Distressed properties probably conjure images in your mind of the fixer-upper type, hole in the roof properties. And while it is true that some ugly properties certainly are distressed, they are not the only form of distressed properties. As far as Real Estate Investors are concerned a distressed property is any property owned by a Motivated Seller.

What is a Motivated Seller?

A Motivated Seller is a person who is in a situation causing them to sell their property for less than the current fair market value. These sellers NEED to sell. For one reason or another, and they do not have to share with you why, the house is something they MUST get rid of.

Have you ever had an old car in the driveway that you would have paid someone to come take away? How about an old couch? In some situations, houses are no different than a car or an old piece of furniture.

There are many reasons why a person becomes a Motivated Seller. They may have experienced financial problems and are unable to continue paying for the property. They will lose it altogether if it is not sold quickly. In some divorce cases neither person is able to afford the property on their own.

People, such as military personnel, get transferred to other states and must sell the property quickly.

People expand their family and need a bigger home, and must sell the current home first. Or, just the opposite; the kids may have moved out, and now a smaller home is needed.

Estate heirs inherit properties that they just do not want to deal with. This often happens across different states.

Landlords may no longer wish to deal with tenant headaches and are eager to sell.

There are numerous situations, which provide motivation for sellers to want a quick and easy sale of their property.

Motivated Sellers live in homes valued from $0 to over $1,000,000. The old saying "never judge a book by its cover" is certainly true in Real Estate Investing.

A lead excluded based solely on appearance, may end up costing you money. It is nearly impossible to tell how motivated the seller is simply based on how the property looks. The truth is that there is never a shortage of Motivated Sellers, but the trick is finding them.

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