Get All Fired Up For Motivated Sellers!---Prt. #2
Now, some of you already out there may be trying to prematurely rule out this technique before you even hear me out and stating that you don’t deal in “junker” properties. If you feel that fire damaged properties can only be associated with lower-end appraised properties, then unfortunately you may be too narrow minded and unable to grasp this concept with fire damaged properties. Yes, fire damaged property leads are more dominant in lower-end appraised properties but there are some gems out there to be had with pretty house specials too.
Once you identify a property with fire damage then you may be closer than you think on having a great deal. See, with fire damaged properties the party of motivation you can negotiate with can be the seller of the property and/or the mortgage company if existing financing is applicable. To many sellers you may be just the ticket they are looking for to take this problem off their hands once and for all……but at your price and/or terms.
Sure there are many properties that once you identify as having fire damage the seller will not be motivated to sell as insurance will rebuild probably in better shape than even before. What about the owner, whether owner or non-owner occupied, that didn’t have insurance on that property-----YES it happens all the time. If the owner was too cheap or simply just didn’t have enough money to insure the property, do you now think they will have enough money to be facing a high five-figure repair bill? Most probably not. So, do you now think they might like to at least get something significant for the property and be done with it? Once again the answer is “yes” and when you lock into those types of situations they spell profit for you. Just a couple of personal examples to show you specifically:
1) One owner I marketed to aggressively had a property with extensive fire damage and actually did not have insurance on the property. The owner also did not have the money to repair the house and was in need of personal income so I accommodated at my STEEPLY discounted price. I could even have repaired it THREE times over and inclusive with purchase price still would have been under 80% LTV on the property!
2) Another motivated seller I profited from had an extremely large duplex converted into single family house that was picturesque from the outside…..with the back half of the house burned off and yes I mean off. The owner even actually had insurance on the property and after settling his insurance claim, he sold at once again a STEEPLY discounted price as the project was just too extensive for his taste. Actually it was for mine too so I wholesaled for a quick couple of thousand. I’m in and I’m out making a profit without having a time consuming extensive rehab project on my hands.
You may be at this point stating that’s all sounds fine and good in theory, but asking
yourself, “how do I find those deals?”. Finding the deal and fulfilling that niche technique previously outlined earlier is what you will need some creativity and all out personal “gumption” to get this done. My technique is not complicated and neither should yours be so don’t try to make it harder than it has to be.
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