Where to Find the Best Motivated Sellers in 2020 (Part 1)
Summary
There are still massive opportunities for you to make money and help people at the same time, even as we’re in the middle of a crisis.
Like I said in one of my previous blogs, your lead generation should be focused on sellers. Watch it here >>https://yesmasters.com/the-biggest-real-estate-lead-generation-secret-for-2020-beyond/
And one of the BEST motivated sellers is Investors.
Most of them are in their mid to late 50s, 60s, 70’s and are looking to liquidate their holdings with negative cash flow because they’re biggest concern now is financial security. They understand economic cycles, and expect prices to tank. So, they will play it safe and cash out before that happens.
How do you find them?
Look for non-owner occupied properties (find them on software platforms like Remine) and contact the owner.
Continue building relationships with investors (even with those who choose to hold now) because in the future, when the market is down, they will buy more property.
Help them, and you’ll win.
What are your thoughts? Where do you think motivated sellers are? Watch out for part 2 of Where to Find the BEST Motivated Sellers.
Full Transcript
Where do you find the best motivated sellers in 2020?
Hi there! It’s Kevin Ward, the founder of YesMasters Real Estate Success Training, helping you get more YES and more success in your business, and in your life. And we are still in the middle of this massive crisis, and yet there are still massive opportunities for you as a real estate agent if you know where to look and you know what to do.
And so in this video, and another video I’m going to be doing later this week, I’m going to be talking about where to find the best motivated sellers in 2020. Where are the best opportunities for you to make money as a real estate agent and help people at the same time? It’s not just about how to make money, it’s also about how to add value to people and help people when you understand what your real responsibility is as a real estate agent.
Now, I did a video just recently called, The Biggest Real Estate Lead Generation Secret, that I want you to watch, I put the link in the description down below, where it talks about why sellers is where 100% of your lead generation should be focused. 100% of your lead generation should be focused on sellers. Go watch that video, and it will explain how to leverage that, and why they are so important that you focus on sellers, because that my friend is where the big opportunity is.
Now, I’m going to talk about specifically, where do you find the best motivated sellers in 2020. I’m going to be doing this video and another one, maybe a couple more coming down the road on where to find the best motivated sellers in 2020 and beyond.
OPPORTUNITY WITH INVESTORS
So here is the first place to find the best motivated sellers in 2020. And that is those who simply follow the real estate plan. And that is this, just the traditional framework. Buy low and you sell high, exactly. You buy low and you sell high. And I’m talking specifically about real estate investors.
Now, the opportunity here is not for investors who are trying to buy real estate right now. Now, that will be the opportunity in the future, but right now it is investors that own real estate that are looking to liquidate their holdings. Now, some of you may be going like, “Why would they do that? Why are people selling?”
So here’s the deal, traditional approach to how do you leverage make money in real estate, buy low, sell high. So you have countless real estate investors across America who bought back in 2010, 11, 12, 13. They bought back when the market had collapsed, they bought low and they had cash flow and they rode the appreciation train up the Hill to the top. And they bought it with the intention, “I’m going to buy low, I’m going to ride the economic expansion, I’m going to ride it up to the top, and then I am to sell when we get to the top and I’m going to cash out.” That my friend, is happening in spades.
Now, here’s why it is happening.
Number one, because many of those investors are repositioning. Now, this does not mean every investor is going to be selling every property. There’s going to be still a lot of investors, they have good properties with great cashflow, they’re going to hold. That’s fine, that happens. You can still build relationships with those investors. And guess what? If they’re holding now because of good cash flow in a year or two when the market is down, they’re going to be buying more properties. So you want to build those relationships. However, there are a lot of them that are taking and they’re repositioning.
Now, let’s say you got an investor that owns 20 units, 20 properties. He may not be selling all 20, but he may be taking and say, “You know what? It’s time for me to get rid of the headaches.”
In fact, Ken McElroy, who is a multifamily investor, just talked about that they took, and over the last year they’ve been selling out a lot of their multifamily properties that were the ones that were the headaches. They were the ones in the areas they didn’t really like, they were not cash cows, they were not making them a lot of money, they were having management headaches or whatever with them. So they took the bottom part of their portfolio and liquidated and sold it so they can now hold the money and wait until the market corrects, and then they’ll come back in and buy low.
Now, they actually did it late last year before we knew any of this was going to happen. So he’s like, “We got lucky, but it is what it is.” But the whole point is they were repositioning so that when the opportunity came, they could buy into properties that they liked better.
