myEmpirePROIn this lesson, you will discover how to find and prequalify leads for motivated sellers.
Below is a question for us to address with this lesson…
“What’s the first step if a lady owes $124,000 on a reverse mortgage?
The property is going up for foreclosure. She only makes $895 per month. What do I do with this lead?”
The first step is to make sure that you have a seller.
Then the second step is to use the strategy in this video to pre-qualify them as a motivated seller.
And as you probably know already,
The one thing you get paid for in real estate wholesaling is finding and identifying motivated sellers.
Therefore you need the skill I highlight in this edition on how to prequalify your seller as a motivated seller.
The Life Line of Real Estate Wholesaling & Investing
Who are Motivated Sellers?
These are property owners who have come to the conclusion that they have to get rid of the property.
But every seller considers themselves motivated.
However the truth comes out when an amateur wholesaler or investor presents a seemingly low ball offer.
A motivated seller typically do not care or know what the property is worth.
As a matter of fact, he or she thinks it is worth nothing
which is why they want to get rid of the property.
A quick litmus test for a motivated seller is to find out how much they think the property is worth.
For example,
“what do you think the property is worth?”
If you hear, “I don’t know”, that’s probably a motivated seller.
And if he or she follows up with
“I just need to dump it… I can’t afford it,”
…that’s your ideal motivated seller.
How do I find motivated sellers?
In smart real estate wholesaling,
We use marketing skills, online traffic and leads generation and my favorite, which is Joint ventures, to find motivated sellers.
Using “joint venture” to find motivated sellers and deals is the cheapest way to do it.
You need to lead with value.
Wouldn’t it be easier to attract deals if you generate leads of able and willing buyers for the deals?
That’s when it would make sense for another wholesaler
(who spent time and money finding the seller)
…to split profits with you.
What do you say to a motivated seller?
There is nothing magical or special to say to a seller to make them more motivated.
You can however use prospecting skills to extract the truth about their stress out of them.
It’s all about asking the quality question that makes them feel comfortable and confidence that you can solve their problems.
How do you negotiate with motivated sellers?
The best position for negotiation is to be willing to walk away and mean it.
But it’s a lot easier to walk away from a prospect
…when you know that others are waiting in your pipeline.
Because you are generating leads on a daily basis.
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So I suggest that you learn digital marketing
and build a pipeline so that you never lack leads for your business.
Generating motivated sellers or building a list pipeline is not free;
In other words, it can be very expensive.
Because of that, many people go more broke attempting this business.
As a result, it can cost you anywhere from $50 – $500 per lead to generate motivated seller leads.
Sure, you can close one $10,000 deal any time but may be not.
Because of that, I recommend that newbies should focus on generating buyer leads for the ecosystem to assign deals to…
That is to say generate JV buyer leads to help with deal disposition
Therefore serving many wholesalers who can’t sell their deals.
They are everywhere on Facebook Marketplace and Craigslist.
Types of motivated sellers
- Time motivated
These sellers are usually open to a deeply discount offer
…and they need to sell regardless of how much money they get. - Money Motivated
These type of sellers don’t have to sell their property but they will sell at the right offer.
Right offer usually means retail price.
But you don’t have to discard them.
You can offer to refer them to your real estate agent who will make sure they get the most amount of money for the property.
You will be generating more leads like this,
Therefore it may not be a bad idea to sign up as a referral agent
….and make it another source of income.
How to Find Motivated Sellers on Zillow & Facebook Marketplace.
Many property owners list their properties for sale by owner directly on Zillow.
However , there is no extra motivation sauce attached to zillow as a placement.
Each one is just another lead you can choose to cold call and prequalify to see if they are open to an offer.
Just keep in mind that’s cold calling and it’s probably one of the most expensive way to build this business now.
The same rules applies to any other online classified ads site where for sale by owners are listed.
You have to prequalify for motivation when you call…. just prepare to get cursed out every now and then.
Here is a Motivated Seller Script That Works…
- Name?
- Property?
- Want to sell?
- Why?
- How may I help?
- How soon?
- Confirm Motivation!
I cover it in details on the lesson 7 Questions that MUST get answered to PREQUALIFY Sellers as seen here.
Let me know if this was helpful in helping you identify motivated sellers as you move in the future.
