1st caller from Wholesaling yellow letters..Please help

16 Replies

So I just started sending out Yellow letters as a wholesaler earlier in the week and got the first call from a prospective seller. She asked a bit about me and my brand and she expressed that she is looking to sell the house she owns. She is an absentee owner that is also an investor with tenants in an SFR..

She says that she owns the property outright and has put money into the house so it needs no updating or work.  She said she had gotten an offer 1 year ago for 232k but wasn't ready to sell, but now she feels the time is right.  I looked on zillow and saw that her home estimated near what she'd like to get.  I asked why she wanted to sell and even if maybe she might consider extending an option to buy to her tenants but she said she didn't want to get into that. 

I really don't know if there is anything I can do with this as I told her that I would not be able to give her the best price for the property..Does anyone have any advice I could use before calling her back about the property??

Thanks in advance

this is the crux of trying to buy property blindly... I would put some money and time into honing your sales and closing skills BEFORE spending money on direct mail.  worse thing you can do is exactly this  HELP i got a LEAD and don't know what to do .

I think people that do this are getting the cart before the horse.

much like learning to fly  its easy to take off but yoiu need practice to land.

Hey @Brenton Tigner Jr congratulations on your first call. I'm so glad to see that you have started marketing. Most people feel that they need all the answers before they start and then they never get started. Given that here are some thoughts on your lead. First, she doesn't seem highly motivated to sell. We only want to work with highly motivated sellers ("I must sell this house now"). Second, know who your end buyer is. For me my end buyer is a landlord that wants dirt cheap houses or a flipper who wants distressed property at a discount. Her house is rehabbed already. So what would I do with this property? Use it to build my relationship with a real estate agent. Real estate agents have access to MLS. This is the best resource to use. And this is how you get access to it. Call a local real estate agent, tell them what you do and explain to them what you can do for them. That's the twist; not what they can do for you but what you can do for them. It might sound like this. Hello Mr. Agent my name is Jose Flores and I am a wholesaler in the area and I am looking for a new real estate agent to work with. I have sent out some marketing material this week and I just hear back from a seller. As you probably know I need to get properties under contract at deep discounted prices in order to sell them fast. Therefore, many of the sellers I work with do not meet my criteria. Here is that property address and contact information. I don't want any referral fee, but what I do need help with is getting comparable sales from the MLS." Is that something you can help me with? The would give them my search criteria and have them email the comps. Works like a charm, but it begins with you creating value for them. Hope that helps.

Originally posted by @Jose Flores :

Hey @Brenton Tigner Jr congratulations on your first call. I'm so glad to see that you have started marketing. Most people feel that they need all the answers before they start and then they never get started. Given that here are some thoughts on your lead. First, she doesn't seem highly motivated to sell. We only want to work with highly motivated sellers ("I must sell this house now"). Second, know who your end buyer is. For me my end buyer is a landlord that wants dirt cheap houses or a flipper who wants distressed property at a discount. Her house is rehabbed already. So what would I do with this property? Use it to build my relationship with a real estate agent. Real estate agents have access to MLS. This is the best resource to use. And this is how you get access to it. Call a local real estate agent, tell them what you do and explain to them what you can do for them. That's the twist; not what they can do for you but what you can do for them. It might sound like this. Hello Mr. Agent my name is Jose Flores and I am a wholesaler in the area and I am looking for a new real estate agent to work with. I have sent out some marketing material this week and I just hear back from a seller. As you probably know I need to get properties under contract at deep discounted prices in order to sell them fast. Therefore, many of the sellers I work with do not meet my criteria. Here is that property address and contact information. I don't want any referral fee, but what I do need help with is getting comparable sales from the MLS." Is that something you can help me with? The would give them my search criteria and have them email the comps. Works like a charm, but it begins with you creating value for them. Hope that helps.

Not to mention its illegal for Real estate agents to pay referral fee's to non licensed persons

@ Brenton tinger Jr, I would suggest you call her and have a mindful conversation with her. Tell her something like this: 

I do understand you are asking for retail value for your property, As you know for me to make this deal work,  I have to purchase at enough discount for me to make this whole thing work. You are not going to like my offer but here it is"say your offer". If this is something you are willing to work with I can send over the documents for you to review. 

