Have you ever tried to find real estate deals, only to uncover that the search was only half the battle?
It’s no longer enough to find real estate deals; you have to know how to close on them. Today’s real estate landscape is too competitive to simply think you can have one skill without the other. That said, it’s not only imperative that you know how to find real estate deals, but that you also know how to give yourself the best odds of closing on them — the two go hand in hand.
It’s worth noting, however, that there are some tricks that can simultaneously help you find deals, and — better, yet — actually help you close on said properties. There are two examples, in fact: determining a seller’s motivation and looking for properties that have been on the market for a relatively long period of time. Not only can these two tricks uncover some good deals, but they can give you the bargaining chips necessary to close in a timely and profitable fashion.
Find Real Estate Deals & Close With The Best Of Them
1. Uncover The Seller’s Motivation
Real estate is a people business; at no other point in an investor’s career do those words carry more weight than at the time they are trying to land a deal. If for nothing else, the perfect deal acquisition strategy is one of rapport. It’s true about what they say: it’s about who you know. What they don’t tell you, however, is that it’s not simply about who you know, but rather how well you know them. For I am convinced that the best way to find real estate deals that will contribute to your bottom line is to simply talk with respective owners — take a minute and really get to know them. How well, exactly, can you get to know the intentions of the person looking sell their home?
You may be surprised to learn that there are almost always ulterior motives; reasons besides money that an individual or family may be looking to sell. And it’s that motivation that you need to tap into. Perhaps the seller is in a hurry due to the recent acceptance of a new job that will have them relocate to another part of the country. Perhaps they can no longer afford the home they are living in. Regardless of what the reasoning may be, it’s in your best interest to determine their particular motivation. Then, and only then, will you be able to formulate an offer that is too good to refuse. At the very least, you can’t possibly know what type of offer will garner acceptance if you can’t identify what it is the seller really wants.
Only once you uncover the seller’s true motivation can you craft the perfect offer. Say, for instance, the seller accepts a job 2,000 miles away, and needs to start sometime in the next few weeks. If that’s the case, it’s safe to assume time is of the essence. And while information as simple as this may sound trivial, it’s anything but. For the truly savvy investor will recognize the urgency for a speedy closure. If you can close in a time frame they deem acceptable, you may be able to place the odds in your favor.
In identifying what it is the seller truly needs, and providing it for them, you are much more likely to find real estate deals in any market. Better yet, you may even be able to negotiate a better deal on your behalf if you find out there is something else you can offer them.
2. Strive To Be First, Or Last
It’s no secret: the “early bird gets the worm” in just about every industry, and for good reason. Punctuality is not only a desirable characteristic to exhibit in a professional atmosphere, but it simultaneously demonstrates an inherent level of intent and discipline, each of which are invaluable to anyone working in a field as relationship-centric as real estate. It’s worth noting, however, that punctuality isn’t solely relegated to personal obligation, but that of the typical business as well. Businesses that have embraced the idea of “if you’re not first, you’re last,” have demonstrated an increased propensity towards success, and those heavily invested in the real estate market are no exception to the rule.
If for nothing else, real estate investors that are first on the scene at a subject property stand a better chance of landing the deal in question. For starters, they have beat the competition to the punch. Perhaps even more importantly, however, they have made an impression on the seller — and a good one at that. And what is landing a real estate deal if not for cultivating a relationship? Remember, real estate is a people business. If you find yourself in the favorable eyes of a seller, the odds of acquiring the deal are tilted greatly in your favor.
I want to make it abundantly clear: it’s almost always better to be the first one on the scene. However, such a sentiment isn’t without a significant caveat. Namely, if you are not first, it’s not better to be second, or even third. In fact, I would argue that if you are not first, it’s better to be last, but perhaps not in the sense you would assume.
I am not advocating that you show up late to a real estate deal the same day as other investors. If you are the last one to show up at a new deal the same day as everyone else, there’s no better way to sabotage your own efforts. However, those investors that play the long-game could be in for a nice surprise. In the event you can’t be first, seek out properties that have sat stagnant on the market for a relatively long period of time. I can guarantee you won’t be first to make an offer, but if you time things right, you may find yourself with a golden opportunity.
At the very least, it’s safe to assume the home hasn’t sold for one reason or another. Perhaps the owner was asking too much, or maybe they let on that it was in better condition than it actually was. Whatever the reason may be is irrelevant. What is important, however, is the seller’s motivation at this time. It stands to reason that a seller with a home that hasn’t sold is growing more desperate by the day. If for nothing else, a home that doesn’t sell become less and less attractive to buyers — increasing “days on market” is never a good sign for owners. That said, it’s time to strike while the iron is hot. If you notice a home that hasn’t sold in quite some time, it’s in your best interest to talk to the seller and find out the details. Chances are, they are more willing to part ways with the property at the time you confront them than they were when they first put it up for sale, and that means you could find yourself with a nice deal on your hands.
If you not only want to find real estate deals, but also close on said deals with a higher degree of success, may I recommend these two strategies? Uncovering a seller’s motivation and opening yourself up to the possibility of dealing in properties that have been on the market for a long time have proven they belong in an investor’s arsenal of tricks.