Today’s episode is the last installment of a 3-part series hosted by exceptional coach and prolific wholesaler Todd Toback.
In the show, Todd shared 7 of the most effective techniques he has used to negotiate the best possible price for each deal. Why is this important? Because the better the price you can negotiate, the larger the profit you’re going to make!
If you need evidence the techniques work, remember this: they’re used by both Todd and Tom Krol and they’re two of the best (and most successful) in the industry. So basically, that’s all the proof you need!
As usual, today’s show is loaded with many gold nuggets so you better have a pen and paper handy. You’ll also need to jot down several proven techniques and tips so make sure you give today’s show your undivided attention!
MARCH CONTEST ANNOUNCEMENT!
For the entire month of March, Wholesaling Inc is running a Ratings and Review contest! We’re going to fly out 3 lucky winners to Florida, paying for airfare and hotel, to spend to full days with Tom Krol!
Whether you are trying to land your first deal or scale your existing Wholesaling business, Tom is going to help you crush your obstacles and achieve your goals!
And the lucky winners will all be featured as guests on the Wholesaling Inc Podcast!
To enter, you must Rate and Review the Wholesaling Inc Podcast on iTunes (5 stars please:) and send a screenshot of the Review to Darrin at firstname.lastname@example.org.
3 winners will be chosen at random and announced on the Podcast in April! Good luck!
- Three main points he’d like to get across
- One of the secrets of people who close massive deals
- How you can effectively exude an aura of confidence
- What the truth teller and truth seeker method is and why you should use it
- How to develop overall posture in your life and in your business
- What personal integrity is and why it’s important
- What differentiates performers from non-performers
- How to use the “give up” method and what it’s for
- What level 3 rapport is and how you can gauge if you’ve achieved it
- What the range technique is and the maximum number of times you can use it
- What an inspection sheet is and how you should use it
- Why raising the temperature of the negotiation is recommended
- How to be in control of the conversation
- Why you should send out written offers
- Why you should ask about the other offers the seller is getting
- Episode 374: How to Meet, Negotiate with, and Close Motivated Sellers (Part 1 of 3)
- Episode 379: How to Meet, Negotiate with, and Close Motivated Sellers (Part 2 of 3)
- FREE! “3 Part Video Series Reveals the Closing Secrets of a Seven Figure Wholesaler”
- Wholesaling Inc Facebook group
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Hey guys, Cody Hofhine here. Before we get going with today’s episode, I just want to make sure that we don’t forget what is going on for all of the month of March. Remember, we have our special ratings and review contest going on. And what we’re going to do is we’re going to select three people to fly out to Florida and go spend two full days with the man, the myth, the legend, Mr. Tom Krol.
And really, the only way to get doing this, to make sure that you’re part of this and that you could be one of those three that get down there where we’re going to wine and dine you, pay for your flight, take care of your accommodations and spend two full days, think of what you could do in those two full days if you had Tom Krol at your side.
Now, to qualify for this, you got to go over to iTunes and you’re going to have to give us a rating and review on this podcast. Five stars, please. And then, take a screenshot of the review and send it over to email@example.com. That’s Darrin, D-A-R-R-I-N @wholesalinginc.com. And again, we’re super excited. It’s all this month. So, don’t miss out on this opportunity where we’re going to take care of all the costs to get you out to sunny Florida and spend two full days with the head rhino himself and with each other.
And then, if that’s not enough, guys, we’re also going to feature you on the podcast. So, while you’re down there, Tom’s going to record you so that you guys are featured on this podcast. So, guys, get over there, get the ratings and reviews done, take a screenshot, simply send it over to firstname.lastname@example.org. That’s Darrin, D-A-R-R-I-N @wholesalinginc.com. Now, let’s get ready for today’s episode.
Hi, this is Todd Toback, and welcome to this special edition of the Wholesaling Inc Podcast. My name is Todd Toback, and this is the third podcast of a three-part series on how to talk, to negotiate and how to lock up deals with motivated sellers.
Now, in this specific podcast, I’m going to talk about seven ways to negotiate a lower price with your sellers. I’m going to get really granular here and talk about seven specific techniques on how to get the best price possible. Because as you know, the better the price that you can get, the larger profit that you can make.
Now, if you have not listened to the first two episodes in this series, this episode can stand alone, meaning you don’t need to listen to those first two episodes, but I highly suggest that after you’re done, listen to episode one and two of this series on talking and speaking and negotiating with motivated sellers.
