Epic Real Estate Investing - How to Find Motivated Sellers for Creative Financing | 1039

Episode Date: June 4, 2020

In today’s episode, Matt shares 5 ways to find motivated sellers, especially the ones that will be open to your creative financing offers! Anyone can do this, but most people won’t, and there lies your opportunity! Hence, tune in and accelerate your trip to financial freedom & retirement! Learn more about your ad choices. Visit megaphone.fm/adchoices

If you're looking for ways to find motivated sellers, especially ones that will be open to your creative financing offers, then I think you're really going to enjoy this, because anyone can do this. But most people won't, and there lies your opportunity. This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. attract convert exit

Matt Terrio has been helping real estate investors do just that for more than a decade now if you want to make money in real estate keep listening if you want it faster visit r-ei-aise dot com here's Matt hi my name is Matt Terrio CEO of epic real estate where we show people how to invest in real estate with an emphasis on retiring early and that ability to retire early comes as a result of generating streams of passive income by helping motivated sellers of property. The type of sellers that will sell to you at a discount through other creative financing means. And that's what I'm about to show you how to find.

Because if you can't find them, you'll be limited to wholesaling, cash purchases, or jumping through corporate bank hoops, of which all put a limit on the amount of freedom that you can create financially and the speed of which you get there, if you ever do. But if you know how to find these types of motivated sellers, you're going to have options, the type of options that can really accelerate your trip to freedom, and overall, your early retirement. I escaped the rat race in less than four years with creative financing strategies,

and that may sound fast and maybe even unbelievable. But when I started teaching people what I had done, like private client Corey Kendig, he made his escape in about 14 months. Private client Parker, about the same, just a little over a year, and Enrique. He escaped the rat race with a single transaction, all of the last. much faster than I did it myself. And they aren't flukes either. I could go on.

But this is not about them. It's about you. How do you pull it off? Once you're familiar with these creative strategies, you're going to want to know how to find the types of motivated sellers that will be open to them. And so let's do that right now. I've got five places to find the type of property owner distress that would motivate them to sell using creative financing. And I'll give you the who, the where, and the how.

Now, I'm going to group the who and the where together, as I think it'll be easier for me to explain and for you to understand. 1. Pre-foreclosure. These are property owners that are behind on their mortgage payments. And you can find them online or off. To find them offline, it'll require a trip down to your county courthouse. Or if your county hosts these records on a website, you can find them online too.

You'll be looking for notice of defaults or NODs. And a list of them will be either free or available for a very nominal fee. Every county is a little bit different, so it's going to take a bit of research on your part. An easier way is by using a service like Epic Property Finder, the same service that I give to my private clients, or PropStreamEPC.com, where you can get a free seven-day trial of this service.

If you decide to keep the service, it's not terribly expensive. But you can take a test drive and then make your decision as to whether it is worth it or not. If you catch these property owners at the right time, the type of motivation that exists can make for ideal, no money down subject to deals. Two, low equity.

These are houses that have large loans on them compared to the value of the property. For example, a house worth $200,000 with a loan of $175,000, that would be considered low equity. And most real estate investors look for and market to high equity and free and clear properties. When you're looking for low equity properties, you're going to find much less competition here. But still, plenty of motivation. And they are ideal for cash flowing subject to deals also and lease options. You can easily find low equity properties like these inside of Epic Property Finder or through PropStream Epic as well. Three, old MLS listings.

These are people that want to sell their house. They've tried for a while to do it the traditional way, but for one reason or another, they haven't been able to sell it. So the logical motivation here is that the market has told them that their house isn't worth what they thought it was when they put it up for sale. And they now might be more open to alternative creative options. You can find these directly through the multiple listing service, if you have access, or through your real estate agent that does. Or you can find these older listings and directly reach out to the agents representing them through, you guessed it, Epic Property Finder or PropStreamepic.com.

