Quick Start – Part 7

I want to talk about trying to discover the sellers true motivation.

the real estate investor has to figure out how the seller feels about certain issues like real estate agents, property managers, things of that nature.

When you ask a question like, 

“what were you hoping I could do for you here today?”,

Really listen to what the seller says.

The only way can do this is to get the seller to volunteer some of their problems.

I use negative phrasing and I sound a little naïve, I sound like Peter Falk in Colombo, you know that 70s show,

about that CALIF police Lieut., that dealt with all these rich people in Hollywood accused of homicide.

I love how he scratched his head, using his hands, and using phrases like

oh, by the way…

Can you explain that a little bit better for me because I don’t quite get that…

I know that probably makes you sound stupid, but it allows the sellers to be disarmed.

If you said something like,

“You know Mr. seller the good thing is that if you rent this place out you will enjoy working with your tenants collecting the rents and all that, right?”

At 1st look that might sound a little weird, but what you trying to do is to elicit a response from the seller that he hates tenants.

I made you asked them straight ahead,

“how you feel about tenants? Or 

“Do you hate tenants or what?”

That’s not going to be effective.

What is effective is…

“You know Mr. seller the good thing is that if you rent this place out you will enjoy working with your tenants collecting the rents and all that right?

So if he hates tenants, the sellers going to say something like,

“I hate dealing with tenants, it’s a big hassle, 

my friend has a rental, he hates dealing with his tenants.”

By you need to act like Peter Falk here, and exclaim,

“Oh, a big hassle? (voice rises) I didn’t realize that…

So you need to practice phrasing the kind of situations that you want them to say that they’re not interested in, but act naïve.

This try another one okay?

“So Mr. seller’s probably not a problem if you don’t sell right now, at least you can move into your new house, if it takes 6 to 9 months to sell this place at least you won’t be a problem to cover both the payments right?”

The most people at 1st look, that sounds like you’re being silly, no one wants to pay a house for 6 to 9 months vacant.

But if you get the response like this…

Seller: “no I don’t want to do that, it’s going be a real financial strain for us to make but those payments.”

Timeline – Urgency
You want to figure out the Seller’s timeline or urgency.

A good way to do this is the following:

“Mr. Seller you know I just need to have an understanding of when would you like this particular sale to happen? You want to happen in 6 months or 9 months ideally what would you like to have this property handled?”

I love that same property handled.

What you want to hear from them if they truly motivated is something like…

“God no. Not 6 months. I need to thing handled like this week or this month”

Now we have a true motivated seller and they’re going to be motivated to listen to you the Real Estate Solutions Provider, and to be agreeable to your creative offer.

Logic does not sell, emotion sells.

And remember one other thing:

We buy for emotional reasons, we rationalize and defend our purchases with logical reasons.

Think about buying a car, you don’t think about the total payments, you think about how it feels and the status you get.

So keep the motion high when you doing this 3rd step.

Next – Getting the lowest price on wholesaling deals.