How to Wholesale Real Estate – Working with Motivated Sellers
Working with sellers is going to be a very important part of learning how to wholesale real estate.
As a real estate investor you are going to be engaging homeowners in conversations. How you conduct yourself and navigate these situations will play a big part in the success of your business.
Where to find Real Estate Deals?
You are going to have to employ some marketing to get your phone to ring.
If you are looking to become a real estate wholesaler do not focus on MLS deals. There is a very little chance of finding a deal from the MLS that will have enough room for a profit margin. There are several reasons why I do not recommend wholesaling a listed property but that is for another article. That is not to say it is possible, just not very likely, so I am telling you this so that you focus on strategies that have a better likelihood of success.
There are lots of ways how to market for real estate deals, but for this article lets assume you have done that properly and you are getting your phone to ring.
Your Elevator Speech
Definition: An elevator speech or elevator pitch is a quick summary used to define yourself and your business to a prospect outlining the value or service you can provide.
Before I give you an outline of a sample conversation with a seller, it is important that you are genuine and not robotic. We have a script that we follow, which you should also, that will get your main points across and obtain the right information from the seller.
You do not want to sound automated, like a telemarketer going through a script, this will bring up their defense and it’s a turnoff. Try to talk to them like you would a friend you have not heard from in a long time. Be upbeat and sound sincere.
Below is a sample script of a conversation, use it and adapt it for your business.
US: Hello, this is Joe. How may I help you?
Seller: Yes, I received a (whatever type of marketing piece) in my mail asking about selling my house. Can you tell me how that works? Or What does your company do? Both of these are very common first questions you will hear.
US: Certainly, I didn’t catch your name?
US: Sure Jim, as I said my name is Joe Barletta, our company is Sell Fast Home Buyers and we help homeowners with a variety of different programs. We are a residential redevelopment company located here in New Haven. Been in the business over 12 years.
From here highlight some benefits of working with you
- We can purchase your house in as little as 7-10 days or on your timeline whatever that may be
- We are all cash buyers, no banks or appraisers involved
- We work with an extensive group of private investors that purchase multiple properties each month right in your area
- We do not charge any commissions or fees, like a real estate agency
- We buy houses AS-IS, no contingencies, no inspections
- You don’t need to worry about people coming through your house for inconvenient showings
- We can pay all your closing costs and can help you relocate
- We handle all the paperwork to make the whole process, seamless and hassle free for you
Depending on your needs or goals we can provide a variety of solutions. So tell me Jim do you have a house that you were thinking about selling?
Next you need to ask start getting some general information about the property. Let the seller talk and gauge their level motivation. Listen for trigger phrases, like I need to sell my house fast, or we are moving and can no longer afford payments on another home, going through a divorce, the house needs a lot of work and we cant afford the repairs, there are lots of signals that will show motivation and not all sellers will be forthcoming.
Your job is to nudge that information out using the Top 6 Questions to Uncover Seller Motivation.
A lot of callers will be very guarded and uncooperative. Most of the leads you will get will not be a fit for your wholesale real estate business. However, if all things look good at first glance ….casually suggest to the seller that the property looks like it could be something you would be interested in and schedule an appointment.
Tip: Do not leave this appointment up to them, give them 2 options.
Jim, I am going to be on a few appointments tomorrow in the area and would like to check out the property, Would 1pm or 5pm be a better time to meet up?
Meeting a seller face to face, now gives you an opportunity to build rapport.
Sit down with the seller and have them tell you about what they need. You job is to listen, acknowledge their situation, and provide your best solution to their problems.
Someone who is going through a hardship like a pending foreclosure and needs to short-sale a house or dealing with bankruptcy, divorce, probate, medical issues will likely have a lot of stress. Let them talk and just listen. When they are finished, provide value to them and let them know how you can help.
Example: “Jim, I completely understand you are going through a lot of stress with your divorce and a pending foreclosure on this property. The good news is we can give you a couple different solutions for your real estate problems…..and tell them how. Why don’t you show me around a little more so I can see the rest of the house.”
Before you make an actual offer on the house, spend some time walking through the house.
This is your time to find some common ground, build more rapport and solidify the relationship. Take a look at the pictures, ask about family, note what their hobbies are, sports, hunting, fishing, cars etc and take interest in them.
This goes a long way and the more they like you the better chance you have. Now when it comes time to making an offer, its no longer just about numbers, price and a cold business transaction.You then have a connection with the seller, they want to work with you.
I have put together many deals that my offer was significantly lower than my competitors offer. The seller will come right out and tell you, we have had higher offers but we feel more comfortable working you!
That is the music we want to hear!!!! Its not about the numbers anymore because we have made the connection building rapport and showing the value we can provide. NOW you must come through on your end of the bargain…DONT MESS THAT UP ;-)
Wholesaling Real Estate is a people business.
Know what to say and how to provide value to your prospects and you will stand apart from the competition getting you a higher success rate closing more deals and making money flipping houses.
If you are looking for more information in regards to working with sellers and wholesaling real estate, enter your email for all the latest training, videos and blog from JoeBarletta.com
To Your Success, JB