ok i have my first meeting with a motivated seller tomorrow morning, i'm a little nervous about it but i just want to get my first meeting with a seller over with so i can get some experience. the property arv worth 32k, the seller wants 10k i plan to talk him down to 7k. I have a few questions, what do i need to bring and what should i ask for when i'm at the meeting?
Hey @Larry Nelson
Its normal to be nervous on your first couple meetings. The most important piece of advice I can impart is to to relax and be yourself and actually listen and to genuinely care for their situation. Most other investors bidding wont bother (assuming your in a situation with multiple bids).
When I first started this business I would go on appointments with unmotivated sellers on purpose just to build experience and work on establishing a rapport with people. By the end of these meetings they would be telling me stories about when they grew up in the house, or gossiping about the neighbors across the street. That's where you want to be. Going on meetings with unmotivated sellers quickly built my confidence up and allowed me to succeed when I encountered genuinely motivated sellers.
Beyond that make sure to continue to follow up with them from time to time if they reject your initial offer, whether by phone, email or snail mail. Situations change over time, and you want to be in front of them when it does.
As to what to bring here is what I would recommend
-Comps (two piles if possible sold that establish ARV and cash "as is" sales). You can use the "as is" sales to justify the price you are offering if they give you a hard time.
-Contracts, Check for Earnest Money, Cash for option fee
-Your business cards & your closing title agents business cards
-Offer sheet for them to keep
Let me know if I can offer you any more assistance, best of luck Larry :)
thanks for the response chris, i had met with the seller and he had just called me up today got the property under contract for 7,500. i'm just happy i'm taking action, now to the next step
Great job, now get that cash buyer and wholesale it for a nice fee...
Also, call them the day of before you waste your time going over to the house for a no show.
Prefilled out Purchase Agreement and leave out the price.
Ok, I get all of the above except the part in the last thread about the "Purchase Agreement"...whenever i bought properties from Wholesalers, the Purchase Agreement wasn't signed by the seller and Wholesaler until a Buyer's deposit was put into Escrow... It seems to me that the only Agreement a seller would be signing is an Option Agreement...what else would they be signing if not either a Purchase Agreement or an Option Agreement in the absence of a Buyer not yet found?
sorry, I get it now: Present a pre-filled out Purchase Agreement to the Seller, leaving out the price as said; and it doesn't actually become signed until a Buyer by Seller and Wholesaler until a buyer is found...(?) ...and to prevent the Seller from wondering to other Wholesalers, include an Option Agreement from yourself (with an Option fee)...if so, what would that fee be?
Bruce, the wholesaler Does sign a purchase contract with the seller. It's that contract that gets assigned to the end buyer, or you double close.
Thanks Wayne. Sorry if I said it poorly. I realize it gets signed by Seller and Wholesaler, but "when" ; i.e. only when a buyer is found or before, when Seller and Wholesaler first agree on a sale price? If the latter, then I understand unless the Wholesaler has the funds to buy it himself (even though he/she plans to assign it) or has a Buyer lined up, it's considered to be unethical and not in Good Faith - unless an Option Contract is signed by Seller and Wholesaler in which the Wholesaler just states he has the option to buy the property for x$ in y days...
Sorry, I am still learning about Wholesaling and have surmised much of what I am saying here...hopefully you or someone can clarify for me...
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