Hi, my name is Sharane. I am roughly new to “taking action” with my real estate investing. I’ve been working for corporate America in the mortgage business since 2012 at the same company that I’m currently at till this day. So far, my targeted investing area is Southfield, MI (and a few cities nearby Southfield).
I’ve attempted to do about 10 deals so far within the last 3mos, but none have fell through and it’s beginning to be a little discouraging. ...but I refuse to call it quits.
I need help on some tips when approaching sellers. Thus far, I’ve had sellers get upset with me for what I offer and they aren’t even willing to negotiate when I suggest to tell me how close they’ll get to the number I offer.
ALSO, the phone call I just now made to a seller (which led me to come here and seek some advice), before I even asked the seller what his asking price was, he asked “Are you a wholesaler?”... I replied saying “I’m a real estate investor.” Because I didn’t want to scare him off with the word “wholesaler” which apparently is viewed negatively :(
I just need help on how to address a seller. And how to get them to budge on their price a little. I would like to get something under contract soon! I’m just not sure what it is that I’m doing wrong.
And if anyone in Michigan is open to having me intern under them, I’ll be glad to do it for free. I can do some leg work for you; I just want to get some more experience and learn.
Your probably most likely isn't approach but sample size. Mailing lists get a 1% response rate of people who even want to talk, if you have just called 10 random owners there is only a 10% chance you would have hit that 1% willing to sell
Two thoughts come to mind when reading your post...
One, you say you've attempted 10 deals in the last 3 months. That's a pretty small sample size. Don't get too discouraged yet. It's a numbers game and it's likely going to take a LOT more attempts before you get a deal.
Two, the title of your post says "How to approach unmotivated sellers". You really need to focus on motivated sellers because you're not likely going to get unmotivated sellers to come off their price because, well, they're not motivated.
You're wasting your energy on the wrong leads. If the seller is unmotivated, there is no deal there.
You have to get in touch with motivated sellers. People who actually want to sell soon because of some situation in their life.
As some others have said, it's a numbers game. So you should be talking to lots of prospects and making appointments with the ones that really want to sell.
What does your offer look like when you approach these sellers? Have you sent out a letter? What is getting them to budge on their price "a little?" It sounds like you're asking for a lot more off if they aren't willing to negotiate at all.
I agree that it sounds like you're not approaching motivated sellers if this is the reaction. I'm not too familiar with Southfield - is it a hot market currently? How long have the properties been sitting on the market when you approach the sellers with an offer?
Here are some tips on places to look for motivated sellers:
1. Delinquent tax records
2. Distressed property (bad roof, overgrown yard, cars piled up around the property, home exterior in disrepair, vacant home, etc.)
3. Moving sale/estate sale - start off by asking the owner what they plan to do with their home.
4. Seizure notice on the doors and locks that have been changed.
Understanding the psychology behind these types of situations will help when approaching the owner. You can be the solution to their problem. It may take some time. Quite often, with the first contact, you are simply planting a seed.
Don't be discouraged. Keep that "don't quit" attitude.
Here is some helpful information to read. This podcast and also this podcast will point you down the right road. Spend some time learning, working on your style and confidence and most importantly, practicing your delivery. You're going to here a lot of "no's."
To your success!
Thank you all for your responses and feedback!! Great stuff here.
Since then, I have had more success. I appreciate all of your input!