It’s been awhile, and lots has been going on here. Spring tends to be very busy, both for real estate and for living on a farm.
Before getting into my rant for the day, I want to let you in on one of the projects taking up a lot of my time lately…
That’s the new home for the Top Guns of Real Estate, which includes Cortney Jones, Mike Moulton, Paul Gray, and myself. Back to Free & Clear…
First off, Free & Clear is often a misnomer, as many of the properties we target may have a small mortgage. They don’t need to be entirely Free & Clear, they really only need to be encumbered at about 50% or less. The key is HIGH EQUITY. They need to first have enough equity to sell at the price you’ll need to buy at, THEN you can worry about them having the proper motivation. No need to even begin if they can’t sell without a short sale, unless you want to do short sales AND they are a candidate.
So, here’s what you need to know to target these properties… the latest data has just been released, and nationwide, 32% of all homes are owned completely free & clear. That comes as a surprise to many investors because it seems like everybody calling is overleveraged, right? Well, keep in mind that sellers need to meet two criteria for you to buy… equity AND motivation. Many people with lots of equity and nice houses have minimal motivation.
So, this list often results in low call volume, though the ones who do call you definitely want to talk to. That said, here’s the million-dollar advice…
Set up your systems to minimize pre-screening for these leads. DO NOT put roadblocks in the way of these sellers. I will gladly pay extra to get a chance to talk to EVERY one of these callers. I do NOT want to leave the pre-screening in their hands, as they are looking for reasons to disqualify themselves. Don’t let them. These are the “Glengarry Leads” for fans of Glengarry Glen Ross.
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