How To Find & Talk To Distressed Sellers (EXPERT TIPS To Closing Deals)!

Are you struggling to find distressed seller leads that actually close?

Whether you're wholesaling, flipping, or building a rental portfolio, success comes down to finding distressed properties and knowing how to talk to motivated sellers behind them.

I’m Ryan Zomorodi, co-founder of Real Estate Skills. In this article, I’m pulling back the curtain on how to find distressed sellers—the kind most people overlook—and how to approach them with confidence, clarity, and care.

• Strategies for Finding Overlooked Distressed Sellers
• Benefits of Working With Distressed Sellers
• Offline Methods to Find Distressed Sellers
• Driving for Dollars vs. Targeted Door Knocking
• Tools and Systems for Lead Generation
• Overcoming Fear and Building Confidence at the Door
• Scripts and Approaches for Seller Conversations
• Case Studies and Success Stories
• Final Thoughts on Finding Distressed Sellers

Strategies for Finding Overlooked Distressed Sellers

I’ll cover some of the best strategies for sourcing these leads, plus proven tips on what to say, how to say it, and how to earn their trust.

Joining me today is Henish Pulikal, a seasoned real estate investor and agent with over 20 years of experience. He’s flipped many houses and worked with hundreds of distressed sellers of all types.

If you’re ready to stop chasing dead leads and start connecting with sellers who actually need your help, this is for you. Let’s dive in.

So, why do distressed sellers really matter to real estate investors and professionals?

Benefits of Working With Distressed Sellers

Working with distressed sellers allows you to set a price that can be a win-win for both sides. You can also minimize commissions and other costs, which often add five to seven percent to the price of a property.

If you’re a go-getter investor who can find these properties, structure deals that make sense, and explain the net cash a homeowner will walk away with, many sellers are okay with that outcome. Sometimes they’re fine with $10,000, $20,000, $30,000—or even $100,000—depending on equity.

For many sellers, it’s not just about maximizing the dollar amount. They might already have a plan, like moving in with a relative. What matters more is low stress, avoiding endless showings, and not dealing with appraisers and inspectors.

That’s why it’s so important for investors to learn how to work with these sellers. Across the U.S., people struggle to pay their mortgage. Foreclosures are happening everywhere. Many homeowners don’t know their options—and that’s where skilled investors can step in to help.

Offline Methods to Find Distressed Sellers

So how do you find distressed sellers offline?

When I started targeting pre-foreclosures in 2013, I used systems to identify addresses and then door-knocked. Phone calls rarely worked because sellers were bombarded by calls, and mailers often ended up ignored.

But face-to-face conversations worked. Building rapport at the door often led to signed paperwork. While these systems cost a hundred or so dollars per month, even one deal per year easily pays for the investment.

To scale, I built a team that door-knocks for me. They hit 10 to 20 doors a day, all week, which sets up two to four appointments weekly. Some are agents on my team, and I incentivize them with profit sharing or finder’s fees. Everyone is aligned around getting properties in the pipeline.

At the end of the day, I still need to execute the project, fix it up, sell it, and cover all the costs—but the lead generation system is key.

Driving for Dollars vs. Targeted Door Knocking

Many investors talk about driving for dollars—scouring neighborhoods for physical signs of distress like peeling paint or overgrown lawns. But that doesn’t necessarily mean the owner is delinquent on their mortgage.

Sure, you can knock on those doors, but results vary. Sometimes you’ll meet tenants, other times homeowners, and sometimes no one at all.

What’s worked better for me is doing the homework ahead of time. Using systems and apps like PropertyRadar, my team generates targeted leads. We can pull up live property data, see which homes are distressed, and go straight to the right addresses.

Along the way, if I notice another rundown house, I’ll stop there too. After all, I’m already in the neighborhood, and sometimes a quick extra knock turns into a conversation that leads to a deal.

Back in the day, I used printed lists by zip code, mapped out routes on Google Maps, and hit 20 to 40 properties myself. Now, technology makes it far more efficient.

Tools and Systems for Lead Generation

PropertyRadar is one of my favorite tools for identifying distressed sellers. With it, I can search specific criteria, see mortgage information, foreclosure status, and even equity details.

This allows me to create targeted lists instead of wasting time and money on broad outreach. Whether you’re door-knocking or sending mailers, a focused list gives you better ROI.

Another benefit is real-time data. Unlike old lists you might pull once a month, tools like PropertyRadar give you daily updates. That way, you’re not chasing sellers who’ve already solved their problems or sold to another investor.

Free Resources for Deal Analysis and Training

For investors who want to improve their deal analysis and negotiation skills, there are free resources available online. Many platforms, including ours at Real Estate Skills, provide training to help you sharpen your edge.

Taking advantage of these resources can give you confidence when meeting sellers face-to-face.

Read Also: 5 Best Real Estate Pay-At-Closing Lead Sources

Overcoming Fear and Building Confidence at the Door

One of the biggest challenges new investors face is simply knocking on the first door. Fear of rejection, not knowing what to say, or worrying about confrontation can hold you back.

But here’s the truth: these homeowners are people just like you and me. They’re going through tough times and usually appreciate someone showing up with genuine concern and solutions.

The key is approaching with empathy. Don’t launch into a sales pitch—start by introducing yourself and acknowledging the situation. Be human first, investor second.

Once you’ve broken the ice, the conversation often flows naturally. And even if someone says no, you’ve built resilience and confidence for the next door. 

Scripts and Approaches for Seller Conversations

When I first started, I kept it simple. I’d say something like:

“Hi, my name’s Henish. I know you’ve got some things going on with this property, and I just wanted to see how I might be able to help.”

This opens the door without being pushy. From there, I listen more than I talk. Sellers usually share their pain points quickly—whether it’s foreclosure, costly repairs, or needing fast cash.

Once you understand their situation, you can explain options clearly: selling as-is, working with an investor, or even listing with an agent if that’s a better fit. The goal is to position yourself as a problem solver, not just a buyer.

Read Also: Real Estate Cold Calling Scripts: Proven Examples

Case Studies and Success Stories

One case stands out. I had a seller who stopped responding completely. I called every relative and associate I could find. Finally, a family member called back and confirmed she needed help.

We connected, built trust, and worked out a deal that solved her problem. That persistence paid off not just financially but in creating a real impact for her life.

Stories like this remind me why distressed seller outreach matters. Behind every lead is a person with a challenge. If you stay consistent, persistent, and empathetic, you’ll win more deals and help more people.

Final Thoughts on Finding Distressed Sellers

At the end of the day, finding distressed sellers isn’t about fancy tricks—it’s about consistency, systems, and compassion.

Offline methods like targeted door-knocking still work. Online platforms like PropertyRadar make it scalable. And most importantly, your words and approach determine whether a seller trusts you enough to work together.

If you take anything from this, let it be this: distressed sellers aren’t just “leads”—they’re people. Approach them with empathy, offer real solutions, and you’ll build both a profitable business and a reputation you can be proud of.

If you want more help learning how to find distressed sellers and close more deals, join our free training at Real Estate Skills. We’ll show you step-by-step how to source deals, analyze properties, and scale your business with confidence.

If you want more help learning how to find distressed sellers and close more deals, join our free training at Real Estate Skills. We’ll show you step-by-step how to source deals, analyze properties, and scale your business with confidence.

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.