Today’s special episode is part 1 of a 3-part series hosted by no other than extraordinary wholesaler (he has wholesaled over 1,000 properties!) and phenomenal coach (he’s head of training at No Limits Real Estate Investing), Todd Toback.
If you’re familiar with the podcast, you probably already know Todd is Tom Krol’s big brother. Which means his energy and enthusiasm is just as infectious!
Regardless if you’re a seasoned wholesaler or a cautious newbie, you’d be in for a treat if you listen to today’s show. Todd not only shared the effective tips and tricks he swears by, he also delivered it in a manner that’s both fun and vibrant! No dull moments in today’s episode so make sure you tune in!
- Three steps of wholesaling
- Why it’s important to market consistently
- Why it’s recommended to get to an appointment at least 15 minutes early
- How to appear non-confrontational when meeting with sellers
- The 3 levels of rapport
- Why you need to slow the process down
- How you can get people to open up to you
- How to know when you’ve reached level 3 of building rapport
- What the “pain step” is
- Why it’s imperative that all the decision makers are present when meeting with sellers
- Key question you need to ask to determine what you’re up against
- What the “what if” technique is and what it’s designed to accomplish
- What the “boomerang” strategy is
- Why it’s important to remember that the sellers need the deal more than you do
- What to do prior to getting the seller to sign the contract
- One trick you can do to build trust
- Multiple Streams of Income by Robert G. Allen
- FREE! “3 Part Video Series Reveals the Closing Secrets of a Seven Figure Wholesaler”
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
Subscribe to Wholesaling Inc
Welcome to this special edition of the Wholesaling Inc Podcast. My name is Todd Toback, and I am so excited to be with you for this three-part series on speaking, meeting, and negotiating with motivated sellers. Now, if you don’t know me, my name is Todd Toback, and I’ve wholesaled over 1,000 properties in one of the most competitive markets in Southern California. I also happen to be the big brother of Tom Krol, the founder of this podcast, and I am so honored to share with you the secrets to locking up huge spreads, to meeting with motivated sellers, to making huge profit in my favorite niche in real estate, and that is wholesaling. no matter where you’re at, if you’re brand new and you haven’t locked up a deal or if you’re a wholesaler and you just want to do bigger deals, this podcast is for you.
Now, I remember when I first got started in real estate, I wanted to quit my job and I was frustrated, and I wasn’t making enough money, and I remember I was in my car, driving home from a meeting with my boss, Derek. I love Derek, but the only problem was, after I asked for a raise, Derek told me that I didn’t know how the corporate world worked and that I had to pay my dues, and so after doing the math on my salary and my income and where I wanted to take my family, it spurred me into action to do something better with my life. That day, back in 2001, I was driving in my Chevy Impala on the 101 Freeway, I saw Barnes & Noble’s out of the corner of my eye, I pulled over three lanes of traffic, and everyone was honking and giving me the finger, pulled in the parking lot of the bookstore, picked up a book called Multiple Streams of Income by Robert Allen, and I was hooked on real estate. I remember I had all this enthusiasm. By the way, if you’ve been listening to this podcast, you probably are jazzed about real estate, right?
You understand that you want a better future for yourself, right? You want to make more money, you want more freedom, you want to be able to do the things that you want to do, and not really have to be chained down by the constraints of a fixed income, and so my goal for this podcast today is to tell you that it is possible, and to give you the tools that will make it possible. You just have to take it and put it into action. This is going to be a three-part series. Now, it’s funny because I tell the story of me doing my first real estate deal and how I quit my job, and pulling over those three lanes of traffic, and spurring into action, but what a lot of people don’t talk about is what happens between the time that they made a decision to do their first real estate deal and the time they got their first check, and so I want to start very, very broad with you, and over the next three episodes, I’m going to actually get more granular, narrow and narrow, okay?
I’m going to talk with you about meeting with a motivated seller, just like I did on that first appointment, in which I made 40 grand, by the way, and I did pretty much everything wrong, but I’m going to teach you actually how to do the opposite of what I did. As a matter of fact, if you put into practice what I teach you on this podcast, you’ll make three times as much, all right? At least collectively. Again, this first episode, I’m really going to dig in. It’s going to be really, really wide on meeting with a motivated seller.
