What are some things I shouldn't say or share with the seller to turn him/her off of the deal?!?! I am a newbie

Question

I AM NEWBIE!!!! I want to negotiate my first WHOLESALE deal but what are some things I shouldn't say or disclose to turn the seller off ?!?! I am desperately trying not to act or seem like I don't know what I am doing as this will be my first deal!

Thanks to all that respond!. God bless!!

Tristan Chicklowski · Answer

"If I could pay cash and close at a date of your choosing what is the best price you could offer me?"

Asking "If" means your not committing to anything and by offering them and easy close when they want it. Tells them that you want to work with there situation and for that your asking what There best price. Your using a positive word that gets you a lower price.

Tristan

Ralph Soles · Answer

In study real estate law and learning to be a real estate broker. They say that you have to have "full " disclosure in a real estate deal. Why you might ask? It protects you and the buyer. If you fully disclose everything about the property you know, the buyer will trust you more, and later they will buy from you again. You might not get the deal the first time, but you will develop a reputation that people can trust and they will want to come see you again. others will see this in you, and your business will grow and grow.

Michael DuVentre · Answer

Wow!!!!!! So much good info!! Thanks  Aaron!!! I'm going to do a lot of studying up!!!! I am determined to be financially independent!

Aaron Montague · Answer

@Michael DuVentre

Make sure you know everything about the neighborhood that holds your deal. Before you walk into that house you should know how much it command in the market, whether that market us open or closed.

If you have the math ready to go, you don't need to worry about offending anyone. Your sheet will tell you how much money you are going to make on the deal.

100k on MLS

A rehabber is going to want to pay 70% of that minus repairs. You need to get REALLY good a judging repair costs if you are going this route.

Let's say 20k in repairs.

50k is the best price your rehabber is going to give you.

Now you need to figure out how much money you want yo make on the deal. If that number is 5k, you'll be happy with anything at that price or under. If you ask "how much are you looking to get for the place?" And you get:

40-45k get them to sign on the dotted line at 43k and be done with your day. This will give you a bit of breathing room on the other side of the negotiation.

If they say 70-75k, we looked up similar places in the area and think it only needs 20k in work to get to 100k... Thank them and head for the door. Leave them a card that says "I'll buy it for 45k," thank them and hit the road. Time is money.

Thinking about wholesaling properties?

You have a good start. My next step would be business cards with your website address on them. Grab a map and start canvasing neighborhoods. Put your card under doors with a personal touch "I love the grand front porch" or "Great location, I have people who'd like to buy this house!" Mark each place you've hit up. If you don't get any hits from the cards (they will be rare) find out who owns it and send them a note or give them a call.

Your goal is to find places that are going to make other people money. Become the all knowing guru of real estate in your city. And make sure everyone knows that you are the man to find when it is time to turn over some real estate.

Put your website out in every conversation you have. Hand out business cards and ask people if they are thinking of sell any property they have. If they aren't, tell them to look for any future sales they might be interested in. Put a personal note on each card, "looking for multis" or "cash for beat up homes" that is pertinent to the conversation you just had. Everyone knows someone that has something to sell, make sure they come to you with that information.

Your information is your business. Make sure you know the names of every banker, broker, agent and buyer within 5 miles of your house. Then expand that to 10, 25 and 100 miles away. Go out of your way to send them cards, emails and questions.

Barbara Riley · Answer

LOL!  A drink will do nicely! Next time you are in Columbus I'll take you up on that!

Michael DuVentre · Answer

Thanks Barbara!!!!! That is such a big help!!!! I greatly appreciate this!! I really am grateful that you have shared this with me.

I should buy you a drink as well and if not, an Enchillada!

Brant Richardson · Answer

Feel them out a little with questions like "Why do you want to sell this property?".  Answers like "I inherited it, I don't know anything about the area, I can't rent it, the tax and mortgage are eating me alive, I just want to get out of this." gives you a clue as to how low to try with out offending them.  Do your best to help them out with some options so they see your not just a slime ball trying to snatch your property.  You could ask the seller what they think its worth to try to get a number on the table to start working around instead of a blatant how low will you go.

You are absolutely right, the gift to gab is a huge asset in this part of the business.  You want to be a likeable personality that they feel good about giving the property to.  A lot of people recommend making cold calls until you feel comfortable talking to people.  Then when a motivated seller calls you, you're ready for it.

Have you been listening to the podcasts?  Check out 70 and 71.

Michael DuVentre · Answer

Thanks Damon, I really appreciate the advice. You and Brant have given me so much great info tonight!  I should buy you both drinks.

Again thanks so much.

Mike

Barbara Riley · Answer

Hi Michael,

There is an astounding amount of information here at BP as I'm sure you've discovered. I also found some helpful word-for-word "scripts" to use with both sellers and absentee buyers at Flip2Freedom.com (Sean Terry). Here's a link to a webinar he did on the subject: http://webinarjam.net/webinar/go/replay/1056/140a023c34/accessok/

This link is to a replay which might not be available any longer, but he will likely do it again. He is on Twitter (@Sean Terry Flip2Freedom) and he posts his upcoming webinars there. After you type in your name and email address, there is a pretty slow load, so be patient.

I'm new, too, so I find scripts help in the confidence department. lol  I would caution about trying to present as knowledgable if you're not, tho. Better to take the time to become as knowledgeable as possible. There is a lot to know! For myself, I'm trying to learn all I can about only wholesaling to start because that alone is a steep enough learning curve for me. Also the risks, while still present, are fewer than with many of the other strategies.

Welcome, and good luck to you!

Damon Armstrong · Answer

Your probably better off not asking them what's the least they'll take anyway...whether they realize you are asking it or not. Before even talking prices with the seller, you should already know your maximum allowable price to purchase the property. Offer less than your max, and that'll give you some room to negotiate up to your max (if necessary). Your job is to get the price below your maximum allowable purchase. When you make that first offer you'll get an idea of what type of money they are looking for by their response. For example, if you max allowable price is 30k, you can offer 23k. This will allow you to find out what type of offer they expect. So if they respond with "OH HEAVENS NO! ARE YOU CRAZY?!" Then they probably are looking for a good chunk more which would probably exceed your 30k max. On the other hand, if they are more like "well, I don't know, could you do a little better?" Then you could work up to 25k and then 27k and egotists that way...be sure not to go over your 30k max, though. In order to FIND this maximum allowable price you should pay for the investment, search around BP a bit for deal analysis forums and you'll come across a few good spreadsheets and deal analyzers that do lots of the work for you. To wrap it all up, by doing this you never actually offend anyone by having to ask "what's the least you'll take for it" as @Brant Richardson  said...you've got to go into the negotiation process prepared...you don't need to know what their minimum is, because all you need is your maximum. Hope it helps!  @Michael DuVentre