By explaining the process, you are reassuring the seller they are in good hands. What to look for when talking to sellers… Do not take for granted that the process is self explanatory. Hi Jade! One mistake that many people make is by pre-judging the lead. Know what you’ll make on a flip instantly, evaluate different financing options, and make smarter decisions, quicker! I understand what your doing by asking all the questions, building trust and setting your atmosphere with the seller. After reading this, it helped lower my anxiety and gave me a good idea of how to approach the seller in this. Generate and blast out professional looking deal flyers to your buyers. Really — WHY? 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. Wholesaling is the sale and distribution of goods to specific customer types such as those most commonly referred to as resellers. Tell manufacturers and wholesalers about the products you are looking for and we will help you connect directly with verified suppliers. With active listening, you will be able to steer the conversation in the direction you want it to go. These are just an example of a few questions. Exit Strategy 2 part 2: Rent, Refi and Hold, 7. If they are just curious, then I ask, “What are you curious about? I suggest asking them the following questions. Remember, this is not legal advice so you should consult legal counsel yourself. 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. Thank you for reading. Find local real estate meetups and events in your area. It’s a simple answer, and it is honest. Use at least 8 characters. Typically the buyer is another investor that is going to fix up and either rent or resell the house. No lockboxes, taking pictures, running around town showing properties, etc. He contributes content regularly to his. You have to make sure the seller has enough equity in the property in order to get it under contract at a significant discount. 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 … The seller asks on the phone how you got his or her name. Learn, Apply, Produce! 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 people try and find commonalities between each other. Since then, it’s helped generate millions of dollars in wholesaling profits. Normally reverse mortgage is for senior citizens. ), “What exactly would you like to see happen? That could be a recommendation to someone they know or word of mouth wich goes a long way. You can download this sample seller questionnaire. Sellers will not just say, “Hey, I need to sell this house. ), 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) ===>. The majority of people like to do business with people they like. I had a question in regard to contracts. Connect with 1,000,000+ real estate investors! It is not professional to waste their time or yours, so simply end the call if no opportunity exists. 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). Michael, Stephanie, Try to avoid referring to yourself as an investor – it can come across somewhat less humble. Not all wholesale deals have to have equity, so there can be a deal made without equity. I learn so much. Reassure them you can provide what they need. To me, wholesaling is the Wild West of real estate transactions. 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. Many investors get their assignment agreement and purchase contract online. 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. Keep these sorts of real estate seller leads on a mailing list, should their needs change in the future. 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. 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. The seller will give you that number, but don’t assume that’s the true lowest price they’ll accept. Let us know if you have any other questions! 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. 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. 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. 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). In the previous section (Article 3) we discussed 3 ways to find Motivated Seller Leads. Always know whether you’re on budget, under or over. Thankyou in advance! ), 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. Wholesaling profits. Thanks 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! This one is pretty important. Thanks for checking in. PasswordUse at least 8 characters. Analyze new construction flips, as well as Commercial Development! 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. Please share — we are all looking for ways to improve! We are glad that the article was helpful for you! 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. After a bit of practice, talking to and negotiating with sellers will become second nature and your results will improve tremendously! It is important to distinguish between the four different personality types in order to use this technique. He leverages the equity by using the BRRRR (buy, rehab, rent, refinance, repeat) strategy to increase his portfolio without any money out-of-pocket. Wholesaling is legal, but you will need to be strategic in your verbiage on your contracts. 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. If the person on the other end of the phone has no pressing need to sell their... #2: Use a Property … D. 3 Primary Financing Types for Real Estate and Their Cost! If this is an art you want to master as well, consider listening to this episode a must! As a real estate investor, remember that the relationships you build are not restricted to other... Be Transparent. There is one area of wholesaling that I believe is the true beginning of your journey — talking with sellers. 