Posted by Barry (FL) on April 11, 2004 at 20:13:51:
Motivated sellers are like the Sasquatch (sp?),
You just can’t believe they exist, until you look one in the eyes!!!
What Do You Say (long) - Posted by Bryan (NC)
Posted by Bryan (NC) on April 10, 2004 at 01:54:43:
So here I am at 2am looking ahead to a long night working at the hotel. I got stuck covering for our night auditor while she’s on vacation. Anyway, I stopped at B&N on the way to work and picked up Conti and Finkel’s book, “Making Big Money Investing in Real Estate”. I bought it just for something to pass the time - if I got anything from the book that would be a bonus. Well I actually did get something from it.
See, I’ve been lurking and occasionally posting here for about 3 or 4 years. A few times, I tested/tried out an ad or mailer or phone call here or there. I talked to a few sellers, only one seemed motivated, but I couldn’t possibly have figured out at that time (years ago) how to handle the 12 units that guy was trying to unload.
I’m not worried about finding motivated sellers though. That will come with marketing, in which I’m confident about my abilities. I’m also not worried about the technicalities of putting together a deal. I’ve pretty much nailed home all the different ways to stucture and fund a deal that are discussed here.
What I realized (finally after 4 years) from browsing C and F’s book is that I really and truely have no idea what to say to potentially motivated sellers, and even less idea about what to say to those I find to be motivated. It really frustrates me that I can’t translate the techno babble into something friendly and persuasive.
I’ve never had the example of someone doing a deal in front of me. C and F’s book has some great examples of conversations/negotiations which have shed some light on this for me. I’m going to practice saying the things they advocate saying until I fell like they’re my words. I’m also going to try to pick up some stuff from a sales or negotiating book. But that won’t be quite enough for me. For one thing, C and F’s book seems geared toward L/O’s and subto’s and I still have to break my cherry on a flip or two. For another, the examples they give, while valuable, aren’t nearly sufficient for getting myself through an entire deal with a seller.
So I have a request of this great community. I’m asking anyone who has been all the way through a deal, one or one thousand, What did you say? What did they say? If you have the time, could you type out your conversations with a seller? Either on the phone screening them, or at their kitchen table negotiating the deal. A transcript, even if it’s paraphrased some or only a small bit of the conversation, would be an incredible help to me and to many others struggling to work their way through that first deal. I know I’m asking a lot here but I’ve seen how incredibly helpful everyone here can be! Thank you all so much!
It’s what THEY say! - Posted by DaveD (WI)
Posted by DaveD (WI) on April 12, 2004 at 11:05:59:
You are procrastinating, Bryan, and you know it 
C & F are mega script-users. They have a script for everything. It evidently works for them. I’m not a big believer in scripts. Then again, they have bought more houses than me. It’s about whatever works for you, Bryan. Don’t get hung up on your words, focus on their needs. It’s your sincerity that will win the day, not your glib advice.
I believe what comes out of my mouth is almost irrelevant. We recently bought a house with good price and great seller financing terms. What did we talk about? His family, and one of his nephews I knew over 30 years ago when we were kids… After a half hour of that, my script was something like… “Well, whatdaya want to do here?” And we went from there. No, you won’t find that in anyones book, but OK, you just now saw it in print. Go for it.
Yeah, I’m picking on you a bit, but you gotta be smoking something if you think anyone will script out your next deal, not knowing anything about your future deal. You are asking for the equivilent of dancing by stepping on those painted footprints on the floor. More to than that, I’m afriad, but it isn’t as hard as you are making it out to be. Hope this helps. Remember… “Well, whatdaya want to do here?”
Re: What Do You Say (long) - Posted by Barry (FL)
Posted by Barry (FL) on April 10, 2004 at 12:14:15:
Every conversation with every seller is different. You’re wasting your time and making excuses at this point. Sorry to be so blunt, but that’s the way I see it.
The only thing you seem to be lacking is confidence.
The only way to acquire the confidence you need is to get out in front of people and start talking to them. Whether it be sending direct mail and having them call you (my favorite), knocking on doors, or calling them on the phone.
What is it that you are afraid of? You might make a mistake? You might say the wrong thing?
I can gaurantee you one thing right now, YOU WILL!!!
So What! It is the only way to gain the experience you need. Obviously you are in the hospitality business and are used to dealing with the public. I bet you’ve had to deal with your fair share of jerks in that time also.
Basically what you need to realize is that these people need specialized knoweledge to solve their propblems. You have that knowledge. Get out there and talk to people, you will make mistakes… learn from them. After you have spoken with someone, sit back and analyze what happened, what was said, how you responded and how you can improve. This is the only way that you will gain the experience and confidence that you need to be successful.
The first time I meet with a seller, the only thing I bring with me is an authorization to release information. I do mostly forclosures and that info usually takes the longest to get out of the lender. My only goal at that meeting is to instill their confidence in me. I never promise them anything until I can check out all the details first. When I leave, I want them to know that I am the only guy that they should be dealing with. That I’m not out to screw them and that I will get it done if at all possible.
If you can do that, get the details come here and ask for opinions on the best way to strucure the deal.