The second episode, I’m going to talk about how to talk to motivated sellers and really qualifying, using some techniques of the No Limits Selling system, and that’s the system that we use actually in our business today and with our acquisition managers to actually close deals. The third, I’m going to get really, really, really specific on actually how to negotiate price, using a lot of different techniques and questions. All right. By the way, if you want to know more about this podcast in between these three episodes, go to closingsellers.com. I got a free training there for you.
It’s, I think an hour or more, some videos that you can watch there, closingsellers.com. I remember when I was meeting with this motivated seller, I remember I send out my letters, and this is where our marketing takes place. All wholesaling comes down to three steps. That’s it. Do not overcomplicate this business.
Three steps. Number one, generating leads, number two, converting those leads into a contract, and then three, okay, disposition of the property, otherwise known as the exit. That’s it. If you’re overwhelmed, if you’re confused, if you don’t know what to do, and this tool and that tool, and this strategy and that strategy, take it back to these three steps, number one, marketing for motivated sellers, number two, conversion of those sellers into contracts, and that’s what this three episode series is all about, and then three, your exit from the property. That exit could be that you’re going to wholesale it, it could be that you wholetail it, it could be that you fix and flip it, it could be that you decide to hold it as a rental property, okay, but again, there’s only three steps to wholesaling, number one, generating leads, number two, converting those leads, and number three, your exit. This three podcast series is all about number two, but, and let me say this with a big but, this does not matter if you’re not generating leads.
You must pick one source, one source of marketing, and dig into it and focus it, on it like a crazy animal, and generate leads. When you have leads come in, you now have something to convert, to close the sale, and it’ll give you a different energy. It’ll give you a different moxie, a little swagger, knowing that you have leads coming in every single day, and that your next deal is right around the corner. Remember, market consistently, and then convert, convert, convert, convert. Back to my story, okay? I remember I got this book on real estate by Robert Allen, and it was Multiple Streams of Income, and it told me to find out-of-state owners to mail to, and so that’s exactly what I did.
I went down to the county courthouse. This is before tools like Listsource, and I found all the owners who lived out of state, and I remember getting a few phone calls. I think it was actually only one or two actually, and I remember the phone rang and a lady called me to tell me that she owned a condo in the complex that I was living at. By the way, that was not a coincidence. I targeted this specifically. It was a small beach town in Santa Barbara.
By the way, if you’re thinking, “Oh my God, Todd, this is going to work because you were by a beach town.” I’ve heard other people say, “Well, this doesn’t work because I was at a beach town,” or, “The prices are too expensive,” or, “It’s too competitive.” Believe me, if I was able to do this deal in a competitive market like Santa Barbara, in a condo right by the beach, you can do it in your market. It could be done in competitive markets, it could be done in tertiary markets, those that are kind of out on the outskirts, and it could be done in a medium-size market, so no excuses. Know that it can be done using the techniques that I’m going to teach you here today. I remember when that first call came in.
I was so nervous, right? My heartbeat was beating out of my chest, and I was like, “Oh my gosh, I have a call. What am I going to do?” It was like, I felt like Tommy Boy in the movie, Tommy boy, in which I was going to kill the sale. I was so nervous. I didn’t have really any money in the bank.
I didn’t have credit. I knew I couldn’t qualify for a loan. I didn’t even have the contracts. I didn’t know what to say. I didn’t even know the price I could pay. I was just all over the place.
All I knew is that this book told me to find a motivated seller, and literally, I could feel my heartbeat through my chest. As a matter of fact, as I think about that right now, it’s beating, and so I want to let you know that those feelings are all normal. This is not your fault, right? No one has taught you this, but this is good, because if you’re scared, if you’re uncomfortable, if you feel like you don’t know what to do, growth is coming, all right? This podcast is going to give you new skills, new capabilities, new capacity to negotiate giant deals, five-figure paychecks that are going to go in your pocket, and I want to convey three things to you.
Number one, sales and conversion is so, so, so important. If you take a look at the most successful wholesalers in this business, they all know how to convert or teach people on their team how to convert, right? Then, that’s another word for sales, okay, so it is a necessity. You can’t get by it. You can’t say that, “I’m a natural born sales person,” or, “I’m not a natural born salesperson.” This is required for your success, but I have good news for you, okay?
