I’ve seen investors buy properties at 30, 40, 50% of the current appraised value.  This was once mind boggling to me.  Why would a seller give up so much of their equity?  

You never know what type of situation a seller can be experiencing at the time.  But as investors, we can become the solution, the breath of fresh air for the seller.  Of course a seller will try and get all that they can for a property, and they should.  But as investors, we are looking for the great deals, this is how we make our money. 

A friend of mine, Jason Rodriguez, told me once that “Great deals are not found, they’re created”.  I began implementing his techniques and seen how I could create a great deal, with substantial equity.  The key is finding out the seller’s motivation, what is it that they really need out of this deal? 

Sellers don’t give up equity, they exchange it for peace-of-mind.  A seller will sell you their property for a discount if you can at the very least provide them with enough to take care of their immediate need(s), whatever that may be.  This will give them a peace of mind and provide a level of achievement for them. 

Probe your sellers, find out what is it that they really, really need, not want, from the deal.  It could be enough money to pay for their parents nursing home bill or money to send their child to college or money to relocate and get established.  With an idea of the seller’s need(s), you can construct an offer to suit them and provide for a win-win solution for all parties. 

Investors remember, Great deals are created, not found.