As far as I am concerned, the most important parts of this business are:
-
Marketing, without a constant stream of motivated sellers you’ll be dead in the water. When I first started I would market until I got a deal, work on that deal only until it was done then start marketing again, Big mistake. Never, ever, ever stop marketing. Keep the pipe full at all times with deal in different states of completion. That is how you move into this on a fulltime basis.
-
As Joe Kaiser says, “It’s not about the house”.
This is a people business plain and simple and your credibility is the most important asset that you have.
Never promise anything you can’t deliver! Learn as much as you can about their situation, become their friend and solve their problem. If you can do that, you will be incredibly successful and sleep very well at night. -
Negotiation: This again will come with experience and looking back at what could I have done different.
You must stucture your deals so that they are win/win for everyone involved.
Now get out there and start talking to people and solving their problems.
Hope This Helps,
Barry (FL)
Good Post Barry - Posted by phil fernandez
Posted by phil fernandez on April 11, 2004 at 17:55:17:
AndI did get your beer at the Convention.
Re: What Do You Say (long) - Posted by Bryan (NC)
Posted by Bryan (NC) on April 10, 2004 at 18:13:19:
Thank you for the advice. Am I scared of talking to sellers? You bet I am! But I’ve overcome that fear a few times previously and will step up to the plate again - once I have something new to present. There’s this saying that the definition of insanity is doing the same thing again and agian while expecting different results to just happen. That’s the point I’m at. I’ve exahsted my verbal creativity trying to present my ideas to sellers and/or friends and I haven’t come to the point of convincing anyone that these ideas are good ideas or good solutions to problems. I understand them myself very well. But I can’t seem to translate that understanding into a convincing argument. This is, for example, much the same as having a natural understanding of logarithms but being unable to get someone else to understand them. I will eventually stumble across something that works for me on my own. But it would speed up the learning curve so much if anyone would share an example of one of their conversations with the board.
Re: Good Post Barry - Posted by Barry (FL)
Posted by Barry (FL) on April 11, 2004 at 20:11:00:
Hey Phil,
Sorry I missed you. I’ve definately got it blocked off for next year. Joe K is having a bootcamp in Santa Barbara this month that I thought was a not to be missed. Blew my seminar budget for the year though!!!
I’m glad Brannon caught up with you. He’s a first class guy.
You didn’t happen to see if he bought JT a round did you? I think JT’s trying to scam me here as Brannon says he did and JT says he didn’t.
I’m catching up with JT down here on Tuesday. I need someone I can flip these big ticket items to! I’m just trying to make sure he doesn’t take advantage of me. LOL
Take Care,
Barry (FL)
Re: What Do You Say (long) - Posted by Barry (FL)
Posted by Barry (FL) on April 10, 2004 at 19:16:48:
I’ve always found it best to use the K.I.S.S principle (keep it simple stupid)! If you are out there using investor terms, laymen will look at you as if you have 3 heads. i found I really don’t have to explain alot. The things I do I keep as simple as possible so that most anyone will be able to understand.
I had a math teacher like that once. A brilliant man, but couldn’t convey his knowledge very well at all.
Just keep it simple.
Hope This Helps,
Barry (FL)
Re: What Do You Say (long) - Posted by Bryan (NC)
Posted by Bryan (NC) on April 10, 2004 at 19:37:12:
Yeah, I’ve taken that tack when I’m practicing on friends, but the common reaction still seems to be “that doesn’t make sense, why would someone do that”. I really need to see what others are saying to figure out what it is that I’m missing. I’m not looking for a script to use in this situation or that situation, just for an example of a successful negotiation. Something I can adapt to the circumstances I run into. Unfortunately, I think I’ll have to see certain words and terms used in the context of an actual conversation before I get it. So, Barry, can you help me out?
Re: What Do You Say (long) - Posted by Barry (FL)
Posted by Barry (FL) on April 10, 2004 at 21:19:18:
Of course it doesn’t make sense to them, why would it unless they were in danger of losing everything!
Put yourself in their situation:
In a short amount of time, I’m going to lose my home to foreclosure, I have nothing, I don’t even know where I am going to go.
You show up: Mr. seller would it help If I could give you some money to move into an apartment?
Now does it make sense?
Let’s try again.
Let’s pretend that I have been transfered for my job. My house has been on the market for 6 months with no takers. I have to go now! My mortgage payment is $800.00 per month. I have to move, get a new place in a new town. I can’t afford rent and the mortgage payment for that empty house that the Real Estate agent can’t sell because he overpriced it or it needs work or whatever.
Mr. Seller, would it help if I was able to take over that $800.00 per month payment for you?
Now is it starting to make sense?
Let’s try my last one.
I’m leaving you can have it.
Well I can’t promise I can do anything with it.
That’s ok do whatever you can, if it gets foreclosed so be it.
Do you see what I am getting at? No, it doesn’t make sense to most people, but to a MOTIVATED SELLER, it makes more sense than anything!
Stop over analyzing everything and start talking with MOTIVATED SELLERS. You’ll know one when you see one.
Hope This Helps,
Barry (FL)
Re: What Do You Say (long) - Posted by Qinvestor
Posted by Qinvestor on April 11, 2004 at 10:26:55:
Exellent post!