It's the little things...

3 Replies

Yesterday's success: We got our first call back on our first teensy batch of yellow letters.

Todays success: I learned a whole hell of a lot about vetting sellers to determine who is actually motivated to sell and to what degree. (When I met with the buyer and eventually figured out that they're just not quite "there" yet).

The takeaway: 90% of the work we're doing (at least now in the early days) is seed planting. Follow up is huge. Patience is necessary. Getting a sense as to when to walk away and for how long is vital.

Up next: a more official marketing campaign and some general business organizing.

I've appreciated all the feedback from many members along the way as we get started on the journey!

@Stacey Olson  ,

Congtraz!  The first steps are the hardest!  Picking up that phone can be like wrestling a 500 pound gorilla :).  

You have a lot of lessons to go, I hope you enjoy each and every one of them.  They will make the stories that keep you young and energized.  

Phil

PS: 95% of the time, I will not visit a property until I have it under contract, which I do over the phone based off of what the seller tells me (I work with a lot of out of state sellers).  This way everyone knows what eachothers expectations are.  The seller knows I'll renegotiate if what we believe to be true is some how not the entire picture.  

Thanks @Philip Cutting !

Yeah, I totally agree on the limiting visits, and I will definitely do that as business picks up.  I've learned over time that I'm very much a visual and kinesthetic learner, which means I get the most from a situation when I'm right there in the fray.  I actually feel much more prepared to manage things over the phone now that I've had that one face-to-face interaction.  However, now I also see that I need more focus and experience on really understanding why selling to me is a great option for them. I'm good at customer service, but not always so great at sales and negotiation, so now I have a new direction to focus my energy. Oh yes, and I'm still pretty weak at understanding exactly what all of a seller's options are and how to proceed once we find an option that hooks them. SO MUCH TO LEARN! Thanks for your feedback!

Selling to you is the best option because no one can solve their problem like you can.  That is for sure.  

In general should get 3 options for offers, and any property you visit should get three offers and you should expect them to accept one of them (even though most will not accept your offers, and if they do, you are leaving way too much money on the table).  

(1) 50% of the as is market value cash and to close on the day of their picking, and as soon as 7 to 14 days to make sure you can get clear title and do an inspection for your partner  or even get a bpo (so you can wholesale it), 

(2) 25% percent cash up front and then payments for a 75% market value.  

(3) 100% finance with near to MLS value paid over 2 or some years.

These are all general except for the cash value.  sure, you can argue with me if you are in a market that is appreciating, but if it's a stable market, you want to leave room for them to negotiate.  

Even better, is to have them name their price, but this kind of negotiations take time to practice.  So work on it, but don't be hard on yourself.  

This advice is based on what I understand from you and that is that you are motivated, have time, and are willing to work really hard!  

The seller options are to sell you a property that is causing them distress.  If there is no distress then they need to find a realtor, or a hobby.  

Keep it up! You rock!

Phil

PS: Because i'm not local, my advice might be terrible!  But it's probably close to on target.  You have to know what cycle you are in.  And you are totally right, the more practice you have talking to sellers, seeing properties, evaluating scopes of work, the better you will be in the long run, so take your time and work on it.

PSS: Go to as many open houses as possible in your target market!  This will give you price comparisons and also let you know how much those areas demand for quality of home.  Remember that the buyers are going to see those houses and compare anything you have to that.  If you know the area, you can tell stories and make comparisons to sellers.

PSSS: Sellers make emotional choices, they operate off of what feels right for them.  It's not about how good you are, but how you solve their problem.  

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