This is a golden rule and is perhaps the one major difference between the successful property investor and the would be investor that tries his hand at property investing but soon gives up because they fail to make a profit.
Yes, yes, I know you have probably heard that before. Everyone harps on about finding the motivated sellers; but there is a difference between just hearing it and actually accepting it and letting it govern all your property purchases.
So that I don’t have to repeat myself you might want to check our below market value property page for more information on what constitutes a motivated seller and how make money from them.
If you are struggling in making money from property, then one of the first things to look at is are you buying property significantly below market value. If you are not, then you are probably not finding motivated property sellers.
However, it doesn’t stop there. Some investors spend thousands of pounds a year on advertising for motivated sellers through things like the Internet and newspapers yet they are still struggling to make ends meet and justify the cost of the advertising.
You have to know how to negotiate with the motivated seller once you get them.
Why do all the hard work to get them and then waste the opportunity when you get in front of them.
If there was one course that should be mandatory for all would be property investors, it should be a course on negotiation. This can be the difference between you giving up on a deal and you creating a win win situation with the vendor that makes it a great deal.
Property investors who have developed a knack for building rapport with people quickly and easily, will invariably be much more successful a getting the deal at a price that is right that those who don’t have the ability to connect with the vendor.
Sometimes the ability to connect with others is seen as something you are born with; and in many situations this is probably true, but you can also learn a whole lot as well, that can have a massive impact on your business.
This is a huge topic and an important one and one that I might touch on in more depth another time; however, for now, the biggest thing to remember is to BE REAL. Show the vendor that you are not some sort of money hungry landlord or developer who just wants to buy their property on the cheap and make a huge profit.
“Actively” Listen to why they want to move. Empathise with them if they are in a difficult situation financially.
The reality might be that you could not care less about their situation and that you just want to make a quick buck. If that is the case, then that is your decision. But if you “act” as if you care and “act” empathetically, not only will you be more successful, a strange thing might also happen. You might actually really start to really care.
At the end of the day, most people get into property for the money. However, the truth is after you have done the hard work to find those motivated sellers, the investors that make the most money long-term, won’t be the ones that treat the vendor like dirt and patronise them, if they have got themselves into financial trouble.
The happy and successful investors will be the ones that learn to connect with the motivated sellers and create win win situations.