Hi, Nick. I’ve been doing my marketing and have found a potential seller, but I’m not sure how to get the conversation started. What’s the best way to approach a motivated seller with a challenging situation?
It’s been so long since we had a LEGIT ASK NICK! Thank you Lynne for asking! The following is an excerpt from our Complete Dealflow System, which is AARE’s first real publication for sale, where (*shameless plug ahead!*) we go into all aspects of wholesaling and how to source off-market deals.
Depending on what list you end up marketing to, sellers have their own particular needs, that usually have nothing to do with real estate. See below, and enjoy!!
Manage your time effectively, but don’t rush through this meeting. Sometimes investing the extra 30 minutes can go a long way. I disagree with the other coaching programs that tell you, “Get them to sign in the first 10 minutes, or you’re wasting your time.” Imagine the pressure they’re already going through?
Our job is to get them out from underneath that pressure, to establish trust and a kinship, and to get them to allow us to help solve their problem, whether it be through the sale of their real estate, taking over management responsibilities, etc… this is for you to decide, but only after you have truly helped them identify their own problem.
With the seller, you are there to:
- Actively listen and empathize with them.
- Assess their situation: Can what you do fit in with what they need? Would it help if I pay cash, close quickly, or take over payments?
- Educate the seller about their options. The more you know about their property and situation, the more you can speak with authority on this.
- Use your expertise to structure a win-win.
You are not there to make money. You are there to solve their problem. This is what separates you from the other wholesalers and Dealflow experts out there. They are trying to bring in many more leads than necessary, when all they really need to learn is how to communicate better. Money is the side benefit that allows you to keep doing this work.
Setting a Good First Impression
It takes barely 10 seconds for the seller to decide whether he or she will do business with you. You cannot start building rapport until they allow you into their house. Chances are, the seller is facing some financial difficulty and needs someone to relate to, so your image is important. To set a good non-verbal impression, follow these suggestions:
- Don’t drive up in a brand new Mercedes. (Sorry.)
- Don’t wear a suit. (Men: wear khaki pants and a button down shirt. The goal is to look approachable.)
- Well groomed, but not “high-maintenance looking,” or “slick salesperson like” as others put it.
- Don’t over accessorize. (Women: keep jewelry to a minimum)
This article is excerpted from Chapter 9 of The Complete DEALFLOW System: Wholesaling Edition, which Nick and Julia of AA Real Estate Group published and is now available. There are lots of topics covered, a few popular ones being Assignments / Back to Back Closings & Trust Assignments, Setting Up Your Business, and Negotiating the Deal. Want more? Sign up to get the first chapter here.
Keep calm and rehab on!