Specialist · Baltimore, MD · Member since 2018 · 130 posts · 100 votes
Hey BP! what are your Do's and Don'ts when it comes to speaking with off market sellers? You guys running off a script or by gut on how the conversation is going? Would you ask price with the first conversation or build some rapport to ask down the road? I know there's probably a million different ways to talk to off market sellers so any incite would be greatly appreciated!
Real Estate Agent · Philadelphia, PA · Member since 2018 · 416 posts · 396 votes
7y
@Daniel Brown I talk to a lot of potential off market sellers over the phone via cold calls as an agent. I never discuss price over the phone on the first call. I look more for the interest and the appointment. Find out what their goals/problems are. If you can help them achieve/solve them you’ll find yourself a deal.
Also go for The “low hanging fruit” for lack of a better term, people you know have problems. Behind on taxes? You’re the solution. Potential foreclosure? You’re the solution. Real estate investing is all about helping people achieve goals or solve problems.
@Daniel Brown I talk to a lot of potential off market sellers over the phone via cold calls as an agent. I never discuss price over the phone on the first call. I look more for the interest and the appointment. Find out what their goals/problems are. If you can help them achieve/solve them you’ll find yourself a deal.
Also go for The “low hanging fruit” for lack of a better term, people you know have problems. Behind on taxes? You’re the solution. Potential foreclosure? You’re the solution. Real estate investing is all about helping people achieve goals or solve problems.
Great advice Bill! Thank you! Yea, I don’t think i would ever wanna talk price on first phone call. Im looking into to buying self storage from ma and pops and I’ve started my DM campaign. I’m trying to avoid any blunders when speaking with them.
Real Estate Agent · Philadelphia, PA · Member since 2018 · 416 posts · 396 votes
7y
@Daniel Brown I’m not going to pretend to know a thing about the self storage business. I never looked down that avenue. Are you looking for space to purchase or buying the actual business itself?
@Daniel Brown I’m not going to pretend to know a thing about the self storage business. I never looked down that avenue. Are you looking for space to purchase or buying the actual business itself?
Looking to buy the business itself. Possibly seller financed. Got about 150 leads to start so hopefully something hits 🤞🏼🤞🏼
Real Estate Agent · Philadelphia, PA · Member since 2018 · 416 posts · 396 votes
7y
@Daniel Brown good luck brother! Maybe you can structure the deal this way. Find out how’s much they need each month to comfortably retire and pay them that (for x amount of years) with some small amount of cash down. You might get a discount if you can meet their basic needs in that way. You can literally pay them from the income from the business! Or, you can buy a weak business and value add! I’m just spitballing.
@Daniel Brown good luck brother! Maybe you can structure the deal this way. Find out how’s much they need each month to comfortably retire and pay them that (for x amount of years) with some small amount of cash down. You might get a discount if you can meet their basic needs in that way. You can literally pay them from the income from the business! Or, you can buy a weak business and value add! I’m just spitballing.
Brother you read my mind! SS can be very similar in some ways to residential rental properties. Value adds and helping someone get where they need to be is the same in the commercial arena. Who knows, you might find yourself jumping in before you know it. 😎
Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
7y
I typically call people who I know are sellers and aren't simply the owners of the property (and aren't willing to sell).
I call, ask them to tell me about the property (when they bought it, any issues or repairs needed, the tenants, etc. and the seller usually talks for a while which is great as they often cover a lot and offer insight - not just about the property but about landlording in general).
I tell them what I can pay and why. Sometimes they accept, sometimes we negotiate a bit, sometimes we can't come to an agreement.
Specialist · Victor, NY · Member since 2013 · 823 posts · 844 votes
7y
My advice would be to just be yourself. Focus on asking open ended questions and then let them fill the silence. You should be talking less than 25% of the time!
My advice would be to just be yourself. Focus on asking open ended questions and then let them fill the silence. You should be talking less than 25% of the time!
Michael, as always, you have great advice! Thanks! But just to pick your brain a little more since you’re in the SS world. How would approach a seller for seller financing on a SS facility?
Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
7y
@Daniel Brown
1. First you can ask the seller to tell you more about the property. This is to break the ice.
2. Then ask them why they are selling. Find out their motivation: retiring, cant keep up with the payments, financial problems, etc?
3. And I disagree with what others say here - you can ask about the price and you can ask it this way: "What's the lowest price you will accept if I can close the deal in 2 weeks?"
1. First you can ask the seller to tell you more about the property. This is to break the ice.
2. Then ask them why they are selling. Find out their motivation: retiring, cant keep up with the payments, financial problems, etc?
3. And I disagree with what others say here - you can ask about the price and you can ask it this way: "What's the lowest price you will accept if I can close the deal in 2 weeks?"
Thank you for the insight Michael! Let me pick your brain a little more if I may. You seem to know a lot about off market deals. If you don’t know if they wanna sell or not, how would you approach finding that out? I’m trying to avoid pushy, salesy or sounding like a rookie.
Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
7y
@Daniel Brown
Owners who want to sell approach or call me. I dont cold call owners if they want to sell. I put out marketing that gets sellers to call me before they list it with an agent.
Rental Property Investor · Shakopee, MN · Member since 2015 · 985 posts · 374 votes
7y
We recently went through this with a potential seller. Found out she wasn't ready to sell just yet as her mother was in hospice and selling would complicate the medical insurance. The house is full of things they need to sort through yet. We never talked about money. Listening was huge and this woman had a lot to say. We kept it non business and mainly just talked about family. She felt pretty good about us owning it and not some greedy developer. She is giving us 1st pick on either the house or land when it comes time to sell. We plan on sending her a Christmas card so she can match a face with the voice and give her a mental reminder we are thinking of her.
Realtor · Wasilla Alaska · Member since 2019 · 129 posts · 94 votes
7y
Ask a lot of questions, find out their real motivation, and keep them talking. The person talking is the one doing he bonding. I let them know I can certainly buy the property fast but it has to be a solid deal that makes financial since. Then if we don't come to terms they're not upset, and we can stay in touch in case they are ready to sell later.
My advice would be to just be yourself. Focus on asking open ended questions and then let them fill the silence. You should be talking less than 25% of the time!
Michael, as always, you have great advice! Thanks! But just to pick your brain a little more since you’re in the SS world. How would approach a seller for seller financing on a SS facility?
Hey Daniel, I'd simply say "If it's ok with you, I'd like to take some time to run the numbers and come up with an offer for you. If I pay cash I know I can't offer the full asking price but I could definitely get closer if you were to take payments over time rather than all up front. Is that something you'd consider?
Also, I'm also going to challenge you a bit here Dan;)! I hope that's ok. As valuable as these forums are, the fastest way to learn these "interpersonal elements" like what to say is to get out there and do it! You can talk about and read about how to ride a bike all day but hopping into the seat and falling down a bunch of times is the fastest way to master the skill.
My advice would be to just be yourself. Focus on asking open ended questions and then let them fill the silence. You should be talking less than 25% of the time!
Michael, as always, you have great advice! Thanks! But just to pick your brain a little more since you’re in the SS world. How would approach a seller for seller financing on a SS facility?
Hey Daniel, I'd simply say "If it's ok with you, I'd like to take some time to run the numbers and come up with an offer for you. If I pay cash I know I can't offer the full asking price but I could definitely get closer if you were to take payments over time rather than all up front. Is that something you'd consider?
Also, I'm also going to challenge you a bit here Dan;)! I hope that's ok. As valuable as these forums are, the fastest way to learn these "interpersonal elements" like what to say is to get out there and do it! You can talk about and read about how to ride a bike all day but hopping into the seat and falling down a bunch of times is the fastest way to master the skill.
Michael, I’m always up for the challenge. You know I’ve been lurking through all your content. But you’re right, the best way to figure it out is by doing it! It also never hurts to hear from the pros either. 😉 So thanks again for your insight!