Each seller will have his own reason for being motivated, and not all of them are able to do rent-to-own. The best motivated sellers for rent-to-own are the ones seeking what I call "good debt relief". This usually means that the home they are trying to sell is a payment burden but they aren't generally in financial trouble. Here are some examples of motivated sellers:
• They built a new home and the old one hasn't sold yet
• They purchased a new home and the old home hasn't sold yet
• They recently got married and each had their own home- now they need just one
• They were given job transfer to a new area and haven't sold their old home yet
• They inherited the property
• They are landlords and are selling a rental property
• They are selling a vacation home, or have retired and moved into their vacation home and are selling their old home
In all of these cases, the seller has essentially moved on or doesn't live in the home they are trying to sell. They, most likely, have a second home. What this means is that the seller is burdened with two homes and two mortgage payments. While he might be able to afford that second payment, nobody wants to make a payment on a home that is sitting empty.
Wendy's Wisdom: The best "motivated sellers" to find for rent-to-owns are those with two homes and two mortgage payments.
Finding Motivated Sellers
My favorite ways to find motivated sellers are in this order:
1) Working with Realtors / real estate agents
2) The "For Rent" ads
3) Advertising to find them
4) Getting sellers to call you
5) Distressed builders
6) For Sale by Owners- FSBO's
There are many other ways to find motivated sellers, but these are more than enough for what you will need to find your home.
Excerpt from Rent-To-Buy: Your Hands-on Guide to BUY Your Home When Mortgage Lending Is Tight Chapter 5, Pages 66-67.
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