Steps to Success - Doing a Deal

Steps to Success: Doing a Deal
First: Identify types of houses &
areas you want to invest
It all starts here!!
Can do online research
Zillow, Redfin, Realtor.com, Listsource.com
5. Close Quickly
Have all paperwork set up with attorney/title
company
Know what your Exit Strategy is before you
go into the deal
Wholesale?
Lease Purchase to Tenant Buyer?
Pretty house, ready to move in
Work For Equity Fix it up
Sell with Owner Financing?
Rehab & Retail for all cash (loan)?
Or just move into the house yourself?
Dictate how you expect the deal to go
Have your tenant buyer lined up
Close on the deal
Fund it
Private Lender
Hard Money Lender
Seller Financing?
Use funds from Tenant/Buyer to pay Seller
Have funds from buyer
Get all paperwork signed
Collect Your Money!
Go to the Bank
Celebrate with your family
Repeat the whole process often
4. Follow Up
Go to Appointment
Be prepared. Show up on time. Bring paperwork
Paperwork: SPASA, Lease Option, Authorization to Release
Info
1. SPASA: Standard Purchase & Sales Agreement
(aka "P&S")
2. Lease Option and/or Option
3. Authorization to Release Information
For sellers with underlying financing/loans
on the property.
Gives you permission to talk to the bank on the sellers'
behalf.
Call back later
Be organized
Use spreadsheet
Turn over to Realtor
Have a couple local agents to network with
Split the commission when the deal closes
Or just sell leads to them
As "Marketing Fee"
3. Construct & Present the Offers
"Closing Calls:"
Call the Seller back
Use the 4Step Process:
1. Build Rapport
The more they feel comfortable with you, the more they'll
work with you
ASSESS + RELATE TO THEIR PERSONALITY
TYPE!!!
RED: Aggressive/Driver: Get to the Point
Quickly
Decisive, Taskfocused, Fastpaced,
GoalOriented, Confident
Captain Kirk
YELLOW: Influencer: Be friendly, relate
concepts. Image; Social; People
Inspirational, Outgoing, Fun, Sociable,
Creative
Mr. Scott or Lt. Uhura
BLUE: Analytical: Give facts, details. Be
smart.
Deep, Correct, Precise, Thoughtful,
Perfectionist, Conscientious
Mr. Spock
GREEN: Friendly: Take time to talk
about family, fun, house, area, etc.
RelationshipFocused, Supportive, LowKey,
Quiet, Calm
"Bones" McCoy
2. Verify the info from the PISH
"I have your information that my assistant gave me &
I see that..."
Go through items & confirm, "is
that right?"
Address, Beds/Baths, Square Feet, type of
home, etc. >The House Facts
Ex: "This is a 3 bed, 2 bath house, about
1,710 sq. ft., 2car garage, located at 1234
Main St. in Anytown, State. Is that right?"
3. Use that info to Construct &
Present Offer
"Based on what you're saying...What
if there was a way that we could..."
Go for buying on:
1. Subject to (take over debt)
2. Owner Financing (Seller is bank)
Have seller take back a note
Can be Wraparound mortgage
Can be Agreement for Deed
3. Lease Purchase
4. Option
5. Cash
Explain BENEFITS
Buy AsIs
Close Whenever you want
Make this the EASIEST Transaction
Pay more if we get Terms
Get you a FAST Closing if you want
Confirm their interest
"Doesn't that sound great?"
"Does that work for you?"
"Fair enough?"
Follow My Magic Template
"I don't know if you'd be interested in this,
but what if there was a way we could B1,
B2, B3, so that you can SB. Would
something like that work for you? ...Or
maybe not."
Gauge interest by creating a SOFT OFFER
Soft Offer: Introduces a CONCEPT to see
how they react. No numbers attached yet.
Just want to see how they react.
Do they LIKE the soft offer?
Transition to HOW it works
If they're still good, we can start to
negotiate the Numbers/Terms
If they DON'T Like the soft offer
Propose another one & test reaction
Ex: Start with Seller Financing, they don't
like it, fall back to Lease Purchase (or vice
versa)
USE THE SCRIPTS!!! (Essential)
Ron's scripts
Found in manual, Gold Club, Course
Wolff's scripts
"What To Say" Course
My scripts
Found in website or emailed to you
4. Set the Next Step
a. Possible Deal?: AppointmentSee the house
The more motivation=The Faster you
should get out there!
