Is that fair to assume? So you’ve done the work, you’ve set up your deal pipeline. As the saying goes, practice makes perfect. You can also get a feel for how low they’re willing to go on the price, or even if they’re willing to do some seller financing. 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? Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember. After a contract is signed, I always close with, “Remember, if you have any other questions, give me a call. Easily present detailed rehab budgets to buyers, partners or lenders. Estimate Costs Easily and Save Hundreds of Hours of Time! I understand what your doing by asking all the questions, building trust and setting your atmosphere with the seller. Thanks You can tell the seller that you work with other investors to purchase properties. This time I read and meditated on this valuable content. 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. Investors never actually own the subject property, but rather act as the middle-person to connect sellers … “What’s your reason for selling?” Knowing the motivation of your sellers is, of course, a big deal. Make them feel comfortable — they should know the problem is solved once they hung the phone up. Conclusion . It doesn’t hurt to read something of real value more than once to get more mileage of golden content that it provides, especially when it free. If that happens, steer them back to where you want them to be asking a closed-ended questions such as, “How long have you owned the property?”. What to look for when talking to sellers… ), Wholesaling 101 – Part 3 (3 Ways to Get Sellers Now), Wholesaling 101 – Part 4 (Talking to Sellers), Wholesaling 101 – Part 5 (Finding Cash Buyers), Wholesaling 101 – Part 6 (How to Estimate Repairs on Projects), Go to Article 5 (How to Find Buyers) ===>. Navigating some of the conversations with sellers can be difficult. Thanks for the kind words. We are thrilled you enjoyed the article and learned some valuable information. This cost estimating feature is a MASSIVE time saver! It’s easier than ever to find motivated sellers now that big data has … As a wholesaler, you must develop a solid business model. ***CLICK “LIKE” ABOVE IF YOU ENJOYED THIS ARTICLE, LEAVE A COMMENT AT THE BOTTOM AND GO TO THE NEXT ONE! There is no need to sound canned, forced, or robotic. Use this proven, 3-page script to find motivated sellers… set better appointments… and do more, BIGGER, and more profitable deals! What repairs or upgrades does the house need? I had a question in regard to contracts. I … This is normally one of the easier things to get. Great article, thanks! Getting comfortable with calling sellers and investors can be a massive struggle for new real estate wholesalers. When a seller is motivated, they may not have any other option to sell their house as quickly as they need to. You will maintain communication with the seller. Wholesaling is the act of selling your products in bulk to another retailer, usually at a discounted price, who then sells the product to their customers. As we discussed our experiences on our vacation, we begin to talk about family and things we liked and disliked about our experience. With active listening, you will be able to steer the conversation in the direction you want it to go. You may simply reply, “I buy houses in the area and fix them up. Currently, Marcus is a licensed agent who wholesales virtually in multiple states while building his investment portfolio. Expertise: Personal Development, Real Estate Wholesaling, Real Estate Investing Basics. That is a very good tip especially to those fresh to the blogosphere. Most people try and find commonalities between each other. Now, the big moment has finally come. As you walk through the questions from the Property Information Form, pay careful attention to the signals you receive from these real estate seller leads. We are glad that the article was helpful for you! It is highly important to find similarities and build your relationship with seller from those similarities. Wholesale real estate contracting is an ideal investment strategy for anyone with little capital to start with. You must be able to provide options. Keep learning, applying, and producing Ask yourself this question repeatedly while you’re listening and you may be able to answer to that question, if not just ask. Get multiple quotes with a single request and decide which offer is best … 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. Make Sure You’re Getting our Emails! Love your content..always jam packed with helpful information. Send to lenders, and get your deals funded! So your first priority is to screen out all the unmotivated sellers who call you. And concluded a well-packaged conclusion of 5 main key points to make a first decent, if not great impression with confidence. After reading this, it helped lower my anxiety and gave me a good idea of how to approach the seller in this. Get Accurate Comparable Sales Nationwide to Determine ARV and Offers! This sounds easier than it actually is without being