How do you weed out the tire kickers/unrealistic sellers?
Rental Property Investor · Hummelstown, PA · Member since 2015 · 638 posts · 653 votes
How do you weed out the tire kickers/unrealistic sellers?
Most Popular Reply
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
7yOriginally posted by @Kyle McCorkel:
I've been sending letters and postcards for about 8 months now and I'd say 90%+ of the respondents are what I would call tire kickers. These are people who aren't truly motivated or just don't get it - for example on a property with an ARV of $150K that needs $30k in rehab, I'll offer something like $85K and they absolutely balk and say they were expecting an offer of $150K!
Oh and they also want a quick, cash sale and don't want to go through a realtor.
How do you weed these people out or educate them so that you don't waste both your and the seller's time? I put in all my mailers that I'm a real estate investor looking for properties that need work. I tell them over the phone that my goal is to make a profit, and my price will be based off ARV minus repairs minus profit. When I go to the property I show the seller everything that needs to be repaired/upgraded and explain that I will be putting tens of thousands into the property. After all this prepping, when they finally hear my offer, nearly every time they are absolutely floored/insulted.
Does anybody have any techniques they use to help to filter these people out?
Hi Kyle.
Great question and the reality is that negotiation skill are needed only when a prospect is at the point of negotiation.
I have always said that we cannot create reasonable motivation to sell, we can only create unreasonable motivation.
And since everyone who calls is typically a qualified prospect its important to create a followup system... At some time in the future everyone sells. Or DIES then their heirs sell.
So the 90 percent you spoke about is your future funnel.
Also dont make an offer... Always accept offers.
Throwing out a number before you qualified a number to your prospect is a slap in the face and hard to receive for most prospects except those who are currently motivated.
I have an 85% rule.
Tell me what it is worth. They say X, now tell me what your walk away number is including underlying loans and liens. That number must be X x 85% or I wont continue...
I dont want to spoil the future conversation now.
8 Replies
- Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes7y
Originally posted by @Kyle McCorkel:
I've been sending letters and postcards for about 8 months now and I'd say 90%+ of the respondents are what I would call tire kickers. These are people who aren't truly motivated or just don't get it - for example on a property with an ARV of $150K that needs $30k in rehab, I'll offer something like $85K and they absolutely balk and say they were expecting an offer of $150K!
Oh and they also want a quick, cash sale and don't want to go through a realtor.
How do you weed these people out or educate them so that you don't waste both your and the seller's time? I put in all my mailers that I'm a real estate investor looking for properties that need work. I tell them over the phone that my goal is to make a profit, and my price will be based off ARV minus repairs minus profit. When I go to the property I show the seller everything that needs to be repaired/upgraded and explain that I will be putting tens of thousands into the property. After all this prepping, when they finally hear my offer, nearly every time they are absolutely floored/insulted.
Does anybody have any techniques they use to help to filter these people out?
Hi Kyle.
Great question and the reality is that negotiation skill are needed only when a prospect is at the point of negotiation.
I have always said that we cannot create reasonable motivation to sell, we can only create unreasonable motivation.
And since everyone who calls is typically a qualified prospect its important to create a followup system... At some time in the future everyone sells. Or DIES then their heirs sell.
So the 90 percent you spoke about is your future funnel.
Also dont make an offer... Always accept offers.
Throwing out a number before you qualified a number to your prospect is a slap in the face and hard to receive for most prospects except those who are currently motivated.
I have an 85% rule.
Tell me what it is worth. They say X, now tell me what your walk away number is including underlying loans and liens. That number must be X x 85% or I wont continue...
I dont want to spoil the future conversation now.
- Rental Property Investor · Hummelstown, PA · Member since 2015 · 638 posts · 653 votes7y
That's great feedback, thanks!
Can you clarify what you mean by your walk away number, and how you explain it to prospective sellers?
- Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes7y
Before talking about much of anything, you need to find motivation. If they aren't motivated, you won't have a deal. Then do as @Michael Quarles says and create a good follow up system.
@Michael Quarles you still gonna give to the seller some numbers/ any offer..?
- Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes7y
Originally posted by @Danny Zel:
@Michael Quarles you still gonna give to the seller some numbers/ any offer..?
i am going too agree to the offer they give me if it fits my business model... Negotiation is about giving your opinion to someone in a way that they comprehend it and thus give it back to you as an opinion that you can agree with.
If I like the color Red and my prospect likes the color blue. My job is to give them the reasons why Red is a better color overn blue in a way that they can agree to so when I ask them their favorite color they say red.
Most investors say things like; i can offer you this value, without any pre justification to the seller and then wonder why they were turned down.
What we do has enormous value to a motivated prospect and zero value to an unmotivated prospect.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Michael Quarles:
I've been sending letters and postcards for about 8 months now and I'd say 90%+ of the respondents are what I would call tire kickers. These are people who aren't truly motivated or just don't get it - for example on a property with an ARV of $150K that needs $30k in rehab, I'll offer something like $85K and they absolutely balk and say they were expecting an offer of $150K!
Oh and they also want a quick, cash sale and don't want to go through a realtor.
How do you weed these people out or educate them so that you don't waste both your and the seller's time? I put in all my mailers that I'm a real estate investor looking for properties that need work. I tell them over the phone that my goal is to make a profit, and my price will be based off ARV minus repairs minus profit. When I go to the property I show the seller everything that needs to be repaired/upgraded and explain that I will be putting tens of thousands into the property. After all this prepping, when they finally hear my offer, nearly every time they are absolutely floored/insulted.
Does anybody have any techniques they use to help to filter these people out?
Hi Kyle.
Great question and the reality is that negotiation skill are needed only when a prospect is at the point of negotiation.
I have always said that we cannot create reasonable motivation to sell, we can only create unreasonable motivation.
And since everyone who calls is typically a qualified prospect its important to create a followup system... At some time in the future everyone sells. Or DIES then their heirs sell.
So the 90 percent you spoke about is your future funnel.
Also dont make an offer... Always accept offers.
Throwing out a number before you qualified a number to your prospect is a slap in the face and hard to receive for most prospects except those who are currently motivated.
I have an 85% rule.
Tell me what it is worth. They say X, now tell me what your walk away number is including underlying loans and liens. That number must be X x 85% or I wont continue...
I dont want to spoil the future conversation now.
Mike you just make me smile.. it reminds me of sitting through my Dads sales meetings when i was newly minted real estate agent trying to figure out how to close these deals.. of course little different just trying to convince a buyer to buy something that 10 days before they had no interest in.. However when i morphed into buying timber rights timber land and then fix up houses in mass.
you talk about a tough sell was those timber owners.. usually 2 to 3 generations living on the land.. they were in LOVE with their timber.
letting someone come in and mow it down and haul it off was an auto NO way.. so we developed the siding salesmen or Roof salesmen pitch with these folks.. We offered a free assessment of their timber value keep in mind we never used Cruise a Cruise is a formal appraisal just so more of a BPO than an appraisal . Pitch went ( we telemarketed a custom data base i built) anyway we are logging down the road and our forester will be in the area.. would it be Ok if we stopped by and gave you a free estimate of your timber value.. the general health of your stand and any tips we may have for You to improve your stand.. This is free of charge.
we can see you Thursday at 10am or would 1pm be better SILENCE wait for reply. But your so dead on.. only about 1 in 20 did something within 30 days of that free visit .. but now they are in our funnel and get dripped on .. like my partner said they are a lead until that stand has been clear cut.. then they are a lead to tickle in about 50 years.. As I did this in the early to mid 90s its amazing to see stands we logged and are just popping back thick growing well 30 foot to 40 foot tall doug fir about 20 years from the next harvest.
