We just need a few details to get you set up and ready to go! 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. Like I said before…it’s a numbers game. One question, how dose it work if the seller still has a loan/ still owes, has liens on the property or reverse mortgage? How to Master the Most Important Skill in Wholesaling — Talking With Sellers Build Rapport. Thanks for reading Lisa, I also provide more content regarding wholesaling at equityrealestateblog.com. Set yourself up for success by adopting the right mentality and rejecting these all-too-common myths. Now, the big moment has finally come. Key Takeaways. Stephanie, 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. No dealing with repair estimates, repairs, contractors, etc. 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?”. No making offers or earnest money or proof of funds needed. If I thought there was a chance of a deal I would send documents. How much cash do they actually need from the sale to solve their problem? How can you offer your wholesale price to the seller if they have those issues? Chalk full of information, my favorite part was when you said even if they don’t want to take the low offer, they still have the option of listing with a local realtor. Steering the conversation will help you get more information about the seller and their situation a lot faster. If it doesn’t, there are plenty more calls ahead of you. Love it, thanks for all the info! Will these real estate seller leads be able to detect nervousness? Then I either sell them or sometimes I rent them out.”. 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. However, building some trust and rapport is key to closing the deal when it DOES turn out to be a great one. Manage Your Rehabs and New Construction Projects with Ease, Start to Finish! This is normally one of the easier things to get. How to Wholesale Real Estate In 12 Simple Steps. I … Copyright 2011-2020 - True Vision Analytics, LLC (Analysis, Marketing and Project Management Software for Wholesalers, Rehabbers, House Flippers and Agents! Thanks for the kind words. 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! ), 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) ===>. You can withdraw your consent at any time. 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). Create, print, and email detailed scope of work sheets to contractors, then enter bids as you get them. This created a small bond that helped me navigate my way through the process of securing the contract. This was a great article! By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions. If this is an art you want to master as well, consider listening to this episode a must! Nice article Marcus. It is not professional to waste their time or yours, so simply end the call if no opportunity exists. J. Find local real estate meetups and events in your area. Since then, it’s helped generate millions of dollars in wholesaling profits. Hi Marcus, loved the post. Build rock-solid credibility with lenders. Daniil, I read this before quite some time ago. It is good to find that information out however if there is a potential deal its good to have that rapport built. 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. Some sellers’ personalities do not allow rapport building to occur. If your first call goes well – great! To finalize and close the deal, explain the process. In other words, you have nothing to be nervous about. Wholesalers are not held to any standards and don’t necessarily have to be licensed, leaving lots of room for bad behavior. This is the exact same script that I use every single day in my own business…and it’s the same script I give my coaching students in my Talk To People (TTP) cold calling program for real estate Wholesalers… Create an account today to get BiggerPocket's best blog articles delivered to your inbox. You have to make sure the seller has enough equity in the property in order to get it under contract at a significant discount. Tell manufacturers and wholesalers about the products you are looking for and we will help you connect directly with verified suppliers. 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. This one is pretty important. People do business with other people they like and trust. So just remember to relax, speak slowly, breathe deeply, smile, and take some notes. Full funding proposal for your deal created in minutes! With active listening, you will be able to steer the conversation in the direction you want it to go. He contributes content regularly to his. Reassure them you can provide what they need. Come and take it.” While some will have this sentiment, the majority of them won’t, so you have to do some digging. In many cases, motivated sellers are in a tight spot and they have very few options … A simple strategy to exude confidence is to to speak calmly and plainly. It’s hard to analyze a … No negotiating or actually talking directly to sellers at all. Thanks I had a question in regard to contracts. Why are you trying to sell?”, “How is renting in that area?” (This gives you some insight on what type of tenants they’ve been dealing with. Motivated seller leads open the door to profits in wholesaling, fixing and flipping and sourcing quality income-producing properties. Investors never actually own the subject property, but rather act as the middle-person to connect sellers … In fact, there is a simple and easy way to make it big without ever having to talk to a single seller … If you follow those methods and any other proven ways of driving in real estate seller leads, your phone will start ringing frequently with potential sellers. Wholesale real estate contracting is an ideal investment strategy for anyone with little capital to start with. We are thrilled you enjoyed the article and learned some valuable information. Easily present detailed rehab budgets to buyers, partners or lenders. Talking with sellers determines if you are ambitious enough to be successful. 