Marketing to Motivated Sellers for Professional HMOs

by | Nov 7, 2018 | HMO |

Marketing to Motivated Sellers for Professional HMOs
For some reason people don’t consider this when looking at getting started flipping properties or simply building a HMO portfolio.

They tend to focus on trying to find properties on rightmove. Repossessions do not exist that much at the moment.
There’s nothing wrong with that, but it is much easier to focus on….
marketing to and buying directly from homeowners. (motivated sellers)
This is how we got started and how I recommend others get started. We owned a bridging company and lent on properties we would purchase.
I have a feeling a lot of people don’t want to start this way because they are nervous about the interaction that takes place between you and the seller. There is face-to-face negotiation involved. It can be scary …but look as if you are trying to help the home owner with their issues.
Don’t let that discourage you. You need to learn how to negotiate well, but the fact of the matter is most true motivated sellers, the ones that will sell for the prices you need to buy at, will require no negotiating whatsoever!
Motivated Sellers
They’re motivated. They need, or even just want to sell badly and you want to buy. You name your price and they just say, ‘Ok’. It’s as simple as that a lot of times, when you are working with the right sellers.
Here are the benefits to working directly with homeowners:

1. Small earnest money deposits. Earnest money deposits are what you pay to the title company to make your contract binding. Or you can simply exchange with delayed completions…
2. You don’t need a MIP or AIP or have to show a bank statement showing you have the funds to make an offer on either a Social HMO or Professional HMO. Homeowners don’t ask for that stuff. Listed properties usually require it. So, you don’t have to get pre-approved by a bridger or anyone else to start making offers for properties to wholesale or even buy to rehab.
“This agreement is subject to further inspection of the foundation (or whatever else you might be unsure of).”
Be up front with the seller though and let them know that you want to buy it, but need to have something checked out to be 100% good to go. If they say that they would rather wait until you check it out before they contract it, let them know that you’d prefer to know that you have the agreement before you spend the time getting it checked out.
3. Easier to assign the contract. It’s easier to assign contracts because you can use whatever contract you want on your Professional HMO purchases. You can have “and/or assigns” after your name as the buyer and the seller won’t even question it.
4. You can get better deals. This is true because there is typically less competition when buying directly from homeowners. Listed properties are being marketed and therefore you have a lot more people making offers on them. This is the biggest reason why I still market directly to homeowners to buy houses.
So, if you were one of those people that thought it best to work with agents and find deals on Rightmove… I hope I convinced you that another alternative exists that can be much easier for your Professional HMO purchases.