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BP Podcast 077: Negotiating Your Way to 1000 Wholetail Real Estate Deals with Michael Quarles

by Brandon Turner on July 3, 2014 · 71 comments

  
Michael Quarles Podcast

Today on the BiggerPockets Podcast we are excited to welcome Michael Quarles to the show. Michael is an active investor coming out of California’s Central Valley who has done so many deals that he has lost count!

His experience is diverse and includes developing, flipping and more, but today his primary strategy is what is known as “wholetailing” and today’s show covers this strategy in detail!

Also, as a master negotiator, Michael breaks down the science of haggling a deal that both honors the seller and benefits the investor. This episode is so jammed-packed that you’ll finish feeling like you just graduated with a degree in negotiation!

You even get to walk away word-for-word scripts! You really don’t want to miss this one!

Listen to The Show on iTunes

Click here to listen on iTunes.

Listen to the Podcast Here

In This Show, We Cover:

BiggerPockets Podcast _ Real Estate Investing and Wealth Building 9.42.11 AM

  • How Michael convinced a stranger to give him $200,000 in order to invest in real estate.
  • The complete breakdown of what wholetailing is and how to do it…
  • The 5 important question you HAVE to ask leads over the phone
  • Practical lesson in Neuro Linguistics - Complete with role playing!
  • The importance of  being ethical and taking care of people 
  • The peanut butter story…
  • The proper mindset behind negotiating
  • Getting over fear in order to take action
  • and much, much more!

Links Mentioned

Books Mentioned in the Show

Connect with Michael

Email *
  



{ 71 comments… read them below or add one }

R Jenkins July 3, 2014 at 12:17 am

Well overdue interview
Congrats

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Karen M. July 3, 2014 at 9:30 am

Negotiation? or…. manipulation? I’m halfway through listening to the sales tactics used, and while they are thoughtful and strategic, the goal here is not to “help” a seller, it is to “control” a seller. I feel a little sick. I once had a “friend” who had a massive sales background (who was constantly giving out commands and cues and playing the voice tricks and emotional ploys) and I have seen so many of these tactics played out, it’s always a sale, it’s always about making yourself look good, it’s always about what’s in it for the one doing the selling. I hear the words, this is “moral and honest”, and that’s a pitch, but I’m not buying it. I can’t live that. I feel these games and tactics with a desire to control people are fundamentally dishonest and wrong. Sorry. I know they are very effective, but I could never do this in order to take advantage of another person. Josh, you called it “voodoo”. You nailed it.

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Michael Q July 3, 2014 at 3:47 pm

Hi Karen…

I completely and thoroughly understand your perspective. And I must really suck at my communications skills as I certainly never want a seller or one of my peers to think I manipulate the seller in a negotiation.

I find all of our opinions to be valuable, as collectively everyones opinion adds to the professionalism of our trade. Without the collective good we would not survive as an industry. I also absolutely believe that our ability to buy housing at a discount is paramount. It serves a larger greater good than the two sides involved.

Let me apologize to you, what I was unsuccessful in presenting is the importance of communication and how some people will, because of their circumstance and behavioral patterns , never hear us until we present ourselves to them in a way to be heard by them.

Mimicking, pacing, NLP, reinforcements, and listening skills are not from my perspective and use manipulative. They certainly could be used in a manipulative manner however I implore anyone who uses a skill set to take advantage of someone else not to. It is wrong in so many ways.

Again, I respect your opinion and value its representation.

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Ron B.b July 5, 2014 at 12:31 am

Karen,
When I listened to this podcast it made me feel the same way you do. I felt that he was using manipulative techniques and tactics to not guide the seller but to control them. The most apt description I could come up with was “smarmy”. It reminded me of talking to a used car salesman. Whenever I hear a person answering a question with a question it sounds like they are being dishonest. Admittedly I have used these techniques myself, on my children. That is exactly how he sounds when he is doing the mock negation with Brandon. As a parent would talk to their child.

Now I understand Michael Q. has a business that is worth millions and that he has used these methods to build that business but so do used car salesmen and you don’t see people going out of their way to congratulate them on their manipulative tactics.

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JM July 3, 2014 at 10:14 am

Karen, with respect, you’re being a little harsh here. Sales “tactics” actually accomplish a few things: filter out those who are unmotivated to sell so you’re not wasting your time on them, and for those that are at least somewhat motivated, get them to move in the direction of taking action. There are no magic words in the universe that are going to hypnotize people and make them sell their house to you. If they don’t believe it’s a good deal, they’re not going to sell, period.

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Karen M. July 3, 2014 at 2:01 pm

Hey, I’ve got some important information for you — go get a pen and paper right now so you can write it down…. got it? Good!! (nods head). Good dog. Thatta boy.