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. Ever wanted to know how to wholesale real estate? Make Sure You’re Getting our Emails! Wholesalers, also called distributors, are independent merchants operating any number of wholesale … ***CLICK “LIKE” ABOVE IF YOU ENJOYED THIS ARTICLE, LEAVE A COMMENT AT THE BOTTOM AND GO TO THE NEXT ONE! This gives a sense of both intention and … That is a very good tip especially to those fresh to the blogosphere. I suggest asking them the following questions. No need to actually see houses in person. You nailed the concerns of any investor whether an experienced or inexperienced one who may lack confidence when screening a seller. 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. 12SHARESFacebookTwitter Share This Page Tweet. You may simply reply, “I buy houses in the area and fix them up. For many people who want to get started flipping houses, real estate wholesaling … It was helpful and a reminder, of the process to get to the end results. Thanks for reaching out! Rehab Budget and Project Management Tutorials, 6b-2. There is no need to sound canned, forced, or robotic. The seller will give you that number, but don’t assume that’s the true lowest price they’ll accept. Manufacturers are different from wholesalers and drop shippers in that they have high order requirements and significantly lower … The seller asks on the phone how you got his or her name. You’ll learn a lot from their answers. One mistake that many people make is by pre-judging the lead. 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. 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. A must read article! Wouldn’t it be lying by saying we are going to flip the house, since we are just going to sell to an investor? Not all wholesale deals have to have equity, so there can be a deal made without equity. To me, wholesaling is the Wild West of real estate transactions. He has completed over $3.3 million in wholesale transactions. It will also help you to come across more professional and prepared. Show your lenders “what’s in it for them”! Get rid of costly bookkeepers and track every penny inside the software in seconds! 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. D. 3 Primary Financing Types for Real Estate and Their Cost! The first call is the hardest – but it only gets easier from here! Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing. Wholesaling is the sale and distribution of goods to specific customer types such as those most commonly referred to as resellers. Distressed properties are typically best for wholesaling … Marcus has been featured in numerous podcast such as the Louisville Gal Podcast, The Best Deal Ever Podcast, The Flipping Junkie, and many others. 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. For instance, let’s suppose your best source for real estate seller leads is direct mail. 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 . Create a template with pre-populated costs. He has completed over $3.3 million in wholesale transactions. 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. Navigating some of the conversations with sellers can be difficult. So you’ve done the work, you’ve set up your deal pipeline. 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. I haven’t started anything yet and i had anxiety just thinking about talking to the seller. Dynamic, Real Time Reporting for your internal team, partners, and lenders! “What’s your reason for selling?” Knowing the motivation of your sellers is, of course, a big deal. Trust me…if we could go back and listen to my phone conversations when I was getting started in this business, we would both be cringing hard. You will maintain communication with the seller. In order for a wholesaling contract to be valid, your agreement with the seller … What to look for when talking to sellers… Use at least 8 characters. If you accomplish that and made some money that is a great sign. In real estate wholesaling, a wholesaler contracts a home with a seller, then finds an interested party to buy it. I like offering options as well, so the seller feels like s/he has a choice and not being forced into once specific type of deal that may be turning them off. Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood. Most people try and find commonalities between each other. Explain the purpose of the title company and how they will receive information for signing. Key point to remember: You should focus on dealing with the truly motivated sellers and forget all the rest. Thank you so much for sharing this. Once you have put up your advertising and marketing to attract motivated sellers for your wholesale business, you must know how to take a call and screen potential sellers. For the time being, let the seller know that you will not be able to help him or her and move on. 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? My most important job is to help you through this transaction.”. Connect with 1,000,000+ real estate investors! Use in your area to have to be successful time saver dominant the.... 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