WHERE TO FIND THE BEST MOTIVATED SELLERS IN 2020 (Part 2)

 

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Summary

Motivated sellers are a tremendous opportunity for you to make money in this crisis because they want to sell now. If you haven’t yet watched my previous video where I talk about where to find the BEST motivated sellers in 2020, watch it here: https://yesmasters.com/where-to-find-the-best-motivated-sellers-in-2020/.

Another group of motivated sellers is Downsizers. These are:

  1. Vacation home owners who own their second or third homes. They want to sell now because they’re worried that the economy will crash.
  2. Vacation rentals. (AirBnBs, Vacation Rentals By Owner) Because they suddenly have no cash flow from rentals, most of them can’t make the mortgage payments. They will want to protect their equity and sell fast.
  3. Empty nesters. These are couples in their 50’s, 60’s or 70’s left alone in a big house. They won’t take a chance on the economy and are motivated to sell now in order to protect their finances. After selling, you can also help them look for a smaller house to buy. Continue building a relationship with them so they’ll refer you to other homeowners they know who are also looking to downsize.

Reach out to these downsizers and tell them that you can get them the most money from selling their property.

If you want to master finding and winning with motivated sellers even in a crisis. you need to get into coaching. Click here to find out how coaching can help you >> https://yesmasters.com/coaching/

Full Transcript

Three different groups of downsizers that are massively hot targets right now.

Hey there, it’s Kevin Ward, the founder of YesMasters Real Estate Success Training, and today I’m bringing you part two of where to find the best motivated sellers in 2020 and beyond, even in the middle of this crisis.

And if you’ve not yet watched part one, in the description I’ll put the link there so that you can go and watch where to find the best motivated sellers part one.

And in this video, I’m going to talk about another incredible place to find the best motivated sellers in 2020 and beyond. And it is in one simple word, it is downsizers. It is people who are looking to downsize.

Now, I’m going to give you three different groups of downsizers that are massively hot targets right now. And when I say hot targets, I don’t mean like you’re trying to take them out. I’m just saying they’re great opportunities, because many of them are wanting to sell and they’re wanting to downsize.

VACATION HOME OWNERS

So there are three groups. Number one are vacation home owners, and that is people who own second and third homes. Now, for the same reasons I talked about in the previous video on how to find the most motivated sellers, most of these homeowners who own second and third homes, so if you live in a market where there is a lot of vacation homes, a lot of retired people come there, a lot of people come there, they are almost all baby boomers.

They are in their fifties, sixties, seventies, and they bought second homes. Finances have been good. The economy’s been good. They’re financially strong. But now they’re looking at what’s happening in the economy and they’re going like, okay, you know what? It is time to sell. Because you want to sell when it’s high, when the market is high. They bought the property 10 years ago or 20 years ago or whatever. It’s appreciated like crazy. It’s right here.

And they’re looking around, they’re going, like, we’ve had 33 million unemployed in the last six weeks. The economy has been shut down. They’re talking about countless corporations going bankrupt, small businesses closing down. We are worried about what’s going to happen to the economy, and home prices dropping. We’re selling now.

Now, the good news is home prices don’t drop as quick as other parts of the economy. So home prices are what we would consider a lagging indicator. So home prices don’t fall that fast. So if they take action in the next few months, they’re still good. They’re going to be able to sell high as long as they have an agent that knows what they’re doing and how to help them get out. But they’ve owned that second home, that lake home, that vacation home, and they’re like, you know what, time to get out. That’s group number one of people who are looking to downsize their portfolio and go like, you know what? We’re just going to get our home.

VACATION RENTALS

All right, number two are vacation rentals. So the first was vacation homes, where they went, but vacation rentals is the second where they’re downsizing. And in a sense, they may also be considered investors. And that is people that have vacation rentals like Airbnbs, VRBO, vacation rentals by owner.

There are countless … There was an article in The Wall Street Journal recently about how many of these homeowners who bought properties to do AirBnBs, because AirBnBs allowed them to get much higher cash flow than a traditional long-term rental property, and so they were buying all these properties and leveraging themselves up to the hilt, because they’re like, you know, normally I’d be able to rent this property for $3,000 a month. But if I do it as a vacation rental, I can get $5,000 a month from it.

And so they were like, man, and they were going in and leverage, leverage, leverage, leverage, and all of a sudden, guess what happened to their cashflow over the last two months? Zero.

