Real Estate Investment

How to find a great investment property !

I am getting more and more people who tell me it is difficult to find the right real estate property for sale. I keep on telling them that they must not search for properties but rather for a motivated home seller. Most people believe that property investments depend on three things: location, location and location. This is just part of the truth and it will probably yield an average, but mediocre return on your property investment. You can achieve average returns by listening to any honest real estate agents or financial advisor who will give advice for free. For exceptional returns on your property investment you need to consider many more factors and you need to find these out for yourself. One of the biggest misconceptions about property investments is that the most critical thing is the property for sale itself - its condition and location.

The truth is that both of these considerations are secondary to the motivation of the private property home seller. If the seller is not motivated then no matter what the condition or the location of the property for sale is - you are not going to get a great property deal. But if you have a motivated private property home seller, then you have a great chance of turning a handsome profit on your property investment no matter what the condition or location. When this really sinks in, it revolutionizes how you prioritize your search for great property deals. No longer do you waste time doing due diligence and inspecting the house for sale, until you have made sure you’ve found a motivated private property home seller. Finding this motivated private property seller becomes the most important investment activity you can ever engage in. You must focus your time, efforts, and creativity on searching for a motivated private property home seller first.

How to find a motivated private property home seller? How to find that perfect homes for sale at a bargain price? What system can you use to locate motivated private property sellers? In most cases motivated private property sellers are the result of some personal situation unique to that individual. Although the specific situation may be unique to that individual, there are certain patterns that play out over and over again and you can benefit from their property for sale. By concentrating your efforts on these highly motivated private property sellers you will make life much easier for yourself.

Let’s look at one of the patterns. People run into financial difficulties. People get behind in bond payments, cannot get out of debt, find themselves threatened by outside factors such as an uncontrolled bond rate, lose their jobs or become one of the 80% of new business owners that will close their doors within the first three years of operation. There are many reasons for financial difficulties, but most people revert to selling their biggest asset, their house, when times get tough and they will advertise property for sale. The bad thing is that if they cannot pay debts then they can be liquidated and they will lose their real estate. Not only will they have lost every thing financially but they will also have a bad credit record and for the next five years they will be out of the financial race, so they have no option but to sell property.

When one for instance enters into a home loan arrangement, financial predicament is never the forecasted intention. Nevertheless, the average home in South Africa is repossessed in as little as 18 months. Buy-and-sell motivations differ from circumstance to circumstance and at the latter end of the state of affairs described above, the motivation is to sell the money-sapping impediment as soon as possible. However, even in situations like these, one needs to focus on the best possible tools to bring you to your current solution to buy property.

A quick overview of repossessed property shows us that this unfortunate process is the end of a life cycle. It starts off with a loan and sadly ends in a sale of execution of private property to the public as a house for sale. When the financier enters into the process of repossession, a letter of demand is sent to the non paying private property home owner. When the owner of the home does not conform to the content of the demand, a summons is issued by the creditor, which leaves the home owner 10 days to respond or real estate property for sale will be the next step. Should the private property owner fail to pay the outstanding amount or fail to enter into an appearance to defend the matter, judgment is taken against his name and the house for sale step is instituted. Hereafter a warrant of execution is issued and the property is sold on auction in approximately six weeks time.

At this stage, the only person that has functional foreknowledge of the pending sale in execution, is the private property owner of the house for sale and it is therefore not yet public knowledge that the real estate is pending a sale in execution. It becomes generally known to the public once it is advertised to be sold as a home for sale in execution. Once judgment has been taken, the details of the one burdened with the loan, are submitted to the various credit bureaus as a private property for sale where it will remain unless the home owner satisfies the home loan by selling the property privately as a home for sale. Within 20 days of judgment, the judgment has to be rescinded on the basis of payment and the credit bureau informed. Advertise real estate property for sale falls within a category of trade where information may be removed from the credit bureaus without waiting three years as in the clothing, furniture and motor industry.

It is said that a good name is better than great riches. Without a credible name the private property home owner will never own a home again and this added value opportunity should be considered carefully in negotiations for that great property for sale deal. Remember that you are the agent offering to re-instate the private property home owner in the financial hub. You offer independence and freedom from merciless, soaring credit vultures for South Africa real estate owners.

Author: Realtors Real Estate | Sponsor: PrivateProperty South Africa