This is part 2 of a 3-part series on how to find motivated sellers, control and profit from a single family investment property wholesaling it to another investor.
Part 2 – [You are here] How to Negotiate the deal And Get The Seller To Agree With Your Offer
Ok we are here part 2 of the case study on how I acquired 140 motivated sellers and made $40,000 in one week.
Good stuff right?
In this post I’m going to share with you how to find motivated sellers and then how to present your low offer to them.
Let’s start with finding motivated sellers.
Remember I said this is the lifeline of your business. Marketing for motivated sellers. If you’re marketing consistently you’ll always have leads coming in, as well as deals.
New Seller Leads Calling To Sell Their Property
You can bring in new leads from doing things like posting ads on craigslist, putting up bandit signs, or direct mail. I’ve used all of these methods to bring in leads. I can say by far direct mail is the simplest, cost effective strategy to bring in leads on a consistent basis.
On craigslist you can search in the Homes For Sale section to find any ads that have the words.
- Motivated to sell
- Need to sell
- Must sell now
- Vacant home
- Need cash now for home
Of course you’ll have to sift through the ads, to find which ones are ads from homeowners. Because you’ll see some ads are from realtors, and some are even from other wholesalers.
With bandit signs you can post these up all around the city ex; WE Buy Houses Cash (Call 123-4348). You can take it a step further and get creative with the signs. Like I Need To Buy One More House Before End Of Month. Just make sure to put them in areas where they are visible and get a bunch of eyes on them.
My favorite is Direct Mail… I absolutely love it. Because it works fast…
I teach how to set up your direct mail campaigns online in our Direct Mail Domination training system.
The best thing with direct mail is that you can start off with a small budget of just $50 and start to see results. It’s really in the targeting. The more laser targeted you can get, the better results you’ll see.
Right now, we’re targeting these motivated seller leads and seeing a HUGE return on investment.
But what do you say when it’s time to make the offer?
This is the one thing that most new investors get stuck on, or become afraid that they will say the wrong thing, and make themselves look like an idiot. I used to be so scared that when the seller would ask me how much I would offer, I would hang up.
It’s not that hard to negotiate when you’re dealing with someone who has a problem. Think about it like this. This homeowner is in a situation where they NEED to sell not just want to sell. When someone is truly motivated, they will do whatever it is to get rid of the pain that they’re going through.
Maybe they recently evicted a tenant, and they trashed the place. Maybe they went through a bad divorce, or maybe they just lost their mother, father or aunt, and now they have to take care of a house that’s in California, and they live in North Carolina.
Yes they would love to keep their home in NC and the one in California. But they just don’t have the finances to deal with the upkeep of that property being thousands of miles away. They don’t want to be a landlord, they would rather just sell it for quick cash.
What if the place needs repairs, major repairs… If they tried to list it with a realtor, it would take months to sell, because the property isn’t presentable in it’s current condition. On top of if/when it sells they still have to pay the realtor 6% commission.
You see how dreadful this can be for a homeowner who NEEDS to sell having to deal with all of this.
But you come in as the superhero to save the day.
You offer to pay cash, close quickly, buy it AS-IS, and not charge them any commissions.
This is a total win-win for the homeowner.
In this video you’ll hear my live making a offer to an homeowner over the phone.
When you position the offer with all the benefits to the seller, and that even though you can’t pay top dollar. They will still be saving time and money by selling you the property.
Ok, so I know a few of you have this question.
WHY ON EARTH WOULD ANYONE SELL THEIR HOUSE FOR SUCH A LOW PRICE?
In reality, not everyone will. I would say for every 20-25 people I talk to I get at least one of them interested in selling it for the price I need to get it at, to make a quick profit.
As long as I’m getting the property priced under what houses are selling for comparable to the subject property, then I can make a quick profit.
Again Top 7 Reasons They Will Sell Their Property For A Low Price
- Recently evicted a tenant and don’t want to be landlord anymore
- Recently inherited a property and don’t want to manage it
- Elderly and don’t want to manage or keep up with the property
- Behind on the taxes owed on the property
- Behind on the mortgage
- Don’t have the money to fix up the property
- Emergency and need the quick cash
The list will go on. I’ve ran into all situations of why they NEED to sell their property and will accept my lower price to get rid of the property quick.
Your job is to find these people, put the deals together and sell them to your end buyers for a quick profit. This is something I cover in the REI Wealth Mastermind Training.
So now you have some different ways to find motivated sellers as well as how to present and negotiate a deal with them. And of course make the seller very happy!
In part 3 of the series I’ll show you what needs to be in the contracts and how to handle closing after you have a end buyer to buy the deal.
Leave me a comment with any questions and let me know what you think!