OK…Let’s see what you’ve done so far.
You sent out your marketing, hopefully on auto-pilot, but either way, the sellers called you, to solve their problem.
You spoke to the sellers over the phone. You built repoir with the decision makers (the Sellers), over the phone, by showing them empathy to their situation. I’m also assuming that you gathered all the necessary info, which you need to verify if you want to move forward with the next step, seeing the home and meeting the sellers.
Here’s where it gets good!
Moving forward, this article will greatly increase your chances (at what I personally like to call) in getting ink or closing the deal (meaning the sellers sign on the bottom line).
I always tell investors, you can be the most creative, have the best financing or be the best in your county for painting the interior of your home…
But, IF YOU CANNOT get the sellers to sign on the bottom line of your contract…
Nothing Else Matters.
That’s what this article will be focusing on, for you to take away from it.
1. All decision makers must or should be present, when you have your in-home meeting. If they both aren’t present at this time, then you’re giving a “1 Legged Pitch”…Good Luck! Of course, sometimes, there are genuine reasons you can’t meet with all the decision makers, and then it’s up to you if you want to move forward, or pass. Normally, I will not attend the meeting, IF all parties are not present. Word to the wise, you must ask them, upfront, if all parties will be present At the meeting, otherwise, they’ll purposely only have 1 decision maker there, and then it’s very easy to give you a stall tactic, on why they can’t sign…They need to talk it over with their partner.
2. You need to take a quick 5 to 10 minute tour of the home. You’re looking for both good and bad characteristics of their home. One of the biggest mistakes I see most investors make, is they start to beat up the sellers about the home, thinking they’ll get a better price, because they pointed out every little blemish in their home. You do not want to embarrass them, that’s the worst reaction you can get. Obviously, your making notes of all the bad stuff and needed repairs, and their could possibly be a time when you need to bring these into the conversation, but not unless the sellers are unrealistic about the needed repairs to their home. Also, if you can find any reason to give the sellers a genuine compliment about something, this would be a great time, during your initial tour of their home.
3. Third, they must LIKE YOU, period. Sounds basic, I know, but,”How do you get someone to like you?” In fact, it’s very easy, you need to get them to talk about themselves, which in turn means, you are the one asking questions, of them. Not as an interviewer from the police station, more as a concerned family member, looking to help them out of their situation, and you need this info, to help them. Normally, if you’re asking the right questions and they like you, they won’t shut up…which is what you want.
4. Fourth, they must TRUST YOU. I’ll promise you, if they don’t trust you, good night-it’s over, you’re done, stick a fork in ya, because it is not going to happen. You’d have a better chance scoring front row tickets to a Madonna Concert, then having the sellers ready to sign a contract with you. The easiest way to create trust is by not sugar coating everything you say to them, be honest and upfront. A lot of investors have a problem with this; tell them right upfront, that if you buy their home, you are going to make a profit…period. Your not there for your good looks, your there to create a Win-Win scenario. It also helps, to be a REAL PERSON, by that I mean, don’t be afraid to make fun of yourself, self-deprecating on yourself, always works great.
5. You’re a professional, be Prepared. Usually, I will bring with me a deal folder, which has all of my necessary paperwork (contracts, letter of authorization, deeds, land trusts, etc.). Also, I print out my computer research on their home, the comps and county information retrieved online. I also have a book of testimonials from my past sellers, as well a picture book with the last 50 houses, my team and I have completed. Now, if you’re a newer investor and don’t have 50 properties, you can always put together 5 character references from friends, work, family members, etc. and put it into a nice binder.
6. Be a consultant; tell them their options, EVEN if you don’t get the business. This is very important, be willing to tell the sellers, (if you know it in your heart) that YOU are not the best option for them, and they’d be better off going a different route. Here’s the catch, the alternative, would be for you to lie to the sellers, and unless their retarded, they’ll know your lying to them anyway, and now you’ve lost all your credibility. The funny part, they’ll probably still want you to buy their home, even though they can get more money using another option, because you were the ONLY one who was honest with them…people love honesty.
7. Assume the Sale and Close the Deal, BUT DO NOT be a used-car-salesman. Assuming, everything is going great; they like you, they don’t pass out from your low offer, and their asking you all types of buying questions (I.E. How soon can we close, and who pays closing costs, etc.), it’s now time to pull out your contract (never call it a contract, call it an agreement) and CLOSE THE DEAL. The best way, is simply, by asking, “If I can pay $XX, and I can close on this date, what your telling me is we’re ready to move forward, Correct?” And then SHUT UP and let them answer you.
8. BONUS: What happens, after you close for their signatures, and they don’t sign? No problem, we just need to take a few steps back, because we’re missing something. Most of the time, you’ve passed over 1 of their Hot Buttons (something that’s very important to them) and didn’t address it. The best way, is to flat-out ask them, what’s holding them back, from moving forward, right now. Listen to them, trust your intuition, does their reason sound genuine? A lot of people (including myself) just want one night to sleep on it, because they don’t want to make a rash, quick decision. If your still confused, let them know, you have a lot of opportunities on your plate, right now, and your offer is only valid or open for 1 week, from your meeting, after your deadline expires, your offer is off the table. I also like to ask them (the sellers) that if their going to be meeting with numerous investors to solicit bids, to let me try to beat the best offer, by giving me the last shot. Usually the sellers will have no problem agreeing with my request.
In conclusion, using these principles I’ve given above, will absolutely make you much more money, because you’ll know be able to close sellers on demand.
Remember, closing the deal is not a bad thing, only people or investors whom are afraid to ask for the business, hate closing. And more importantly, knowing how to close business (especially sellers) is one of the most critical attributes you need to have to be a millionaire entrepreneur.