Walk her backward:

If you were to list it with a realtor at given price, you will be paying 4-6% realtor fees, Plus It may also take anywhere from 2-6 months for you to receive your funds ( 1-2K a month in holding cost) If there are any repairs, they would come out of your pocket. I understand our time is valuable, but if you are willing to work with me I can promise a hassle free transaction. 

What is your email address so I can send you my offer for you to review? 

Be confident in your delivery, At the end that may be the first No of many, you will receive. Or at best you follow up when she is tired of trying.

(If that just doesn't work, Just ask her if she knows of anyone that could benefit from your services) 

Build Value, Agitate their pains, Send the offer!

Good Luck

It sounds like this isn't someone who is likely to sell at the kind of price that would work for you, regardless of ypur sales ability. The vast majority of your callers will be like that. I just started sending direct mail myself, but to buy and hold (not wholesale). Have 1 property under contract after sending about 1200 letters.

I would agree with @Jose Flores . You aren't going to get her to go under. She isn't motivated enough to move. Develop a relationship with a realtor. You can scratch each other's backs. 

@Jose Flores , thank you greatly for your response and wow, that is an awesome tip I clearly didn't think of. You were exactly right that she was not a motivated seller but I do still have open contact with her and can still contact an agent that I had only slightly communicated with in the past. Now armed with a little bit more of a "gift" I will do exactly what you suggested and reach out to them. Thank you very much.

Originally posted by @Jose Flores:

Hey @Brenton Tigner Jr congratulations on your first call. I'm so glad to see that you have started marketing. Most people feel that they need all the answers before they start and then they never get started. Given that here are some thoughts on your lead. First, she doesn't seem highly motivated to sell. We only want to work with highly motivated sellers ("I must sell this house now"). Second, know who your end buyer is. For me my end buyer is a landlord that wants dirt cheap houses or a flipper who wants distressed property at a discount. Her house is rehabbed already. So what would I do with this property? Use it to build my relationship with a real estate agent. Real estate agents have access to MLS. This is the best resource to use. And this is how you get access to it. Call a local real estate agent, tell them what you do and explain to them what you can do for them. That's the twist; not what they can do for you but what you can do for them. It might sound like this. Hello Mr. Agent my name is Jose Flores and I am a wholesaler in the area and I am looking for a new real estate agent to work with. I have sent out some marketing material this week and I just hear back from a seller. As you probably know I need to get properties under contract at deep discounted prices in order to sell them fast. Therefore, many of the sellers I work with do not meet my criteria. Here is that property address and contact information. I don't want any referral fee, but what I do need help with is getting comparable sales from the MLS." Is that something you can help me with? The would give them my search criteria and have them email the comps. Works like a charm, but it begins with you creating value for them. Hope that helps.

@Jay Hinrichs Thanks for the tip...What methods would you suggest would help me with those skills before actually doing it in real time?

Originally posted by @Brenton Tigner Jr :

@Jay Hinrichs Thanks for the tip...What methods would you suggest would help me with those skills before actually doing it in real time?

 sales training..  go work for a car dealer for 6 months and learn how to qualify present and CLOSE.  you need mad sales skills to really make any money wholesaling.. wholesaling is about as tough as it gets and remember you have all this competition from folks who can just wake up one day and say I want to be a wholesaler.

@Carlos Carbajal That's excellent. Too bad I didn't catch this before my last convo with the seller. I am definitely going to store this advice away for later conversations. 

Just keep in mind, saying what @Carlos Carbajal said about buying her house... just be open with her. If you have no intention of actually buying it, tell her that... don't lead her to believe you signed on to buy it, if you are signing on to sell it to someone else.

If you are actually a buyer (I am with my direct mail) you can tell her you will buy, for cash, at this price... 

@Jay Hinrichs I get the point you make, I would have to find something that fits around my current full time job. I am not in the position to leave the stable income I have for car sales. Additionally, wholesaling is a short term strategy for raising capital for multi-family investments. I truly do not plan to wholesale as a career.  

@Brian Pulaski Thanks, and you are right. I informed her the first day she called that I was working with an investor and that I was not the actual buyer. She said that she invests in real estate and this house is one of her properties..

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