In most real estate investing business models, motivated sellers remain the number one source of the most profitable deals. Successful real estate investing should therefore incorporate finding deals from motivated sellers and successfully closing them.
In this article, we point out important areas you must focus on in your business.
To learn how to attract motivated sellers, see one of my previous articles. As soon as you identify a good deal, you must then secure and close the deal.
In my business, I get all my leads through my real estate investor website. Approximately half the deals I receive are submitted directly by motivated sellers. The other half chooses to use the phone, and my virtual assistant pre-screens them for me and submits this information on my website.
All the deals I receive are therefore pre-screened and pre-negotiated. I can therefore easily identity a good deal in a few minutes.
As soon as you identify a good deal, the next step is to make an appointment to go see the house. This is mainly because you must estimate repairs. You should be able to come up with a ball-park figure in about 10 minutes or less.
You just need a rough estimate, you do not have to break it down to the nail.
You must make sure you sign the contract when you go to see the house - do not forget to take one with you.
You can always cancel the sale later if the numbers no longer look good.
If the deal works, fax the contract to the title company so they start title work. In order for the contract to become binding, make sure you deliver or mail the earnest money check. Earnest money should go to the title company, not the seller.
The next steps in the process depend on your business model and what your exit strategy is:
1) Wholesale the deal
If your exit strategy is to wholesale the deal to other real estate investors, this is when you market the deal to them. With a good real estate investing website that builds a buyers list for you, you would just need to email your new deal to your wholesale buyers list.
If you plan do a simultaneous closing, you then sign a contract with you as the seller. You can also assign the contract for an assignment fee.
The title company will then do the closing and disburse all the money as agreed.
2) Lease option / Lease to own
If your exit strategy involves taking over existing payments, then your title company should conduct the closing.
This is why you must select a title company that understands real estate transactions and works with real estate investors.
3) Straight buy
A straight, traditional transaction will be needed if you plan to buy fix and sell, or to buy and hold.
Other business models would follow similar steps; these 3 are just the main ones.
When all is said and done, your success in real estate investing, largely depends on the efficiency with which you pre-screen your leads, follow up with them to tie up the deal, and efficiently close the deal.
Author Resource:-
Find out how you can run your real estate investing business from an interactive real estate investor website that automates most aspects of your business delivering pre-screened and pre-negotiated deals so you spend less money, time and effort while you close more deals.
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