Two, sales is learned, not a god-given talent. Okay now, there are some people who may seem like they have the gift of the gab, right? They can talk a lot and maybe build rapport, and maybe that is true, but that is not the same as conversion, all right? This can be learned. For myself, I remember getting my first sales job, selling alarms door to door, and I was absolutely the worst person on the entire team, all right? I was in this van for three weeks, going door to door selling alarms, and I hadn’t sold any, and everybody else in the van had.
I was a little bit shy and I had no specific sales training. This one girl in the back of the van, when I was complaining one day, she screamed, “When you learn to stop blaming everybody else, that’s when you’ll be successful,” and so I started to listen to her and get coached by her, and she said, “Look, this is your craft, right? You’ve got to master your craft. You’ve got to go over the script. You’ve got to say it in the mirror.”
“You’ve got to believe it. You’ve got to know it,” and she said, “It’s got to become the fabric of your being.” Okay? The fabric of your being, and so that’s the good news. You can learn it, but three, is that you must take this seriously and make this your craft. You must practice it, you must learn it, you must repeat it, and you must commit, okay?
Commit to understanding that this business is all about conversion and that you are going to put in the work to do it, all right? Now, these three episodes will give you everything that you need to know to close motivated sellers, okay, but if you even want to dig deeper, you can go to that free training I was talking about on closingsellers.com, okay? Free videos there for you and a bunch of other stuff, all right? Remember those three. Okay, number one, conversion skills, sales skills are absolutely necessary, number two, you can learn it, and three, you must commit to becoming a master of your craft.
When I met with the motivated seller, I remember I met with her in person, and I didn’t have the contracts, I didn’t have any other forms or disclosures, or no scripts, I didn’t know the questions to ask, I didn’t know how to look at the house or how to value the house, and so I went there and I did my best guess because I knew some of them, some of the condos in the complex we’re selling for 360 or 370, maybe 380, and I just negotiated my best, right? Negotiated the lowest I could. I locked that condo up for $280,000, and I just went out there and made it happen, right? We basically wrote it up on a napkin or a piece of paper, opened up escrow, I found a partner to come up with the money. I didn’t even know that you could wholesale back then, and did the deal.
Now, I looked back on that, okay, and I made about 40 grand, but I looked back on that and I said, “Wow, what if? What if I knew then what I knew now?”, and so I started to study and read and devour everything I could on sales and conversion. I found people across all industries, I was doing deals, and I started keeping a journal of what worked and what didn’t, and that is the birth of what I’m about to teach you here today. All right. In this first episode, we’re going to go on talking about setting the stage, what to do when you actually meet with a motivated seller, all right?
I remember again, when I met with that motivated seller, I just showed up there and I had paper in my hand and pen, and I didn’t know what I was doing, okay, so I’m going to give you very specifics about what to do. When you make an appointment with the seller, you want to start off … By the way, this is assuming that you’re marketing and you gauged motivation, and used the tools that I’m actually going to teach you in episode two, all right, of this, of the second part of the series, so watch out for that second part of the series and I’ll talk about that. Assuming that you are now ready to meet with a motivated seller, what you want to do is get there 15 minutes early. Now, notice I didn’t say get to the door 15 minutes early, but get to the property, parked a few doors down, okay?
What you want to do at this point, relieve the seller’s anxiety, especially if you have like a magnet on the side of your car or your car’s wrapped with a “We buy houses” sign. You want to decrease their tension with you being there because most likely, they’re embarrassed, right? They’re embarrassed that they let a situation go down the tubes. It could be a tenant that’s living in the property or the condition, or maybe they’re a hoarder, or maybe they’ve got a ton of family members living in the property. Who knows what it could be, but you don’t know what this is, so make sure you park down the block, all right?
Get there 15 minutes early and get your head in state. Practice your sales skills and go over about what I’m going to teach you, right? Close your eyes and visualize this process in your mind. Okay now, it’s very, very important that you build trust with the seller. Every time you do what you say that you’re going to do no matter how small is a promise kept, okay? Vice versa is that if you do not keep a promise, if you show up two minutes early or two minutes late, okay, you broke a promise, and depending on that seller’s personality, you may be a liar now, so it’s very, very important.
If you say you’re going to be there at 2:00 in the afternoon, get there 15 minutes early, park down the block, and then exactly at 2:00, knock on their door. All right? Seller’s going to answer. Now, you do not want to face them face-to-face, okay? Step back one step, and slightly go to the side in a non-confrontational position, all right?