In the beginning, go on as many
appointments as you can so that you get
your skill, comfort & confidence levels up!
b. Not now?: Follow up later123 weeks
later
Set a time frame to Follow up
"Well, this might not be the way you want
to sell your house right now, but why don't
I give you a call in a few weeks to touch
base & see how things are going. Would
that be ok, or should I just wish you a nice
life now?"
Follow up with Phone, Text, and/or Email
"Hi NAME, this is YOUR Name. We spoke
TIME FRAME ago about your house at
ADDRESS. I'm sure you've sold it by now,
right?"
c. ONLY Want all cash/retail?: Turn over
to Realtor (partner)
BONUS!: Find a dynamic, hungry, flexible
agent who's looking for more listings.
Partner with them to sell your prescreened
leads
Sell as a "Marketing Fee"
Can get paid up front for lead
and/or split commission when it closes
d. Unreasonable asshole?: Trash
Use these 5 Core Principles
1. Be CONFIDENT
People only want to do business with people they feel are able
to perform. Make them feel like you can!
2. Be a CONSULTANT
Make them feel like you're on THEIR side like you just want
to help. Be like a consultant.
When they feel this way, they'll open up to you more and tell
you the truth about their situation.
Get permission. Get compliance.
3. SPEAK the truth. SEEK the truth.
Always be honest. Tell them you're going to be honest with
them & you expect the same from them. Fair enough?
4. QUALIFY your prospects
Three Types of Sellers:
1. Completely UNmotivated.
No problem. No urgency. Very little/no motivation.
We can't add value, so most likely won't
do business.
Best to list with an agent. Good luck.
Just send them an offer (if they'll let us) and follow up
later if you like.
All sellers' minds change with time &
circumstance.
2. Motivated & Ready to SELL NOW!!
The "Low Hanging Fruit" = awesome!
Anyone can close these sellers.
Usually, the first one there w/ a
reasonable offer wins. Be early.
May need to follow up
Inject Scarcity to help push them
Generally: Fear, denial, confusion, or overwhelm.
3. Motivated FenceSitters
They have a true problem, but something is
holding them back.
This is where you need SKILL, COMMUNICATION, SALESMANSHIP,
AND RAPPORT!
This is where the real GOLD lies.
You must cut thru the crap, find their pain, make them a CUSTOMIZED
offer that solves it, and shut 'em down!
5. Keep things MOVING FORWARD
They'll try to stall you, give you BS & excuses. That
makes the cycle longer, delaying your payday/solving their situation.
Use techniques to hold them accountable to
move things forward.
Set up appointments & keep them
Get them to be SPECIFIC about what they'll do next, by when.
etc.
FOLLOW UP is KEY!
"What if I could...(Do A, B, C) so that you could (BENEFIT
1, 2, 3)? Would something like that work for you...or maybe not?"
ABSOLUTE FREAKIN' MAGIC!!!
PRO TIPS:
Focus on the PAIN
1. Past
"So tell me about this house...What's been going
on with it up until now?"
2. Present
"Ok so what's going on with the house now? Who's
living in it is it occupied by you, rented out, or vacant?"
3. Future
"So...what do you think will happen if this situation
isn't resolved soon say, within 3, 6, or 9 months from now?"
How to PRESENT Your OFFER:
Use the Magic Words, "What If..."
"What will you do if you don't sell the house? Would
you just have to rent it out?"
To Summarize:
Follow the 4=Step process & use the other
elements
Find out what their PAIN is (if any) &
AGITATE IT
Use that pain as a BASIS to present your OFFER/Solution (solves
their pain)
Propose a possible solution using "What
if...?"
2. Prescreen the Leads
Fill Out the Property Info Sheet (PISH)
Who Does This?
VA (Virtual Assistant)
Staff Member
You
Essential Information Needed: ARV, ASK,
OWE + PMT, REP, WHY, WHEN
$ARV: AfterRepaired Value (What house is
worth in tiptop shape)
$ASK: Asking Price (What do they want?)
$OWE: How much do they Owe on any
underlying liens/mortgages?
$PMT: What is their monthly Payment? PITI
$REP: Repair cost How much to fix it up?
WHY: WHY are they looking to sell now?
(Motivation!)
WHEN: When would they like to have it
sold? (Motivation!)
