Hey, gang, this is Mike with My Real Estate DOJO and today’s lesson is about negotiating with a motivated seller using the technique called the deadbeat closing. Now let’s dive in and get started. Now what is a deadbeat closing and when should you apply this technique, when you deal with motivated sellers?
As you know I have other videos that explain different types of closing techniques that you should use when you deal with a motivated seller, depending on their mindset. This of decision making. Your job is not help them make a decision, because they are not going to do that, because you are not going to make people make a decision.
Your job is to help them realize that the lack of decision making can have major side-effects and your job is to help them, educate them, help them learn the side-effects of their lack of decision-making. Now let me give you some examples. In a scenario where the seller may have marginal equity 10-15% or the scenario when they are under 10-15% and the seller is not going to do anything, they are not going to start a short sale or they are not going to start to that lender or negotiating price on what the seller owns on the balance loan.
They are not making that decision or in a situation when they are willing to do a ‘subject to’. They are in a situation where they are not willing to go left or right, they have lack of decision making, I would use a deadbeat closing, even if they have equity or they don’t have equity.
With a deadbeat closing I explain to them the side-effects of their action. For example, they are not making the payments on the property or the house is going to go foreclosure, I am going to help the motivated seller understand that “Hey, buddy, this house is looking for closure, do you realize you are going to have a 7-10 year nightmare on your credit card?” What does that really mean, who cares if your credit gets messed up.
If you want to get a cell phone, if you want to set up internet, you want to do anything, they are going to check your credit. And when they see you have bad credit, they are going to decline you or put up a higher security deposit. I help the seller understand that if they don’t make the decision of going left of right that has significant decision side-effects and that’s what my job is.
To help the seller understand their side-effects if they don’t make a decision quick, if they want to go left or right. For example, you may have 7-10 year nightmare if this house goes for closure, the lender is going to ride of a 1099 to the IRS and you’re going be unreliable for tax. You’re going to have creditors calling you, because you have deficiency judgments.
You won’t be able to get any credit cards, you won’t be able to buy a car, you will have a significant large down-payment, plus your monthly payment is going to be a lot higher. Again, your probably not going to be able to find a rental property even if you want to or an apartment. If you do, its probably going to be more expensive with security deposits.
I helped the seller realize that if they don’t make a decision, here’s all the side-effects or if they’re not cutting their grass that has legal side-effects and things can happen to him, if he is not showing up for court. The deadbeat closing is helping your motivated seller even if they have equity or they don’t have equity to understand that if they don't make a decision there are going to be major side-effects down the line and that’s why I use the deadbeat closing.
Now as you know, I’ve already made many different closing techniques for different motivated sellers like the logical closing or the emotional closing or the deadbeat closing or the fairytale closing or the 1,2 closing etc Watch my other YouTube videos to learn the different types of closing, so when you are talking to a motivated seller you understand what kind of mindset they are in, so you can put out the right tool, in this case the closing tool to close the deal.
Gang, go out there and hustle and bustle. Don’t take ‘no’ for an answer. This is Mike with My Real Estate DOJO and I’ll talk to you later, gang! Have a great day!