In this week's House Flippin' 101 video, we're going to discuss 5 Key Things You Need to Know About Deal Getting.
When you are analyzing incoming leads and trying to figure out if you can turn them into deals, there are 5 key things you need to know about deal getting in order to determine if you should spend your time pursuing the lead or not.
Here are some things that you will want to consider:
1. Is the property physically distressed or financially distressed? Personally, I find that you will ALWAYS get a better deal focusing on physically distressed properties.
2. What is the asking price? Ask yourself if the asking price is higher than the "comp" price is the area. If the asking price is lower than you may be able to work something out. If it's higher, than you will be wasting time on that deal.
3. Does the owner live in the property? This is important because it will play a role in the level of motivation that the seller has. The further they live away from the property, the better. BUT not in all cases. If the property is bank owned, then the property will be vacant 9 times out of ten.
4. What is the owners level of motivation? Bottom line, if the seller is not motivated to sell then there is no deal. In a bank owned property situation, the banks are looking to recoup the money they have invested into the property. That's the bank's motivation. In a private owned seller's situation, there are many things that can affect their motivation.
At the end of the day though, you need motivated parties on the other end in order to make a deal.
5. How much equity is in the property? This one factor will make or break the deal. The more equity the property has, there better. If the property doesn't have a lot of equity, the deal will be harder to do.
Watch the video above for more information on The 5 Key Things You Need to Know About Deal Getting Now
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