Tomball, TX · Member since 2014 · 3 posts · 0 votes
Can someone please help me with ways to close the deal for a wholesale? I am new to this and it seems that every time I talk to the seller for the deal my offer is not acceptable. What are my next options? How are people able to close these when I keep getting rejected on my MAO.
I am new to this? Need guidance and would like to start closing and making money. :)
Investor · DMV Maryland · Member since 2013 · 867 posts · 370 votes
11y
When you are talking price with a seller, you are really a negotiator. The trick is to negotiate a price that works for the both of you. I believe this is a skill set that comes very easily to some people, not so easily to others. It IS something that can be practiced and learned, which is the upside if it's not like second nature to you. I've done a few deals and still cringe every time I'm getting near the fateful . .. "what do you want for it?" question (or a 1,000 variations thereof).
The other is not having enough tools in your tool kit. If you only have the straight wholesale option (i.e., you get it under contract for price X and sell the contract for price Y, and keep the spread), you need to have a very motivated seller that needs a problem solved, and pretty quickly. So not only do you need to negotiate but you need to (a) find out why they really are selling (the problem) and (b) have tools to solve it. This is an area I want to expand; I have my real estate license so I can list/refer out to another agent, but I want to know more about lease options and other things so I can offer 3 or 4 choices.
Lastly, this is a numbers game. It takes a lot of leads to fill the pipeline where leads become hot prospects which become closed deals. Think of it as 100 down to 10 down to 2. People might be talking to 100 leads and weeding them out fast to get to 10 good prospects and actually contract with 2 of them. Your marketing comes into play here too - are you marketing to the "right" crowd?
Summing up, it takes a sales/negotiating skill set, options to work with, and a pipeline of leads to start closing deals. You hear of the first-time-out-of-the-gate wonders who mail 20 letters and get a deal but I can almost guarantee you the chances of that happening repeatedly are slim to none.
Are you networking at your local REIAs and Meetups? Meeting the successful wholesalers there and seeing how the operate their business? Trading some of your time to help them in some capacity so you can learn? Those things will help as well.
Investor · DMV Maryland · Member since 2013 · 867 posts · 370 votes
11y
When you are talking price with a seller, you are really a negotiator. The trick is to negotiate a price that works for the both of you. I believe this is a skill set that comes very easily to some people, not so easily to others. It IS something that can be practiced and learned, which is the upside if it's not like second nature to you. I've done a few deals and still cringe every time I'm getting near the fateful . .. "what do you want for it?" question (or a 1,000 variations thereof).
The other is not having enough tools in your tool kit. If you only have the straight wholesale option (i.e., you get it under contract for price X and sell the contract for price Y, and keep the spread), you need to have a very motivated seller that needs a problem solved, and pretty quickly. So not only do you need to negotiate but you need to (a) find out why they really are selling (the problem) and (b) have tools to solve it. This is an area I want to expand; I have my real estate license so I can list/refer out to another agent, but I want to know more about lease options and other things so I can offer 3 or 4 choices.
Lastly, this is a numbers game. It takes a lot of leads to fill the pipeline where leads become hot prospects which become closed deals. Think of it as 100 down to 10 down to 2. People might be talking to 100 leads and weeding them out fast to get to 10 good prospects and actually contract with 2 of them. Your marketing comes into play here too - are you marketing to the "right" crowd?
Summing up, it takes a sales/negotiating skill set, options to work with, and a pipeline of leads to start closing deals. You hear of the first-time-out-of-the-gate wonders who mail 20 letters and get a deal but I can almost guarantee you the chances of that happening repeatedly are slim to none.
Are you networking at your local REIAs and Meetups? Meeting the successful wholesalers there and seeing how the operate their business? Trading some of your time to help them in some capacity so you can learn? Those things will help as well.
Tomball, TX · Member since 2014 · 3 posts · 0 votes
11y
@ Christina Thank you so much for a lengthy detailed response. I am networking at the REIA's and have a buyers list. I just need to figure out the negotiations part of it I guess.
- do some searching here using the BP search engine, there are probably a thousand threads about what to say, what to ask, when to shut up, etc., etc., when it comes to making offers. Dedicate some time each day and read up on it. I literally print the stuff out and practice in front of a mirror. It's slowing but surely helping me accept the fact that I WILL make people mad with offers, I WILL hear alot of no's, but in there will be some YES's :-)
Investor · Chicago , IL · Member since 2014 · 159 posts · 68 votes
11y
Sean Terry has a great podcast for handling objections that I listened to a few times until I got it. Also, Jerry Puckett has some helpful info on his website for handling objections.