No, seriously, there was a lot of great content in the podcast and some very good motivation for people to pursue their real estate investing goals. However, some of the manipulation tactics described gross me out. I hope that starting a conversation about smart sales strategies vs. strategies that are dishonest or manipulative is useful for the community and that it helps people in the business. What do you feel is fair to your sellers? Would you draw any lines for behavior that is “over the line” of aggressiveness? Is there such a thing as going too far in your book?

I get it, it’s all legal, there’s no lying, but… using tricks to get people to “follow’ you is well… tricky…. do you choose to call it effective communication, or something else? What’s your story that you’re telling yourself and living by?

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Andy Mirza July 3, 2014 at 11:30 am

Funny that we listened to the same podcast but came to different conclusions. I felt that the things Michael talked about doing all came down to more effective communication. Yes, things were deliberate, intentional, and focused but they had to be “moral, ethical, and legal.” If one leads another in a conversation that ultimately ends up in a sale where both feel they’ve benefited, a win-win situation, how can that be wrong? I feel like I got a lot out of this and I appreciate Michael sharing his knowledge.

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Talal Pharoan July 3, 2014 at 12:13 pm

If you have worked in sales, and I do not mean where you scan a barcode, you know that “value” is a moving target and that it isn’t the same for everyone. Real estate is one of the few markets the public interacts with where the price is always negotiable. It can price much higher or much lower than the owner realized; it is just the market. So how do you work with a public that has no experience in determining the value of the things they most commonly use outside of scanning a barcode? You talk, and you help them come to a conclusion they can live with. They choose to say yes, you help to lead them there because you know what to do with the value of the asset and they chose to ignore it.

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Karen M. July 3, 2014 at 1:44 pm

This is the process I heard described. 1) have the uninformed owner “do you a favor” and make them try to figure out their own property value; and 2) work their numbers down three levels from where they started by “leading them” down your path of price reductions and letting them know through the body language when their answers are pleasing or not to you as a buyer. Also, 3) moving them toward same-day signing, and 4) delaying cash payout until later. I am sure that storytelling to make the seller feel like a real winner is part of the package — you won’t have realtors walking in on you while you are showering! — maybe that is the “value-add”. Maybe you’ll even let them in on a secret or two.

Do you need a visual with that?

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Russell July 3, 2014 at 12:15 pm

Terrific interview with one of the most influential persons in our industry. The takeaway for me is that it is important for the seller to understand the logic behind the numbers and its also important to connect with them so that they don’t decline the deal for extraneous issues, i.e. “I don’t like this person” or “I don’t understand what is going on here.”

What works for me is just being transparent and logical. As long as we’re being genuine, I mean Michael’s style may be unique to him but there are some key principles here like: Take action, believe in yourself and your service, and make sure the seller is totally comfortable with the deal.

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Shane Woods July 10, 2014 at 6:13 pm

Russell, what a great middle of the road, not taking sides, big picture take-away from this polarizing podcast. I could not agree with you more. The “smarmyness” may rub some the wrong way. I hate cheesey salesy pitchy style, but I don’t see that here. I don’t even see manipulation.

Everyone is going to have their own pacing, style, and level of transparency with regard to the “let me buy your house” conversation, but the main ideas here are the same, no matter the delivery style:

-Be confident in your product/service

-Be genuine with regard to your intentions

-Be friendly, helpful, and hopefully a “friend” to them in their time of need (this is NOT manipulation, it’s called relationship sales, and it should give you a GOOD feeling, not a smarmy one)

-Make sure they fully understand the decreased value factors related to their property vs. what they feel it’s worth/asking price.

-Ask questions/repeat their answers to ensure they really do understand what you’re trying to communicate to them. This is not manipulation or intimidation based on your response to their answers if your goal is to leave the closing table with BOTH parties feeling like they got what they needed. As MQ stated several times, if your motivation is to help them and not maniulate them into selling for way less than would be ethical, you can sleep well at night with nothing to worry about.

And finally….something I JUST remembered today that I used to do correctly and have since been screwing up…

The asking them to do the homework and then call you back when they know their asking price/what they think it’s worth is one of the best “motivation” qualifiers out there. And if your business is driven by that phone call, and your time is valuable to you…why waste your valuable time on non-leads. A seller that “just wants an offer” isn’t motivated, and therefore NOT a lead.

My wife and I just participated in a time share sales pitch a few weeks ago, and the folks there used many of the tactics employed by MQ here, and lots more. I’m in sales, we both hate “smarmy” sales people, and NEITHER of us were uncomfortable or felt manipulated when those particular tactics MQ mentions were used.

That being said, there were several moments they WERE manipulative, and borderline “smarmy” but they smiled and nodded so much ad talked so fast we almost missed it.

