Kent Clothier

How To Approach Motivated Sellers
by Kent Clothier

APPROACHING MOTIVATED SELLERS: HOW TO GO ABOUT IT THE RIGHT WAY

Dealing With Motivated Sellers Real Estate Investing Tips

Sellers can have a variety motivations to sell, some urgent, others not. Possible reasons to sell range from moving to death, divorce and taxes. Motivated sellers want to sell at the highest price and they want to sell yesterday. Often, they have an emotional attachment to their property, as well as unrealistic expectations about the results of a distress sale. Sometimes, they just see pie in the sky.

Perhaps a seller faces foreclosure or is in probate; he could be in the middle of a relationship break-up or relocating for a new job. His home may be the only asset he has and it’s not liquid either. A motivated seller is often worried and desperate, which makes him suspicious of your intentions. Because he is sure you will cheat him, he reacts accordingly.

BE RESPECTFUL AND PROFESSIONAL

Regardless of who approached whom, address the seller in a professional, courteous manner. Be conversational rather than authoritative or lecturing. Introduce yourself and present a confident, not arrogant, air. The seller may still be suspicious of your motivations, but she’ll also be impressed that you are polite to her.

MAKE THE CALL

Dealing With Distressed Sellers Real Estate Investing Tips

While your seller may be in a hurry, he won’t be rushed, which is a good thing because you have some due diligence to conduct. Your first contact with the seller, often by telephone, should be for basic information about the property and the seller’s expectations. At a minimum, you want to know:

• Seller’s personal details: marital/partnership status, contact information, decision-makers
• Property details: Location, layout, recent upgrades/repairs (or lack of), type (single-family, Victorian, duplex, etc.), HVAC/utility information, etc.
• Financials: Rental property income, liens, taxes, mortgage, equity and asking price

SCRIPT IT OUT

Some sellers will not volunteer any information and you’ll have to drag your answers out of them. Others will tell you not only the history of the house, but also their family history unto the fifth generation. With a script or questionnaire, you can keep track of the important details and keep the conversation on course. You should not try to get all the answers in this call.

Do have a checklist; do not fire questions at the seller. Instead, ask the seller to tell you about the property. He may answer some of the questions on your checklist and you’ll have natural openings for follow-up questions. At a minimum, you can gauge your seller’s expectations: unrealistic, practical or somewhere in between. By the end of the call, you’ll know whether it’s worth your time to proceed.

BEFORE YOU HANG UP

Approaching Motivated Sellers Real Estate Investing Tips

Explain your needs to the seller. It is perfectly acceptable to give a range of what you’ll pay and how much you think you need to make any repairs or upgrades. You don’t have to have comps on area real estate, but if you’ve done your homework—like checking the assessor’s rolls while on the telephone with the seller—you’ll know the property’s assessed value. Because you are explaining the basis of your offer, the seller can make a judgment about going forward.

Above all, do not argue with the seller; don’t try to educate her in the realities of distressed property sales. It’s a waste of time and potentially damaging to your reputation.

As a real estate investor, you have questions you need to ask to evaluate the risks and costs before making the investment. It is in your best interest to treat a motivated or distressed seller with the same courtesy and respect you would give any business partner. Professional behavior on your part will enhance your reputation in the real estate investment sector, leading to increased investment opportunities.




Kent Clothier
Kent Clothier experienced the trials and tribulations of building businesses across several industries has taught Kent the value of having the right mindset and principles in place to achieve your ultimate success.

Kent Clothier achieved corporate success at an early age, rising up the corporate ladder of one of the largest grocery distribution companies in the country. In 1987 Kent began helping his father run a trading company in the grocery distribution and supply industry. By the age of 23 Kent took over the day to day sales and operations of the company and in turn, the company grew to annual sales of over $80 million. Kent ultimately oversaw the sale of the company to a Boca Raton based competitor and quickly rose through the ranks of the larger organization. By 2000, Kent was the Executive Director of Sales and Market for the organization, now doing in excess of $2 billion in annual sales and a company that had grown into the 7th largest privately held company in Florida.

Although he had owned a few rental properties for several years, in 2000 Kent started his new venture with very little previous real estate experience. Like many others, Kent was overwhelmed with the lack of quality information in the market to help a real estate professional to grow their business. With so much garbage material in the industry, Kent found it difficult to navigate between fact and fiction. He decided that the only way to distinguish between the two was to get involved and to learn some things along the way.

Kent started his real estate career by looking to wholesale a few houses each month to create a “nice” living. However, this soon evolved into a much larger real estate organization. Kent and his family now run a company that has quickly evolved into a team that has become one of the premiere real estate investment organizations in the country.

By daring to dream big, taking calculated risks, and a willingness to step out, Kent, his family, and their partners have built an organization that stands out in real estate today:

• Wholesaling over 2000 houses since 2003, 500 in 2017, and current plans for over 600 in 2018
• Through this company, now operates one of the largest property management companies in Tennessee with over 700 properties under management
• President and CEO , Real Estate Worldwide
• Their family now owns over 150 rental properties
• Their family now owns 7 commercial buildings in Memphis, Tennessee
• Owns and overseeing 24 unit condo conversion in Memphis, Tennessee
• Founding member of Mid-South REIA with over 350 members

Kent Clothier, along the way, perfected marketing techniques and strategies using 1-800-SELL-NOW that helped to drive truly motivated sellers to the organization and was the single biggest reason for his real estate success.


Copyright Notice
Copyright 2002-2018 All Rights Reserved. Published with Permission of Author. No part of this publication may be copied or reprinted
without the express written permission of the Author and/or REIClub.com.

Back to Top

Free Newsletter
Name:
Email:

Article Options
Printer Friendly Page
Send This to Friend

Author's Articles
How To Approach Motivated Sellers
How To Assess If An Investment Is Right For You?