When it comes times to start wholesaling houses, you will need to find people who are willing to sell to you for below market value. After all, the best way to make a profit is to “buy low and sell high”, right?
This video will go over how to recognize a motivated seller so that you can make them an offer before someone else does.
All right. Hello everyone, my name is Jack Bosch, and today we are going to start talking about how to get targeted list of prospective motivated sellers as part of our wholesaling houses masters class. My name is Jack Bosch. I am the co-founder of myOpenPath.com and also obviously a contributor to myOpenPath.com after having done over 3,500 deals since the year 2002 including many house deals. I own a portfolio of houses. I have commercial property, residential property, lots of land. I flipped land, flipped houses, rehabbed houses, wholesaled houses, etc. I’m going to walk you through this main program on how to wholesale houses, the wholesale housing, houses. Let me say that again, the wholesale houses mastery course.
All right. So today, what you will learn is you will learn number one, what the characteristics of a motivated sellers are. Number two, how…let me say that again, today you will learn what the characteristics of motivated sellers are. Number two, you’re going to learn how investors usually find motivated sellers. Number three, we’re going to talk about how to find these motivated sellers, and number four, we are going to talk about the competition. Who else knows about this? Particularly, about our special way to find these deals. Number five, we’re going to talk about how you get the data, how you get the owners’ information ideally in bulk such that you don’t have to drive around the streets of this world in finding deals.
And number six, we’re going to talk about the rule of five, which is an important rule on how to work with a county and get the individual deals and list of deals from the county, particularly those deals that everyone wants to get their hands on, particularly those deals that the most motivated sellers of all motivated sellers, and how you can get them literally sent to you either for free or for just a small payment. Number seven, we’re going to get the power…getting proper authorization. We’re going to talk a little about the power of the Freedom of Information Act. That’s particularly necessary if ever a county or a government agency is giving you a little bit of hard time in obtaining these pieces of information.
Number eight, we’re going to talk about what fields of information you want to request, and number nine, we’re going to talk about what format you want to request that data in. Number ten, we are going to talk about how time is of the essence and that data actually does age, so what you want to do about that. Then, number eleven, we want to talk about people and so on, you’ll see. Number twelve, we want to talk about whether or not and how you can actually work that either in other countries or from other countries in the United States.
Now all of these is about wholesaling houses, about finding the most motivated sellers of all motivated sellers in an environment that is very, very low competition because of what I’m about to share with you today. All right, so with that, let’s get started and jump right into module number one.
Module number one on wholesaling houses is getting a targeted list of prospective sellers, which is the overall theme of what we are going to talk about today, is we want to talk about the characteristics of a motivated seller. Now, the characteristics like very simply “Why would a motivated seller…why do people sell a perfectly fine house at a discount? Why in the world would they do that?” I mean, if you look at the house, it has walls, it has a roof, it has a front door, it has a kitchen inside, it has functional bathrooms inside. It is functional. Why in the world would somebody take something that’s functional that they could easily sell themselves or rent themselves and give it away at a huge discount?
Well, here’s a bunch of reasons. Number one, they might have inherited the house. Number two, they might have already moved out but the house won’t sell. Number three, the property might need repairs that they can’t afford. So that’s particularly a case in the scenario that we’re going to talk about just a few minutes on where we find the most motivated sellers of them all, that they often had the property, perhaps it was a rental property and the tenants did not pay rent, they had to be evicted, they damaged the house, they perhaps vandalized the house, and now they don’t have the money to pay the repairs. As a result, they don’t have any money to put somebody in there. The house gets perhaps squatters. It gets into a little worse shape, and now at some point in time, they just going to basically throw in the towel and say like, “I just don’t want this thing. Just help. Somebody take that burden of property ownership off my shoulders.” And if you come into that moment, and if you can identify who these people are, then you can literally be in front of them at the right time with a right offer, and they’d gladly sell it to you at a discount of market value that is large enough for you to make tremendous profit in the deal.
Another option is that they might have had some financial hardship and fell behind on the deal. Fell behind. So if that happens, then that’s the same thing. If they fell behind, they fell behind, they know to catch up, they’re about to lose the property, and now they jump on the opportunity to sell to you. Next one is they perhaps have other investment gains that they need to offset. Perhaps they’re just sick and tired. Often it’s a combination of these different cases that they want to do that apply to them and as a result, they just want to get rid of the property. Perhaps the house is part of a divorce dispute, and in a divorce dispute, often there, it’s not so much what the price is, it’s more about getting assets separated and sold so that both parties can move on with their life.
So for all we know, there is something that cost the owner to neglect the property. They received warnings from the county informing them that perhaps they have back taxes, that they haven’t paid their property taxes, or potentially a loss of the property, or the owner has issues, either personal, professional, financial issues that are bigger to them, they are bigger, they are overwhelming to them that don’t let them breathe deep, they don’t let them basically sit back and gather their thoughts, and don’t let them actually have the freedom of or the peace of mind to actually go and sell the property themselves so therefore…or even negotiate a payment plan with a county if they owe back taxes, so as a result, they just want to sell that property no matter what.
I mean, just look at pawnshops like P-A-W-N. So have you ever watched the TV shows about the pawnshops around the country? I mean, there’s like Las Vegas Pawn or Pawn in the Bayou or something like that. There’s multiple shows like that, or Beverly Hills Pawn ,which are great pawnshop where literally there’s people that are coming to the store and want to get rid of something that’s worth $10,000 and they’re willing to sell it for $3,000 in cash. Why? Very simply, it’s because at that point in life they value their cash more than they do the item. It really comes down to that, and at the end of the day, we all have done that before. We all have had a garage sale where we have taken this lamp shade that we know the lamp, or the bicycle or the armoire or whatever it is that we know is worth $300 but we’re not willing to put it up on eBay and do all the stuff around it. We just want to get rid of it, and if somebody offers us $50, take it. Take it with you. I just want to make space in the house. I’m downsizing. I’m moving. Whatever the reason maybe, people do that and the exact same thing happens in the $100,000 and even for that matter in the million dollar range in houses.
So because of that, this is what’s going on, this is what’s happening, and essentially, what’s happening is that this exact scenario you also see in the tax that delinquent area. All right? So, and lastly, ultimately, what you effectively want to do is you just want to stop asking why. At some point in time, after having done literally a few hundred deals, I just came to the conclusion that “Hey, people just give up their properties for almost nothing and I’m going to just stop asking why. I’m just going to ask…challenging myself and just going to ask…stop challenging the common sense or asking the common sense question of why would anyone do that. The fact is they do. So let them do it, and let’s make a nice business out of that.