Four, expired listings. Now, these are older listings where the listing contracts with their realtors have expired. And typically, they've just about had it up to here with realtors at this point, and they are open to alternative. solutions even more now than they were when they originally listed their property. Now to contact them, not as easy, but that's a good thing. You see, the more difficult they are to contact, the less competition you're going to find there as well. They're more difficult because the seller's name and contact information is automatically deleted from the MLS when the

listing moves to an expired status. So, you have to be a little more proactive and pull lists before their expiration date. It's a little tedious and probably not the best use of your time, Another option is that you could just buy the data, probably the best way to do it. So you can go to your favorite search engine and type in expired listing services and you'll have several options. Number five, for rent. Now, these are properties that are posted for rent, which means they are vacant houses. And when a house is vacant, the property isn't making the owner any money and more than likely costing them money. So that's typically the seller's motivation here.

And you can find them on property management websites. You can find them on Zillow, on Craigslist, Facebook Marketplace, and any place that advertises property for rent. Or you can just cut to the chase and pull lists of vacant houses from a service like, wait for it, Epic Property Finder or PropStreamepic.com. A vacant house is ideal for any of the creative financing strategies that you'll see in the description below. Now you know who you're looking for and where to find them. What do you do once you have? How do you contact them? There are a number of different ways to contact these property owners.

I call it the hierarchy of communication. You've got direct mail, you've got email, you've got ringless voicemail, you've got the telephone, or you can just knock on their door and contact them face to face in person. Now, every single one of these work, when performed consistently with persistence, and you can use them individually, or here's what I recommend. As property owners experiencing any sort of the types of distress that I just laid out, they will go through different stages of grief. Stage one, denial.

The first reaction property owners have when they learn that they might be losing something important to them is to deny that it's even happening. I mean, this must be a mistake. I mean, I can pull out of this. I'm not going to sell at a discount. Those are the types of things that are going on in their mind. They're in total denial. Stage two, anger.

You see, when property owners start to wake up and see their situation, is real, they get angry at whomever they think is to blame or at the next person that reminds them of their situation. This isn't fair, those greedy banks, those darn politicians, that idiot realtor and that incompetent property manager, they get angry. Stage three, bargaining. The third stage involves the property owner starting to take some action. You know, maybe contact the bank about their hardship and looking to get a break. Or if the realtor, maybe the realtor can cut their commission or if the property manager waives their placement fee, they start to bargain. And if you cross paths with them in this stage, you might start to get somewhere with putting a

deal together. Stage four, depression. Their bargaining efforts, they've failed. And they start to get sad about their situation. You know, I work so hard for this house and all the memories that I have here and nobody will help me. And what am I going to do? Those are the types of things going on in their mind. A real depression sets in. Motivation has increased quite a bit since stage one now, and you're almost certain to put a deal together when you catch them in this stage. Now, stage five is called acceptance. The property owner comes to grips with the reality and accepts their situation, and it is open to just about any solution. This is the stage where you're going to find the most motivation, and just about anything you put in front of them will receive

serious consideration. But typically, in this stage, time is not on your source. side and you'll have to act really fast. Those are the five stages of grief of a motivated seller. And you obviously want to be in touch during stages three through five, but every seller goes through these stages at different speeds, and they're really tough to predict. So that's why I recommend not any single form of communication to contact them, but rather a campaign or a sequence of multiple forms of communication. For example, you may send a seller a simple yellow letter that States, I'd like to buy your house at 1, 2, 3 Main Street. And then a few days later, a ringless voicemail that says something to the effect of, I sent you a letter the other day about your

house, and I wrote it on yellow paper. My phone number is at the bottom for when you need to reach me, something like that. And then a few days later, you fire off a text message. Hey, Mr. Seller, did you receive my letter? And then a few days later, you follow up with a phone call. And if you've been unable to set up an appointment to view the property, repeat the sequence all over again. There's a reason they say the fortune is in the follow-up, because it is. And a campaign like this is what the follow-up looks like. That's five ways to find motivated sellers that will be more open to creative financing. I'll see you next time.

Yeah, yeah, we got the cash flow. Huh? Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. We didn't know home world, we got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit C-Dash. www.sweetradio.com