The #1 Golden Key to Killer Commercial Real Estate Deals
In real estate, investors want to create the best environment possible when it comes to dealing with their properties. As an investor, you want what is best for your pocketbook in the very end and the best real estate deals are made in the shortest amount of time possible with the least bit of money paid out of your pocketbook in the end. Investors share secret after secret, many of them wondering what the #1 golden key to killer commercial real estate deals is that some investors seem to have and others do not. What is this golden key that seals killer deal after killer deal every year? It is nothing more than a motivated seller.
What Is a Motivated Seller? A motivated seller is just what it sounds like--a person who is ready and able to get the deal closed as soon and efficiently as possible. The reasons why a seller is so motivated are not important, as long as the seller is really and truly motivated to get the deal closed as soon as possible.
Sellers have a variety of reasons that they might be anxious to get a particular deal closed, but the main ones have to do with monetary gain or other personal, vested interest in a particular property. As an investor, when you have a motivated seller on your hands, they are much less difficult to sell certain terms and requirements of a sale to, and they are looking for less specifics when it comes to buyers. Motivated sellers are looking to get their property off of the market and into the hands of an equally motivated investor like yourself as soon as possible, making it as time sensitive, not to mention cost effective, as it could ever be.
What Are the Differences Between Motivated and Non-Motivated Sellers? The opposite of a motivated seller is a person who is looking to get a specific dollar amount or other benefit out of a sale, and chances are that they probably won’t sway much from that. Deals that are made with non-motivated sellers usually cost more and take more time to finalize, which isn’t always the best deal for people who invest in real estate properties as a matter of survival or income.
There are a whole slue of advantages to using a motivated seller that many, especially the more novice, real estate investors are not always quick to realize. First of all, motivated sellers are much more quick to respond to all types of communications. Phone calls, faxes, emails, snail mail letters--these are all ways that investors and sellers can use to communicate with one another, but they don’t do anybody any good going unanswered. Motivated sellers are much more apt to be responsive to communications and doing anything that might speed up the process a bit.
As a real estate investor you have probably come across those properties that are just way overpriced; this can happen for a variety of reasons whether it be due to an extremely enlarged ego or an overestimated appraisal. Either way, non-motivated sellers are not always willing to do anything but stand firm on their price and their terms. This isn’t necessarily a bad thing, but real estate investors are usually not willing to deal with particularly difficult or stubborn sellers.
What Are the Advantages of Using a Motivated Seller? There are a whole variety of benefits to using a motivated seller. Motivated sellers and eager buyers go hand-in-hand, making for a smoother business transaction and a much better deal for everybody involved. Who cares if your seller is motivated because he has some ulterior motive? When it comes to business transactions, everybody has motives and they are usually financial, but the same goes for you as the investor.
There are some sellers that are not always interested in making the most money out of a real estate deal as they possibly can. They may have other things that motivate them, like the need to get any amount of money out of the transaction as soon as possible or getting the property off of their hands for tax reasons or any other reasons. Motivated sellers are more flexible in every way possible. They make things much easier on everyone, offering much more attractive terms and even flexible pricing options and financing options than non-motivated sellers.
Motivated sellers and interested buyers go hand-in-hand, and matching up the two is an efficient and effective way of getting properties sold and into the hands of the right people. In this sense, the motivated seller and buyer combination are truly the #1 golden key to landing killer real estate deals every time.
About the Author
Tony Seruga, Yolanda Seruga and Yolanda Bishop of http://www.maverickrei.com specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects.
Tell others about
this page:
Comments? Questions? Email Here