My point is, none of the MQ tactics are “smarmy” in my book, compared to what the smarmy people do. His tactics are actually helpful to an uninformed seller when used appropriately. Simply describing a deliberate “Process” to the activity of successful seller education and negotiation is not manipulation in my opinion.

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Donna Jones July 3, 2014 at 12:43 pm

Wow! What a great show. This show has truly motivated me and I’m so very excited to hear him talk about marketing. Please please please hurry and put the marketing podcast together. Thanks!

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Michael Q July 3, 2014 at 3:00 pm

Me Tooooooo!!!!

I love buying houses and marketing. And I think that anyone who wants to experience prosperity should walk through the tumultuous doors of real estate and buy and sell some houses…

Its friggin awesome…

The best part isn’t what it can do for us but what we can do with what it does for us. When you can, and you will, walk into your grocery store and buy everyone groceries… By a car for someone taking the bus. Help a Girl Scout win the award for the most cookies sold even when you’re dieting. Watch the smile on a childs face when you buy mistletoe from her for a 100 bucks a ziplock baggie at Christmas.

Anyway thank you for enjoying..
Michael

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Dakota Cooley July 3, 2014 at 1:16 pm

NLP!! Worth studying. Didn’t think it would ever get brought up on the podcasts

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Nancy Brook July 31, 2014 at 10:20 pm

Would be good to have a recommended book or audio for effective NLP im sales. I’m I’m sales in my day job and I have to say, the content and approach discussed is brilliant. Really inspiring for me.

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Roberto Reyna July 3, 2014 at 1:37 pm

Is this what happens to unsuspecting homeowners? Yes, help people in some way to solve their real estate financial situation, but not take advantage by manipulating them into doing something that is in your greater financial interest just so you make a profit. We are not in this to obtain a financial independence in this manner. We do this to try to solve perhaps their real estate financial situation. No,please do this right but not by obtaining a greater financial interest.

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Cody July 3, 2014 at 1:42 pm

This was an awesome interview. Karen, this is not about manipulation. This is about sales. Michael’s view points, insight, and experience on this subject are simply amazing. What i took away from this are two main points. 1) If you do not have the confidence to do something you will never succeed and 2) You have to make someone believe in what you are doing and why you are doing it.

Often times we find ourselves doubting our abilities, and if you can’t have enough confidence in yourself how can you ever expect someone else to have confidence in you. Thank you Michael, this was extremely inspiring and motivating.

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Roberto Reyna July 3, 2014 at 4:30 pm

Perhaps the subject is presented in a different light by the agenda the podcast follows and steered by some individuals. Often times what we say is highlighted with a different context, and presents us an unfavorable point of view towards others. At any rate we need to think about how and what we say regarding real estate transactions. I listen to all the podcast, but often times there is too much laughing and not enough seriousness.

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Joshua Dorkin July 3, 2014 at 5:46 pm

Roberto –
This is not NPR, it is a podcast that contains the personalities of the hosts. We don’t get paid by our listeners to do it — we do it because we enjoy it and because we hope it will bring value to our listeners. I’m sorry you don’t like the jokes. We will continue to make them — without keeping it light for ourselves, I don’t think we’d manage to keep putting them out every week for our listeners to enjoy (most of them).

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Ben Millar July 3, 2014 at 7:18 pm

I love the jokes. It helps me understand and feel that real people are investing in real estate. One of the biggest takeaways that I’ve gotten from the podcasts is that everyday people who simply have an incredible drive to succeed, can and are succeeding in real estate investing.

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Brad July 4, 2014 at 3:37 am

I always listen to the end hoping for some more vanilla ice!!

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Kevin Tran July 4, 2014 at 7:59 am

I love the jokes, and yes sometimes they are a little corny. However, it just makes it more real for me. It’s not one of those interviews where the guest is reading from a script, it’s unscripted and uncut. Because of this, I can relate to their stories and it’s motivates me. Thank you Josh, Brandon, and all the guests for making it possible.

Here is a hint if you don’t like the jokes:” fast forward.” The choice is your.

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Phil Dwyer July 7, 2014 at 5:47 pm

Being a former guest, I can say that having Josh and Brandon goofing around during the process is what made it the most fun for me. It’s a lot easier to be a candid guest when you’re having a good time.

CJ Pilon August 20, 2014 at 1:10 pm

As a new member I’ve listened to 12 or 15 of your podcasts, ranging from 1 to 83 in the last few weeks while I walk my dog.They are awesome! Don’t change a thing. You do a terrific job of relaxing your guests to get the most out of the interview, and digging beyond the first answer to get to a useful level of detail.
Oh, the jokes are pretty pathetic, but you pull them off like Sonny and Cher =D

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Lauren July 9, 2014 at 3:50 pm

A subject that is not covered enough, I’ll tell you. Negotiation is the skill I lack the most. It was so helpful to listen to Michael discuss NLP, Pacing, Embedded Commands. Now I have something to “Google” and build upon. :)

To those who think this is immoral, dishonest, or mind control. Obviously non of you have worked in sales.