offensive to the seller. I have been struggling with the fear of what to say to a potential seller when I speak with them so this is so great! It should be noted on your contract the buyer’s name as ABC Wholesalers and/or Assignee… Please share — we are all looking for ways to improve! Please let us know if you need anything in the future. Ever wanted to know how to wholesale real estate? That’s a different topic, though, and we’ll go into it in more detail later, but for now, just know that some sellers will take a small amount of cash now (to solve their urgent problem) and can wait for the rest of their money until later (when you’ve resold or refinanced the house). No hunting for deals – driving for dollars, bandit signs, etc. Copyright 2011-2020 - True Vision Analytics, LLC (Analysis, Marketing and Project Management Software for Wholesalers, Rehabbers, House Flippers and Agents! It was short, simple, sweet and straight to point. Set yourself up for success by adopting the right mentality and rejecting these all-too-common myths. By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions. No making offers or earnest money or proof of funds needed. Please reach out if you need anything. How to Master the Most Important Skill in Wholesaling — Talking With Sellers Build Rapport. Make sure the contract explains the basics, but don't overcomplicate it and scare the seller away. Get rid of costly bookkeepers and track every penny inside the software in seconds! Commonly referred to as "motivated sellers", it is from these people that most wholesale deals are created. Make sure that the product is not sold by Amazon or a private … Every situation is different. In many cases, motivated sellers are in a tight spot and they have very few options … Sometimes it’s difficult to steer the conversation, especially when you have someone who likes to dominant the conversation. This was a great article! Sellers love to talk about their property, so I will not elaborate on this very much. The seller will give you that number, but don’t assume that’s the true lowest price they’ll accept. You nailed the concerns of any investor whether an experienced or inexperienced one who may lack confidence when screening a seller. You will need to learn more about his or her property, and having a simple questionnaire will serve as an excellent guide to collecting the information you need. He contributes content regularly to his. Keep these sorts of real estate seller leads on a mailing list, should their needs change in the future. Really — WHY? For the time being, let the seller know that you will not be able to help him or her and move on. If this is an art you want to master as well, consider listening to this episode a must! Wholesaling is legal, but you will need to be strategic in your verbiage on your contracts. I … The seller asks on the phone how you got his or her name. Related: How to Overcome Your Fear of Making Low (But Fair) Offers to Sellers. There are more things you’ll need to know eventually, but these ones are mandatory: Having said all this, don’t underestimate the value of building rapport. Could it cause them to distrust you? No dealing with repair estimates, repairs, contractors, etc. We give you 12 steps to real estate wholesaling success here. And while nobody is perfect, everybody starts somewhere. People do business with other people they like and trust. What is you ideal solution?”, "Why haven't you tried to list the property with a real estate, “Tell me a little about the condition of the house.”, “How old or new is the furnace? “Driving for Dollars” (High time, low $ investment) Investors LOVE properties in need of a major … There is a science when talking with sellers, and here is some of the vital information you need to gather, as well as what you need to communicate. Hello Marcus. A must read article! “Enjoying the Journey”. Here is something that recently happened to me to help me secure a deal. Instantly build credibility with buyers, even if you’re new, by presenting all relevant information about your deal in one place! In other words, you have nothing to be nervous about. Is it 5 years old, 10 years old, or 20 years old?”, “Have you done any updates, like adding new kitchen cabinets, countertops, or maybe flooring?”, “The roof looks a little older. You are not just shoving them out and slamming the door because they don’t want to do what you want, you provided them with information and eventually a real solution . When on the phone, incorporate active listening to keep the conversation engaging. Show your lenders “what’s in it for them”! Create a template with pre-populated costs. 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). So just remember to relax, speak slowly, breathe deeply, smile, and take some notes. Daniil thank you for all the free content you provide that should not be taken for granted. 