Two Sides to Every Deal
The well-rounded real estate investor is the one who has more than one technique in their real estate arsenal, so that as they encounter sellers with varying needs, they have solutions for a variety of circumstances.
In order for us to put together a good deal as a real estate investor, we need sellers who have the two magical qualities:
Motivation--A higher than average desire to sell, often times caused by some kind of pressure or circumstance beyond their control: divorce, transfer, loss of job, medical, run down property, etc.
Flexibility--The capability of accepting an offer that is not standard or traditional.
Now that we know the magical qualities, let me share with you the magical question that we REALLY need to have answered in detail to see if there is a possible deal here: "Why are you selling?"
It's amazing to me that most real estate agents do not probe that and if you ask them why the seller is selling, they tend to look at you like you are from another planet. But how can you solve a problem until you know what the problem is?
When a seller offers their property for sale, and they have both motivation and flexibility, we need to understand what kind of flexibility they have. There are two sides to every deal--PRICE and TERMS.
Some sellers can be flexible on their price, but not on terms. This is the kind of seller who would say: "I need all my money NOW, even if I have to take a lower price." They are not flexible on the terms of how and when they get their money, they need it NOW and if we can provide that, then they are open to negotiation on price. This is a GREAT wholesale opportunity.
But there are also sellers who can be flexible on terms. This is the kind of seller who would say: "I need to get my price, and I will wait till pigs fly if I have to, to get it!" They are not flexible on their price, but since they are in no hurry to get all their cash, this would be an IDEAL Seller Finance opportunity, such as a lease option, land contract, or wrap-around mortgage.
One of the greatest keys to success as a real estate investor is being able to solve problems for people, and having the versatility, once a seller has indicated what their needs and flexibilities are, to simply say, "GREAT, so if I can help you to get your price, will you be flexible with me on how and when you get paid?" or "GREAT, so if I can help you to get your money right away, will you be flexible with me on the amount?"
If we are able to let them select what is most important to them, help them to get it, and arrange our deal around those needs, we are going to be VERY profitable. You can get what you want by helping others to get what they want.
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