Why Do Sellers Let Go Of Their Property So Cheap?
Any real estate investor’s dream is to find a seller who is willing to let go of their property at a cheap price. Being able to buy real estate well under market value (sometimes 90% off) is a true and tried way to building wealth quicker in life at scale.
Just like you can find clearance items at Wal-Mart that resell 3-4X on eBay, you can also find real estate cheap to sell 3-4X above what you paid for it and make profits that replace a year or two of your job’s income.
So why do sellers let go of their property so cheap?
It has to do with a seller’s motivation and their personal situation. People don’t just wake up one day and decide to sell their property for pennies on the dollar.
Usually their is some sort of internal motivation that starts to arise from a shift in their goals and plans in life. Or maybe it’s a financial / external reason causing them to want to sell (need to sell).
For example, if Bob loses his job he can’t continue to afford his mortgage payments plus all his cost of living expenses (food, car, utilities, insurances, medical, etc.) so his first idea is to stop paying the mortgage.
But soon after, he will have letters coming from the bank saying they’re about to foreclose on him and take back the property. This can be one reason someone decides it’s time to sell.
Maybe a family inherited a property they didn’t want and would rather get rid of it quickly by pricing it cheap instead of getting stuck holding it by trying to sell at a higher price.
As the motivation builds higher and higher to get rid of real estate, the less a person is willing to take for the property which means finding very motivated sellers is key to scoring good deals as a real estate investor.
How do you find these highly motivated sellers who are willing to sell their property for cheap?
Click to read the next article: Guide to Finding Motivated Sellers in Real Estate Investing
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