Hey Stefan Aarnio here. Award-winning real estate investor. Award-winning entrepreneur author of several books, and I’m here to talk to you guys about real estate investing today, and how to get motivated sellers. Motivated leads. How do you get motivated sellers? I always talk to people and they say, “Oh, Stefan it’d be great to purchase real estate 40 to 60 cents on the dollar. I want to do that. I want to learn how to do that. How do I get leads? How do I get leads?” People always say, “What’s the nuts and bolts? How do I get leads?”
Leads. Motivated sellers typically come from three categories okay. You got the three D’s. You got death. You got divorce. You got downsizing. Those are the three things that cause people to give their equity away. Heres the thing about real estate. Nobody wants to give away their equity. Nobody wants to sell for less.
But when you get into a death situation, where maybe you die. And you have to give your property away because you’re dead. Obviously you can’t take it with you when you move to the afterlife. Death is a major motivator. This is where your estates sales come from. You got probate. You’ve got all sorts of interesting things. You might just have where the city takes over the property. All sorts of things happen when people die, and all their stuff is there. That’s usually a catastrophe. Most people don’t want to deal with a death home.
Then we’ve got divorce. And this is people … These people are actually trying to almost destroy each other usually in divorce. Fun fact, or maybe not so fun. In divorce you don’t lose 50% of your wealth. You lose 70% of your wealth. Upwards of 70%. Divorce, this is people losing their equity, and they’re losing it because they’re fighting each other. Now you might look at this and say, “Wow Stefan this sounds miserable getting death, divorce, and downsizing.” But the truth with this is, you didn’t cause these problems to happen to these people. These people put themselves in these problems. You’re a problem solver. They have a messed up house, and you’re a buyer of messed up homes.
Now the third thing here, is downsizing. This is job loss. Somebody lost their job. They were downsized job loss, they can’t pay the mortgage, they have to get out right now. You’re a service provider, and you’re somebody who’s willing to get them out of that home fast. Now here’s the three ways to get leads. Networking. Marketing. And negotiating. Now personally. I’m a person who prefers … I’m a networker. And I’m a negotiator. This is how I get my deals.
Number three, marketing. I don’t like marketing for real estate deals very much. I’m a huge marketer in lots of businesses, but I don’t like marketing for real estate deals, because what happens? You spend the money, it kind of doesn’t really come back always. You’re spending money. These clients are not long term clients. This could be … Marketing could be flyers. Could be bandit signs. Now it’s funny, as I said I don’t like flyers. I don’t like spending money, because I’m the business owner, and I don’t like spending money ever
But my right hand man Bryce, he did a flyering team last summer, and we got a call this year we signed up a property at $266,000. And we’re selling the property as is for $310. There’s about $45,000 of profit there. $44, $45 thousand, and I’m saying here I don’t like flyers, but look flyers are making money.
It’s really interesting to look at the networking, the marketing, and the negotiating and say, “These are the places where you’re going to get your private leads.” Flyers, bandit signs, yellow letters … Kijij, or Craigslist. Depending on where you live. You got classifieds, newspapers. There’s so many ways to spend your money on marketing, to get these private leads.
I’m putting money, because this takes money. Now what I like is, networking. It takes your time to do networking, but this is your deal supplier. This could be realtors. This could be lawyers. Property managers. This could be your accountants. All these different people. Are your networking people. These are the inside connections.
I get most of my deals through networking and inside connections. And the last one is negotiation, which is just a life skill. The better you are at negotiating, the better deal you can make. I have a deal right now I’m working on, it’s about a million dollar purchase. And the vendor is giving me 100% vendor financing. No money down.
I’ll put in about half a million, and the property will be worth $3.4 million when I’m done with it. That comes from having a negotiation skill, and so you got to work on that skill. You got to work on your marketing skill. Your negotiation skill. Your networking skill. This is where those opportunities come from. It comes from your skills. Not from anything else.
That’s why we coach people. We train people. We help you with your skills. So that you can get the opportunity you always desire. That’s how you find distressed properties. That’s how you find properties at 40, 60 cents on the dollar.
I want to hear from you. Comment on this. Put something in the comments. I want to hear how you find your best deals. I’m Stefan Aarnio. Like, share, comment, subscribe to my channel. I’ll see you on the next video.