Real Estate Broker · MI · Member since 2015 · 209 posts · 16 votes
I currently have a women who needs to sell her home and condo. I am going to view the properties tomorrow to possible get them under contract BUT I have no idea what to say or do. Should I make her an offer or should I wait until I could get the comps and ARP for the home. I am so confused this is really my first lead that I have on my own.
You might want to partner up with someone... but remember you have a huge unfair advantage. An appointment with a distressed seller.
Your number one objective is to find her motivation to sell... some questions and tips that will help.
1. Build Rapport - Get to know the seller like you would anyone else... Pro tip: Mirror how she speaks. If she speaks quickly... speed it up... if she speaks slower... slow down. It's the fastest way to help others feel comfortable
2. Ask about property "Tell me about the house." "What are some of the challenges you're running into with the property?" If you come across something needing repair in the home... "That looks interesting... what's the story there?"
3. Ask about motivation "Once you sell your home, what's the next step for you?" "If you weren't able to sell, what would that mean?" "If we were able to come to an agreement today, how would you feel about that?"
4. Ask the seller about price "Did you have a price in mind?" "How did you come up with that number? "How much do you owe on the property?" "How much do you need to get to the next place?" If she wants a price first... play dumb simply explain that you need to run the numbers before you give her something exact. If you find her motivation... understand her challenges... you increase the chances of getting a number from her first, and increase your chances of getting a better deal.
Find a local investor who can mentor you through this. Don't try to take this on without knowing what you're doing. You can seriously hurt the seller financially and emotionally if you don't follow through on what you say you'll do. Also, depending on the regulations in your area, you could get your A in some heat if you don't do things correctly.
First off, way to get out and do some mailing (I'm assuming, if you have the lead, but maybe not), I'm in the same boat and looking to starting direct mail in a month's time.
But next, what I'm already putting in place is a bit of help with the initial deal or two. I've been networking for a bit and so already have people that will walk through it with me and I'll be happy to split the wholesale fee (really at any percentage they want, but I assume 50/50). That is what you need. Call some local wholesalers in the morning, tell them you have a lead, and offer them 60/40 because of the short notice and the help you need.
If you don't have comps and know the ARV then you really have no business writing an offer.
You might want to partner up with someone... but remember you have a huge unfair advantage. An appointment with a distressed seller.
Your number one objective is to find her motivation to sell... some questions and tips that will help.
1. Build Rapport - Get to know the seller like you would anyone else... Pro tip: Mirror how she speaks. If she speaks quickly... speed it up... if she speaks slower... slow down. It's the fastest way to help others feel comfortable
2. Ask about property "Tell me about the house." "What are some of the challenges you're running into with the property?" If you come across something needing repair in the home... "That looks interesting... what's the story there?"
3. Ask about motivation "Once you sell your home, what's the next step for you?" "If you weren't able to sell, what would that mean?" "If we were able to come to an agreement today, how would you feel about that?"
4. Ask the seller about price "Did you have a price in mind?" "How did you come up with that number? "How much do you owe on the property?" "How much do you need to get to the next place?" If she wants a price first... play dumb simply explain that you need to run the numbers before you give her something exact. If you find her motivation... understand her challenges... you increase the chances of getting a number from her first, and increase your chances of getting a better deal.
It's kind of a mash up on how to get a FSBO to list if you're an agent and some of the Michael Quarles stuff from a recent podcast. You're there to find motivation... from motivation comes good opportunities.
I currently have a women who needs to sell her home and condo. I am going to view the properties tomorrow to possible get them under contract BUT I have no idea what to say or do. Should I make her an offer or should I wait until I could get the comps and ARP for the home. I am so confused this is really my first lead that I have on my own.
Hey Daniel just curious on how this deal went for you? I'm considering jumping into wholesaling myself so I'm sure I will becoming across some of the same problems you've encountered. Can you give some details on how you handle everything? Any info helps for beginners. Thanks
Hey Daniel just curious on how this deal went for you? I'm considering jumping into wholesaling myself so I'm sure I will becoming across some of the same problems you've encountered. Can you give some details on how you handle everything? Any info helps for beginners. Thanks
What I did was, I pulled up the public records on the property, I found that the lady owed taxes on the condo so I calculated the repairs plus the taxes she owed and any other liens on the property. Then I pulled the com-parables on the condo to get the market value and I divided that by the after repair value and got the LTV. I made sure the LTV was under 70% and I made her an offer she accepted now I have the home under contract just looking for a buyer.
Good work man! Make sure you have you insection periods and closing dates as the same. That way you have "x" amount of time to get out of a contract if you can not find a buyer. I try to use business days so that way i get those few extra saturday and sundays.
Also, contact local wholesalers and get a JV done to help you move the property faster. Being new to the game I am sure you don't have a big buyers list so contacting other wholesalers and doing like a 50/50 joint venture will help. It will also teach you how other wholesalers are marketing and doing their business.
50% of something is better then 100% of nothing! Good luck and feel free to contact me for any questions!