Good evening BP,
I got a bunch of calls and website leads today from people saying they just received my postcards. I'm feeling overwhelmed and have no idea what to do right now. Well, I do have an idea what to do but I'm just sick with the newbie nervousness.
I specifically have one guy who appears to be an investor who has bought properties far below the market value and thinks he is going to sale it to me at market value. I may be new but i have common sense. (I looked up what he bought the properties for on Zillow.)
To fill out the lead card on my website it asks for the seller to enter an "asking price". How should i approach people that are expecting market value for their property? Is it worth the time?
I have one guy who is asking $200k above market value on a $1.2m property. There is surely no opportunity to wholesale at with those kind of numbers. Or is there???
I guess what i am really asking is how do i separate the motivated sellers from those i cannot make a deal with.
Keywords: Wholesale, Wholesaling, Lombard, Chicago, Direct Mail
@Trevon Peracca set a price that is feasible for you to make a profit. An actual motivated seller will except an offer that is conducive for them.
This is a business not a friendship. You are in this to make money while offering a service to a seller.
Give figures that you access to be fair for the area/market you are in. State the price to the seller and leave it to them to except or reject. If they except locate a buyer. If the reject move to the next potential deal.
Enjoy as you prosper.....
@Trevon Peracca , if you can see that they are just playing with you, don't be scared to make the point: "sorry, I am looking for Sellers who will sell at a discount because they want a quick sale or because they are highly motivated". Then move on.
But at least respond. Cheers...
@Trevon Peracca , and, shouldn't they ALREADY know that you only want to hear from Sellers who will sell at a discount because they want a quick sale or because they are highly motivated? Just what does your postcard say?
Next point: ask your list of Buyers which ones you should focus on.
What's that? You don't HAVE a list of Buyers?...
@Trevon Peracca , I would suggest being honest with those sellers. If you have done the research and know their asking prices will not fly, let them know what you are willing to offer and why. If they do not accept your offer, then ask them to keep your information for the future if they change their minds. Always keep the lines of communication open even with those that may not be motivated sellers now as you never know when they might be but they will remember you. The right property will come along when it's the right property for you. It sounds like you have plenty of leads coming in, so don't be discouraged, you are on the right track. Don't be afraid to say "no" to something that is not a viable deal just because you are new to REI. You will find a great deal as long as you are willing to keep your eyes and ears open.
Everyone has made the same points I would make. Be fair, honest and up front. If people want market value, call them back and explain your running a business and unfortunately at this point in time you do not have anyone who can offer them market value, however if they ever want to sell quickly for a discount, they should keep your mailer for future reference.
That is all you can do. It is more detrimental to try and make a deal out of something that is not a deal then to walk away. If you walk away you could be saving yourself from making a huge mistake and time. Focus on the good deals, and politely excuse yourself from the tire kickers. I hope everyone's advice has helped and now go call those motivated sellers back!
Sometimes you have to let the seller talk themselves down. Ask them what needs to be repaired, when was the last time the kitchen was updated, when was the last time the bathrooms were updated, how old is the roof, does the house need paint. After the seller has answered all of these questions they begin to realize everything that needs to be done to get the house up to market value.
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