I have an active direct mail campaign and make offers daily to sellers. Do you know how many sellers have wasted my time, asking me for free appraisals on their house? Have me so much as go to their house, take photos, make offers, then don’t even answer my calls after I’m done wasting 2 hours of my life I’ll never get back?

If you have never done any of the above mentioned, then sure, you will never understand why having the upper hand in negotiation is crucial to not wasting your most valuable asset, time.

You cannot make anyone motivated, period. So Michael’s communication techniques would not work if someone did not have a situation that would cause them to need a quick and easy sale.

The bottom line is, when you get a hot seller on the phone who is full of motivation, its either going to be you, another investor, or a Realtor who will win their business. The Realtor promises a high price and that they have a list of buyers looking for “the exact same house.” And sometimes listing it with a Realtor is just not their best option. So who should win? The better negotiator.

Applause to you Michael for sharing and being so candid with us!

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Melodee Lucido July 9, 2014 at 5:51 pm

Right ON Lauren!! You said it straight!!

Best of success to you.

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Shane Woods July 10, 2014 at 6:17 pm

I sure wish I read this far down before I made my comment so long. Right on. You said much of what I did.

Patience Fail. :)

Glad several of us understand the bigger picture more so than the apparent “manipulation”

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Derek B July 3, 2014 at 7:18 pm

Awesome podcast with great information. Michael, thanks for taking your time and giving freely of information. Josh and Brandon – great job. The content may have gone deeper than some are comfortable. It’s worth repeating – this is not about seller manipulation. Michael does not manipulate everyone he talks to into selling him a house. What he is talking about is uncovering the real need and offering a solution to satisfy that need. If someone is motivated, it is not about the money. There is a deeper need and the successful salesman (in any industry) will uncover and satisfy that need. Michael, hope you are back soon for the followup podcast on marketing.

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Steve July 4, 2014 at 6:12 am

I would like ask Karen how many houses she’s purchased ?

So many of these sellers are lost in the sauce when it comes to wanting a realistic price given their situation…

What Michael is proposing is helping walking the seller down a path many are going to ultimately end up taking anyhow. There’s no gun to the sellers head and truth of the matter is many sellers still say no and won’t sell even after a compelling presentation.

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Dawn Anastasi July 4, 2014 at 7:11 am

One thing I didn’t understand from the beginning of the show was the story of the deposit check bouncing then building the duplex on the lot. If the deposit check bounced, and there wasn’t money to buy the property, how was their money to build a duplex on the lot?

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Michael Q July 4, 2014 at 11:37 am

Hi Dawn,

On the first property I ran out of friends… And favors… Used up what little resource I could scrounge together and found enough funds to complete an ugly duplex however I made it through and sold it for profit. Paid back everyone and was set to attempt another one.

Remember this was 30 plus years ago when material for building a duplex was very cheap. Couple the low cost of supplies and then factor in that I performed almost all of the sub contractor trades except for four. Plumbing, Electrical, Mechanical and Sheetrock tape and texture. It was very inexpensive to build.

And I wasn’t building a palace. It was a set of 2/1 units with swamp colors and wall heaters. T1-11 siding and composition roof. Plastic shower/tub units and vinyl flooring in the bath and kitchen. I knew enough to save money on cost by making the rooms smaller than 12 feet and making the layout so when flipped the plumbing backed up to each other.

I learned a bucket load on the first unit…

I remember waking up in the middle ofthe night the night before we were set to hang the sheetrock and realising that I left out the telephone lines.

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Russell July 4, 2014 at 8:54 am

Hi Michael, in regards to this strategy of listing houses as is I have a few questions. 1)Is there a teachable formula for determining as is value and/or is there a comprable method that you could substitute starting with ARV?
2) Is your offer basically what a rehabber would give or do you still need that extra cushion that a wholesaler needs?
3) And finally, what pitfalls would you point out to someone attempting to use this strategy? Do certain houses or markets not work, is there something that could bite the new investor that might not be obvious?

Thanks!

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Michael Q July 4, 2014 at 12:24 pm

Hi Russell

Determining the As Is value may be easier than you think. The recent comparable sales of properties purchased will show you the list of the houses bought As Is which needs(ed) massive repair and those needing no repair.

I make certain by investigating the recent properties transactions to determine which properties is being bought and sold and by whom. Was the buyer an investor or user? How long before a property sold had it sold before. What did it sale for. What was the condition of the property on the first sale as it compares to the second sale.