Shut down, Airbnb owners, their properties are sitting there vacant. And they’re like, you know what? This is not what I signed up for. And a lot of them can’t make the mortgage payments. They’re going to be selling fast. The good news is they have equity. It’s not like in 2008 where everybody was buying with no money down. They put 20% or 30% down, so they have equity and they realize, I got time. I can sell now, get my money out, and I’m good, and I can survive this whole thing.

All right, and again, most of these people are baby boomers. They’re not in their twenties and thirties. They’re looking at it, going I don’t want to take a chance of a repeat of 2008. So we’re selling out and we’re going back into safe havens with our money. And they bought low and looking to sell high. Vacation rentals, my friends, there are massive, massive amounts of them that are going to be selling.

Again, you go out and you find non owner-occupied properties, absentee owners, you contact those owners and you reach out to them and say, hey, I notice that you had an Airbnb. Your property’s been an Airbnb. I know there’s a lot of vacancy, and I wanted to find out if you were interested in selling it. I can help you sell it and get the most money out of it. Just reach out to them. You can call them, you can mail them, but get in touch with those people.

EMPTY NESTERS

Number three, and this one, my friends is the long play. This is not something just that was going to be a great opportunity during the crisis. This is a long-term play that I think will be for the rest of the decade, and that is empty nesters who are looking to protect their financial nest egg and downsize.

Now, here’s who that is. That is people that are in their fifties, late fifties, sixties. They bought a house back in 2004, 2001, 1998. They bought it in 2010. Whatever it was, they bought it. They raised their kids there, or had their kids there during their teenage years. They’ve graduated. They’ve gone off to college. They got their degree. Now they’re out on their own. And now this couple has this 3,600 square foot house or this 4,200 square foot house or a 6,000 square foot house that they’re rattling around in.

And they’ve been fine in it, because the markets continue to appreciate. And they’re like, well, as long as we’re living here, we’re making, I mean, when we get ready to sell it, we’re going to make more money.

But guess what? Now they’re looking and going like, we’re at the top, and they’re baby boomers. So guess what they’re doing? They’re paying attention. They remember 2008, and they’re like in 2008, we were good. We had time to recover. We’re not taking that chance now.

A lot of them are followers of Robert Kiyosaki. They read his stuff and they’re like, you know what, him and a lot of his cronies, people that are in the same vein as Robert Kiyosaki, are saying we are probably heading into a massive downturn in the economy, could be a depression. It is time for us to sell this big house, get our equity, protect our financial nest egg, and downsize. And that, my friend, is a tremendous opportunity.

Now, here’s the best part of that opportunity. Empty nesters that are in their fifties, sixties, seventies, that group, they tend, one, they tend to have a ton of equity in their house. So they’ve got great equity. They just want to protect that equity. They have great credit. I saw a report last week that the average FICO score in America right now is 702, but only people in the fifties and sixties and seventies have average FICO scores of over 700. And they’re like in the 730s to 760s, the average of people in their fifties, sixties, and seventies. So when you find a seller that is downsizing, that is an empty nester and they’re getting ready to downsize, the beauty of it is they have equity. They have good credit, and they’re used to being homeowners.

So guess what happens when you help them sell their house? They’re going to be buying another smaller house. So you get to double dip. You get to help them sell, and then you get to help them buy. So there’s tremendous opportunity.

They also, then you get into their personal circle and their relationships. They’ve been homeowners. They’ve lived in these neighborhoods for a long time. Guess who they know? Tons of other homeowners in those same areas, their same age, all of them looking to downsize.

My friend, you want to succeed in real estate while there is a ton of agents that are reeling in panic? Right here, where I just talked about, the best motivated sellers, downsizers, downsizers, downsizers, they are gold.

If you know what to do and how to get them, if you want more help on that, more training on that, that is what I train in my coaching programs. You’re welcome to check out my coaching and go to yesmasters.com, click on the coaching tab, check out our coaching opportunities, and we can help you master how to find and win with motivated sellers, even in a crisis.

The opportunities are huge, and when you take advantage of them and take action, you can always expect YES.

I hope this video has been helpful for you. If it has, give it a thumbs up. Comments, questions, down below, where do you see other opportunities? Put those in the comments below, make sure you subscribe to the channel, if you haven’t done that yet, and I’ll look forward to seeing you on my next video.

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