You are absolutely correct if you have a deal normally you dont have to worry about it not closing unless you have a squirrelly seller, or their are liens on the property. This article will help you to assess those incoming real estate seller leads, and know how to turn them into a viable opportunity. Tell manufacturers and wholesalers about the products you are looking for and we will help you connect directly with verified suppliers. Rapport building can happen during a phone conversation or in person at a visit. Simply walk through the questions, asking each one casually without making it sound like an interview, and insert a bit of small talk in between. There is no need to sound canned, forced, or robotic. Remember, this is not legal advice so you should consult legal counsel yourself. It is important to distinguish between the four different personality types in order to use this technique. Their afraid people will think they're a newbie or don't know what they're talking about, or … Get Accurate Comparable Sales Nationwide to Determine ARV and Offers! Use this to evaluate your projects at the end, Share report with other other stakeholders easily, Use cost data from completed projects to create budget templates for future projects, Know where your project stands in real time, Track how much is left to pay for any item or to a contractor. As the saying goes, practice makes perfect. Wholesalers are not held to any standards and don’t necessarily have to be licensed, leaving lots of room for bad behavior. For the time being, let the seller know that you will not be able to help him or her and move on. How To Talk To Sellers Posted on May 25, 2018 April 22, 2019 by Max Take a ride around town with me to see what’s going on in my market and get a first-hand look at how you should be talking to sellers … You can tell the seller that you work with other investors to purchase properties. Where does the earnest money go, and when do they get their money? ), “What exactly would you like to see happen? Getting comfortable with calling sellers and investors can be a massive struggle for new real estate wholesalers. Many sellers try and communicate that they do not need to sell their house and are simply curious about the letter (if you were using direct mail). Know what to pay instantly for any deal and never overpay again! This is basically the process of finding the pain point. No hunting for deals – driving for dollars, bandit signs, etc. As a wholesaler, you must develop a solid business model. This is the reason why I am an advocate for either getting a real estate agent's license or having one on your team. Show your lenders “what’s in it for them”! Lay out your own projects prior to doing the rehab. It's important to note that creating a wholesale channel for your business still allows you to sell … The calls from real estate seller leads with distressed properties, who are facing foreclosure, or who need to get cash quickly for whatever reason will end up being your best prospects. Know if a deal will make for a good rental in minutes! Always know whether you’re on budget, under or over. This will take some work, but leads, with proper work, turn into money, time after time. I suggest asking them the following questions. Hi, Marcus- I enjoyed reading your article. Sell your deals quicker and for more $$$! Make them feel comfortable — they should know the problem is solved once they hung the phone up. It’s a simple answer, and it is honest. Steering the conversation will help you get more information about the seller and their situation a lot faster. - All Rights Reserved), 1a. And while nobody is perfect, everybody starts somewhere. Full funding proposal for your deal created in minutes! People do business with other people they like and trust. No lockboxes, taking pictures, running around town showing properties, etc. Will these real estate seller leads be able to detect nervousness? Make Sure You’re Getting our Emails! As we discussed our experiences on our vacation, we begin to talk about family and things we liked and disliked about our experience. You are going to have to get a certain number of calls that lead nowhere before getting one that does. I have to ask because there is a different process for short sales, and by the way, do you know roughly what you owe?”. His overall goal is to turn what is a marginal profit into a significant equity position. Create a template with pre-populated costs. Find a Distressed Property to Wholesale. Sellers will not just say, “Hey, I need to sell this house. Set yourself up for success by adopting the right mentality and rejecting these all-too-common myths. Then I either sell them or sometimes I rent them out.”. Normally reverse mortgage is for senior citizens. Many investors get their assignment agreement and purchase contract online. Marcus Maloney is a value investor and portfolio holder of residential and commercial units. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember. Hi Marcus, loved the post. You must be able to provide options. Thanks for checking in. He leverages the equity by using the BRRRR (buy, rehab, rent, refinance, repeat) strategy to increase his portfolio without any money out-of-pocket. You can withdraw your consent at any time. This gives a sense of both intention and … If you are asked a question and aren’t sure of the correct answer, simply let him or her know you will gather the necessary information and call back. Most homeowners are familiar with the concept of buying and flipping houses. It won’t be easy, but try to focus your attention on finding the right sellers… Talking with sellers determines if you are ambitious enough to be successful. If they are not willing to take a low offer, then you can list the property or provide other creative measures to get the deal done. With a reverse mortgage that is a little