Also, if you want more training on this topic, go to closingsellers.com. I’ve got a free video series there for you, again, on all about talking with motivated sellers, getting over your fears, getting in the right frame of mind, negotiating big spreads all the way from that first contact to negotiating the middle, to getting that contract signed and making sure it sticks. Okay? So that’s closingsellers.com. So, let’s hop in to the seven techniques.
Now, I remember when I first got started in locking up deals with motivated sellers, I didn’t know any of this stuff. And so, I was really nervous and I always thought the seller was going to think I was going to be a fraud or I needed some special training and… I was scared, right? And so, the more that I realized that I had to focus on my craft, the more I did. And I studied and devoured and I trained myself. I became more confident and really started to nail these things down.
Since then, I’ve locked up over a thousand wholesale deals here in the most competitive market in Southern California. I’ve trained more successful wholesalers than anyone on the planet. I’m also Tom Krol’s brother, who is the founder of the Wholesaling Inc Podcast. And so, a lot of the stuff that we talk about is stuff that I taught him when he first got started.
So, that being said, I know what I’m talking about, but I’ve also been where you have been, right? Remember, there are three main points that I really want to get across. Number one, is that locking up wholesale deals is absolutely 100% about converting deals, about sales skills, about knowing how to negotiate the best price possible and making it a win-win solution with you and a seller.
Okay. Number two, is that sales or acquisition or negotiating or persuasion or influence, whatever you want to call it, is a learned skill. It’s not a natural-born talent. And if you think it a natural-born talent, you are hurting yourself. All right? You must understand that this skill is built and crafted over days, weeks, months, years, and decades of your constant attention to this. Okay?
And three, is that you must commit to doing the work. I’d start with these podcasts. I’d also go to closingsellers.com, watch the videos and dig in. I’d love to hear your stories, by the way, if you’re listening to this on iTunes, or you want to put something on the Wholesaling Inc Facebook page. Tell us a story, a deal, or an example, or a video or whatever, but share something that you got from one of these episodes in the Wholesaling Inc group, Facebook group. I’d love to hear it and love your stories and how it helped you.
All right. So now, seven techniques to actually locking up and negotiating a better deal with the seller. Coming down to negotiating the best price possible, and by the way, I’ve locked up deals. I started out with deals 25, 30, 40, 50, and then I started to push them up, right? $100,000 deals and even deals over $200,000. Okay? Don’t think it’s possible? I’m telling you it can be done.
Now, some of this is market-specific, but whatever it is… Okay. I’ve had clients who literally double their deal size by understanding this. Okay? So, your posture, your attitude, your confidence, your aura, your swagger, whatever you want to call it, that thing about you that protrudes confidence is one of the secret weapons of people who lock up large deals.
Now, confidence comes in many different forms, right? You can be very quiet and non-boastful and non-dramatic and be very serious about your ability to get a deal done. That’s one personality, right? You could also be really friendly and say, “Hey, you know what? I’d really like to buy your house, but I have to make a profit. Do you think you and I can come to a win-win solution where you could get done and I could buy your house?” Right? That’s the person who’s got that personality. Right? So, it doesn’t matter your personality, the aura is one of confidence. So, how do you get it? And how do you keep it? How do you protrude it?
Well, number one, is that once you start practicing your skills, right? You cannot put the chicken before the egg. Once you start practicing and role-playing and using these techniques in the mirror every day before you get on the phone, you will get more confident. Practice will bring confidence. Reps will bring confidence. All right? Game-day performance will give you more confidence.
So, the more you do, the more you practice, the more you refine, the more you listen to a recorded call between you and the seller, guess what? Your confidence is going to go through the roof. All right? So, commit to it and your posture will start to change.
The other technique that I will tell you is start to use the truth teller truth seeker method. So, if you look at a seller in the eye and say, “Look, I can’t pay retail. I’m an investor. I have to be able to make a profit, and you’re going to need to exchange that for some speed and convenience, or you’re going to need to exchange equity for speed and convenience, I’d love to be able to do business. But if you can’t, that’s okay. We can remain friends. I have three names of agents I could give you, and they’re probably better off working with you.” Right? Be a truth teller, truth seeker. And don’t be scared of the answer.
So, that’s one way to develop posture inside your business. But let me talk about how to develop posture overall in your life, so that will translate. Confidence comes from keeping small promises to yourself. If you tell yourself you are going to work out five times this week, and you do that all five times, we have what you call personal integrity. If you tell yourself that you are going to make 20 calls every day this week or three days a week, and you do that, that is what we call personal integrity.