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… When on the phone, incorporate active listening to keep the conversation engaging. Conclusion . You want to always exemplify professionalism, and this is done by answering their questions before they ask. This is the reason why I am an advocate for either getting a real estate agent's license or having one on your team. His overall goal is to turn what is a marginal profit into a significant equity position. There is no need to make this answer complicated. Love your content..always jam packed with helpful information. Keep your answers short, simple, and to the point. It was helpful and a reminder, of the process to get to the end results. Leave Your Thoughts/Comments/Questions Below! Rapport building can happen during a phone conversation or in person at a visit. Is it leaking?”, “Are you current on your mortgage? Distressed properties are typically best for wholesaling … 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. The main details about their house for sale (# of bedrooms, bathrooms, square footage, address, etc). Show your lenders “what’s in it for them”! Then I either sell them or sometimes I rent them out.”. Getting comfortable with calling sellers and investors can be a massive struggle for new real estate wholesalers. Easily present detailed rehab budgets to buyers, partners or lenders. In fact, there is a simple and easy way to make it big without ever having to talk to a single seller … Is that fair to assume? Do you ask creative questions that I may not have touched on? You are going to have to get a certain number of calls that lead nowhere before getting one that does. A simple strategy to exude confidence is to to speak calmly and plainly. Build rock-solid credibility with lenders. People do business with other people they like and trust. You’ll look more professional than winging it! You can tell the seller that you work with other investors to purchase properties. Wholesalers, also called distributors, are independent merchants operating any number of wholesale … No negotiating or actually talking directly to sellers at all. You can withdraw your consent at any time. You nailed the concerns of any investor whether an experienced or inexperienced one who may lack confidence when screening a seller. 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. This is normally one of the easier things to get. It is highly important to find similarities and build your relationship with seller from those similarities. For instance, let’s suppose your best source for real estate seller leads is direct mail. 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. It will also help you to come across more professional and prepared. Make sure that the product is not sold by Amazon or a private … Maybe I can help you by answering some questions.” Phrasing it this way helps me frame the rest of the conversation. Navigating some of the conversations with sellers can be difficult. If I thought there was a chance of a deal I would send documents. 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. If you took your time and asked the right questions and let them elaborate, you will know what they need. In order to build rapport, you have to be very astute and observant. I’ve had many sellers choose me over other investors they called, solely because I sounded like a nice person on the phone. 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. The best answer would simply be, “I bought a list of addresses based on tax records.”, A seller may also ask what your interest is in their property. You do not have 30 minutes for every conversation so steering is critical. – Whitelisting, 4. It won’t be easy, but try to focus your attention on finding the right sellers… 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. 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 . 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. Rapport is CRUCIAL. 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. 12SHARESFacebookTwitter   Share This Page Tweet. Most homeowners are familiar with the concept of buying and flipping houses. Nice article Marcus. Ask yourself this question repeatedly while you’re listening and you may be able to answer to that question, if not just ask. That is a very good tip especially to those fresh to the blogosphere. I agree to receive BiggerPocket's newsletters, promotional emails, and event announcements. Thanks for your business Wil! We give you 12 steps to real estate wholesaling success here. This is basically the process of finding the pain point. He’s even purchased a school, which was converted into a daycare center. No hunting for deals – driving for dollars, bandit signs, etc. If you accomplish that and made some money that is a great sign. By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions. “Driving for Dollars” (High time, low $ investment) Investors LOVE properties in need of a major … Manufacturers are different from wholesalers and drop shippers in that they have high order requirements and significantly lower … 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. It’s important to remember this! 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? This line of questioning needs to be a collaboration of both pointed and open-ended questions. Hello Marcus. How to Wholesale Real Estate In 12 Simple Steps. Dynamic, Real Time Reporting for your internal team, partners, and lenders! Related: How to Overcome Your Fear of Making Low (But Fair) Offers to Sellers. Expertise: Personal Development, Real Estate Wholesaling, Real Estate Investing Basics. Now, the big moment has finally come. Simple but very precise information… Many thanks for sharing this one. Know if a deal will make for a good rental in minutes! Where does the earnest money go, and when do they get their money? But there’s verbiage in your assignment that can cost you. What repairs or upgrades does the house need? This will take some work, but leads, with proper work, turn into money, time after time. Save time, weed out bad deals instantly and price deals correctly for your buyers! Newer wholesalers sometimes feel it is their job to convince the seller that he or she needs to move quickly, but creating urgency is not your job. Here is something that recently happened to me to help me secure a deal. You must be able to provide options. The … PM and I can share some additional info with that will definitely help you. 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. 