Just as every real estate investing strategy is different, every motivated seller is different too. Of course, in one way each seller is different because each is experiencing a slightly different situation that is making them want to sell their house in short order. However, if you can learn to differentiate between types of motivated sellers, you may be able to shortcut a lot of unnecessary work and research when you are trying to do subject-to deals.
You have probably read a lot in the past about how to find motivated sellers and distressed properties. A few examples of popular methods are calling expired listings, driving around and noting deserted and abandoned houses, and working with FSBO owners, who have often bitten off more than they can chew. Lately, though, I’ve noticed a shift in this trend. While these are all valid sources of leads for subject-to investment properties, there have been some interesting changes that have given me a far better source that requires far less investigation.
This source of leads may surprise you: real estate agents. As more and more houses are entering the market and there are quite simple fewer and fewer people able or willing to buy in the traditional manner, agents are getting creative with their listings – and they’re taking just about anything. Many agents actually got involved in real estate near the end of the market’s rise, and they are now dealing with houses that they thought they would sell within months that are sitting on their hands. If the agent themselves does not have this issue, they almost certainly have a colleague with this issue or a client with a similar problem. In fact, when I searched “subject-to” on my local Craigslist, I found more potential properties where the owner had already agreed to sell subject-to than I could possibly follow up about on my own.
Of course, these leads will not all turn into great deals, but you can cut out a lot of the “prep work” on subject-to deals these days by simply stating up front what you are looking for. There are plenty of potential sellers using highly conventional means out there also looking for you.
Author Info
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate investing. For more information please visit www.CoachingByPeter.com.