This is all ninja stuff I’m teaching you, okay? Now, you come in. Let them invite you in, right? Next, wipe your feet. Show that you’re considerate. These little things, the seller is going to start to notice your professionalism, and these are little tie-breakers that are going to allow you to beat out any competition that comes your way, all right?
Now, when you come in, this is where most people make a mistake, all right? I’m going to tell you the number one first step, and this is going to be critical, is to build rapport, Well, duh. Everybody says build rapport, but they don’t know what that actually means, okay? Well, there are actually three levels of rapport that I’m going to teach you about in this podcast episode. Three levels, and to get serious, to be the best, to become a master of your craft, you’ve got to get to level three.
Got to get to level three, all right? Most people, they define rapport, is they walk and they’re like, “Hi, where are you from?” “Oh, I’m from San Diego.” “Oh, so am I. Oh, okay. What’s the lowest price you’ll take for your house?”
Right? That comes off as so phony, and the seller knows what you’re up to, and they just want to get to business, right? Do not rush this process. As a matter of fact, I want you to slow this process down. Slow it down, okay? Slow it down so that it hurts, okay?
You got to get to level three rapport. You’ve already done the marketing, you’ve already talked to the seller, you’ve already probably done some negotiating, which I’ll get back to episodes two and three on the phone. Don’t blow it, right? Don’t blow it in the red zone. If you know anything about the red zone, that’s the area of the field where you score, where you’re at the 20-yard line trying to get in the end zone, okay, so don’t blow it.
What are the three levels of rapport and how do you get there? Well, most people are good at the first level, right? This is you get in and you talk about people, places, things, experiences, right? People, places, things, experiences, so if you see pictures, ask them about their family. If you see sports memorabilia, talk about teams.
If you see pictures of vacation, ask about places. If you see a picture of them bungee jumping, talk about that. Now, using open-ended questions. Now, what are open-ended questions? If you say, “Oh, have you been bungee jumping?”, and you see them bungee jumping, don’t ask that, because they’re going to say yes, or they’re going to say no, and don’t ask questions in which the answer is obvious.
If you see a picture of them bungee jumping on the picture of them on their wall, don’t say, “Have you ever been bungee jumping?” Right? Say, “Wow, can you tell me about the time that you went bungee jumping?”, and get them talking, right? “How did you feel? How did you get past your fears?” Right?
“I’ve been thinking about that, but I haven’t had the guts.” Right? “What convinced you to do that?” Right? Get them talking about themselves. Now, you may feel the need to jump in and talk about how much you’ve done or whatever it is.
Keep asking them questions, focus on them, and get them talking about themselves. Now, here’s the secret part. The more you get them talking about themselves, the more they will start to weave in little issues about their property and their situation, right? Keep the questions off you. If you happen to gone bungee jumping or you wanted to go, then mention that quickly, but quickly shift the conversation back to them, and keep them talking, getting them opening up.
This will also, okay, get them in the habit of talking and trust. The more you listen, the less you speak, the more they will open up to you, okay, so get in this mode. I know I’ve given you a lot today, all right? Now, once you’ve done that, that’s level one, right? This is … We are just getting started.
Level two is that you want them to teach you something. Teach you something. Do you know how I talked about those open-ended questions? Open-ended questions are questions in which the seller cannot give you a yes or no answer. There has to be some explaining with that.
For me, I always use this example, is I love to grow tomatoes, and so whenever a seller had tomatoes in their backyard, I always bring that up and said, “Wow, those are really, really good tomatoes. Can you tell me how you get them so big, or how they’re so red, or where did you … How were you able to get this variety? I haven’t been able to find them,” and so now, you want the seller to teach you something, all right? If they’re older than you, you want them to feel like they are helping you, right?
You also want to get them in that mode to keep that momentum, all right, so ask them. Get them to teach you something. If they have a 1965 Mustang and they love cars, get them to teach you about Mustangs, or their record collection, or their chess championship trophy collection, but have them teach you. Sit down and play some chess. Do not rush this.
Stay on rapport, right? Sometimes the seller might want to get right into business, and that’s okay. There’s a certain personality type in which I’m going to show you how to handle this, but for the majority of sellers, this is the way to go, all right? Now, how do you know when you’re at level three rapport, because level three is when you are ready to move to the next step, right? This is when you’re really actually to start even talking about the house, right?