different and not something I’ve done before so I do not want to give you misleading information. I agree to receive BiggerPocket's newsletters, promotional emails, and event announcements. He has completed over $3.3 million in wholesale transactions. Is that fair to assume? A simple strategy to exude confidence is to to speak calmly and plainly. Great article, thanks! Related: How to Build Trust & Reputation as a Real Estate Investor (to Land More Deals!) To help steer the conversation to see if they are truly interested in selling, I ask: “Were you interested in selling before receiving my letter?” This is the first question in helping me validate the lead. Rapport is CRUCIAL. The seller will give you that number, but don’t assume that’s the true lowest price they’ll accept. “Driving for Dollars” (High time, low $ investment) Investors LOVE properties in need of a major … Love your content..always jam packed with helpful information. Marcus holds seven rentals, two of which are commercial units. So if the seller still have a mortgage or liens you can still wholesale the property as long as your offer price is about the amount of the existing mortgage or liens. Also you will make great connections with the realtor you refer. You have to make sure the seller has enough equity in the property in order to get it under contract at a significant discount. You want to always exemplify professionalism, and this is done by answering their questions before they ask. No need to actually see houses in person. It should be noted on your contract the buyer’s name as ABC Wholesalers and/or Assignee… Find local real estate meetups and events in your area. Every situation is different. The majority of people like to do business with people they like. You may simply reply, “I buy houses in the area and fix them up. Please reach out if you need anything. I’ve had many sellers choose me over other investors they called, solely because I sounded like a nice person on the phone. PM and I can share some additional info with that will definitely help you. Wholesaling includes all activities required to sell goods or services to other firms, either for resale or for business use, usually in bulk quantities and at lower-than-retail prices. For instance, if the seller is telling you about all the recent upgrades that were made to his or her newly-renovated house, this may not be a great wholesaling opportunity because they can probably get top dollar for it with an agent. Get rid of costly bookkeepers and track every penny inside the software in seconds! ***CLICK “LIKE” ABOVE IF YOU ENJOYED THIS ARTICLE, LEAVE A COMMENT AT THE BOTTOM AND GO TO THE NEXT ONE! You nailed the concerns of any investor whether an experienced or inexperienced one who may lack confidence when screening a seller. So many people convince themselves that the only way to make money in wholesale is to work with sellers, but nothing could be further from the truth. If your first call goes well – great! When a seller is motivated, they may not have any other option to sell their house as quickly as they need to. But there’s verbiage in your assignment that can cost you. newbie Jen, Jennifer, Please share — we are all looking for ways to improve! Dynamic, Real Time Reporting for your internal team, partners, and lenders! New Construction Financing and Deal Structure, The Big Networking Mistake You’re Probably Making, Wholesaling 101 – Part 1 (How Wholesaling Works), Wholesaling 101 – Part 2 (Buyers or Sellers First? Ask yourself this question repeatedly while you’re listening and you may be able to answer to that question, if not just ask. This cost estimating feature is a MASSIVE time saver! Wholesale real estate contracting is an ideal investment strategy for anyone with little capital to start with. If this is an art you want to master as well, consider listening to this episode a must! I actually asked the most poignant financial questions off the bat and wrote the answers down to see if there was a deal there to save everyone’s time. If the person on the other end of the phone has no pressing need to sell their house, they will have no need to work with you – period. We are thrilled you enjoyed the article and learned some valuable information. If you took your time and asked the right questions and let them elaborate, you will know what they need. Typically the buyer is another investor that is going to fix up and either rent or resell the house. Johnpaul MosesIn the REI game since Y2K, JP's deal-making adventures run the gamut from rehabs to rentals to realtoring to wholesaling—from REOs to lease options to seller financing to raw land.Many … Hi, thanks for this article. Keep your answers short, simple, and to the point. Currently, Marcus is a licensed agent who wholesales virtually in multiple states while building his investment portfolio. Conclusion . Use at least 8 characters. So your first priority is to screen out all the unmotivated sellers who call you. I … You can download this sample seller questionnaire. Build rock-solid credibility with lenders. Thank you for that outline! If I thought there was a chance of a deal I would send documents. If no suitable buyer is found, the contract will expire. It’s hard to analyze a … Connect with 1,000,000+ real estate investors! The phone rings, you answer it, and on the other end is a motivated seller who wants to sell his or her distressed property as quickly as possible. It doesn’t hurt to get all the information initially. Ever wanted to know how to wholesale real estate? Make sure you reiterate what’s in it for them, and let the conversation be focused on what you can do for them. Find a good product to sell wholesale. Remember, 95 percent of all real estate transactions are facilitated by real estate agents, so why are they willing to call you? 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