In most real estate investing business models, motivated sellers remain the number one source of the most profitable deals. Successful real estate investing should therefore incorporate finding deals from motivated sellers and successfully closing them.

In this article, we point out important areas you must focus on in your business.

I have pointed great sources of getting motivated sellers in a different article. As soon as you identify a good deal, you must then secure and close the deal.

In my business, I get all my leads through my real estate investor website. Approximately half the motivated sellers submit their information directly through the website. The other half chooses to use the phone, and my virtual assistant pre-screens them for me and submits this information on my website.

I therefore receive all my deals fully pre-screened, and pre-negotiated. I can therefore easily identity a good deal in a few minutes.

Once you find a good deal, you must set up an appointment to see the house. This is mainly because you must estimate repairs. A simple tour of 5 to 10 minutes is enough to estimate repairs.

A thorough estimate of the repairs is not necessary. You just need a rough estimate.

Make sure you sign the contract while you are with the buyer.

You can always cancel the sale later if the numbers no longer look good.

If the deal works, fax the contract to the title company so they start title work. Always make sure you deliver or mail the earnest money to make the contract binding. Earnest money should go to the title company, not the seller.

The next steps in the process depend on your business model and what your exit strategy is:

1) Wholesale the deal
If your exit strategy is to wholesale the deal to other real estate investors, this is when you market the deal to them. If you have a good real estate investing website, then you have probably built a list of potential buyers and you simply email you new deal to your wholesale buyers list.

Once you identify the wholesale buyer, you then sign a contract with you as the seller if you plan to do a simultaneous closing. Alternatively, you can assign the contract for an assignment fee.

The title company will then do the closing and disburse all the money as agreed.

2) Lease option / Lease to own
If you plan to do any creative financing such as lease option, or any business model that involves taking over the existing mortgage, the title company should be able to conduct the closing whether you already have a buyer or not.

This is why it is important that you select a title company that works with real estate investors and understands various real estate investing business models.

3) Straight buy
If you plan to buy fix and sell, or keep as a rental property, then this is a straight traditional transaction that any title company can close.

Other business models would follow similar steps; these 3 are just the main ones.

When all is said and done, your success in real estate investing, largely depends on the efficiency with which you pre-screen your leads, follow up with them to tie up the deal, and efficiently close the deal.

Find out how you can run your real estate investing business from an interactive real estate investor website that automates most aspects of your business delivering pre-screened and pre-negotiated deals so you spend less money, time and effort while you close more deals.


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