Millionaire Real Estate Investing with Jim Pellerin

Episode #115 - Why You Need Motivated Sellers

October 1, 2020

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I want to talk about motivated sellers and why you need motivated sellers. One of the big things in real estate investing is you are always looking to make a profit. Obviously, otherwise, you wouldn't be investing in real estate.πŸ‘¨β€πŸ’ΌπŸ’°πŸ˜οΈ

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The best way to make a profit is when you buy it. One of the ways you buy or should be buying is always looking for motivation. Meaning you are always looking for people that own properties that are motivated to sell.πŸ’°πŸ‘€πŸ‘¨β€πŸ’ΌπŸ˜οΈ

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Now, what does motivation mean? So people are motivated to sell for many reasons. Well, actually there are three quick reasons. Death, Divorce, and Debt.Β  death means if there is a property and the owner dies, or one of the owners dies and either the person, if it's a spouse now stuck with the property and they are trying to figure out what to do with it, and they have to sell it, or if it's owned by a parent or somebody who leaves you their property.β˜ οΈπŸ‘«πŸ’°πŸ˜οΈ

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Now you have this property, you don't know what to do with it so you've become an accidental investor or an accidental landlord. Meaning it's something that you've acquired accidentally. Now you are trying to figure out what to do with it.πŸ‘¨β€πŸ’ΌπŸ˜οΈ

As a result of death, you own this property.Β 

Another one is divorced, going through a divorce. You are now a single person and you are trying to maintain the payments on the property and you just can't keep up. As result, you are motivated to sell it as well.πŸ‘«πŸ˜οΈ

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The last one is debt. As a result of spending, or you got yourself in a difficult situation, you've accumulated a lot of debt. Maybe it's not your fault. Maybe it was a result of a job loss, or you've moved. It's a whole bunch of scenarios that fall under that debt.πŸ’°πŸ˜οΈ

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Negotiating with motivated sellers is called a business negotiation which is quite simple. You explained to them what you are looking for, because usually when you are looking for properties for motivated sellers you should try to do one of two things:πŸ—£οΈπŸ‘¨β€πŸ’ΌπŸ˜οΈ

You are either trying to wholesale it, which means you are trying to acquire the property so that you can give it to somebody who's going to fix and flip it, or you are trying to acquire the property and maintain and hold on that property as a rental.

Either way, you want to try to acquire the property at a price that's as low as possible so that you can make money when you purchase it. This is why you want to have motivated sellers. Now it may sound very predatory based on what I've just said. I told you, but not at all. Usually, these people are in a difficult situation and they are looking for a solution and you can become that solution.πŸ˜οΈπŸ’°πŸ‘¨β€πŸ’Ό

To recap, when looking for real estate to invest in, make sure you are always looking for motivated sellers.πŸ‘€πŸ‘πŸ‘¨β€πŸ’Ό

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