As you build your buyers list, you may also feed your sellers list. This list comprises resources of those people who are looking to sell properties. This will run the gamut of individuals or families who are moving to other areas, or are upsizing or downsizing their living arrangements, to realtors, asset managers, banks and mortgage companies trying to get rid of foreclosures, short sales, etc.
Again, Realtors are a good resource for sellers for the same reasons as they are for buyers. They get access to bank properties and have inside knowledge of what will be coming up in the market. Building a relationship with them, and letting them know you are looking to purchase properties in their area, will be beneficial to building your inventory list for your buyers. When you speak with them, let them know that you will be paying cash and can close quickly. This will trigger interest on their side to show you and send you all of their deals first. You can also incentivize them by offering them the opportunity to represent you as the buyer’s agent so they can benefit from the double commission on the deals they do with you. This strategy alone has been a great tool we have used to get realtors to accept our offers over any other, even if the other offer is higher in the purchase price than ours. This way they are motivated to get double their commission instead of only half of it.
To build up your list more, it’s a good idea to target landlords of rental properties as they may have a need to eliminate or reduce their rentals. Landlords who have property in your area but live out of town or out of state may be looking to get rid of their rentals due to the hassle of coming to the property for repairs or other issues which could be a waste of their time and money. Also landlords with delinquent renters who are causing back mortgage payments or back tax payments may be motivated to sell their rental. You can also target those landlords who have a high vacancy turnover and may be fed up trying to keep their property rented.
You can read between the lines and find these sellers through classified ads; signs, notices, and flyers in the neighborhood; online searches; and simply contacting any and every property for rent and talking to the landlord.
Of course banks, mortgage companies, and other mortgage holders may have properties that are vacant and/or costing them money due to late or non-payment by the owner. These foreclosures are useless to the companies as no income is coming in from them, and they are highly motivated to get rid of them. Remember, banks are in the business of lending money, not in the business of holding property. So they are quite happy to let the properties go to investors so that they can get their money available to lend. And people facing foreclosure may want to sell their property quickly before the bank seizes it, just to pay what they owe and cut their losses.
Since you are going to know the areas you want to make the deals in very intimately, you can check to see if assessments have gone up recently. If people have to pay more taxes on their properties, they may want to sell and move to a cheaper neighborhood.
And people who are making double payments, that is, they have bought a new house and desperately need to sell their old house, are good for your sellers list. These owners are highly motivated to sell their old house because it costs them a lot of money to keep the payments up on two properties.
You can solicit sellers for your list in a number of ways. Place “We Buy Houses” and “Sell Your House Fast” signs, flyers, notices, bandit signs, etc. everywhere you think sellers might see them such as near new sub-divisions, areas with lots of For Sale signs, and other places sellers might be. You can seek out properties for sale with “New Low Price” stickers on them. These people are very motivated sellers as it is obvious the property has been on the market for a while and the “New Low Price” means they really want to get it sold. Also go online and search Craigslist and online sellers lists for appropriate sellers.
Be creative here too. You want to let sellers know that you buy properties. Get the word out any way you can.