KGCI: Real Estate on Air - eXpand Investing: Dominating Distressed Sellers

Episode Date: October 30, 2024

KGCI Real Estate on air. I'm Ian Wheatley broadcasting here in Miami. It's EXPCon. We are joined by Chris Craddick. He's the host of Uncommon Real Estate. Heard Tuesdays here on KGCI Real Estate on air. Chris, thanks for joining us here. Hey, glad to be here with you. Yeah. You're busy. You're running around to a couple different stages this week, huh? Yeah. Yeah, yeah, yeah. We've got a bunch of things going on. That's good. That's good. So I cut my teeth in real estate production, residential side sales, doing short sales and REOs, particularly. when I was a newer agent. So distressed sellers and distressed properties, I tend to know a little bit about it, but you've got a panel dominating distress sellers. What is a distressed seller? I know what a distressed property is, I can maybe assume, but what actually is a distressed seller. Well, I'm going to tell you this. Here's the little sneak peek and insider info to it. So we use the word distress seller, even though that's not really completely what we're talking about,

because the reality is most people have an idea of what distressed sellers are. We like to call them quick sale client because not all of these sellers are necessarily distressed, right? There are people that inherit a property and maybe they've got five siblings and they do not want to do anything to the property. They just want to get it sold and get it sold fast. Those, you know, it's not really a distressed situation, but it's a quick sale situation. They want to get rid of the property fast, right? So these are the people we're looking for. People that are not looking to go on the MLS, people that are looking to sell as is.

And oftentimes you'll see it with like a time sensitive thing where maybe they need to move. Maybe they're in a divorce situation and the judge ordered a sale by a certain date and they just drugged their feet until then. Or maybe they've got a foreclosure date coming or maybe their house is in a total disaster situation where they just haven't fixed it up in years. So there's a lot of different reasons why these properties are where they are, where people just need to sell it as is, sell it quick and just be done with it. And so we like to call it quick sale, but the reality is most of them tend to be in distress. But yeah, they just want to sell quick and get out. You know, Chris, you just described like my first 10 listings in the business. There you go.

I'll tell you, this is the crazy thing that you see so many people they'll call like 4,000 expired listings. and, you know, there's already 100 agents that are talking to them or you talk to people like this. And they're like so happy to talk to somebody that may not be an investor looking to buy on 50 cents on the dollar. Right. How do you identify these properties? And think about newer agents here who they don't have those network connections yet. They're still getting their feet underneath them. They really just have the MLS as like their primary tool because it is the primary tool.

but how do agents identify these properties and identify these sellers specifically? There's a number of ways to do it. And it depends on where you are, right? Like, I'm in a place where, you know, we have a pretty successful business. We'll do probably about 300 million in volume this year. So we have the cash to spend on marketing, right? To have the phone ring for us, right? When you're first getting started, maybe you don't have any cash.

Then you're going to have to trade your time for dollars, right? So then you have things like it's called driving for dollars where you look for properties that need work. And if a property is in disrepair, it tells a story that the owners are overwhelmed, either financially over timewise. And you would be a godsend to them to say, hey, let me get you some money for this property. You know, you can cold call. You know, if you look at and obviously, you know, obey the TCPA rules, but if you, you know, if you call landlords, right, there's a reason they call them tired landlord. The average landlord sells within three years of being a landlord, right? So those are some of the easy ways to do it.

And then you can start, once you start doing deals, you can do some pay per lead advertising, things zillow for distressed sellers. or quick sales sellers. You can do pay for click advertising. I know EXP is creating, you know, some partnerships with companies that are helping with some of this stuff. You can, I mean, there's just so many different opportunities. SEO, hiring a cold-calling team,

you know, all the different pieces. There are a number of things out there. And that's some of the stuff that we're going to talk about in the P. Awesome. Chris Craddock. He's the host of Uncommon, Real Estate. You can hear that Tuesdays here on KGCI Real Estate on air. You and I could probably talk about this for for hours on end, but you're busy. You got, you got to get going. Chris, how can folks connect with you that they want to learn a little bit more about this, particularly if they're not sitting here at EXPCon in Miami? So the easiest way to get in touch with me. I still am checking personally on this at Cradr. C.R.A.D.R.C. K. Cheezy high school nickname. I probably need to change the handle that I've just held on to since I started by Instagram. account. Look it. It's easy to say. It's easy to type. It's easy to remember. It's memorable,

if nothing else. Chris Craddock hosts an uncommon real estate here here on KGCI Real Estate on here. Thanks for checking in today. Thanks so much.