In my previous post I told you about the advantages of finding distressed properties and motivated sellers. I also told you that if you can solve the seller’s problem – namely that he is in danger of losing his home – then you can likely make this a win-win situation. In this post, I’ll tell you how you can position yourself as a problem solver, and get some pretty good real estate bargains in the process.

Now let’s not kid ourselves, we’re not in the business of fixing other people’s problems for the sake of feeling good. But if you’re interested in finding distressed properties, put the word out that you can help solve people’s real estate problems. Advertise, hang signs, put up a web page, do whatever it takes to get the message out. Soon you’ll find people coming to you with their distressed property, rather than you having to go find them.

Build Rapport

Once you’ve located a property that meets your criteria, build a good rapport with the owner by letting him know you are interested in his problem. By the simple act of listening, you can find out a lot about where the owner is in the process, and just how motivated he’s likely to be. Also, let him know that you are a professional and that you’ve encountered people in his situation before. You can even let him know what to expect if things keep going down the current path.

Next, let him know what options he has. Figure out just how important his credit rating is to him, and ask if he wants to keep it intact. Tell him about just what a foreclosure can do to his credit. Often the idea of losing a good credit score is motivation enough. Let the owner know that there are ways that he can stay in the house for a period of time while you work out the details of the transaction. If he is willing to do a “subject to” sale, this may make sense for you both.

Solve the Problem

As the professional in this arrangement, you are in a position to recommend the best plan of action. That could mean a short sale, a buyout, or any number of creative ways to structure financing. If you have the means to offer a cash purchase, this could allow him to even walk away with some money in his pocket. In any case, it’s up to you to present all of the options and to make him an offer.

Finally, never lose sight of the fact that this is a business deal. The owner of the property has gotten into this situation, and you are trying to help him resolve it – but it’s still his responsibility. Be sure he knows that you are the problem solver and are here to help him. If you focus on creating a situation where you both benefit, it will be in everyone’s best interest.

For a one-on-one consultation on whether or not being a real estate investor is right for you, request an Investing Aptitude Assessment from StreetWise Property Investing.  Get it here: http://StreetWisePropertyInvesting.com/Assessment.