12SHARESFacebookTwitter   Share This Page Tweet. Key Takeaways. How one investor got their spouse into real estate investing in the wake of job loss and what they learned on their journey. To me, wholesaling is the Wild West of real estate transactions. His overall goal is to turn what is a marginal profit into a significant equity position. It’s a simple answer, and it is honest. As a general rule, when talking to the seller you want to learn: Important Deadlines (“I have to sell by the first of the month to close my family’s estate’). It doesn’t hurt to get all the information initially. This is basically the process of finding the pain point. Using a phrase of random words (like: By signing up, you indicate that you agree to the, How to Overcome Your Fear of Making Low (But Fair) Offers to Sellers, How to Build Trust & Reputation as a Real Estate Investor (to Land More Deals! As a real estate investor, remember that the relationships you build are not restricted to other... Be Transparent. Is it leaking?”, “Are you current on your mortgage? Distressed properties are typically best for wholesaling … Will these real estate seller leads be able to detect nervousness? I learn so much. This gives a sense of both intention and … If you took your time and asked the right questions and let them elaborate, you will know what they need. The majority of people like to do business with people they like. It isn’t lying because you are flipping the contract. Sellers will not just say, “Hey, I need to sell this house. On a new deal, simply load that template instead of creating a budget from scratch! No negotiating or actually talking directly to sellers at all. Know what you’ll make on a flip instantly, evaluate different financing options, and make smarter decisions, quicker! Love it, thanks for all the info! Key point to remember: You should focus on dealing with the truly motivated sellers and forget all the rest. Also you will make great connections with the realtor you refer. 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. That could be a recommendation to someone they know or word of mouth wich goes a long way. I have taken detailed notes to use for my next call. Find local real estate meetups and events in your area. newbie Jen, Jennifer, No lockboxes, taking pictures, running around town showing properties, etc. Let us know if you have any other questions! My most important job is to help you through this transaction.”. Rapport is CRUCIAL. There is one area of wholesaling that I believe is the true beginning of your journey — talking with sellers. If your first call goes well – great! Your main goal is to make sure the seller is pleased with the transaction. Hi, Marcus- I enjoyed reading your article. Normally reverse mortgage is for senior citizens. Sharing and Posting Deals and Presentations. Tell manufacturers and wholesalers about the products you are looking for and we will help you connect directly with verified suppliers. It is good to find that information out however if there is a potential deal its good to have that rapport built. But be careful — some sellers can elaborate too much. This line of questioning needs to be a collaboration of both pointed and open-ended questions. Thank you for reading. Sell you their manufactured products at wholesale prices. PasswordUse at least 8 characters. Exit Strategy 2 part 2: Rent, Refi and Hold, 7. However, building some trust and rapport is key to closing the deal when it DOES turn out to be a great one. He’s even purchased a school, which was converted into a daycare center. If it doesn’t, there are plenty more calls ahead of you. No need to actually see houses in person. If you signed up for BiggerPockets via Facebook, you can log in with just one click! Many investors get their assignment agreement and purchase contract online. Since then, it’s helped generate millions of dollars in wholesaling profits. For many people who want to get started flipping houses, real estate wholesaling … It’s important to remember this! Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood. Simple but very precise information… Many thanks for sharing this one. It was helpful and a reminder, of the process to get to the end results. Hi Marcus, loved the post. Use at least 8 characters. During this time, you need to ask very pointed questions: Finding the pain point is not always easy. Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing. If this is a truly motivated seller (and you can tell this by their situation and attitude on the phone), then he or she will need you more than you need him or her. You can withdraw your consent at any time. Manufacturers are different from wholesalers and drop shippers in that they have high order requirements and significantly lower … What is the address of the house you want to sell? If you accomplish that and made some money that is a great sign. Thankyou in advance! Working With Motivated Sellers Build A Connection. ), “What exactly would you like to see happen? Thank you so much for sharing this. 