If you make small promises to your kids and you keep those promises, that is what we call personal integrity. And so, you start to become a superstar in your eyes. You keep promises. You do hard stuff. You do the work when you don’t feel like it. And guess what? When you do that, you get the swagger. The swagger. And so, I can tell you that one of the differences between performers and non-performers in confidence in themselves. If you don’t have it, that’s okay. Get it by keeping small commitments to yourself and practice every single day.
Number two, keep getting really specific in how to negotiate larger spreads, is price condition. Now, I talked about this in the second episode, but you always want to communicate that you are willing to do business, but you have to make a profit. Okay?
Now, there’s a little technique that I will talk about here, and that is when you meet with a seller. What you want to do is use this constantly throughout the process. And you say, “Hey, look, I may come out there. I may not be the highest. Okay? But what I will be, is the most forthright. Okay? If I can do the deal, I will tell you. If I can’t do the deal, I will also tell you.” Right? Let them know the low numbers of sales in the area. Let them know the high numbers. Tell them that you’re probably going to be on the low-end.
Hey, now, I’m going to give you a little trick here. Sometimes you will meet with a motivated seller and you will do the price condition. And for whatever reason, something doesn’t work out. Okay? This is the second one. This is kind of a third one but I will keep this in the second category. You want to use something called a give up.
Initially, when you go low, even if you price-condition a seller, they will say no to your offer. So, what you want to do is now back off, give up on the deal. Go back to our rapport building phase that I talked about in episode one. Get back to level one, level two, and make sure you are deep in level three rapport. Level three rapport is not only did they talk about something, not only did they teach you something, but they gave you something. And stay there and hang out and make a friend.
And once you’re there for a few hours and you’ve already done the presentation, they’ve already said no, and you’ve already given up and you’ve already taken all the pressure off and everyone has their swords down, and everyone’s best friends and all you’re talking about is tomatoes or records or cars or friends or vacations, you’re about to walk out the door. And the one thing that you’ve got to do is say, “Hey, I’m just curious. I know we didn’t come to terms today, but what would have gotten the deal done? What would have gotten the deal done? What was the holdup?”
Boom! Now you may get your answer. You may be able to solve an objection. Maybe you could up on price a little bit, and boom! Maybe it’s just a thousand dollars. Lock up the contract and you’ve got it. Okay. The give up. Don’t forget it.
All right. Number three. The range technique. The range technique is when people are negotiating, oftentimes they just go in for the kill. They’re going to make a… If we’re going to buy a $200,000 house for a hundred, they just say, “I’ll give you a hundred.” So, one of the things that I’ll do, what I’ll teach you to do, is say, “Look, what if I could pay somewhere between 80,000 and $100,000?” Notice how I did a range there.
They could say, “No, no, no, no. I would never consider, never consider 80,000.” “Okay. Would you consider 90,000 to 95,000?” Right? They say, “Well, I wouldn’t take less than 95.” “Okay. So, 90 to 94?” Right? Keep pushing and pushing and pushing.
Now, if the range techniques works, you want to try it a maximum of two times. And if it works, do it again. Okay? If it doesn’t work after the second time, don’t do it a third. So, I’m going to repeat that. If the range techniques works once, keep doing it, right? If it doesn’t work after a second time, stop it. Use the range technique. It’s a very non-threatening way to say, “Hey, let’s meet in the middle.” Right? Or, “Can you come down a little bit?” Or, “I’d really like to be here.” Use the range techniques. Get the seller talking. And what the range does is that it pushes them down.
Four, use an inspection sheet. Okay. This is also part… It can fit into price conditioning. Okay? But what you want to do is you want to have a sheet that’s got a picture of a house on it; roof, windows, doors, garage, yard, all that. Right? And list everything about the house. Now, you could get one of these online. A lot of inspectors use them. Okay?
And what I like to do is I like to have the seller take me around and show me around the property once you’ve actually gone through the rapport building process, right? Now, you can actually do the rapport building process while you’re going through the inspection sheet, but you got to be careful. If you sense any anxiety from the seller, break off from that, and then go back and do the inspection sheet.
Now, very important, do not say a word to the seller while you’re going through the house and they’re showing it to you, right? If you see a crack in the floor, here’s what I want you to do, I want you to take your hand and I want you to place it on the crack. And I want you just to rub it and touch it and look at it and make a weird face and scrunch up your nose and go [inaudible 00:00:14:09].
And don’t say a word and take a note on your inspection sheet. If you see a little mold in the window, do the same thing. Look at it, make a sound, make a funny face, write it on your inspection sheet. Do not ask the seller about it. Do not argue with them about it. Do not tell the seller you are going to fix it.