Then I look at listed property to determine what the neighborhoods buyer requirements are and what value those requirements have on the sales price. And most importantly if the buyer pool even requires modification to a property.

What I am looking for is three like type properties in the same condition as my subject. Within 5 years of age, 200 square feet up or down, like type construction, and same bed//baths within a 1/4 mile.

If I find three then I can figure an As Is value. If I cant find three and rarely I can’t as I buy crap which is where we investors play. However if I can’t three then I do exactly what an appraiser does by adding and subtracting value based upon the condition of the subject property as it compares to the recent three sold properties..

When you pull comps for a home the as is transactions pop off the page… Most of the time you can see them immediately. Signs of an As Is sale are properties held in LLC/Corp/Trust and haven’t been resold and may be on the market at a higher value or have been resold at a much higher value.

Its always important to have a conversation with recent sale buyers in the areas you buy in so that you understand the seller concessions. Without knowing the concessions you wont know the true sales price. Which is extremely important when negotiating with the seller.. They may know that a comparable home sold for 100k around the corner but were unaware of the concessions paid to the buyer. Things like financing concessions, upgrade concessions, length on market concession, Realtor concessions and so on. All concessions lower the value of the subject property.

I never have an issue showing a seller what their home could fetch on the open market because they cant sell it that way for whatever reason. And my intention is to buy based upon the lowest possible value… So if two of my comps support a higher value yet the third doesnt i use the third. It is safer for me. Although buying at 50 cents is fairly safe.

So once I determine the As Is value, BTW that determination is very fast, I now know what I would accept as an offer from the seller.

I have found that buying As IS and selling As IS is the easiest form of investing that I have done to date.

When I contract the property instantly goes onto the MLS and starts the cycle of selling. Because it usually is the lowest property on the market it goes fairly quick. Selling As IS has really helped my average Days After Contract. These are cash deals and low cost deals.. most of the time the property has a bucketload of equity in it for both the seller and myself and we both win.

I hope that helped and as I was typing realized that it is a huge topic…

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Russell July 4, 2014 at 1:12 pm

Thank you Michael

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Jerry B. July 4, 2014 at 2:35 pm

Michael,
Amazing show! I’ve listened to it twice already… I couldn’t agree more that you only increase your skills by practicing. That said, I’m in serious need of marketing help! I have so many questions, so I’ll start with what I think is most important. I’ve visited your site and even gotten samples of the mail pieces; which ones are most effective in your experience?

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Michael Q July 4, 2014 at 6:29 pm

Jerry B –

I am sorry… Three hours of listening to my voice would be punishment for most people.

As for your question… That’s a huge question and without knowing a little about what your wanting to accomplish and what systems are in place for lead capture its difficult for me to just blurt out things to do..

Hopefully they will have me back sooner than later.

In the mean time, as I said on the Podcast you are welcome to give me a call at the office to go over a marketing program.

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Jerry B. July 4, 2014 at 6:50 pm

That’s awesomely generous of you. I certainly will take you up on the offer; thank you very much.

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Michael July 4, 2014 at 7:39 pm

Hi Michael,

You mentioned that you start marketing the property as soon as the seller signs the contract by putting it on the MLS. I have a few questions regarding this.

1. Have you ever had an issue when the seller found out how much you were reselling the house for before closing?

2. What if the seller asked to be paid within 3 weeks from the day of the contract being executed and you haven’t sold the house using the MLS within this timeframe. Are you closing with your own cash?

3. As you mentioned in the podcast, most motivated sellers do not want to have strangers walking into their home. Since you are listing the property on the MLS, how are you overcoming this issue when it comes to showings?

4. Does this strategy violate your duties as a broker in any way?

I hope I didn’t misunderstand what was said on the podcast but I have never heard of anyone using this strategy before. Thank you in advance for taking the time to answer my questions.

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Michael Q July 4, 2014 at 10:56 pm

See reply below…

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Zaid July 4, 2014 at 9:58 pm

Michael,
First of all congrats on your success, and thank you for sharing your thoughts/process in this podcast. I am looking forward to your future marketing podcast (esp since I’m a happy customer of your company yellowletters.com)
I always ask the sellers that call me (what’s the least you can sell me your house for?) and sometimes I get an answer like (I don’t know, you’re the expert) Any recommendations on how to handle this?
I’m also curious as to how many mailers you send a month (if you’re willing to share this)?

Thanks again -

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Michael Q July 4, 2014 at 10:54 pm

Thanks for being someone I help. I need more people like you.

I think your question is easy but tough to pull off all of the time… We get so caught up in the call we forget our objective. Most of the time I ask them to determine their sales price and if they need to call me back.

