Wednesday, December 13, 2006

Why Do Sellers Discount Properties?

This past weekend I had the wonderful experience of teaching my favorite real estate topic “wholesaling” (www.TheWholesaleWizard.com) during a one day workshop in beautiful Phoenix Arizona. The majority of those in attendance hadn’t even done their first deal yet. Newbies!

I consider it a privilege to have the opportunity to transform minds and lives in mass. A privilege, mind you, I don’t take lightly. Oft times when I mount a platform to teach a workshop of beginners the majority have never heard of me. Many arrived with limited thoughts and ideas about the potential of real estate investing despite their paying to get in the door.

Call it lack of ideas from the lay person, cynicism from the pragmatic or just old fashion conventional wisdom casting a dark cloud of doubt over some. Nonetheless, it is my objective to not only convince, but prove without a shadow of a doubt that what I say is not only possible, but probable when the steps I provide are carried out.

My very survival as a trainer depends on my ability to do so. Personally, I enjoy the challenge, as I keep an eye on the most ardent cynic in the audience usually someone dragged there as guest against their better judgment. The arms folded, body tensed, nonchalant stares beaming my way, turns me on man!

After sharing many case studies of mine and my students success stories which are emphasized with HUGE figured, unbelievable to the layperson, checks as proof now come the gasps and looks of disbelief.

Ok, wait a minute says my skeptic. Hold on there Mr. Wholesale Wizard. “Why on earth would an owner of a property sell to you at such a huge discount if they know their property is worth much more?”

Casually and in a non defensive manner and tone, I simply ask everyone present to think back in their own lives. Have you ever owned something which overtime lost its value to you? Better yet, have you ever held a possession in your life where it became more painful to keep it than to let it go? Once when I asked this same question to a workshop group a lady shrieked “Yeah, my ex husband!”

Ok, in that case I ran with it. Sure your ex husband was the light of your eye at one point, until one day he became a burden in your life. Rather than keep the handsome dream hunk you were motivated to let him go to the next wholesale lover. “That’s it” she confirmed, with a few more inaudible mumblings.

It’s the same with houses. At some point in some people’s lives the American dream becomes a sleepless nightmare. Stress associated with the continued ownership can become unbearable until a time the person becomes extremely motivated to sell or just deed their property to the first savvy investor able to solve their problem.

I then follow up my statement with further proof with letters from sellers I and my students have helped out of a jam. Believe me, in many cases the sellers were happier to see us their savior at their door than we to see them.

This pain or frustration of ownership is NOT limited to the real estate world. Pawn shops have and still do thrive off this very concept. Today there are websites created for this very purpose to release steam from under the lid of a frustrated owner of a love lost possession.

I told my Phoenix audience to check out Craigslist.com to see all the ads from people selling cheap, while others are giving stuff away (no Craig is not giving me a cut). I have a friend who is self professed CS junkie, constantly selling, giving, buying and grabbing bargains weekly. Just this past weekend she scooped up a practically new box spring/mattress set from an owner whose back didn’t agree with the hard surface of the set. Both were happy about the outcome.
I think I changed the minds of most in that Phoenix audience. Those who cared to open their minds that is.

Let this be a reminder to you as you seek out motivated sellers, everyday there is another property owner looking, hoping, some praying that you find them to solve a problem they cant for themselves. As long as you treat em right, the money will flow into your life as a side affect.

Take action now to get started on your path as a real estate wholesaler.

Much Success to You

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