What does free and clear in real estate mean? It means that there are no liens on file at the country recorder office and the owner owns the home or property, free and clear of any liabilities or liens. In short it means that the property is debt free.
According to realtors, 35% of the properties owned by Americans are without any encumbrances and liabilities. This is very important from the investors point of view as they can safely invest in such properties, which are free and clear.
The biggest factor to be kept in mind while interacting with a seller holding free and clear property is that most clear and free properties are owned by people in their late sixties or even older. Hence, the investors have to think about the sudden developments when dealing with older people.
Let us analyze what an investor should avoid, to prevent the seller from turning down the offer.
. Pursue the deal slowly: Mostly, elders look out for security and they fear making a mistake or getting ripped off. As an investor, you should make every move slowly while dealing with elderly people and give them time to know you first, without pushing an offer. Slowly does not mean weeks, it simply implies that when you meet the seller, spend more time with him and make him comfortable. Be friendly and even be willing to accept tea or coffee offered and the moment you find them settled, you can relax and start negotiating.
. Use age as an advantage factor: If you are younger than the seller, you can help him to identify you as a younger version of himself or remind him of his children or grandchildren. If you belong to the same age group, then you can build a rapport of friendship with them.
There are many investors who click best deals during this kind of transaction because they understand the seller mind and behave accordingly. The biggest desires of such sellers are:-
1. Security: No matter what you offer, the primary fact is that once the seller is comfortable in the deal and feels safe with you, he will definitely consider selling the property to you. If you are dealing in cash, then stress on how this deal could be the safest path for him, since there is cash involved, which would avoid risk. You can even highlight your history of on-payments to other sellers.
2. Positive attention: Always remember that people sell houses and properties to people they like and sellers like people who make them feel good about themselves. Be a good listener and listen to their stories and even encourage them to tell you about their past. This is the best way to build a rapport with an elderly person.
3. Hassle free income: Many older sellers look out for a stable income. If you are negotiating the payment, stress on an easy way in which they can convert their house equity into a monthly income for themselves, without much tax involvement.
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By: Tonyaybhodge | 02-09-2008
Does Mark Foley work for Deutsche Bank in the United Kingdom? Is He a real estate invester? I recieved a letter from him and I am concerned it is a scam.
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