By now, the seller may have already tried to show you the property. Get away from that, right? Maybe look at a few things and look around, and shake your head, and maybe look around real quick, but just say, “We’ll get back to the seller in a second, but can you tell me more about this car?”, whatever that is. Level three is when they give you something, when they give you something. That’s when you know you’ve made a friend. Have they given you some tomatoes?
Have they given you a picture of a Mustang? Have they given you a little model, a little Mustang, a little car, right? Have they given you some cookies to take home, but that’s when you know. On every seller appointment, you won’t get there, all right? That’s the part of the process, but if you get there, you know that you’ve done a phenomenal job and always shoot for level three rapport. When you’re going through seller or appointment, always understand that you are learning and growing on every single seller interaction, right?
Either you win or you learn. Either you win or you learn, and so when you meet with a seller, even if you don’t get the deal, what did you learn to do? Get to level three rapport, and you dig deep, and make that happen. I’m assuming at this point, you’ve gotten to level three rapport, and you’re dying. I know you want to meet with the seller, and get to the numbers, and lock up the contract, and make that big check.
Hey, who doesn’t? Right? Believe me, maybe your anxiety is through the roof and you’re wondering if the seller’s thinking that you’re a fraud, or maybe you’re wondering about the other offers they have on the table. Well, don’t worry, we’re going to solve that for you. The second step, all right, and this happens to be my favorite step.
A lot of people don’t go through this step, number one, because they don’t know how to do it properly, but number two, they are scared. They are scared of the truth, and so one of the things that I want to explain to you is that the more you face the truth to the seller, the more that you say uncomfortable things. The more that you say what the seller is thinking or get them to say what they’re thinking, the better off you will do, all right? The pain step is designed to have them eliminate every other option besides doing business with you, okay? I’m going to repeat that.
The pain step is about having the seller eliminate every other option in their mind besides doing business with you, okay? How do you do this? All right? Well, the pain step is all about eliminating procrastination and opening the seller’s eyes that you are the best option. Again, remember, we are slowing this down.
We’re slowing this down, and if any point we feel like there’s tension in the conversation, we’re going go back to the rapport step, okay? I will say to a seller, “Mr. Seller, have you thought about maybe just listing this with a real estate agent?”, and then shut up and listen, all right? Now, one of two things is going to happen. The seller may say, “Yes, I am thinking about listing with a real estate agent. A matter of fact, I’ve got three of them coming over right after you leave.”
Boom. Now, you know what you’re dealing with. Two, they may say, “Nope, I don’t want to do that.” Right? “I already went through that route. They overpromise, underdeliver.”
“I don’t want people coming through my house. I am done, done, done, done. I’m ready to do business. I just want to move on.” All right? Now you know.
Now, the reason why people don’t ask that question is that they don’t want to have the seller say, “Well, I am thinking about listing with a real estate agent.” Okay? Believe me, you’re not going to give the seller any idea that they weren’t thinking about doing behind your back anyway, so get the courage and say what they’re thinking, and find out the truth. Very, very, very important. Okay?
Next, I say, “Hey, listen, have you thought about maybe just renting the property? Have you thought about maybe putting some money into it, getting some renters, keeping the income?” At that point, they may say, “Yeah, I have thought about that,” or, “No, I’m not renting it. I don’t have the money. I’m not doing this.”
Right? “I just want to sell.” As a matter of fact, you’re here. Now, at this point, if you’re doing your job, you should sense a little bit of frustration with the seller. Slow it down, okay? Bring this pain to the top so that you now can help them.
These people are natural procrastinators, so what you have to do is have them eliminate every other option. Have them verbalize it, have them eliminates it so that now, they look at you as the solution, okay? Very, very important. By the way, it is … I forgot to mention this in the beginning of the podcast, it is absolutely imperative that you have all the decision-makers here.
All of them. I know I’m giving you a lot, but if there’s a husband and a wife on title, make sure they’re both there. If they’re partners on title, make sure they’re both there. Sellers will tell you, “I make all the decisions.” Okay, and that is so far from the truth.
It is not true, right? A husband does not sell his property without talking to his wife. A wife does not sell the property without talking to her husband. It just doesn’t happen, and so if you don’t have all the people there, you are putting yourself at a tremendous disadvantage, because even if you take a seller through this pain step, you’re going to have now the seller try to sell their partner or their wife or their spouse or whoever it is on the deal, so do whatever you can to get all people there, all right? Now, the third part is you could even use one more question like, “Hey, have you thought about maybe, actually just putting more work into this place, fixing it up, and selling it, maybe for a big profit?”
