About the Author: Jason Van Orden is a marketing consultant to creative real estate investors. He has also served as the presidient of
the Salt Lake Real Estate Investors Association. For his free email course on finding motivated sellers and succeeding in real estate investing, click here.
An Often Overlooked Secret of Finding Motivated Sellers and Negotiating
Creative Real Estate Investing Deals
When you talk to a motivated seller, what do you say? What do you write
in a marketing letter to find creative real estate deals?
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How
do you negotiate creative real estate terms for your deals?
These are scary situations for creative real estate investors. It is not unusual
to be at a loss for words. In fact, you may avoid these situations just so you
don't have to face the fear.
I want to help you find the words and confidence to call motivated
sellers, create powerful marketing, and present offers so you can close creative
real estate investing deals. The concept I am about to present is fundamental
to prospering in creative real estate.
Take a look at the following marketing statement: |
“By listening to the 10 CDs in this take-home investing course, you will
learn how to make money buying and selling homes with notices of default.”
Does that entice you to buy this creative real estate investing course? Maybe
a little. I am sure this is an accurate description, but why do I care?
What if it read like this?
“This take-home real estate investing course uncovers the step-by-step
secrets of making $25,000 in the next 90 days by buying and selling homes
in foreclosure while minimizing financial risk and with no money down.”
Now that gets me excited about creative real estate investing. If I take this
course I will learn how to make a lot of money relatively quickly with low risk.
That sounds enticing.
What was different between these two descriptions? The first lists features.
The second communicated the actual benefits of creative real estate investing.
Successful salesmanship communicates benefits. Now
think about your creative real estate investing business. A feature is simply
an attribute of your service. A benefit is how the feature adds value to the
motivated seller's life. What is in it for them?
Here is another real estate investing example:
"We buy houses subject-to" is meaningless. Try this: "I
can take over your payments starting next month and help you avoid paying two
house payments when you move. You won't have to lie awake at night worrying
about your credit." That speaks to what the motivated seller wants. It
evokes emotion.
Now think about what you tell a motivated seller when he asks what you do.
Do you just say, "I buy houses"? Or do you say something like, "I
buy houses in ten days or less without closing costs or cleanup for the seller."
Do you see the difference?
Creative real estate investing is not about buying and selling houses.
When communicating with motivated sellers, you are in the business of stress
relief and solving impossible problems.
Here are five types of benefits that you have to offer a motivated seller:
- Convenience: How can you save the motivated seller
time, energy, and effort?Economy: How will you help
the motivated seller save or make money?
- Peace of Mind: We all have a tendency to seek pleasure
and avoid pain. Can you relieve the motivated seller's stress?
- Ego: Can you appeal to the human desire for a better
image? A motivated seller wants to avoid humiliation from the situation.
- Fun: People need a break. Can you provide a diversion?
Think about each of these categories. What benefits can you ffer a motivated
seller or buyer in each of these areas? Use meaningful specifics when
you write benefits. Don't just say that you can buy their house fast.
How fast? How much money can you get them?
To take it one step further, which of the benefits that you offer are unique
to you? The key to attracting motivated sellers and creative real estate
investing deals is to answer this:
"Why should a seller do business with you
over any and every other option available to him/her?"
The answer to this question lies in the benefits that you offer hat are unique
to you. The answer to this question is your Unique Selling Proposition.
If you have a good answer, your marketing and negotiation will become
tons easier. You will greatly increase your profits from creative real
estate investing.
By better understanding and communicating the benefits that you offer to a
motivated seller, you will become a powerful salesperson. You will find
creative real estate investing more enjoyable and grow your business.
