As you may know my particular focus at the moment and areas of expertise is buying property below market value from motivated sellers.
It seems that everyone wants to use this strategy at the moment. And why not? With the promise of No money down, tenants from day one, potential positive cash flow and even cash back, surly this has to be the way to go. If you check your local free newspaper you will see lots of people advertising “ Sell your house fast for cash”. It appears that there is lots of competition, or is that just a perception? How many of them actually know what they are doing?
I regularly speak to motivated sellers who say that they have contacted a number of companies about selling their house. I hear all sorts of stories such as sellers waiting to hear back from these companies for weeks. One seller yesterday said that he had given up on one company as they had taken 10 weeks to try and buy his property so he had pulled the plug on them. What are these companies doing? Don’t they realise that the only reason the property is being sold below market value is due to the speed required?
So yes there is lots of competition out there but I get the impression most of the people doing it are amateurs. If you are professional, know what you are doing, build a rapport with the seller and act quickly , there is still an absolute killing to be made using this strategy.
There will be an increasing number of motivated sellers over the next 12 months and those position to help these people in An ethical win-win manner will do very well.