Most important thing to tell seller, to buy their house at 40-70% off market, And still get the deal
Hey gang this is Mike with MyRealEstateDOJO, and in this session I’m going to show you guys what is the most important thing to tell a seller, to get a property 40 to 70% off market value and still get the deal.
Now so many people reach out to me and say “Mike, what do you tell to the seller to get a deal” or “can I hear you give a seller an offer” or “what is the secret recipe?” they’re basically looking for a secret recipe, like a one shot wonder that’s going to knock the seller out and getting the deal. So today I’ve decided to give you that secret recipe today. I hope you guys are ready okay, and the secret recipe to that is that you’re chasing a high that you’re never going to get, okay. There is no secret recipe.
When you talk to a motivated seller, does it matter if you know perfectly what to say? Absolutely not. Does it give you some advantage? If you glow and shiny and you dress up in a suit and you’re good looking and your smooth as a slick, does it help you? Yes it does help you a little bit, but not enough because the secret sauce is in the hard work, and what do I mean by that? Someone just asked me, “well what do I say to get the deal?” and I thought to myself, “what is the answer to that?” and the answer is there is no answer to that, you got to do multiple steps, many times someone calls up in the phone, the seller may not be motivated and they tell him you know what “go fuck yourself, I’m not interested” maybe in those words or maybe in much nicer words, like “I’m going to talk to my husband, I’m going to do x, I’m going to do y, I’ll get back to you” and then the investor stops dealing with her like I don’t care they’re not motivated. And then talk to another person, same thing may happen and no they’re not interested, so what they do is they’ll go to RAI clubs, they’ll go to seminars, they’ll read books, they go on YouTube, they go on Facebook, they’re always looking for the next high, the next one hit wonder, you know, they’re always looking for that one punch and if you’re looking at people in sports, If you look at Tyson, or any people in sports athlete, they just don’t get them from one strike you know, or one punch, it took months and months and years and years of training for them to be good at it or for them to be able to get a deal. And the great thing is you don’t have to be an athlete or get in the line of real estate investing, all you have to learn is simple steps I’m going to give you to get a deal. Just remember, you can’t just do this one thing, one time and its going to solve everything. You’re going to need multiple steps, hard work, and follow up follow up to get the deal.
So, in the first person they call they’re not motivated, the second there not motivated, the third, and they throw their hands in the air and they look for the next secret, the truth of the fact is, this business, if you want to buy somebody’s house think about it, worth a hundred, if you want to buy somebody’s house, worth for 40 or 70, it has to be something that’s going to make them want to do this, so it’s what I call and a lot of people call motivation. But as I explained it to you guys, there are two types of motivation, we have financial motivation, and we have emotional motivation, if these two variables are not precedent enough, you’re not going to get a deal at 40-70%, you can have one or the other or you can have both. And I personally like buying houses from sellers that are emotionally motivated because usually depends on the situation, they usually don’t want to deal with this shit for whatever reason. I was personally motivated because of the situation with my own family. So, going into the story, there’s no one punch wonder. What you have to do in this business is that you have to learn to put down the hard work and follow up these sellers, follow up with these sellers, follow up with these sellers okay. It’s not like you’re going to follow up to them with this deal and get them on the phone, you can if you have systems in place where you know I call “bank alerts” they let you know that hey this person in alert to go and get them out of the oven and the deal is yours. But that takes you know having systems in place, like sales funnels, email funnels, follow up panels, text messaging, voice broadcasting, or you could do it the old fashion way, simple as calling people or emailing them or texting them from your phone.
So the best way to get a deal for a big discount is you have to get to really analyse the seller. Many people, if you go to these seminars, these gurus, what they try to sell you is analysing the property. Because that is easy to do, I could tell you how to analyse, like I explained to you there are 3 propellers in this business okay, you have lead generation, you have conversion, and then you have exit strategy. Anybody can tell you about lead generation and exit strategy, but the conversion part is a whole other alley because you really have to understand psychological and emotional aspects of a human being, alright. If you don’t know how to do that, it’s going to be really difficult to make sales. You’re like “me me me me me!!” or “let me sell your home for like 40% of a dollar” and you’re not trying to help the seller and create a win win situation, you’re not probably going to get awesome deals like that.
So coming back to the story, if you want to get homeruns, if you want to get property discount, you have to not analyse the property, you have to analyse the seller. The seller can be in a situation where they are motivated today, probably only 10% of those people that you’ve talked to from the leads you generated, only going to give you a yes today, only going to give you a deal today. So that’s the, that’s pretty hard work, you have to dig a lot of dirt to find that gold nugget. So what you have to do is that you have to analyse the seller and say hey, hope your motivated today, probably like 10%, if they’re not motivated today, are they going to be motivated in the future, what is the probability of them selling their home before they get to that bank alert where it’s time to take it out of the oven, okay. And those are the things you really have to analyse instead of the property and you know.