Very important, many wholesalers out there go out there and put on this facade like they are going to fix and flip the property. This is not necessary, right? And once you do that, you can get a position where you are lying, and that’s going to put you in a weaker position. And now you’re going to have to make up for a lie that you told later down the road. Okay?
So, if you don’t want to have to cover up a lie, just tell the truth, which I always recommend. Or if you don’t want to tell truth, then don’t talk about it at all. Okay? Period. Right? Go around, do that for the entire property. This will raise the temperature. Okay? Raise the temperature of the negotiation. The seller’s anxiety will start to go up. This will start to help you in the paying step. And without you having to reset expectations about price, the seller’s expectation starts to go down. Okay?
We did this on a recent property. The house had foundation problems and the seller literally didn’t tell us about it. And then, she had dimmed the lights so that we wouldn’t see the roof ripping from the wall. Right? And obviously, we went in there, and Brian, our acquisition manager, looked up and just made some faces and wrote it down. And all of a sudden, boom! The seller started making noise and just talking and reset her expectations on price. And he looked at it again and looked at it again and looked at it again and guess what? The seller came down on price. Okay? The less talking you do, the more money you will make. Let the seller talk and have them negotiate with themselves.
Okay. Now, technique number five. Okay? This is a question. During any negotiation, if you feel like you are at a standstill and you can’t get to where you want to go in price, or you want to find out that this is the floor of the seller’s price, you say, “Are you telling me that if I can’t pay __, that we can’t do business?” Okay. I learned that from Ron LeGrand, right? Are you telling me that if I can’t pay $150,000, that we can’t do business?
And now, shut up and don’t say a word and see what they say. They may tell you that’s right or they may say, “Well, no, I’d have to be at XYZ.” Right? Always respond with a question. Take control of the conversation. I talk a lot about that in the videos that I told you. I’m giving free video training. Go to closingsellers.com, register for that video training. I go into detail in that video.
Six, send out a written offer on every single person that you talk to who has an interest in selling. Now, out of all the sales techniques that I’m talking to you about, right? Through podcast one, podcast two and podcast three, and if you do everything right, there are just some sellers where the timing was not right, or they would not reveal their information no matter what you did, because there’s nothing that you can do.
However, if you send out an offer, a written offer, to every single person that you speak to who has an interest in selling, regardless of the gap in price, I’m going to repeat that, regardless of the gap in price, you are going to lock up a couple of monsters. Okay? Now, a lot of people say, “I am not going to send out an offer. We’re so far on price.” Well, duh! Right? Of course, you weren’t going to send out an offer, right? Or else you would have gone out there. You send your offer to people who you think that you can’t do business with, but you’re too far on price. Let the written piece of paper do the selling for you.
All right. We recently did a deal in which this person said no to us for two years. And I noticed that we did not send a written offer, right? I said, “Send a written offer.” Boom! We got a call back. The guy said he’d do the deal. We made 50 grand on the house. Okay? I can tell you, sometimes people are strange. Right? And everything that you do is out of your control, so use this as a backup. Okay? It’s not a sales technique, right? It’s a way for you to make more money a habit. Okay.
Now, I like to ask one more question here. All right? And this will enable you to understand and gauge where you’re at in the negotiation. Now, most people don’t do this because there’s fear involved. But if you learn how to ask the tough questions and not be scared of the answer, you will make a ton of money. My question is, and I implore you to ask this question, is, “What other offers have you received on the property?”
Now, they’re going to say one of two things. Number one, they’re going to say, “Well, I’ve received XYZ.” Or two, “You’re the only person I’m talking to.” And this is good. Most people don’t want to hear, “I’m talking to XYZ.” But they’re there. And so, if they’re higher, or they’re better or they’re doing something that you’re not, you want to find out about that. So, dig into those offers.
Say, “What did you like about those offers? What didn’t you like in those offers? How do you feel about doing business with me versus them? Hey, listen, if you want to go with them, that’s great. But what is going to separate us? What’s going to be the thing that’s going to seal the deal, that’s going to enable us to do business today.”
And if you ask the right questions and you’re not scared of the answer, you’re going to spend time with the right people and you’re going to be able to overcome objections. Okay? So, that’s the seven. I know there were a couple of bonus. If you want more detailed training on this, go to closingsellers.com.
I want to implore you, wholesaling is about three things. It’s about generating leads. It’s about converting those leads, and three, exiting the property for maximum profit. Okay? Don’t over-complicate this business. The great part about that second part, the great part about converting is that it is not a natural-born skill. You can learn it. Okay?
And three, if you decide that you can become a master of your craft, you will drastically increase your income, your freedom, your net worth, and your enjoyment of this business. So, thank you very much for having me. Talk to you soon.