Flipping Homes For Sale By Owner!
Are you flipping houses? Why don't we as wholesalers typically treat For Sale By Owners as legitimate, easily found, cheap prospects for our business? If you are willing to spend money to find leads, then consider spending a minute to learn about the free!
Flipping Homes For Sale By Owner
I am consistently amazed when I talk with wholesalers or those newer Realtors® who invest and discover that they feel that no homes are available "By Owner" that make for good "flippable" property.
One time, I even read a blogpost where a fellow suggested contacting For Sale By Owners as a way to "warm up" for when your actual leads call you from your direct mail!
Leads Vs. Prospects
Let's start quickly by discussing which properties are actually leads for your business versus prospects. Not all properties and situations are created the same!
For example, a totally remodeled home that is for sale by owner, may not necessarily have the same motivation level as a person who has tons of deferred maintenance and a foreclosure date.
So what IS a lead? A person who is willing to sign a contract with you in the next seven to 10 days.
7 to 10 days is plenty of time for a person to decide whether or not they are going to sign a contract. People tend to think things through, but once the decision has been made to take action, then typically, they move quickly.
It is important for you to remember then, that if you are talking to a motivated Seller prospect, be aware of their status. Are they a lead (will sign a contract in the next week to ten days) or a prospect (someone who simply wants to sell)
Once you discover their true identity as a legitimate lead or not, the better you can identify which steps to take next.
Why You Suck At FSBO's
It's not because you are a terrible investor, or a newbie, or any other silly reason. It's simply because nobody has ever taught you how! Many times, the failures you face are not your fault. They are a lack of knowledge.
The good news is, For Sale By Owners only sell a home every few years. It's not like they are experts at the process themselves! Just keep an open mind, and trust that you need only find enough motivation to sell, and the way will appear how.
The truth is, there are three truths, two facts, and one solution for the Motivated FSBO!
If you are a Realtor® or an investor, the cold hard truth is that For Sale By Owners represent "NOW" Business. Meaning that they are ready to act Now that simply needs classification in terms of motivation, timing, and price.
They aren't like absentee owners, expired listings, or probates. They can't be treated the same.
Many times, when you are making a presentation to a FSBO about your service or why they should sell it to you, you are there for the purpose of getting a contract signed. Other times, it's more of the "press the flesh" sort of appointment. Those types of appointments require a little bit more finesse.
How To Win More Often!
Simply remember that 85% of all the FSBO's you know will either list their home, or change their plans.
Why is that important to the new wholesaler or Investor looking for an extra lead? Simple!
If you can remember that 85% of all the FSBO's will either list (which is not what they want) or change their plans (again, not attractive) then that will help you point out why they need to at least meet with you!
It's easy to say "oh they aren't motivated". It's much harder to call them, and find out for sure.
One of the easiest ways I know to help give yourself confidence when it comes to sales is to use a dialogue or script to help collect your thoughts while you talk with them.
In the video above, I spend a little over 40 minutes discussing various methods to do the following:
- How to Find Motivated FSBO's (Webpages, etc!)
- The Purpose of Prospecting!
- How to followup "On the Cheap!"
- What to look for! (The M&M's)
- The Three D's... Don't want to miss out on this one!
- Who to call first.. how to categorize your leads.
- The Presentation! and more!
If you have a few minutes, I would invite you to sit down and take a look at this video. I believe that if you do, you will definitely find an idea or two here that will help you in your sales journey! If you do, would you do me a favor and please share it? Thanks so much in advance!