And then once you analyse that, step number 2 is you got to have a system, you have to plan it, you know back in the days, I still like this, when I get leads I write them on a piece of paper with my ugly ass handwriting and you know I have my seller phone script, if you don’t have it, get it, it helps you negotiate cash offers and/or financing where you input leads where you basically have this form in front of you, I’m just writing on this by hand about 3 pages and I staple it and I use that. It asks you how to her about you, all those kinds of stuff. Or you could take it to the next level, where you get busier and you put it in an excel sheet, I always recommend it if you put it an excel sheet too but whatever works for you. You just have to have a system like a CMS where you track those leads and you work them. And when I say working them, it means hard work.
In real estate everybody says cash is king and I agree 100% but follow up is his queen. And if you master the art of follow up, if you master the art of analysing that person in gaging when they’re going to become motivated and put systems in there like what I have on my auto emailed, you know goes out to many many many months and years, it falls with customer’s work. Once that lead comes in it gets into my funnel and it goes off you know every 15 days, 30 days, I mean it goes back and I can’t tell you how much my business has increased in 3 days with that system because it decreases labour costs, it’s made automatic so I didn’t have to remember, It’s just so much less, I didn’t have to type it every time, it goes by itself, but if you implement something like simple things, like when the lead comes in, you gage their motivational level, and then you put them on this simple excel sheet where you get them for free like from Google docs or something. And then keep track of it, I mean you’ll be amazed at what it can do, you can send them an email, a call, a postcard, and in over a period of time, 2 – 3 years, some of this people, are going to sell their homes, some of these people are going to get motivated and every time you send them one of those bank alert signals out there drones, there’s the gold mine.
And one of the coolest thing, the way I do follow up is totally different than other people, instead of them calling me me me me buy from me, if the other girls and guys who buys my auto email series, it does the closing for you. Because it builds your rapport, it gives you authority, why? Because all I do is educate the seller okay and I get them to buy more information, like for example the seller says oh shit it’s by my spam and they go for a second look like learn some more information so I could learn to sell my house more. The more you learn, the more you engage the seller, and the more you give them options, here’s the funny thing, just because people have options or have opportunities, they don’t take advantage of that and that’s why my superhero offer works so great because I go to a seller and I tell them other advantages, like I tell them how to sell their homes all the way down to the realtor, all the way up to the attorney to the banker, everything in between from short seller to cash offer to dealer financing, etc.
And I notice even when I give them something they’re able to do without getting them any costs and really truly try to help them whatever they want. Some of them they just willingly sell it to me, like hey thanks for educating me, like you know what, I don’t want to do this, it’s too much work for me or but the reason they want to give it to me because everybody’s like give me your house and they just want to take from the guy and I’m like here you go sir here you go and then here’s what all you can do, I hope you sell your home in other way and make the most amount of money and then you refer me and refer me to your friends and family because that’s where I’m really going to make money because instead of buying from this, this guy refers me, this guy calls his friend and this friend calls me and I didn’t buy to make up in a sense because that’s how vie worked. Because if I don’t get pay today, I’ll get paid exponentially.
So the point is, if you want to buy properties in a really really big discount, it’s not a one punch wonder but you have to put the sweat equity in and you have to have the skills as one determining the seller’s motivation, to get them motivated. Two, keep track of your leads. Three, Follow up with them all the way to like three years guys, three years, you wouldn’t believe it. I mean if you get them calling you after a year and a half and they’re selling their home. And that’s the secret dude, the secret is that there’s no secret, it’s going to require hard work, hustle and bustle, follow up but it’s very very simple. It’s like go to the gym even though you don’t know what the fuck to do, you just learn to show up there and get on the machine walk from 15-30 minutes before you know it in 3 weeks 4 weeks and your body has changed dude, automatically. And then once that change happens, it motivates you to have more funds and maybe hire someone to be like your virtual trainer to help you do the squats more correctly, or get better results so you don’t hurt your knees, hurt your back, okay. And that’s how life is. So start where you stand, stop chasing the high ups that new trick, that new one hit wonder, thing is you know everything already. All you have to do is have the attitude, you don’t have to get more education because the thing is the more you learn, the more you are confused, unless you have attitude. Alright guys I really enjoy sharing this with you guys, if you like the video please like, please share, please comment, see you later.