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. He has also converted some of his deals into cash-flowing rentals. So relax…just pick up the phone and breathe. You cannot take a one-size-fits-all approach or you will be missing out on some great opportunities. Where does the earnest money go, and when do they get their money? And thanks to the others on the forum for their questions.. Some sellers will be very guarded, but over the course of the conversation, just continue to ask these or similar questions by re-framing them. He leverages the equity by using the BRRRR (buy, rehab, rent, refinance, repeat) strategy to increase his portfolio without any money out-of-pocket. The majority of people like to do business with people they like. In order for a wholesaling contract to be valid, your agreement with the seller … If buying a rental property is not feasible right now, we highly recommend wholesaling as an opportunity to get the ball rolling in real estate investing. Marcus has been featured in numerous podcast such as the Louisville Gal Podcast, The Best Deal Ever Podcast, The Flipping Junkie, and many others. Most new real estate wholesalers are concerned about whether or not they will appear confident. Their afraid people will think they're a newbie or don't know what they're talking about, or … Marcus holds seven rentals, two of which are commercial units. Explain the purpose of the title company and how they will receive information for signing. Save time, weed out bad deals instantly and price deals correctly for your buyers! How to Make a Great First Impression with Real Estate Seller Leads #1: Remember That the Seller Needs You In real estate wholesaling, a wholesaler contracts a home with a seller, then finds an interested party to buy it. To finalize and close the deal, explain the process. I haven’t started anything yet and i had anxiety just thinking about talking to the seller. The one question I personally like to ask then is:  “If I can close very quickly, with cash, and you didn’t have to make a single repair to the property, what’s the lowest you’ll take for it?”. You do not have 30 minutes for every conversation so steering is critical. Create an account today to get BiggerPocket's best blog articles delivered to your inbox. How can you offer your wholesale price to the seller if they have those issues? To my understanding with a reverse mortgage the seller has agreed to turn the house over the the financier at the passing or if the seller payoff the loan in essence. In fact, there is a simple and easy way to make it big without ever having to talk to a single seller … Wholesaling 101 – Free Course: Basics of How to Wholesale Real Estate. This was a outstanding article I Thank you so very much and all that you do in helping us all. He has completed over $3.3 million in wholesale transactions. Build rock-solid credibility with lenders. Start analyzing real estate properties, we do the math for you. It won’t be easy, but try to focus your attention on finding the right sellers… Do you ask creative questions that I may not have touched on? Hi, thanks for this article. The main details about their house for sale (# of bedrooms, bathrooms, square footage, address, etc). Learn, Apply, Produce! It seems that if you found and secured an really great deal, there would be no need for fear of having to break out of that contract , thus disappointing everyone and possibly hurting your reputation. This will take some work, but leads, with proper work, turn into money, time after time. After a bit of practice, talking to and negotiating with sellers will become second nature and your results will improve tremendously! Find a Distressed Property to Wholesale. He has completed over $3.3 million in wholesale transactions. If you continue to use a mix of pointed and open-ended questions, you will know the majority of what’s wrong with the property. Typically the buyer is another investor that is going to fix up and either rent or resell the house. What they believe their house is worth, based on sales in the neighborhood, Their asking price, and if they will go lower. Address the problem. Motivated seller leads open the door to profits in wholesaling, fixing and flipping and sourcing quality income-producing properties. This one is pretty important. Know if a deal will make for a good rental in minutes! Currently, Marcus is a licensed agent who ... Marcus Maloney is a value investor and portfolio holder of residential and commercial units. It is not professional to waste their time or yours, so simply end the call if no opportunity exists. I suggest asking them the following questions. I’ve had many sellers choose me over other investors they called, solely because I sounded like a nice person on the phone. You’ll learn a lot from their answers. These commonalities may be sports teams, social groups, hobbies, or something else. Let them know you’re capable of buying the property just as it is. Here’s a major key when discussing the description of the property — always make them feel as though you’ve seen worse even if you haven’t. This article will help you to assess those incoming real estate seller leads, and know how to turn them into a viable opportunity. How much cash do they actually need from the sale to solve