling you. If you have a large number of other sellers to speak to, it's easier to express, "I'm planning to pass" and move on.
In addition, you'd be surprised at simply how much better the deal gets when you really do walk away and they come back to you per week, month or many months later.
So, as you begin to create your goals, keep in mind that while other goals are very important, the absolute most critical and key goal for real estate investors is the target you set for motivated sellers.
You can get a totally free real estate course and fully analyzed real estate deals or visit finding motivated sellers the for more great articles and information.
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