Probe for Flexibility/Motivation
Ask: "Would you...?"
"Sell for what you owe?" (if little/no
equity) =SUBJECT TO
"Consider taking equity in monthly installments?" (if
large equity/free & clear) =OWNER FINANCING
"Consider a Lease Purchase?" (Fall back if no to above) =LEASE PURCHASE
BETTER PHRASE: "Consider RENTING for a
little while and THEN selling?" =LEASE
PURCHASE
"Be flexible in your asking price? Or is it
firm?"
If they're flexible, can sell for a
discount for all cash, and want to
close quickly =CASH
Proper way of asking: "If we pay you all
cash and close quickly, what's the LEAST
you could accept for your house?"
Whatever their answer: "Is that the best you
can do?"
1. Generate Leads
INbound (They Call YOU)
GOAL: Drive Calls to Your Phone/Clicks
to Your Website
Direct Mail
Types Of Mailings
Yellow Letters
Postcards
Lumpy Mail
Oversized/ExpressMail Envelopes
2Window Envelopes
"Official Mailing"
Show a "Check"
To Targeted Lists
Absentee Owners, FSBO, NOD, Free &
Clear, Large Equity, Expired Listings,
Zip Codes, Carrier Saturation Routes,
Vacant Houses, etc.
Have the right message match the
market & media
Yellow Letters: Invitation Envelope,
Handwritten everything, personalized
Postcards
Can be personalized
"We Buy Houses. Any Area or
Condition. PHONE #
We Buy Houses style
"Urgent/Last Attempt to Reach You..."
Bandit Signs
Place in target areas
34 lines, simple message: HEADLINE,
BENEFIT, CALL TO ACTION
Sell Your House Fast
No Equity? No Problem!
XXXXXXXXXX
We Buy Houses
Any Area, Price, Condition
xxxxxxxxxx
We Buy Houses
Regardless of Equity
xxxxxxxxxx
Websites
Your Own
Simple URL (Domain name)
(Ex."FredBuysHouses.com")
Message: Focus on Benefits
Easy, Clean Interface w/ Call to Action
Have Phone Number
Goes to Live Answering Service
Or send to 24/7 recording
Web Form: They fill out. Sent to you
3rd Party
Craigslist
Run Ads "We Buy Houses"
Sell Your House Fast. Walk Away
Today...
Facebook
Advertise here
HIGHLY Targeted Marketing
Set up a Fan page + Drive Traffic
Radio
30 or 60 second spot
Use a proven script
Use a great voice that commands
attention
Your Own
Hire Someone Else
Hire Me!
Professional Voiceover talent, copywriter
Negotiate w/ local station OR use
Media Buyer
Talk radio
Drive Time
Always Test Results
TV
Have it professionally produced
See "Radio"
Newpapers, Magazines, etc.
"Copy" a proven ad
Test results
Don't buy long term
OUTbound
Craigslist, Zillow
Search for houses that fit your criteria
in your target area
Call & get PISH filled out
You
VA
Get daily property feeds emailed to you
Other online sites
FSBO.com, owners.com, redfin,
forsalebyowner.com, etc.
Get Automatic Daily Feed:
ByOwnerDaily.com/investor
Get daily property feeds emailed to you
Get yourself set up on Gold Club
Get daily property feeds emailed to you
Call FSBO Ads from newspapers
Local FSBO Sellers
Driving around town? See a sign? Take a
picture & write the address & # down!
Find Local Bird Dogs to BRING you deals!
You'll have to find & train them.
Make a training manual that shows them
EXACTLY what to do
Have a weekly training call
Find ~5 people & "hire" them all.
A few will crap out.
Deal with the ones who perform.
You're only paying for performance
Can pay ~$5/PISH Filled out
+$250/a house you buy
ON COMMISSION!
NETWORKING!
Professionals
Real Estate Agents
Mortgage Brokers
Title Companies
Real Estate Attorneys
Divorce Attorneys
Immigration Attorneys
Probate Court/Attorneys
Appraisers
Home Inspectors
Bankers
Friends, Family, People
Ask "Who do you know who...?"
Use the "5Foot Rule"
Talk to anyone within 5 feet
Remember: You're only PRESCREENING!
Organizations/Meetings
REIA
Meetup Groups
Chamber of Commerce
BNI
Facebook Groups
Google Groups
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