I know that when we decide to sell anything, a car, boat, furniture whatever, and are motivated we do research or at the very least have a bottom number that we can justify to ourselves. A caller who says they dont know is either 1) afraid to say or 2) not motivated.

Either way I need them to be honest and tell me…

A long time ago I learned that I can’t lose what I dont have. So if a call which sounds positive in the beginning goes south I am certainly not going to worry.. If they were a motivated seller they would have told me.

At times when I hear that the seller is trying to be honest and upfront but just timid I mimik them by asking if one dollar were enough and they always say no it is not so I reply with so what number did you have in mind… I usually get an answer.

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Alex July 4, 2014 at 10:40 pm

While I enjoyed the podcast and the information shared generally, I had the same reaction as Karen to the “nlp, mimicking, embedded commands” aspects. This simply sounds like a hard sell, marginally “ethical, moral, and legal”, tactic/manipulation to persuade a vulnerable seller, to part with a more than reasonable amount of his or her equity in a piece or real estate.

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Michael Q July 4, 2014 at 10:43 pm

Michael

I have had only one seller become frustrated that I was reselling the property for 60K +- or more. However he wasn’t frustrated long especially when I reminded him that my expectation was a gamble and his sales price with me was a sure thing… I had a little more negotiating to do.

I always put a sign and flyer box in the yard with and the flyer has a resale price and I completely disclose the fact that I am reselling for a HUGE profit within my agreement. If anyone wants to read my contract look under my profile for a link. I think honesty with the seller is paramount.

There are all kinds of ways to close a transaction and cash to the seller is the most expensive for them. If that is what they want then they get less cash. We alway must mitigate any costs with a lower purchase price. And cash cost money whether its our own or borrowed.

All listing and offer acceptances are subject to two things. 1) Seller obtaining title and 2) Subject to interior inspection… Because I sell at 100% of as is value I rarely have anyone care about what the property looks like.

I never have agency with the seller. It is very clear in my agreement to purchase that I do not however in a shortsale situation I also have them sign a specific form that removes any possibility of agency.

Its one of the really brilliant rules set by NAR with a ton of wisdom is that they specifically require the seller to approve the insertion of the listing into the MLS and specifically do not describe the seller as the constructive owner.. This allows a seller with equatable interest to list property.

This right goes all the way back to when exchanges were a large part of the mls…

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Greg Jackson July 5, 2014 at 5:52 pm

Mike,

Should I get Skippy or Jif?

P.S. You could have an Air Force pension by now! .. oh wait …

:D

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Michael Q July 5, 2014 at 6:26 pm

My Dogs and I like Creamy… Doesnt matter what brand as long as it isnt an off brand or weird like almond butter… YUCK.

And a military career is extremely admirable. My son is a Naval Officer and enjoying himself flying airplanes. It is very cool that people sacrifice themselves for our nation.

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Greg Jackson July 5, 2014 at 6:46 pm

Re. Creamy … lol

Have a great weekend!

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Roberto Reyna July 5, 2014 at 6:52 pm

I too am a veteran of the military. We are above average patriotic citizens who love this country very much, always appreciate the many freedoms we have in this country because of people like us who gladly defend your right to live free.

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Justin K July 5, 2014 at 7:57 pm

Hi Michael,

Thank you for the great podcast! One of the greatest benefits you offer seems to be the all cash offer. How does your system translate for someone who doesn’t have the cash and is either relying on seller financing, wholesaling or least optioning the property?

Thank you!
Justin

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Michael Q July 6, 2014 at 11:49 am

Good Morning Justin…

From a lease option perspective negotiation changes due to the required needs on the seller by the Investor however seller financing and wholesaling don’t change much. Especially wholesaling..

Seller financing will be granted IMHO about 25% of the time it is asked for and some of the no answers will convert to seller financing during the escrow period to purchase. During the negotiation with the seller we should determine what the seller is going to do with the funds and if the funds are remaining liquid, If so then begin the negotiation of seller financing.

And you should not wholesale a deal you can buy at 50-60% of as is value.

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Patrick July 6, 2014 at 7:30 am

Great interview! Absolutely loved the information.

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luther July 6, 2014 at 8:54 pm

@MichaelQ,

Excellent Podcast. I am in sales at my day job and what you teach can be applied there just as much in my real estate investment business.

Can you please provide a step by step of what you do? The fact that you sell at 100% of ARV keeps throwing me off and no amount of re listening of the podcast seems to be clearing up.

Thank you Sir,

Luther M

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Melodee Lucido July 7, 2014 at 3:55 am

Hey Guys, Awesome & Amazing. Really.

It cracks me up (and kinda annoys) that some people want the podcast to be all serious—like it’s brain surgery or something. This business has it’s serious side but I always get ready for giggles when I’m about to listen to a BP podcast; I have my smile all ready and can’t wait to cash it in. This one was hilarious!

