Finding a “Good” Lead
How to find real estate deals can be difficult if you do not know what to look for. Often times new investors will take what lead comes there way and attempt to turn it into a deal. This is often the case with new wholesalers. They receive a lead, they accept what the seller wants, and then attempt to sell the contract to another investor for a “wholesale” fee.
What the new wholesaler hasn’t done is study the local market, know the actual cost of repairs, and how much the investor can make off of the deal. With that being said, let’s discuss find a “good” deal.
Three Things Sell Real Estate
- Price
- Condition
- Marketing
What Makes a “Good” Lead?
- Priced Right (priced to sell fast relative to its condition)
- Poorly (or Never) Marketed
- Possibility of Seller Financing
Chaos and Mayhem: How to Find Real Estate Deals
When it comes to finding real estate deals, there are many factors to come into play. These may include the following:
- Foreclosure
- Divorce
- Death
- Job Loss or Transfer
- Criminal Activity
- Bad Property Management
In order to find these types of deals you will need the following:
- Resources (Time)
- Tenacity (a stick-to-it attitude)
- Discover the challenges
- Determine challenges
- Motivation challenges
- People skills
Today’s Market
Today’s market is constantly evolving and changing. It is critical to stay on top of what is going on in your local market and the national market. With this, there are certain things that you will need to understand:
- Every market is local
- Probate usually requires cash, so with fewer “qualified” buyers, on will find better deals
- For “fixers” or unkept properties in probate or eviction, the REO market is the competition (lower price expectation.)
- Market conditions have little effect on the number of properties leads in probate
- The overall economy has a major effect on the number of eviction cases
Key Terms for Probate Cases
If you are looking for deals through probate, you will need to know the following terms:
- Probate
- Estate
- Conservatorship
- Trust
- Executor
- Administrator
- Personal Representative
- Petition for Probate
- Letters Testamentary
- Will
- Testate/Intestate
- Notice of Creditors
- Real Property/Personal Property
- Per Sterpies
- Letter of Intent
What is Probate?
Probate is a function of state law administrated by county courts. It is the court’s supervision of the management of the assets belonging to one who cannot manage those assets for him/herself.
Conclusion
With some knowledge and understanding of what is a “good” lead, one can find what would be considered the “deal of the decade.” It will take some knowledge of how to market to these sellers as well as knowing your current market to create the deal.
If you would like to learn more about this topic and all other aspects of real estate investing, we encourage you to join our nationwide group of real estate investors. To learn more, go to http://www.timefreedomrei.com.
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