All Forum Posts by: Karl Krentzel

First, kudos to you for getting your license!  As a licensed Broker as well as Investing Realtor® I can assure you that your broker will not care one little bit.

So long as you pass the state and federal exam, and are properly licensed, where you go to school is irrelevant.  The school only teaches you the test, and how to pass it.  

The school teaches the law. Not salesmanship.  That is what your broker will hope for.  Someone who has sales skills.  They will take you no matter what.  But if you have sales skills... well... now that's an advantage!

Have a Powerful Sales Day!

Casey!

I LOVE you!  You are exactly where you need to be!  Don't let anyone tell you that you can't buy a property.  

Here is a story of a 14 year old girl who bought a 100k house in Florida for $14k.  She bought the home with her mom signing, and they remodeled it, and are now renting it for $700 per month.  

She is a landlord at FOURTEEN!!

Study, learn wholesaling.  You can find motivated sellers, and work together with a mentor in your area that is trusted, or your parents if you can show them how it works!  

You are smart enough, and ambitious enough!  There is no stopping you!  Follow the blogs you see in people's addresses, as well as the BP Forums and you will learn the sales skills you need to be ready when the time comes! 

Please keep in touch with me.  I would love to interview you on your first deal!

Have a POWERFUL Sales Day! 

Excellent question!  This takes me back in time to when I was a new agent! (18 years ago..)

I took a minute to think about what I would do.. if I had to go back in time.... 

1.  Pick an Investor Friendly Real Estate Company.  Your relationship with your Broker will be critical to your success!

2.  Understand the rules about Investing as a Realtor®.  Our rules are different.  You cannot wholesale the same way others do.  (**Spoiler alert!  Our way is pretty powerful!!)

3.  Soak up all the knowledge in a specific field you can.  Choose a specific path (i.e. wholesaling) and focus on it (FOCUS =Follow One Course Until Successful!).  You can get a ton of free information online.  Forums like BP are great places to find questions.  Don't forget podcasts (my favorite!!!) and blogs!  

4.  Act NOW!  You have all you need in your head.  Don't wait!  There is a motivated seller who is choosing to sell their home within 5 miles of you right now!! Go find them! 

5. Fail Forward Faster.  You are gonna screw up.  You will make mistakes.  It's part of the process.  Do it faster, and get it over with.  When you fail, learn.  That way you will "fall forward" and not make that mistake again.

If you need help, reach out!  Always happy to help!

Have a powerful sales day!

k

Maybe I am missing the point.  But "wholesaling" as I understand it is simply buying low, and selling high.  

What everyone is questioning is the method of accomplishing that task.

While there may be a question of legality in Oregon as to the legitimacy of "assignment of contract", there is zero question as to the legitimacy of double closing.

Use transactional funding... double close.  

Problem solved right?

 LOL... I'm glad you liked that one!  That is one of my favorite objections to handle... 

I've got a ton of resources on my blog there as well as The Red Pill Investor Podcast.... you can certainly check out any of the 394 episodes we have about the topic of sales skills as it relates to the topic of wholesaling.... 

Thanks man!!

 Wow! Am I glad you asked that question!  This is a MONEYMAKER for you!

Ok, so as a Broker myself, let me share with you a couple insider secrets after 18 years of doing this business!  

Chances are, that listing is an exclusive listing with the listing broker.  Which means that the homeowner still has to pay a commission if they sell it to you.  

Ordinarily... that might be a problem!   But in the hands of a capable wholesaler like yourself, you naturally know that the homeowner is OBVIOUSLY motivated!  If they are advertising on Zillow, even while it's listed, then they are wanting to get it done.

Simply offer whatever the price that you and the Seller agreed to through the listing agent.  It's the Seller's problem with regards to the commission.  You are only offering what you want to offer.    

Many times the Listing Agent isn't strong enough to resist a "commission-ectomy" and will either reduce their commission in the event of "a double dip".  OR get your own broker, and make an offer on it with them.

The commission is paid for by the Seller, not you.  Simply pay whatever you would ordinarily.  It's the "Sellers problem" so to speak. 

Either way... if a homeowner is listed, or not.  It is IRRELEVANT.  

Trust me... take it from this Investing Broker.. and all the Investing Brokers who are also practicing Realtors®...

We don't care where the lead comes from.  If it is from a Yellow Letter, a Bandit sign, or a website.  We will pursue it until they either list, sell, buy, or sell to us.  Every lead, every time.  Why?  Because we know that "someone's gonna get their mortgage paid."

Wholesalers on the other hand, will RARELY pursue a motivated listing who is willing to sell their home at a wholesale price.  Why?  Simply because an agent is involved.  LOL

Lesson is this.  

No matter where they are, no matter who they are listed with, or not listed with... if a motivated seller is motivated enough... they will pay any price to get rid of their problem.

Make that offer!

Have a Powerful Sales Day!

@Bob C....  I wrote a blogpost about this very issue called "The Motivated Seller".  in my blog just a few days ago.

In short, I think you have three things you need to concern yourself with when determining if someone is motivated or not.

1.  People tell you as much, (or as little) as they feel that you need, or want to know. 

2.  Don't buy into their apparent lack of motivation.

3.  Know the facts about homeselling.

In the blogpost I get deeper into explanation of what I mean by these three statements. However, please let me explain them as quickly as possible....