THE DEMOGRAPHIC OF INVESTORS: BABY BOOMERS
So, here’s the thing, what is the demographic of most of the real estate investors across America? Believe it or not, here’s the demographic. They are mostly baby boomers, meaning people that are now in their mid to late 50s, in their 60, and in their 70s.
So what is their greatest interest? What is their greatest concern, their greatest commitment? And that is they’re focused on financial security. And they are looking at, we have come up now through this massive time of economic expansion, they’ve been around long enough to know there are economic cycles, and what goes up eventually must come down. And we have been on the longest period of economic expansion in US history, and they’re going like, “Okay, there is a high probability that prices are about to tank or at least they are about to drop, and probably drop significantly.”
Now, whether you believe that or not is not the point. The point is that there is a high probability that that is going to happen. And when you’ve got an investor that is looking at his property and going, “I think the value of my rental properties is about to drop. I want financial security, I’m going to cash out while it’s good, I’m going to take my money.” And they may do a 1031 exchange, but a lot of them are going to cash out, they’re going to do with their capital gains, and they’re going to go on. Here’s the thing, they remember 2008.
And a lot of them remember earlier times as well. But they remember 2008 and they look at it and go like, “Well, this isn’t 2008, but you know what? I am not going to take any chances because back then I was in my 40s, I was young, I had time. Now, I’m nearly 60, I’m 65 and I don’t want to mess with this, I’m just going to get out. We got cash, we’re good, we’re going to play safe, and I’m going to cash out for now, and we’ll wait and see.”
You see, a lot of these people, they follow a guy named Robert Kiyosaki. Now, whether you like Robert Kiyosaki or not, if you’ve read Rich Dad Poor Dad or his other books, his one of his latest books, the book Fake, and I like Robert Kiyosaki, I have a lot of respect for him as an educator on understanding money. A lot of them are watching him, they’re following him. And he’s saying, “My friends, we’re not heading for a recession, we’re heading for a depression.” And they look at that and go like, “Okay, you know what? It’s just time for me to cash out.”
WHERE TO FIND THEM
Now, again, what’s going to happen or not, doesn’t matter. You got a lot of these investors, they’re going to be looking to liquidate. So what do you do? You reach out to them. You contact these guys. You can do it by direct mail, you can do it by phone call and you figure it out, “Now, how do I find them? How do I find these real estate investors?” Well, it’s very simple, is you look for non-owner occupied properties and you contact the owner. And you can do that with a lot of software platforms out there like RealtyTrac, you can use Remine, a lot of US real estate agents, you have access through your MLS to Remine.
You can go to your title company reps, and the most title companies, they have software. And as an example, fidelity title has, it’s called Fidelity Total Farms. You reach out to your fidelity title rep and say, “Hey, how do I get access to Fidelity Total Farm, your real estate agent?” They will hook you up. There’s a free version, and there’s a paid version that gets you a lot more information, but it’s even the paid version is only about $20 a month. So you can go out there and find these absentee owners, non-owner of occupied homes, you can reach out to them by mail, call, whatever, and get in touch with them.
Now, some of them are getting out for good. Some of them are, “I’m 69, I’m getting out, and I’m just going to cash out, we’re going to go cash, and my wife and I are going to enjoy our golden years without having to worry about owning real estate and all that.” And some of them are getting into cash and they’re going to wait for the bottom. Now, again, it doesn’t matter what you believe about what’s going to happen with the real estate market. I mean, some of the NAR economists saying like, “Oh, we think the market’s going to rebound,” and all this kind of stuff. I do not agree with that, but it doesn’t matter. It is what the investors that you can be talking to, what they believe that’s going to matter. And they’re like, “I’m playing it safe, I’m getting out.”
Now, some are going to get out for good, some are going to get out in cash, wait, and they’re going to plan to reinvest. Some of them will do 1031 exchanges, but either way you win because you can help them with those transactions, and with that transition, if not the best, it is certainly one of the best places to find motivated sellers on the planet right now is investors for the reasons that I’ve just explained.
I want to get your feedback on this. What are your questions? What are your thoughts? Where do you think the best motivated sellers are? See if you can guess where I’m going to be talking about in the next two, because I’m not hearing anybody talking about it. And so, I’m going to be talking about it in a couple of later videos about where other of the best motivated seller opportunities are.
Again, if this video has been helpful for you, give it a thumbs up, subscribe to the channel if you have not yet subscribed to my YouTube channel so that you get notified notification of the next ones that are coming up. I think there’s a notification bell that you want to click on to make sure that you get notified when my next video comes live, and I’m going to be sending out a part two of this, of where to find more of the best motivated sellers in America in 2020 and beyond. Thanks for watching. Go look for sellers and always expect YES.