I am about to share with you two secrets that 95% of the so-called real estate investing gurus will never share with you.
To be honest, this has nothing to do with you being the most creative investor or knowing the best way to bring your rehab project 30% under budget… that’s completely irrelevant, when it comes to these two secrets and your success in the world of real estate investments.
If you don’t understand and know “How”…
1) Nearby vendors, in a one-on-one situation, with you and them sitting at the kitchen table.
2) And, understand direct response marketing, which literally has sellers 110% of their complete and undivided attention, making them beg for more information about their home buying business, making you the undisputed authority to turn to. They WANT to sell their house.
If you can’t successfully achieve the above 2 statements, please understand, I don’t care what Carlton Sheets or any other “late night” course peddler tells you…
YOU WILL FAIL MISERABLY AND WASTE EVERY DOLLAR YOU INVEST IN YOUR BUSINESS!
So, for this learning lesson, I decided to share with you my most closely guarded personal secrets, to closing salesman techniques… That doesn’t work.
If you want to know what works and how to close the seller in an individual situation, CLICK HERE to see my previous article. (Rich, I don’t know if this can be done or not with article sites)
Before I share with you the main secrets, you need to remove the stigma from your head that shutting someone down is a bad or negative outcome. In fact, it’s the exact opposite, most of your prospects are walking around in a trance, waiting for a salesperson to come along and close on something for them.
I tell my students that unfortunately there will be no duplex on their driveway when they wake up tomorrow morning. In fact, I tell you a better one, if you have never closed anyone in your life, the first few times and once you learn the confidence to close someone (especially a complete stranger), it will be one of the most exhilarating. feelings in your life, to close someone for the first time.
Let’s move on…
1) Not being 100% honest and direct from the start.
Save the BS for your friends and family, when closing a vendor, this is not the time or place to blow smoke up your ass. One of the reasons I have a 95% close rate is because I put my cards on the table from the get-go, period. I’m not here to waste your (vendors’) time or mine… and I tell you exactly that.
For example, I tell sellers, in the first 5 minutes IF I can buy their house, today, I’m going to make a profit… I’m not a charity, by doing this I plant a big seed. I’m expecting a VERY big discount on your house.
I can’t tell you, how many sellers have told me, the reason we want to do business with you, even though they got much higher offers from other, weak investors, is because I was the ONLY one, who was honest and direct. and it didn’t sweeten anything. Salespeople and all of us love it when someone is honest.
2) Act “AS IF” you are Donald Trump.
I’ve been on hundreds of appointments with my students and associates, when it comes to signing the paperwork or basically closing the deal; and every time some jerk acts like a prime investor… they lose the sellers and the deal.
For example, when you’re first starting out, don’t be afraid to tell vendors that you’re new to the game. They will have more respect for you, than we are sincere with them. Remember, these sellers should have a problem (that’s why they sell your house for a deep discount to you) the last thing they want is to deal with a major investor.
I drive a new Mercedes CL 500, but when I attend a meeting at the seller’s house, I drive a 1998 Lincoln Town Car, which needs a paint job, because the last thing I want to do is intimidate the seller.
3) Point out and document all the flaws in your house, both big and small, hoping to win the price.
This strategy is a HUGE No-No! The only thing you’re going to achieve by doing this is to embarrass them and make them angry at the same time. You are probably saying to yourself, this is so common sense, have you heard that common sense is not so common? cardinal sin or mistake.
When I’m taking a tour of their house, I’m more concerned with making the sellers feel comfortable with me and building a rapport with them, then pointing out what jerks they and their family are. In fact, I usually look for ANYTHING to congratulate them on their home, which is not so easy sometimes.
Of course, I’m quietly documenting all the repairs and fixes, on my house checklist; I’m just not broadcasting it to everyone. If there’s any chance the sellers are unrealistic, this is when I would share with them the necessary repairs.
4) Don’t start with the end in mind.
Too many investors don’t do their homework, they take the “let’s see what happens, let it run its course” approach.
I don’t think there’s anything more stupid than hoping you get what you want. I personally hate waiting, that’s for Cinderella and the missionaries, not me.
Before you walk through the front door, you should know…
o The comps of similar properties or what the most recent sales are, so you know what the “Fair Market Value” is for the property.
o Is your home listed with a real estate agent?
o How many houses are available for sale in the neighborhood? Did you look at the MLS (Multiple Listing Service)
o Are there any code violations?
o Look at tax schedules; this will give you a lot of relevant information.
o Drive around the neighborhood, if you are not so familiar with its area. Are you a first time homebuyer or a war zone?
o Why do they want to sell and how motivated are the sellers?
o Do you have a deal folder and all the documentation needed to close the deal and sign it?
o And most importantly: where do you want to buy the property, price wise?
More important than that, it is the most you can afford for the property, before it is no longer a good deal for you.
or etc…
For example, let’s say the house is worth more than $150,000.00 if it was in good condition. The house needs $10,000.00 in repairs, and it will take you or whoever delivers it to you, 6 months from start to finish to sell the property. You do not want to pay more than $75,000.00 to $85,000.00 for the house.
What happens if you owe $95,000.00 on the house? Can you still make the deal? It depends, but most likely not, unless you want to be very creative…
Therefore, you need to know these answers, how much they owe, why they are selling; even before leaving your office or your home, to go to the appointment; because it may not even be a deal.
Don’t worry, you’ll probably make this mistake a few times, and then when you get tired of wasting time, you’ll toughen up and ask the necessary questions/find out the facts before you leave the comfort. from your home or office.
5) Leave the junk from the used car salesman at home…
The other day, I was with one of my tutoring students on a date, when we found out that they were trying to put us in a competitive selling situation. Basically, we are interviewing numerous investors, trying to get the best price for their house, which is understandable, you can’t blame them. Normally, I refuse to keep those dates, because I’m not going to be the highest bidder, I know that, someone else wasting their time, at that pony and dog show.
We are already at the date, so we better take advantage of it, this is where I literally fell and died of shame…
We made our offer to the sellers and were going over the courtesies, when my student asked them, “What does it take to win your business, today, and forget about all the other investors you’re meeting with….”
After I finished getting up from the kitchen floor, I was about to die…
Because it was so cheesy, he was thankful they didn’t laugh in our faces when he planted that silly line at them.
Understand, a known tactic is a wasted tactic, meaning once someone knows you’re trying to shut them down…
Done, done, remove the L for love, it’s FINISHED!
Nobody wants to be closed; they feel like a piece of meat.
Needless to say, we didn’t get the deal, but it was a great learning lesson for my protégé.
Just be yourself, be nice, and treat everyone the way you would want your mom treated if she was selling her house.
If you follow my top 5 “What Not to Do” methods, you will be successful.