The comments about Michael and manipulation remind me of when I was first in the biz. I was all about the “poor souls” that needed a friend and help. Now, after having dealt with so many sellers that wanted to manipulate and trick me I am happy to “lead them”. I am actually doing them a favor. I am saving them time and helping them to step into reality—a place that most sellers I talk to have never been to.

I am clear that my weakest skill in this biz is negotiation. It annoys me often. Brandon, thanks for just being you and being real. Michael, I can’t even tell you how much I got out of this episode. I’m going to listen again and can’t wait for the next time you are featured. I will always remember this podcast as I am “practicing”.

Thanks guys!

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Melodee Lucido July 7, 2014 at 3:55 am

Hey Guys, Awesome & Amazing. Really.

It cracks me up (and kinda annoys) that some people want the podcast to be all serious—like it’s brain surgery or something. This business has it’s serious side but I always get ready for giggles when I’m about to listen to a BP podcast; I have my smile all ready and can’t wait to cash it in. This one was hilarious!

The comments about Michael and manipulation remind me of when I was first in the biz. I was all about the “poor souls” that needed a friend and help. Now, after having dealt with so many sellers that wanted to manipulate and trick me I am happy to “lead them”. I am actually doing them a favor. I am saving them time and helping them to step into reality—a place that most sellers I talk to have never been to.

I am clear that my weakest skill in this biz is negotiation. It annoys me often. Brandon, thanks for just being you and being real. Michael, I can’t even tell you how much I got out of this episode. I’m going to listen again and can’t wait for the next time you are featured. I will always remember this podcast as I am “practicing”.

Thanks guys!

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Michael Q July 7, 2014 at 11:52 am

Thank you for laughing with us (or at me)…. I had fun too… I cant wait for the Vanilla Ice version of Josh Josh Baby,

and Brandon can close by singing the podcasts out singing

Yo, man, let’s get out of here! Word to your mother! Josh Josh Baby Too cold, Josh Josh Baby Too cold Too cold Josh Josh Baby Too cold Too cold,Josh Josh Baby Too cold Too cold

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Brandon Turner July 9, 2014 at 11:30 pm

Hahaha Michael… speaking of that… have you seen this? https://www.youtube.com/watch?v=AtmdjGVxs_0

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Melodee Lucido July 7, 2014 at 12:03 pm

Michael I forgot to ask about your books I heard you have a good sub2 book. I didn’t see you on Amazon. Please share.

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Ervin Taylor July 7, 2014 at 12:19 pm

Great job, this was one of the best shows I have ever listened to. I would like to tell you guys keep up the good work. I am learning so much and I really appreciate the insight I was given in this show and the show. Wonderful insight to Negotiations, you guys much have Michael back on immediately there were so many things I am interested to here him elaborate on. Especially the tools he utilize in marketing.

Great show again…

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Brandon Turner July 9, 2014 at 11:31 pm

Thanks Ervin! We appreciate that! And we’ll definitely have him back on soon :)

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Fred July 7, 2014 at 3:02 pm

Very enjoyable podcast. Yes it had me squirming in places but to be honest it was nice to be “listening in” and not be on the receiving end of some of these sales tactics. I could totally relate to Brandon as he got beaten down on price.

I think it takes a certain personality to successfully use the tactics mentioned and I am not sure if I could “pace” someone but I could certainly benefit from asking someone a few times if they could do better on price and if that is the lowest they could sell for. Knowing when to keep quiet can be a useful knowledge.

This is definitely one I will be listening to more than once.

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Phil Dwyer July 7, 2014 at 5:57 pm

Michael thanks for sharing your techniques. I went through a NLP training course a couple of years ago, and found it very interesting. I’m looking forward to the next podcast with your marketing insights.

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Greg Tregre July 7, 2014 at 6:53 pm

Just finished the podcast today and WOW what a great show. Really liked the role play and particularly enjoyed the perspective of providing service to sellers that for one reason or another cannot go the traditional route to sell their home. Like Josh, I never considered negotiation to be my best skill, but I can see where the techniques discussed can keep the negotiation focused to reach a conclusion that is good for everyone. Great job all around.

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Zachary Durland July 7, 2014 at 10:58 pm

It think that each of us is afraid of ever having to be a seller in this situation and we project that fear-turned-disgust onto Michael. We should remember that mastering ourselves is paramount to our success.

During the podcast, I felt a little creeped out because I felt like I was being spoken to by Michael, and thus, I was being sold to, which I hate in general.

When I gained control of my feelings again, I was able to process the fact that Michael has a business model, criteria, and solutions fit for a certain crowd. Perhaps, until we are in such a situation, it’s tough to draw the lines of ethics and business.

