One of the toughest problems for new investors is believing that they’ll actually be able to find properties for pennies on the dollar or actually be able to take over someone’s loan via subject-to.
In fact, every time I get a killer deal and am discussing it with new investors at a local REIA meeting the two questions that always seem to pop up are, “Why wouldn’t they just sell it themselves?” or “Why wouldn’t they use a Realtor instead?”
What these investors fail to realize is the mindset that the motivated seller is in. The motivated seller has likely gone through a bad divorce or has to move quickly for a new job, or needs money fast for one reason or another. And us real estate investors happen to be the perfect people to solve these problems for them, not anyone else.
For instance, if a seller tried to sell their house on their own it might take months. More importantly, most of them don’t want to go through the hassle of showing a house or dealing with the paperwork. Yes, they could get more money but they’d rather have peace of mind.
In fact, the other day I had to pay $1,300 to get my car fixed for a bunch of problems. Now, I’m sure I could have gone down to Advanced Auto Parts and read a bunch of books on how to fix a car, but I didn’t want to go through the hassle of doing all of that. Plus, I needed my car fixed ASAP, not 10 years from now.
But what about using Realtors?
Another thing that most new investors don’t realize is that many sellers do not like Realtors. There have been numerous deals I have closed where I have had the homeowner thanking me for taking the property off their hands quickly so they didn’t have to deal with a Realtor.
That’s why I always advise investors not to get their Realtors license. You won’t have to go through all of the disclosures and in your marketing you get to say “I am not a Realtor and never charge any fees or commissions.” And if you’re worried about getting comps on properties, don’t be. There are thousands of Realtors out there who can run comps for you and they’ve been doing it for me for years.
The bottom line is, stop making excuses or giving reasons to why you can’t close deals and why this real estate business won’t work for you even though it works for everyone else. Motivated sellers will be around for the next 100 years, just like they have been for the previous 100 and they’ll be happy to sell their house to real estate investors instead of selling it themselves and instead of dealing with Realtors.
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