I attended a real estate clinic recently, and everyone I talked to said that every seller they approach only wanted cash for their house. But I want to debunk that myth because it is absolutely not true. This is one of the greatest fallacies that real estate investors believe. I’ve learned getting all the money at closing is what sellers might think they need but many times it’s really not the case.
Not all sellers want another house to buy. I approach sellers who own property free and clear and they don’t live in that house a primary residence. If they sell the property, they will have a big tax bill at the end of the year. Owners who don’t live in a property have to pay a large amount in taxes when they sell it. But if you work out a deal with the seller where you don’t give them cash, they won’t have to lose profit in taxes.
Trying to get rich overnight will bankrupt you as a real estate investor. The hard money, short-term loans don’t work on properties that you own for a long time. I learned the hard way when I started out by trying to buy and pay cash for multiple properties. This method almost bankrupted me. So in order to feed my five kids, I learned to be creative to figure out what the seller really needed that I could offer without taking out a loan (that I couldn’t even get anymore) and giving them cash.
There are numerous ways to close a deal with a seller who doesn’t live in the property. It’s not necessarily the money they need. It’s actually what the money can provide for them that they are wanting. Since they don’t have a mortgage to pay every month, the possibilities are endless.
To learn more on how to be successful at creative real estate investing deals, visit www.larryharbolt.com to sign up for information on my classes and to gain access to free tips.