Tips for Unearthing Motivated Sellers for Your Next Investment Property
Editor's Note: This post underwent a substantial overhaul and has been extensively revised and updated to ensure accuracy and comprehensiveness. While its original publication date was June 2019, the content has been carefully modernized to reflect the most current information available as of May 2023. We strive to provide our readers with the latest insights and knowledge in every revised edition of our articles.
Hey there, house flippers! We know you're always on the lookout for that next great deal. And finding a motivated seller can often be the key to unlocking a fantastic flipping opportunity. So, how do you find these hidden gems? We're here to share tips, tricks and Pro insights to help you on your way.
Know Your Market Inside Out
First things first—understanding your local real estate market is crucial. Are you in a seller's market with fierce competition, or is it a buyer's market where you might have the upper hand? Understanding the dynamics at play can help you tailor your approach and connect with sellers eager to close a deal. Don't forget, every market has its quirks, so dig deep and do your homework.
Network, Network, Network
Your network can be your most valuable asset in the real estate world. Connect with local real estate agents, attorneys, contractors, and other real estate professionals. They often have the inside scoop on potential sellers before their properties even hit the market. Remember to be genuine and reciprocal in your relationships. Offer value, be helpful, and you'll find people will be more likely to help you in return.
Pro insight
"I don't buy from sellers. I buy from asset managers and banks REO departments or I use auction sites."
-Daniel Carr, flips in Georgia, Alabama, and Florida
Direct Mail Campaigns
While it might seem old school, direct mail campaigns can effectively reach potential sellers. Target neighborhoods where you'd like to invest and send personalized letters to homeowners expressing your interest in purchasing properties. Make sure your message is straightforward, friendly, and professional.
From the field
"I get lists of motivated sellers and send them multiple postcards and letters."
-Jimmy Tang, Washington
Online Real Estate Platforms
Experienced advice
"Cold Calling."
–Kevin Lee, California
Public Records and FSBO Listings
Don't underestimate the power of public records. Foreclosure notices, probate court records, and tax lien notices can point you toward motivated sellers. Additionally, FSBO (For Sale By Owner) listings often represent sellers who are looking to move a property quickly, potentially providing you with some excellent opportunities.
Straight from a Pro
"I find motivated sellers by searching some key terms on the MLS (for example, TLC, must-sell, divorced, etc.). I also check pre-foreclosure lists and mail out letters to the motivated sellers."
-Albert Nyabwa, Texas
Real Estate Wholesalers
Real estate wholesalers can be a valuable resource. They specialize in finding motivated sellers, purchasing properties, and selling them to investors like you. Just make sure to do your due diligence to ensure you're still getting a good deal.
From the trenches
"Wholesalers, Realtors, mailers, knocking on doors, word of mouth, and driving through neighborhoods looking for properties with deferred maintenance issues."
-John Galarde, North Carolina
Social Media and Online Ads
Last but not least, harness the power of social media and online advertising. Running targeted ads on platforms like Facebook or Google can help you reach potential sellers in your desired areas.
A veteran's voice
"I like putting myself out there so the motivated sellers can't help but find me! Just keep telling people what you do, and the phone calls will come."
-Luke Weber, Nevada
That's a wrap!
Happy hunting, flippers! Remember, finding motivated sellers is often a numbers game. Be patient, persistent, and open to various methods.
And when you've landed that great deal and need financing to make your flip a reality, remember that Kiavi is here to help. Our Fix and Flip/Bridge Loans offer high leverage, competitive terms, and fast closings to keep your projects on track.