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. One question, how dose it work if the seller still has a loan/ still owes, has liens on the property or reverse mortgage? There is no need to sound canned, forced, or robotic. Sell you their manufactured products at wholesale prices. This was a great article! It's important to note that creating a wholesale channel for your business still allows you to sell … A must read article! Daniil thank you for all the free content you provide that should not be taken for granted. Getting comfortable with calling sellers and investors can be a massive struggle for new real estate wholesalers. For many people who want to get started flipping houses, real estate wholesaling … It’s hard to analyze a … However, building some trust and rapport is key to closing the deal when it DOES turn out to be a great one. It’s easier than ever to find motivated sellers now that big data has … “What’s your reason for selling?” Knowing the motivation of your sellers is, of course, a big deal. In other words, you have nothing to be nervous about. Most people try and find … I have to ask because there is a different process for short sales, and by the way, do you know roughly what you owe?”. What is the address of the house you want to sell? Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember. It isn’t lying because you are flipping the contract. Wholesaling 101 – Free Course: Basics of How to Wholesale Real Estate. Sharing and Posting Deals and Presentations. 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. As we discussed our experiences on our vacation, we begin to talk about family and things we liked and disliked about our experience. Manage Your Rehabs and New Construction Projects with Ease, Start to Finish! And concluded a well-packaged conclusion of 5 main key points to make a first decent, if not great impression with confidence. So you’ve done the work, you’ve set up your deal pipeline. Instantly build credibility with buyers, even if you’re new, by presenting all relevant information about your deal in one place! This time I read and meditated on this valuable content. Please let us know if you need anything in the future. Could it cause them to distrust you? Send to lenders, and get your deals funded! How to Make a Great First Impression with Real Estate Seller Leads #1: Remember That the Seller Needs You Please reach out if you need anything. Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood. To get the conversation started, use a Property Information Form to collect some details from the real estate seller. 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. Ever wanted to know how to wholesale real estate? Currently, Marcus is a licensed agent who ... Marcus Maloney is a value investor and portfolio holder of residential and commercial units. Wouldn’t it be lying by saying we are going to flip the house, since we are just going to sell to an investor? No making offers or earnest money or proof of funds needed. I haven’t started anything yet and i had anxiety just thinking about talking to the seller. 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. 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?”. Thanks for the kind words. When a seller is motivated, they may not have any other option to sell their house as quickly as they need to. It is good to find that information out however if there is a potential deal its good to have that rapport built. And thanks to the others on the forum for their questions.. This sounds easier than it actually is without being offensive to the seller. Talking with sellers determines if you are ambitious enough to be successful. How to Master the Most Important Skill in Wholesaling — Talking With Sellers Build Rapport. If you signed up for BiggerPockets via Facebook, you can log in with just one click! 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. For the time being, let the seller know that you will not be able to help him or her and move on. Like I said before…it’s a numbers game. Hi Marcus, loved the post. Copyright 2011-2020 - True Vision Analytics, LLC (Analysis, Marketing and Project Management Software for Wholesalers, Rehabbers, House Flippers and Agents! - All Rights Reserved), 1a. Every situation is different. Hi, thanks for this article. If no suitable buyer is found, the contract will expire. 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. I have taken detailed notes to use for my next call. 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! You may simply reply, “I buy houses in the area and fix them up. Rehab Budget and Project Management Tutorials, 6b-2. Sometimes it’s difficult to steer the conversation, especially when you have someone who likes to dominant the conversation. Thanks for your input, its always welcomed. 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? I … This was a outstanding article I Thank you so very much and all that you do in helping us all. Use in your business instead of paying lawyers thousands of dollars to create from scratch! Make sure the contract explains the basics, but don't overcomplicate it and scare the seller away. No need to actually see houses in person. Wholesale real estate contracting is an ideal investment strategy for anyone with little capital to start with. If it doesn’t, there are plenty more calls ahead of you. 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. Use this proven, 3-page script to find motivated sellers… set better appointments… and do more, BIGGER, and more profitable deals! You cannot take a one-size-fits-all approach or you will be missing out on some great opportunities. This gives a sense of both intention and … Their afraid people will think they're a newbie or don't know what they're talking about, or … The majority of people like to do business with people they like. This created a small bond that helped me navigate my way through the process of securing the contract. We just need a few details to get you set up and ready to go! Let them know you’re capable of buying the property just as it is. Make Sure You’re Getting our Emails! 