The Real Estate Insider Newsletter

Hi ,

Welcome aboard!

All of us at Dendi Group are looking forward to a long and profitable relationship with you. Our goal is to bring you the most up-to-date, informative materials available to ensure that you have all the tools you'll need to build your real estate wealth system.

We also buy, sell, and lease real estate ourselves. So feel free to contact us about any deals you have in the works, and we'll do the same for you. One good thing about real estate: There are always enough good deals to go around when you know what to do.

Together we CAN create wealth through real estate!

Gain the Knowledge. Live the Dream.

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Many new investors try to cut corners thinking that asking a lot of questions of prospective sellers takes too much time. What they don't realize is that they actually end up costing themselves much more time, not to mention money, because they didn't take the time to do it right.

My advice: TAKE THE TIME TO QUALIFY NOT ONLY YOUR BUYERS, BUT ALSO QUALIFY YOUR SELLERS.

You're thinking "Qualify a seller? What do you mean by that?"

Well, let's talk about how to master one of the primary skills necessary to be successful in this business.

Qualifying a seller is different from qualifying a buyer, but in some ways you still need to be concerned with the same types of information for both of them.

When you qualify a seller you're basically trying to find out if this person is worth your precious time. As we said before, the secret to making money in real estate is to only work with motivated sellers. Chasing sellers who aren't really motivated only wastes your time and costs you money. If this happens too often, you become frustrated and disillusioned. Eventually, you'll be one of the people saying that creative real estate doesn't work ...and you would be wrong.

There are two things you should remember from this article, if you remember nothing else. First, creative real estate only works when you work with people who truly need your help. Second, you absolutely should never presume you have the right to take advantage of anyone.

In order to stay in this business and build the kind of reputation that causes clients to be willing to accept your deals instead of the other guy’s, you MUST craft scenarios in which both you and the seller or buyer can both win. One-sided deals may work a few times but, in the long run, such deceptive will only serve to limit your opportunities because word will get around and people will not want to work with you.

So, that said, how do you find good deals and make sizeable profits while still keeping the people on the other side of the closing table happy?

Let's face it, the average seller doesn't want to take less than full market value for his property and many can afford to hold out for a deal that will give them maximum dollars at the closing table. A creative investor deal is not what he wants and there's little reason for him to even consider taking one. To go after this type of seller (what we call "an unmotivated seller") would be a waste of your time, money and effort because you basically have nothing to offer him.

That's why you should look for sellers who are motivated by circumstances, and whose situation can be solved using a creative offer. This is basically what a creative investor does - solves other people's problems.

As you learn this business, you will find that you spend about 80% of your time ferreting out the seller's true motivation and needs, and only 20% of your time actually working out a creative solution that satisfies both of you.

Thus it makes sense that you should first focus on determining which sellers have the motivation and right situation to permit a creative solution, preferably one involving nothing down.

So, the first question to answer in your mind about any prospective seller is this: How likely is this person to be willing to sell to me in a way that allows me to make a profit?

You'll get better and better at determining which sellers are motivated. And sometimes the best place to learn this is by meeting sellers in person. But first you need to learn to be able to quickly eliminate or disqualify anyone who is not in a situation where a lease purchase or other creative offer will work. The short answer to this is:

If a seller needs all of his equity out of the property right now, then you probably can't help them. The problem for you, as an investor, is to be able to quickly determine who needs their cash now, and who can wait. Usually the best way to approach this is to directly ask each seller this question:

"Mr. Seller, do you need all of your cash now?" and as expected, the seller will almost always say "Yes!"

That the answer I would give if asked that question. Wouldn't you?

Fortunately there's a way you can ask a few more questions to quickly determine if a seller really needs all the money, and whether or not he has the right situation for you to be able to help him out. You'll do this by asking other questions that allow you to discover if the seller really does need his money right now or not, and that will also get you a few clues about the seller's motivation.

But remember, your initial goal is to search for the situation. If you find there is a workable situation, then take more time to see if the seller is also motivated.

Determining if there is a workable situation is really simple because there are only four situations that you will be looking for. Look for sellers in one or a combination of the following:

1. The house is unoccupied and has been vacant for a while;
2. The seller has already bought another home or has someplace else to live;
3. The seller has little or no equity in the property but needs to sell right away;
4. The seller is willing to rent.

END OF PART 1 - You can get the rest of this article and much more! Sign up for our FREE Monthly Newsletter today!

Until next month remember to Gain the Knowledge and Live the Dream!

                                                        Carole Talley