Right? Just eliminate those options. You should sense that tension, and they should start to get a little agitated. Okay. Now, let me tell you a story. I remember when I got my first job, working for medical devices, and I got a company car, and I sat in the dealership, I actually had to buy it, and I got reimbursed for it monthly, and so I went in there and I thought I was such a great negotiator, but they kept me in this dealership for three hours, and they asked me all kinds of questions.
I thought I was going to negotiate them left and right, and get the best deal. Long story short, three hours later, I was so ready to get out of there. I was ready to sign on the dotted line. I didn’t want to read the agreement. I just wanted to move forward, and they used this technique, the pain step, to really, really, really close the deal, and it worked. I walked out of there with that car, and by the end of it, I probably could have paid an extra two or $3,000.
I was just done, right? I did not want to be in a car dealership anymore, and that really is what the pain step is all about, okay? Once you feel like you’ve built the pain and you’re going back always to step one and step two, that rapport building phase and the pain phase, don’t be scared of the answers, but also keep that friend, keep this fish on the line, keep the line tight, don’t lose it. If you feel too much tension, build rapport. Now, very important, I always like to ask one question before we move on. I say, “Listen, if we don’t do business, what other options are you considering?”
That’s my favorite questions. “If we don’t do business here today, what other options are you considering?”, and then I shut up. That’ll tell me if I’m competing with anybody else or maybe if they’re going to sell to a family member, but whatever that is, ask that question. That’s a ninja trick there. All right, so now, remember move slow, build the motivation.
All right. Very, very, very, very, very important. Okay, now, now that you’ve built one and two, okay, you know that you’ve at level three rapport and the seller has grown slightly frustrated and eliminated every other option, you are ready for the what if step. Now, I learned this from one of my mentors back in 2000, 2001, Peter Conti and David Finkel. The what if step is designed to make every offer non-confrontational, and also to make every offer the seller’s idea, every single aspect.
When a lot of people come in, they just start negotiating. They’re like, “Okay. I’ll give you $150,000 for your $250,000 house,” and all of a sudden, it’s this confrontation and it dies quickly, right? I win, you lose, and the seller tightens up. I you to try something different, okay? The what if phase is all about asking the seller how they feel about a certain number, and then gauging their reaction to that. For example, this is the Wholesaling Inc Podcast, so I’m going to refer it specifically to wholesaling.
By the way, you can do this for every kind of real estate, mobile home parks, by the way, which I happen to love to buy, and hold, and manage, and turn around. You can use it for apartment buildings, you could do this if you’re doing a lease option deal or an owner finance, or you’re taking over some financing, so this all works, but I’m going to focus right on wholesaling. Let’s assume for a second that I’m going to throw out a number, okay? By the way, in the third episode, I’m really going to show you how to negotiate well, actual techniques to really, really, really grind that number down in that second and third episode, so make sure you take a look at that. By the way, if you want more free training, go to closingsellers.com in between the first, second and third episode, closingsellers.com.
Make sure you go there, register, and watch that free training in between these three episodes, but we’ll say, “Listen, what if, what if …” Okay? I’m not saying I could do this, but, “What if I could pay you $120,000 for the property? Is that even something that you consider or probably not?” Right?
Now, right there was something that I talked about. That is what we call a stealth mismatch, okay? Now I’m going to talk about this in the second episode, all right, but you noticed I just did a little pull away. Probably not. It’s cushioning it. I’m doing the opposite of what the seller thinks I’m going to do, so now, they’re going to come towards me, instead of away.
They might say, “Well, 120 is way less than we were thinking, but we were thinking more like 150 or 160,” so boom, because I cushioned it, because I made it a question and not an offer, I got the seller speaking and I got their number, all right, and so that’s how we start negotiating numbers. We use the what if step, right? If you just come in hard, it’s just confrontational and it’s like I win, you lose. It’s not a question, and so the more the seller talks, the more you win. The more the seller talks, the more you win.
Let’s go back to the next step, okay? At this point, I’m going to say, “Okay, well, what if …” Right? “I know on the phone, you said that you wanted a 90-day close, that you could have time to move out.” Right? “What if I could do a 90-day close?”