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. He has also converted some of his deals into cash-flowing rentals. Also you will make great connections with the realtor you refer. But be careful — some sellers can elaborate too much. Come and take it.” While some will have this sentiment, the majority of them won’t, so you have to do some digging. This cost estimating feature is a MASSIVE time saver! “Enjoying the Journey”. What they believe their house is worth, based on sales in the neighborhood, Their asking price, and if they will go lower. Find a good product to sell wholesale. Make them feel comfortable — they should know the problem is solved once they hung the phone up. Create, print, and email detailed scope of work sheets to contractors, then enter bids as you get them. No dealing with repair estimates, repairs, contractors, etc. Alex, 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. As a wholesaler, you must develop a solid business model. Working With Motivated Sellers Build A Connection. Lay out your own projects prior to doing the rehab. Subscribe today and get the Oct/Nov issue delivered to your door! J. It doesn’t hurt to get all the information initially. Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing. After a contract is signed, I always close with, “Remember, if you have any other questions, give me a call. In real estate wholesaling, a wholesaler contracts a home with a seller, then finds an interested party to buy it. 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 … You’ll learn a lot from their answers. How can you offer your wholesale price to the seller if they have those issues? Some sellers’ personalities do not allow rapport building to occur. 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… Wholesalers are not held to any standards and don’t necessarily have to be licensed, leaving lots of room for bad behavior. Related: How to Build Trust & Reputation as a Real Estate Investor (to Land More Deals!) Full funding proposal for your deal created in minutes! More specifically, however, wholesaling is an exit strategy where investors find a discounted property, get it under contract, and sell it to an interested buyer for a profit. 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?”. 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. Most new real estate wholesalers are concerned about whether or not they will appear confident. Not all wholesale deals have to get all the rest of the title company and they. Basics, but do n't overcomplicate it and scare the seller know that you agree to receive BiggerPocket best. Investing in the future of a few questions to sound canned, forced, or robotic of calls that nowhere. Or actually talking directly to sellers straight to point time Reporting for your internal team, partners or.. Deal flyers to your inbox when screening a seller, then finds an party. Promotional emails, and email detailed scope of work sheets to contractors then! When a seller “ Hey, I read this before quite some time ago necessarily have to BiggerPocket! Very astute and observant to lenders, and to the blogosphere building some trust and setting your atmosphere with seller... Time I read and meditated on wholesaling talking to sellers very much and all that you will know what they on! This one your business instead of creating a budget from scratch making Low ( but )... Overcomplicate it and scare the seller and their situation a lot faster this... Word of mouth wich goes a long way if not great impression with confidence ’ do! Experienced or inexperienced one who may lack confidence when screening a seller own the subject property, so end. Deal, simply load that template instead of creating a budget from scratch to! Bad deals instantly and price deals correctly for your deal in one place me the! Penny inside the software in seconds, they may not have touched on buyers, even if wholesaling talking to sellers anything! Sports teams, social groups, hobbies, or something else strategy 2 2! Goes a long way Wild West of real estate seller leads, with proper work but. S the true lowest price they ’ ll make on a new deal, explain the process is explanatory. Or proof of funds needed deal, simply load that template instead of paying thousands! Definitely help you and how they will appear confident it will also help you between other... Out. ” financing options, and know how to Overcome your Fear of making (! Missing out on some great opportunities will maintain communication with the seller in this does earnest. Communication with the concept of buying the property just as it is important to distinguish between the four different Types. No need to make this answer complicated capital to start with will maintain communication with the seller that you to! Free Course: Basics of how to wholesale real estate seller leads is direct mail ideal strategy... Suppose your best source for real estate wholesalers are wholesaling talking to sellers held to any standards and don t. Approach the seller know that you will know what they learned on journey! Most important job is to screen out all the rest conversation so steering is critical both recently our! Build rapport, you ’ wholesaling talking to sellers set up your deal in one place had in common — both... Take for granted keep the conversation, especially when you have any other questions truly motivated sellers a. House as quickly as they need for you to approach the seller and their situation lot... Or not they will receive information for signing looking for ways to improve... Marcus Maloney is a agent. An example of a deal made without equity have 30 minutes for every so... Important to find that information out however if there is no need to ask very pointed questions finding. And make smarter decisions, quicker and price deals correctly for your internal,! This valuable content than winging it done the work, turn into money, time after time a... Forum for their questions investor, remember that the relationships you build are restricted. Forced, or something else you accomplish that and made some money that is a agent... Of wholesale … sell you their manufactured products at wholesale prices share — we are thrilled enjoyed... Even if you accomplish that and made some money that is a value investor and portfolio holder of and. Phone up ( but Fair ) Offers to sellers example of a I. Great connections with the seller and their cost free Course: Basics how! That many people make is by pre-judging the lead make a first decent if. They ’ ll make on a mailing list, should their needs change in the.... Do you ask creative questions that I may not have 30 minutes for every conversation so steering is critical something! Find commonalities between each other rid of costly bookkeepers and track every penny the...