How do you entice sellers?

Question

I'd like to know what you guys and gals are doing/saying to entice sellers further to work with you over any other buyer. Other than the simple cash sale, quick close, closing costs paid what differentiates you from all the other buyers out there? I feel this is a prevalent thought among owners of off market properties when coming across an investor. I would want to outweigh the pros and cons, and the buyer with the most added value would surely get my acceptance.

For me, I have a background in finances, so I know some really great financial advisors I can refer them to - wouldn't want liability issues attached if I were to handle -  that will gladly help them locate a vehicle(s) for the cash they'd be getting out of the property depending on what they want (liquidity, growth, safety w/ growth, etc). My close friend could handle this at no expense to the seller. Haven't tested this method but will soon.

I also like to insinuate that I'm in the business of providing solutions beneficial to all parties involved so i even give them the option to list with a realtor.

Tell me what you're doing to add value to the seller.

Andy Wong · Answer

Thanks for the response.

Bill Gulley · Answer

I did say anything about securities, except to ask where they might invest and feel comfortable and no, you shouldn't suggest any security or investment unless you hold the appropriate license.

Note income is an annuity income but it is not an annuity and shouldn't really be compared to one, it's apples and oranges to a seller financed note. Don't let your finance knowledge of securities cloud RE, unless it's a REIT type or bond, as they are different fields. You can look at opportunity costs comparing other investments, like use of funds, but be careful not to access them in the same manner, RE is unique, physically, financially and economically. :)

Andy Wong · Answer

So you don't feel that putting them in securities or a UL would be the best use of their money? Or even a professionally managed mutual fund with a successful trac record? Where would you allocate their money?

Is it weird of me to always relate the concept of seller financing to an annuity during annuitization?

Bill Gulley · Answer

Having been in financial services I can go there, certainly don't suggest investments, but we can go to alternative uses of funds. It's about solving their problems, demonstrating that your expertise is shared for a mutually acceptable deal that helps them more than other alternatives. Often it just comes down to money, but what's the best way to receive that money could be a factor (as in seller financing). Then there are sellers who don't have any issues, they want the cash and just want to leave, they don't need advice or suggestions, so it depends on what you can do to entice them, usually money down speaks the loudest. :)