“Is that something that you’d consider, or probably not?” Even if they say that, and they say, “Is that what you want?”, boom. Now, I’m going to use that. I say, “What if …” I’m not saying I could, but, “What if I could take care of all your stuff?”
“I know you said that you wanted to leave this all here. Is that something that you want or probably not?” Right? I’m going to use that probably not. I’m going to pull away every single time so that they feel like they might even lose it, and then they’ll say, “Okay. I want to write it down.”
By the way, very important, very important to have a pad and to take notes as they’re speaking. When you take notes, it shows that you are listening and that you are a professional. It’s going to elevate. You remember those tie-breakers that I’m talking about? All right. Have a pad and write things down, all right?
Now, that’s the what if phase, all right? By using that question, you should have price, you should have closing timeline, you should have condition, and all the other terms all knocked out, all right? Even if this is your first deal and your heart is beating out of your chest, I understand, but this stuff works. This is all from the No Limits Selling system. This is actually the system that I used to teach my acquisition specialist today to lock up deals.
All right. Now, I’ve got all these things in place. All right, all these things in place, all the terms, and I think I got the deal. Don’t blow it, all right? There are two more steps here, and this is what I call the boomerang, all right?
What you want to do is you want to throw this deal away so that it sticks, all right? When you chase a dog, it runs the other way, but if you run from a dog, it’s going to chase you, right? A motivated seller is exactly the same way, all right? Now that you’ve got the terms, I’ll say, “Okay, listen, are you sure that you want to do this deal?” Right?
“Is this a good fit for you?” Right. I’ll just throw it away, right? I’ll say, “Hey, look, are you sure you don’t want to list with a real estate agent?” I’ll go back to the pain step. “Are you sure you don’t want to rent this?”
“Are you sure you don’t want to sell this to your son?”, and I’ll throw it away. Now, most people don’t want to do this because they’re scared they’re going to lose the deal, and I promise you, you cannot kill a deal like this. As a matter of fact, you’re going to seal it. Now, you want them to do is have them verbalize all the reasons why they’re going to do business with you right before they sign the agreement, all right, because they haven’t signed the agreement yet, so you want them to verbalize it, say it out loud. There’s people there, like a husband or wife, or brothers or sisters, get them talking and have them say it and convince themselves.
Remember, we are not convincing anybody. We are a buyer. They are the seller. They need the deal more than we need them, and remember that. Very important. At this point, they’re ready to go and they’ve done the boomerang, and the last part is get close.
Now, notice I didn’t say close, okay? I’m going to say my favorite question. “Okay, great. It sounds like we’ve got the framework of a deal. What would you like to see happen next?”, and then shut up.
Now, one of two things is going to happen. They’re going to say, “Hey, let’s start the paperwork,” or two, some hidden objection is going to come out. Don’t be scared of the answer, all right? If there’s an objection, now you can handle it, and that’s something that we go over in the No Limits Selling system. You can actually find more about that and get free training at closingsellers.com, or two, they’re going to say, “Let’s get the paperwork.”
Now, at this point, you should not have any paperwork in your hands. It should be in your car and say, “Well, I think I have some paperwork in my car,” and go in your car and get a contractor too, and have a pen and be ready to go. Now, the old trick, and I’ve actually changed this a little bit since I’ve been teaching this, it’s funny, technology has caught up, when you have a contract, have them both sign it, and when you’re going through, go through the first clauses word for word, right? Word for word, read it, and then as you start to accelerate through the agreement, start to paraphrase, right?
Don’t conceal anything from the seller, but just start to move faster and paraphrase as you go, and get the signatures. Now, just to build trust, this is just a little thing that you can do to break ties, is give the seller the original, and then take a picture on your smartphone via Dropbox or something else so that it’s for your records, and then explain to the seller that the title company is going to be calling them in 24 hours, all right? That’s going to lock up the deal. Now, you got the contract, make sure your title company calls them in 24 hours, and ask them what day they want to come in to sign the paperwork and how they would like their proceeds, their money, their check, or whatever else they’re going to be receiving at closing. That, my friends, is the first episode on How to Meet and Negotiate and Pre-Qualify With Motivated Sellers.
Make sure you look out for the second episode in this series on the Wholesaling Inc Podcast. If you want more training between now and then, go to closingsellers.com. Closingsellers.com, and I look forward to hearing you and speaking to you on the next episode.