Working with a distressed seller can benefit you and the seller. We get a good deal, and they get out of a desperate situation. Yet, a seller may be reluctant to use you. Why is that?
Distressed sellers are often suffering from overload. They may be regularly receiving a high influx of marketing mail, and junk offers about their property.
They may feel uncomfortable entertaining legitimate offers. Some don’t know who to trust. Another factor that can paralyze sellers is the hope they may get a better offer, not realizing their options diminish with time.
You may encounter sellers that feel ignoring the situation is the best way to cope. They can be in a state of desperation where they think their condition is so terrible they cease to care. Last, some sellers believe bankruptcy is the only solution. They do not know other options are available.
As investors, we know being proactive, and having a sound plan is the best way to keep their situation from getting worse. However, owners reach a point where they can no longer see how that is possible. It is essential to develop an understanding of and appreciation for the challenges these homeowners face. Doing so will allow you to deal with them in a way that promotes their receptiveness to your offer. We want to impress on property owners that there are solutions to their problems.
We need to stress to an owner in a bad situation you are not a victim. There are things you can do to preserve your dignity and cut your losses. Your situation will get worse if you do nothing.
We can educate the owners that they can get out of their situation sooner and possibly with less stress. Best of all, they can move forward and get a fresh start right away. Selling will be far more forgiving in their immediate future than foreclosure or negative impacts on their credit and reputation. Keep in mind, the deeper into the mire you go, the fewer options they will have, and the less attractive those options will be. So act now!
1) Be clear on what your situation is and the options you have available.
2) Find help from resources you can trust.
3) Be proactive so you can capture the most attractive and beneficial solutions.
4) Follow through with a course of action.
My advice to the real estate investor: surprise them at the options available. You may be able to save their home and allow them to stay in it. You might be able to buy their house and give them money to move. At the very least, because of you, they can rid themselves of the debt owed and walk away with a fresh start.
Paige Panzarello, the “Cashflow Chick,” Founder of The Tryllion Group, Investor/Entrepreneur having done $150 Million+ in real estate transactions; Specializing in Non-Performing Notes. She has been a regularly featured guest on “The Cashflow Guys” podcast, and you can also find her on many other Real Estate and Entrepreneurial podcasts, and in the Wall Street Journal as well. She also speaks at various Real Estate Investing clubs and conferences across the country. Paige teaches the “Building Wealth with Notes” Workshop that drills down into the details of how to successfully buy Non-Performing Notes, create passive income, and mitigate risk. www.CashflowChick.com/training
Surviving the crash of 2007, Paige knows how “life happens” every day. Her passion is to help people build wealth, secure their financial future, to enjoy life, and to be ready-not broken! Whether it is improving communities one house at a time, helping borrowers stay in their homes, or working with other investors to learn a new way to earn higher investment dollars for their retirement years potentially, Paige dedicates herself and her business to helping people improve their lives in every way. For more information got to www.CashflowChick.com