Rivers of Gold - Probate Prospecting Newsletter

Diana's Observations
Deal or No Deal? By Sherry Allen Harrison

Our dear friend, Sherry, was gracious enough to share this article with us and we begged her to let us share it with you. It is very powerful. I am going to let Ken do the grand introduction of Sherry.

Ken:
Diana suggested we feature our friend Sherry Harrison in this month’s newsletter and I wanted to add a few words about our guest. During a call yesterday I was kidding Sherry, telling her I was cutting her resume down because she has done so many things in her work history. The years as a go-go dancer, when she had her own auto repair shop, the time at NASA designing the space shuttle (though her ex did that very thing), all were very interesting but had to be cut. No, as I indicated, I was teasing but if Sherry set her mind to it she would have been a success in all those areas and more.
Ken

Sherry's Bio Information:
Sherry Allen Harrison is a nationally known speaker, trainer and author. She is noted for her vast knowledge in areas relating to financial investments from Stocks and Bonds to Real Estate and Insurance, as well as topics about the nature of men and women in the workplace. She is a dynamic speaker who gets her audience involved, excited and motivated. Her wit and humor make the time fly and the information memorable. Her new book “A Man Is Not A Financial Plan,” is scheduled for release in April 2007. Born and raised in the southeast Virginia, Sherry now resides in the Atlanta GA area, near her children and grandchildren.

Deal or No Deal?
The popular TV show by this name asks contestants to make a deal or not based on random guesses that are dependant on luck alone. Many new Real Estate Investors, unfortunately, try to make deals based on little more than this. For the educated Real Estate Investor, there are several clearly defined, highly dependable ways to determine what is or is not a good deal. All of these begin with a MOTIVATED SELLER.
Consider two identical houses in the same neighborhood that are for sale. One seller is thinking about buying a bigger home and wants to see what he can “get” for his home. The other seller, a family man with school aged children, has just been told by a callous employer that if he wants to keep his job he needs to show up in Seattle a week from Monday. To an independent appraiser both of these houses are worth exactly the same, but one can be a real Deal, the other probably not.
Seller number 2 is what we call a motivated seller. He NEEDS to sell FAST and CLOSE FAST. No matter what an appraiser says, seller number 2 has to sell to whatever buyer can meet his needs. The dollar amount is secondary to the need for speed. As a Real Estate Investor, you can make a discounted offer (lower price), but close fast and get this man on his way to Seattle and a new home for his family. This scenario is likely a “Deal.”
Seller number 1 is most likely to wait for a buyer who will pay top price. Time is on his side. This is a “No Deal.”
Most of the situations that create motivated sellers are fairly common sense. They include:

Job Move

Job Loss

Illness

Threat of Foreclosure

Less obvious motivations come from:

Death

Divorce

Incapacity

Tired Landlord

Bankruptcy

Aging

Shifting Social/Economics

Changes in Land Usage/Zoning

New Business Growth

Business Closing or Downsizing

As an Investor how can we best identify potential motivating situations and make contact with motivated sellers? Each situation is a little different, but here are some of the actions that will get you closer to good Deals.
Look for “For Sale” ads that indicate things like, “Bring all offers” or “Must sell”, or “Handyman Special.” Call them.
Call on For Sale By Owner Signs. Ask why they are selling. (Surprisingly most sellers will actually tell you.)
Keep a check on websites that list FSBO (For Sale By Owner) Properties like “BuyOwner” and “Craigslist.”
Have a good realtor on your team who will scout for newly listed opportunities.
Read your local newspapers especially:
> Local or Metro sections
> Business section
> Real Estate sections
Attend or read minutes of local Planning Commissions, Zoning Boards, and city or county council
meetings. Connect with the local Chamber of Commerce, especially economic development committee.
Go to your local courthouse and find out how to look up new filings for the following:
> Foreclosure suits
> Divorce
> Probate
> Bankruptcy
Learn how to use the local recording office in your city or county. Find out who the out of state owners are; who holds personal mortgages; what propertie's are owned by corporations or non-profits.
Go to the local property tax office to see what propertie's taxes are behind.
Then design a marketing campaign that targets areas and owners who are most likely to be MOTIVATED. Ask if they are selling and how you can help.
Personally, I find that many motivated sellers are involved in the settlement of an Estate. This means someone, usually a family member, has passed away leaving real estate sitting empty. In addition the empty property often represents the vast majority of the decease’s assets. Heirs rarely want to inherit real estate. They are looking for a cash distribution. The only way to get the cash is to sell the real estate. Most want that to happen quickly. Additionally this represents “found money” to most heirs, so they are less likely to hold out for a high price. Most say sell it quick for what we can get, take the money and be done. This creates a perfect motivated seller situation.
Finally, get educated about Probate Investing as well as all of the buying strategies mentioned here. Learn how to market for potential Deals. Work with a coach (like maybe Diana or Ken) who can guide you and help you make sound decisions about a Deal or No Deal.

To Order Sherry's new book vist her website.