1.  If you understand that they don't know you, and certainly don't trust you.  So if you can do anything to improve your rapport with them, you will get more honest answers to your questions.  Over the phone, they say one price.  In person, many times when they trust you, that number quickly changes.  There are certain techniques that you can use to gain rapport, and build trust over the phone, as well as in person. (Voice control/ inflection, and proper use of questions.) 

2.  Again, people call you for a reason, and seldom come out with the real reason right away.  By scripting (I have free scripts avail if you want them), and the use of skillful questions and looking at their entire situation, you can determine what the real truth is...and best course of action.

3. There are certain facts you must know. 85% of all FSBO's fail to sell. Nearly 50% of the homes that go on MLS fail to sell their first time. These two realities, combined with the statistics of your local market will be able to shore up your confidence. YOU got this! They don't know half the things you do! Knowledge is perceived power. Proper use of knowledge is realized power.

I hope that helps!  Have a powerful Sales Day! 

Part Time vs. Full time?  I think that's actually not the question at all.  

It's "How Much Time Will I Spend On My Dreams?"  Part time can be 20 hours, 30 hours, 40 hours... it's just a question of perspective.  

We all have 168 hours a week to spend on our dreams.  You have to spend some at the firehouse, but the other time, you get to choose how to spend it.  

Getting your license doesn't make you a Realtor®.  Just gets you licensed.  There are additional costs to join the National Board, Local, etc. 

So to me, it's a question of Cost vs. Benefit.  

Do you see the value of being a Realtor® who Invests as one that you would be willing to invest the necessary time (rather it be 20 hours or 30) to achieve your goals as worth the cost it would take to get it (about $1500).

I hope you do choose to get your license, and invest.  If you are licensed agent, who also invests, your marketing efforts and opportunities EXPLODE!!! 

Trust me, finding an investor friendly broker is SUPER Easy!  I wrote an article about it on my blog.

Best wishes to you!

Have a Powerful Sales Day! 

My two cents?  Sounds like a great prospect!  

I guess it depends on your exit strategy.  If your intent was to wholesale, that would be one number.  If it was buy and hold, then another, etc.  

Generally, when I am faced with the scenario like the one you presented, I would personally get my Realtor® (of course, I am one LOL) to get some comparables for ALL the homes that have sold in the past six months in that particular subdivision.  That will take your Realtor® about 10 minutes.  

Then I would look at all the homes that are currently on the market, and have sold in the past 6 months and pick out three actives and three solds that most closely fit the main house.  (The extra lots are a side issue) 

When meeting with the Seller, I would use a benefits based presentation, along with an education of what the true value of it is based on the most active comps you could find, as well as the most relevant sold comparables that mattered.  (your two distressed ones would be included) 

In the presentation, simply outline that if she put it on MLS it might generate x. But your all cash offer paying her closing costs, no commissions, taking it as is, and closing when she wants is a value in and of itself.

When they tell you "We will look at Zillow and tell you what we think it's worth" simply reply, "That's no problem... The MLS data is what the appraiser uses. "

Hope that helps!  

Have a Powerful Sales Day! 

k 

Thank YOU!

 I just wanted to say "Thank You!!!" for this question!  It was a great one that I answered on my blog, as well as my podcast for my listeners.  My two centavos?  4 Ideas!

1. 1.  You can't want it more than they do. 
2. - We all get excited at the prospect of a deal.  We see the $ coming! 
3. -Not all prospects are leads
4. -Not all leads are great leads
5. -The good news is you don't need a lot of leads to win at this game.
6. - Therefore, prequalify every appointment you anticipate making an offer on for their motivation, ability, equity as well as readiness.  At the minimum, learn "What Happens If It DOESN'T SELL?"
7. 2.  Ignore rules like ARV (After Repaired Value) 
   
8. - You could do a CMA.. the Seller won't believe it.
9. - You could do an appraisal.. the Seller would disagree.
10. - Jesus could come and tell them himself what it's worth.... They would be Doubting Thomas'
11. - Since they won't agree on price, don't worry about it.  
12. - Instead, focus on motivation, ability, and what similar homes have sold for.
13. - Similar in terms of condition.  What would you personally pay for it?
14. - Sold meaning provable comparables... not "what someone down the street has their home sold for."  Not old appraisals, just good old fashioned SOLD comparables within the past six months.
15. 3.  Take your best shot first.
16. -There is a price that is too low sometimes.  Make your best offer first.
17. -That way if you lose due to competition, you know you tried.
18. -That way, if they say no, because it's too low, then it doesn't matter anyway.
19. -When you are generating leads consistently, you won't have that problem.  When you generate, you won't have to tolerate. 
20. 4.  Get 'Em Back to the Table! 
21. - If they are saying no, its for one of two reasons.
    1. a.  They can't afford it. (which is why you hopefully prequalify before you come out) 
    2. or 
    3. b.  They don't see why taking that much less is an advantage
22. - What must you do? Present NEW Information!
    1. -People don't change their minds. 
    2. -They make NEW DECISIONS based on New Information!
    3. -Give them new info, they will make a new decision.
23. - If they are truly motivated, they WANT to make a decision... you just have to give them an excuse to!
24. -What is the new info you could bring? 
    1. -New Comparable Sales
    2. -New Stats
    3. -New Info on homes that are on or off the market since the last time you talked to them.
    4. -Any reason!

In summary, let me just say thanks for that question, it gave me a lot of material, and I thought I might share some of the notes I made for myself to answer that same question for my audience!  

Thanks again, and I hope that it helps you! 

Have a Powerful Sales Day!

k