Motivated sellers remain the number one source of the most profitable deals no matter what your real estate investing business model is. Successful real estate investing should therefore incorporate finding deals from motivated sellers and successfully closing them. In most real estate investing business models, motivated sellers remain the number one source of the most profitable deals. Successful real estate investing should therefore incorporate finding deals from motivated sellers and successfully closing them.

In this article, we point out important areas you must focus on in your business.

To learn how to attract motivated sellers, see one of my previous articles. Once you have identified motivated sellers, the next step should be to secure and close the deal.

In my business, I get all my leads through my real estate investor website. Approximately half the motivated sellers submit their information directly through the website. The other half calls and leaves a voice message and my virtual assistant pre-screens them for me and submits the information on my website.

All the deals I receive are therefore pre-screened and pre-negotiated. I can therefore easily identity a good deal in a few minutes.

You must then set up an appointment to see the house as soon as you identify a good deal. This is mainly because you must estimate repairs. A simple tour of 5 to 10 minutes is enough to estimate repairs.

You do not have to get it detailed down to the nail, you just need a safe rough estimate, preferably higher than normal to be safe.

Make sure you sign the contract while you are with the buyer.

If you later find the numbers do not look as good, you can always cancel the sale later.

If you like the deal, fax the contract to the title company so they can do title work for you. Remember to deliver or mail the earnest money so the contract becomes binding. Earnest money should go to the title company, not the seller.

The next steps in the process depend on your business model and what your exit strategy is:

1) Wholesale the deal
If your exit strategy is to wholesale the deal to other real estate investors, this is when you market the deal to them. With a good real estate investing website that builds a buyers list for you, you would just need to email your new deal to your wholesale buyers list.

If you plan do a simultaneous closing, you then sign a contract with you as the seller. You can also assign the contract for an assignment fee.

The title company will then do the closing and disburse all the money as agreed.

2) Lease option / Lease to own
If you plan to do any creative financing such as lease option, or any business model that involves taking over the existing mortgage, the title company should be able to conduct the closing whether you already have a buyer or not.

This is why it is important that you select a title company that works with real estate investors and understands various real estate investing business models.

3) Straight buy
A straight, traditional transaction will be needed if you plan to buy fix and sell, or to buy and hold.

Of course these are the main business models; others would follow similar steps.

When all is said and done, your success in real estate investing, largely depends on the efficiency with which you pre-screen your leads, follow up with them to tie up the deal, and efficiently close the deal.

By: Simon Macharia

Find out how you can run your real estate investing business from an interactive real estate investor website that automates most aspects of your business delivering pre-screened and pre-negotiated deals so you spend less money, time and effort while you close more deals.

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Article Tags: real estate investing , real estate investor , real estate investor website , real estate investing website

Submitted On Feb 07, 2012. Viewed 11 times.