And we did run into the land owner also that unbeknownst had a financial need and we saved the day.. Unlike Gypo's we paid cash before we moved onto the property.. we bought the timber deed.. our competition basically tried to assign.. we killed those guys.
as we were talking 100k to multi millions for these stands.. and let me tell you when make a deal and close it in 3 to 5 days for cash thats the difference maker.
Anyway i always love your perspective on sales and your one line closing techniques it brings back such fond memories for me.
- Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Michael Quarles:
Originally posted by @Kyle McCorkel:
I've been sending letters and postcards for about 8 months now and I'd say 90%+ of the respondents are what I would call tire kickers. These are people who aren't truly motivated or just don't get it - for example on a property with an ARV of $150K that needs $30k in rehab, I'll offer something like $85K and they absolutely balk and say they were expecting an offer of $150K!
Oh and they also want a quick, cash sale and don't want to go through a realtor.
How do you weed these people out or educate them so that you don't waste both your and the seller's time? I put in all my mailers that I'm a real estate investor looking for properties that need work. I tell them over the phone that my goal is to make a profit, and my price will be based off ARV minus repairs minus profit. When I go to the property I show the seller everything that needs to be repaired/upgraded and explain that I will be putting tens of thousands into the property. After all this prepping, when they finally hear my offer, nearly every time they are absolutely floored/insulted.
Does anybody have any techniques they use to help to filter these people out?
Hi Kyle.
Great question and the reality is that negotiation skill are needed only when a prospect is at the point of negotiation.
I have always said that we cannot create reasonable motivation to sell, we can only create unreasonable motivation.
And since everyone who calls is typically a qualified prospect its important to create a followup system... At some time in the future everyone sells. Or DIES then their heirs sell.
So the 90 percent you spoke about is your future funnel.
Also dont make an offer... Always accept offers.
Throwing out a number before you qualified a number to your prospect is a slap in the face and hard to receive for most prospects except those who are currently motivated.
I have an 85% rule.
Tell me what it is worth. They say X, now tell me what your walk away number is including underlying loans and liens. That number must be X x 85% or I wont continue...
I dont want to spoil the future conversation now.
Mike you just make me smile.. it reminds me of sitting through my Dads sales meetings when i was newly minted real estate agent trying to figure out how to close these deals.. of course little different just trying to convince a buyer to buy something that 10 days before they had no interest in.. However when i morphed into buying timber rights timber land and then fix up houses in mass.
you talk about a tough sell was those timber owners.. usually 2 to 3 generations living on the land.. they were in LOVE with their timber.
letting someone come in and mow it down and haul it off was an auto NO way.. so we developed the siding salesmen or Roof salesmen pitch with these folks.. We offered a free encasement of their timber value. Pitch went ( we telemarketed a custom data base i built) anyway we are logging down the road and our forester will be in the area.. would it be Ok if we stopped by and gave you a free estimate of your timber value.. the general health of your stand and any tips we may have for You to improve your stand.. This is free of charge.
we can see you Thursday at 10am or would 1pm be better SILENCE wait for reply. But your so dead on.. only about 1 in 20 did something within 30 days of that free visit .. but now they are in our funnel and get dripped on .. like my partner said they are a lead until that stand has been clear cut.. then they are a lead to tickle in about 50 years.. As I did this in the early to mid 90s its amazing to see stands we logged and are just popping back thick growing well 30 foot to 40 foot tall doug fir about 20 years from the next harvest.
And we did run into the land owner also that unbeknownst had a financial need and we saved the day.. Unlike Gypo's we paid cash before we moved onto the property.. we bought the timber deed.. our competition basically tried to assign.. we killed those guys.
as we were talking 100k to multi millions for these stands.. and let me tell you when make a deal and close it in 3 to 5 days for cash thats the difference maker.
Anyway i always love your perspective on sales and your one line closing techniques it brings back such fond memories for me.
Jay
Sounds like I would have enjoyed your Dad.
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