Now, if I were to turn an unmotivated seller in a motivated seller using these techniques, I would be unethically creating a scenario in which I would profit, taking advantage of someone who had not needed such services as Michael’s.

But, if said person were truly a motivated seller before even contacting me, I would feel free to engage with that person, using these techniques to make myself heard and educate the seller about what I do, why, and why they called me in he the first place.

If during the conversation they discover that this wasn’t at all what they thought they were meeting to discuss, they should end negotiations.

Now, I understand that some folks cant just say no like we may be able to, so it’s at this point that we have to recognize that they’re agreement may be a result of unfair pressuring on our part. And if I remember correctly, Michael asked one seller to have her son come out to get involved, for which he was thanked.

To sum up, like anything else, WE have to take responsibility for our own actions and put forth an ethical foot, rather than employ methods blindly as they exist.

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Tom & Roni Keith July 9, 2014 at 6:23 pm

Great Show Guys! Thanks Michael for Your Service to this wonderful world of Real Estate Investment.

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Ariel Cohen July 15, 2014 at 10:45 am

I enjoyed the show a lot but also felt like the role playing was a little like a time share sales call.

I guess the “negotiation” part is very direct and blunt which is probably what makes it effective. I need to pick up a book on Neuro Linguistics to learn more about these techniques to be able to practice.

For me the most motivating part about this Podcast was hearing how your first deal was done. Shows that you don’t have to “know everything” to get started as a successful investor.

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Michael Q July 16, 2014 at 5:33 pm

What is very difficult to do when role playing is for someone who is listening to hear all of the other conversation that is conversed. All of the small talk and like minded references.

The other thing you cannot here is the visual of the seller who in most occassions starts becoming less afraid and transitions into a very peaceful and grateful state.

When these sellers learn that their problem is being taken away and that I have removed the burden and stress they have felt trying to hold on they become extremely happy.

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Ariel Cohen July 17, 2014 at 7:52 am

After you ask the five questions and you get the right answers, do you then go on to more detailed questions? When are you determining the value of the house? While on the phone with the caller or do you call them back after researching the value?

On the podcast you mentioned that you setup a visit at the property to buy the house. I am just trying to figure out the sequence of events… if you decide you want to buy the house at their offer price on the initial call and set up the meeting right away.

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Michael Q July 30, 2014 at 2:39 pm

If they answer the questions correctly then we do go into the full script. Afterwards we do our review of their numbers and call them back to “Confirm” the appointment that we have made.

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Keith Agnello July 26, 2014 at 1:45 am

Thanks Mike for taking the time and doing this podcast as well as for all of your contributions in the forums. You are a constant inspiration with your willingness to share your wealth of knowledge in real estate. Really great stuff!

Two questions I have after listening to this episode:

I have an absentee list and you mentioned that you target the bottom two-thirds of the median sales price of the areas you market to, can I use the assessed value on my list to filter it down and mail to hopefully more motivated potential seller?

Also, do you need a license in California to wholetail?

Thanks again!
Keith

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Michael Q July 30, 2014 at 2:37 pm

Hi keith…

Yes use the Accessor Data..

As for wholesaling after constructive notice NO however if you define wholesaling as assigning the contract then in California you’re limited to 8 times a year.

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Michael Dorovich August 15, 2014 at 1:23 pm

I haven’t heard the sales part yet, only 15 minutes in, but you have to love the story of someone going out and building the thing and everything else falling into place. ‘Do the thing and you have the power.’ And the guy who lent you the materials saw that you could build, so he lent you the money. This is the way it should be. You gotta love business working on a handshake, vs. approval from a half dozen people who push paper.

Someone who knows how to build going into real estate – it makes too much sense vs. all the ‘strategies’ taught to people with no experience these days. From my experience, people who know how to build things tend to be very matter of fact and practical or direct, and this may be what was coming across in the sales techniques, will have to hear them to know. But at some point it has to come down to I want X, you have Y, and Z has to happen to get there.

Love it so far, thanks Michael!

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Chris Reed September 19, 2014 at 4:31 pm

Loved the podcast Michael! I am catching up on podcasts and cannot wait to hear your next one on marketing and any other information I can soak up from you. I enjoy the tone of your personality and it would be a joy to connect someday!

I am currently working overseas as a government contractor but I am aching to return to a “normal” life with my wife and children. I was planning on quitting my job and starting a business as a real estate agent in order to pay the bills (we have very low expenses) and imbed myself more in the real estate investing community. What do you think about becoming an agent for this purpose? It sounded like you do not recommend becoming an agent in the capacity of a “job”.

I am looking for a source of income that will pay my monthly expenses and also give me the flexibility, experience and knowledge to build my real estate investing business.

Thanks again for your contribution of this podcast for all of us!
Chris.

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