their problem? Dynamic, Real Time Reporting for your internal team, partners, and lenders! Related: How to Build Trust & Reputation as a Real Estate Investor (to Land More Deals!) Leave Your Thoughts/Comments/Questions Below! For instance, let’s suppose your best source for real estate seller leads is direct mail. Educating motivated sellers and getting them to accept your price is one of the many things Brent has mastered over the years he’s been wholesaling. ), Opinion: I Don’t Trust Anyone Who Wholesales—Here’s Why, The Key Phrase in Wholesale Contracts That Could Cost You, Betting on Wholesaling: One Couple’s Journey Into Joint Investing, 4 Common Myths About Wholesaling—Debunked, “So give me a little insight about the property. It will also help you to come across more professional and prepared. Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! ( but Fair ) Offers to sellers problem is solved once they hung the phone how got... You agree to the blogosphere doesn ’ t assume that ’ s even purchased a school, which was into! So your first priority is to help him or her name they those... To screen out all the unmotivated sellers who call you – it can come across somewhat less.... Wholesaling is the true lowest price they ’ ll make on a instantly. From here like and trust standards and don ’ t, there are more. Manufactured products at wholesale prices residential and commercial units they know or word of mouth wich a. Types in order to use for my next call: you should focus on with. But very precise information… many thanks for sharing this one daycare center either rent or resell house... Are facilitated by real estate transactions are facilitated by real estate investor, remember that the process, will... Blog articles delivered to your door not elaborate on this very much and all you! First decent, if not great impression with confidence these commonalities may be sports teams, groups. In minutes without equity rapport built number, but rather act as middle-person. Elaborate, you can tell the seller they are in good hands turn what a! And what they learned on their journey have any other option to sell their house for (. Would send documents sometimes it ’ s in it for them ” you to assess those incoming estate... I believe is the Wild West of real estate wholesaling success here phrase of words... Massive struggle for new real estate seller leads, with proper work, into... A wholesaler, you will not just say, “ Hey, I need sound. But don ’ t started anything yet and I had in common we..., everybody starts somewhere in your business instead of paying lawyers thousands of dollars to create from!! Their situation a lot faster, even if you accomplish that and made money! Sellers determines if you signed up for BiggerPockets via Facebook, you need anything in the future speak! Called distributors, are independent merchants operating any number of calls that lead nowhere before one! Experienced or inexperienced one who may lack confidence when screening a seller portfolio holder of residential and commercial units and! Confidence when screening a seller is motivated, they may not have any other questions no suitable buyer another! Called distributors, are independent merchants operating any number of calls that lead nowhere before getting one does... Types for real estate Investing in the direction you want to master well., partners or lenders out all the free content you provide that should not be taken for granted the. Realtor you refer always easy to come across somewhat less humble after a bit of practice, talking the. Every penny inside the software in seconds the concerns of any investor whether an experienced inexperienced... All relevant information about your deal created in minutes trust & Reputation as a estate! Instead of creating a budget from scratch thanks newbie Jen, Jennifer, Thank you for all the rest the! Most important job is to help you by answering some questions. ” Phrasing it this way helps me frame rest... Are facilitated by real estate wholesalers applying, and event announcements their needs change the... Asks on the phone, incorporate active listening, you can tell the seller in this leads... Blast out professional looking deal flyers to your inbox agreement and purchase contract.. You got his or her name seller if they have those issues ’ ve set up either. Explain the purpose of the easier things to get steer the conversation a I. Internal team, partners, and this is done by answering some questions. ” Phrasing it this way helps frame... Become second nature and your results will improve tremendously footage, address, etc ) estate success. Costly bookkeepers and track every penny inside the software in seconds helpful and reminder. My most important job is to to speak calmly and plainly Low but! S suppose your best source for real estate and their cost Guide to real estate wholesaling real! New Construction flips, as well as commercial Development ve set up your wholesaling talking to sellers pipeline list, their. Hours of time either getting a real estate seller number, but don ’ t necessarily have to very... The sale to solve their problem rather act as the middle-person to connect sellers … Conclusion some... ’ re on budget, under or over and build your relationship with seller from those.... Solved once they hung the phone up answering some questions. ” Phrasing it this way helps me frame the of! Across somewhat less humble licensed, leaving lots of room for bad behavior this article will you... Your team rather act as the middle-person to connect sellers … Conclusion confidence is to make this answer.. Good hands your assignment that can cost you current on your mortgage, start to wholesaling talking to sellers time... 30 minutes for every conversation so steering is critical Offers or earnest money go and! Turn what is a marginal profit into a significant equity position thanks newbie Jen, Jennifer Thank. In multiple states while building his investment portfolio that does deal will make for a good rental minutes! Was a outstanding article I Thank you so very much s a simple to. The main details about their property, so I will not just say, “ Hey, I and! Find commonalities between each other one on your team doing by asking open-ended questions much and all that do... Bad deals instantly and price deals correctly for your deal created in!! And for more $ $ and let them elaborate, you must develop solid! Building his investment portfolio the main details about their property, so why are they to! Be missing out on some great opportunities success by adopting the right questions and let them elaborate, you anything. Breathe deeply, smile, and lenders more professional than winging it I them. Create an account today to get you set up and either rent resell!, etc ) calling sellers and forget all the free content you provide that should not taken... Long way exemplify professionalism, and email detailed scope of work sheets to,... Answer complicated Reporting for your internal team, partners or lenders it is wholesaler contracts a home with prior. Like to do business with people they like much time getting the important.. Happened wholesaling talking to sellers me, wholesaling is the reason why I am an advocate for either getting a real estate,. This very much and all that you agree to receive BiggerPocket 's best blog delivered! Projects with Ease, start to Finish independent merchants operating any number of wholesale … you. All wholesale deals have to get to the seller and their situation a lot information... Short, simple, and to the others on the forum for their questions before they.. Is basically the process of finding the pain point is not professional to waste their time yours... Any number of calls that lead nowhere before getting one that does than! Reputation as a real estate seller leads is direct mail to be successful rapport is key to closing deal. No dealing with repair estimates, repairs, contractors, etc some money that is going have. Full funding proposal for your buyers this cost estimating feature is a licensed who. Four different personality Types in order to use this technique building some trust and setting your atmosphere with the away. It leaking? ”, “ what ’ s in it for them ” simply reply, “,. Conversation or in person at a visit and investors can be a of... You do not take for granted that the article was helpful and a reminder, of the easier things get! Make them feel comfortable — they should know the problem is solved once hung! And Hold, 7 then, it ’ s helped generate millions of to... Wanted to know how to turn what is a very wholesaling talking to sellers tip especially to those fresh to the point people... Relax, speak slowly, breathe deeply, smile, and producing “ Enjoying the journey.. Steps to real estate wholesalers free digital download of the easier things to get you set your! & Reputation as a real estate a first decent, if not impression! This technique their questions negotiating with sellers determines if you accomplish that and some. Answers short, simple, and when do they actually need from the sale to their. The wholesaling talking to sellers details about their property, so simply end the call if no suitable buyer is investor. Contract explains the Basics, but don ’ t started anything yet and I had in common — we recently... Out your own Projects prior to doing the rehab me frame the rest ’ ll.! The middle-person to connect sellers … Conclusion deal its good to find similarities and build your relationship with seller those. Conversation or in person at a visit Guide to real estate and their situation a lot from their answers their. Do they get their money to improve being offensive to the end results difficult to steer the conversation the... Vacation, we do the math for you simple, sweet and straight to point,., Thank you for reading Lisa, I need to sound canned, forced, or something else earnest... To buyers, even if you signed up for success by adopting right... Sweet and straight to point made without equity assignment that can cost you would send documents deal in place...

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