Imagine working on a potentially lucrative deal, and the seller becomes uncooperative all of a sudden. It can be very frustrating, to say the least. However, it is also reassuring to know there is a way you can save massive deals before they collapse.
In this episode, listen in as no less than Mr. TTP himself, Brent Daniels, gave valuable insight and guidance on how to snag a juicy deal when you are competing with countless others.
If you need a masterclass on what to do when a massive deal goes south, this episode is for you!
Live Coaching Call – How to Save a Massive Deal Before it Collapses
Matt, let’s go. You’ve got a seller that’s ghosting you or have they reached out to you?
I guess the 30-second version is the brother in the hospital in Hawaii. I’ve been negotiating with him for months now. He was trying to get it settled to where he could sell the dad’s house to the brother who lives here locally. He’s a deadbeat who’s let it go into pre-foreclosure. I’ve been working on this since August 2021 and then the dude in Hawaii got COVID-19. I reached out to them and told them I’d increased my offer.
The brother calls me and says, “That’s what the other person said they’d offer. They’re coming. Do you want to come?” I’m like, “No, I don’t want to come. If I give you $2,500 more, can we move forward with a contract?” “Send it to my brother and me. Here’s our email.” I send it to them and then follow up with them, texts, calls and nothing. The deadbeat brother here locally sounds like he’s meeting with a local wholesaler who I think is one of the typical sharks, saying anything and getting things done. It’s a bummer.
Who owns the property?
The brother in Hawaii got legal work done, which is why it was taking so long to where he could sell it. There are three brothers, two of them have to sign off on it and that took a while to make it happen.
What’s the address? I’m going to pull it up on PropStream.
It’s a bummer. We had agreed that I was going to get it for $110,000. I was looking at a nice little deal.
What did you end with?
I told them $117,500. It’s still going to be a great deal. I’d rather him tell me to piss off. I’d rather get that than this gut-punch of being in this close.
It looks like the property is owned in that trust. Let me see when it went into that trust because it’s been in there for a while. Is the father deceased?
Anytime that you can get in front of clients, get in front of them.
The father is dead. The deadbeat brother has been renting it here locally. It’s the guy who doesn’t even replace the air condition or furnace.
His estimated mortgage payment is $451,000 and he’s not paying it. There’s some distress here and they need to sell this thing.
The time kills all deals. I was trying to stay in the face of the Hawaiian responsible brother but not pissing him off and it’s been so slow.
That’s why I think that the door’s still open because if somebody local is meeting with the other brother. He could promise everything that he wants but until the real decision-maker comes around. I think that you need to focus your efforts on staying in front of the brother in Hawaii. You need to buddy up. Don’t go crazy, but over-communicate with him. Does he live in Hawaii or is he’s on vacation?
He lives in Hawaii. I sent him a message at 2:00, which is 8:00 their time, “I know we’ve been talking for a long time. We agreed on this price in the past. Me and Steve agreed on a price. I’d love to buy it. I’ll help the current tenant move out and help with his moving cost.” I tried to hit on his heartstrings and he said, “I’ll reach out to my brother and get back with you.” I guess it’s not done.
Stay in front of him and talk to him. I guarantee you that if there’s a responsible brother, he’s worried that he needs to take care of the brother that’s living there now. I think, reassuring them, “I’m going to help the transition to help him get out and to do these things. I don’t know if the other people will, but I can help out with that situation. I can make sure that this goes as smoothly as possible for you. You’re all the way across the world. You’re across a whole ocean. You don’t need to be dealing with this. What will it take for us to work together?” That’s the question I want you to ask?
I thought it was money.
Whenever you send them an offer, they’re going to leverage that. They’re going to leverage it with somebody else, especially if somebody in there that’s not paying $451,000. Anything more is going to mean a whole lot to him. He’s not going to hold his cards to the chest. He’s going to talk about it.
I should’ve said, “I can meet you XYZ fifteen minutes.” Would that have been the better play?
I love now meeting face-to-face because inventory and interest rates are low. The housing market is booming. New construction is down a little bit because the construction costs are much higher because we can’t get stuff out of China. There are a lot of things that factor to it. Anytime that you can get in front of them, get in front of them. I don’t know. I’m still confused on who has to sign the contract?
The 2 out of 3 brothers, the Hawaiian brother, has to sign and the local brother has to sign. They have a brother who’s estranged and they’ve had to get some legal paperwork saying that the 2 of the 3 can move forward.
This is what I would do. If you’re comfortable with this, are you familiar with an escalation clause?
I’ve heard of the idea.
Listen, brother that lives here. I’ll give you $500 more than anybody else. Let me know. It’s got to be in written contract, but I’ll beat any contract by $500 or $1,000, whatever you think. It puts you in the position where you’re still in the conversation and if it’s about the money for them, they’re going to communicate with you.
It would be a good one last time to pull out.
Text him. Say, “If you do receive another offer, I’m willing to put an escalation clause into my contract. That gives you $1,000 more than a written offer that you get from anybody else.” At least that might get them to pop his head out a little bit and communicate with you. Open up that conversation so that you can start seeing if what the other offers are, if the other buyers are serious, if they rubbed him the wrong way or if they’re in love with these new buyers. It’s not an unknown in your mind.
When you do that, do you demand or request to see the other person’s written offer or do you have to go off what the seller said?
If he puts something that’s crazy, some bananas price. All of a sudden, he goes, ”This guy offered me $220,000.” Something be like, “I’d love to see that written.” You could set a cap to it if you want, but I would leave it open-ended for now. “I’ll give you $1,000 over and we’ll make sure that my offer is the absolute best for you because I know if you work with me, I’m going to make this as smooth as possible for you.”
I appreciate it.
You’ve got it, Matt. Text me and let me know how it goes. Let me know when you get in contact with him again.
An escalation gives you a thousand dollars more than a written offer that you get from anybody else.
All right. I appreciate it.
Now you see that the escalation clause, it is so effective and it’s still effective at opening up the conversation again because all of a sudden, if it comes down to money and you can’t build the rapport with that motivated seller, it gives you the little chance to be able to have that conversation, to have them reach out and let you know what the other offer is. If you beat them out by $500 or $1,000, you can get that deal. That could be the difference between making $5,000, $10,000, $15,000 or $20,000 on this specific deal because I pulled it up through PropStream.
I know that this is a big, juicy and fat deal. This is going to be a fantastic deal for him if he can lock it up. He has to open up the conversation. Use this in your business. Use this if you are running into a situation where you are trying to get your offer accepted and the seller is being completely silent. You’ve got this. I know you do. You’re the best. I love you.
For anybody interested in joining the most proactive group in real estate investing, it is the TTP family. Go to WholesalingInc.com/TTP. Check it out and scroll down. If it feels good in your gut, sign up for a call. It’ll either be with me or my right-hand guy and I look forward to that. Thank you guys again for reading. I encourage you always to talk to people.
About Brent Daniels
Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…
Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!
Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…
A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!