Off MKT Conversation

[Brian Utley]

I'm at the beginning of my real estate journey & have run into some mental roadblocks in search of my first flip property.  I've fixed up my last 2 residences, so I'm comfortable w/the rehab process, & I have my financing lined up.  It's finding the deal & the off market conversation/negotiation that's causing me anxiety & holding me back, so I'm looking for some feedback to get over this hurdle.  

After gaining traction with an off market property (thru direct mail, for ex.), do you feel the person out for motive to sell in the phone conversation?  Do you ask questions about the condition of the house?  Do you ask how much they're looking for or do you set the tone by initiating what you think?  Or do you ask about the opportunity to take a closer look at the property before discussing price since the initial evaluation is very rough on direct mail?  Do you utilize a home inspection in this scenario?  Do you use a standard real estate contract w/out a realtor in this kind of off market deal? 

Your feedback is greatly appreciated.  

Brian   

[Account Closed]

@Brian Utley I am also new at this but have reached over 400 people at this point through the marketing I'm doing. These are my findings and yours/others may vary. I seem to hear a lot of people suggesting you will be able to somehow coax the owner into selling if you find out their secrets, ask the exact right questions, *insert guru phrase* etc. but the fact is that most people are either not going to want to sell to you at a profitable-to-you price, or the ones that do want to sell are too far gone and they are aware of this (hence the desire to sell).  Because of this, I would just say don't over think it - don't spend a ton of time on each lead unless there really seems to be a reason to - they are just another lead. I talk to many people who have clear reasons to sell and number one takeaway so far for me: just because they have a reason to sell does not mean they have a reason to sell at a workable price. Do try to find why they want to sell and see if you can come up with a good solution for them - that's what I've had the most luck with but don't expect that to magically create deals left and right just because you've thought of something clever!

As far as specific questions you asked, it just depends on how the conversation is going. On one hand you will have a chance to build rapport by trying your best to meet them at the property - on the other hand, as noted above, many will want too much and will not budge, so depending on their circumstances I may try to get an idea on a range before I spend 1+ hr round trip going out there. Many ask me for a range beforehand as well. I try to find a balance between all of this.  I am straightforward with people about what I do, what I'm looking for, and what they can expect from me and I have had positive results with this - I'm not a wholesaler fyi.

The other specifics are up to you - if you are not completely comfortable doing the inspection yourself, get an inspection, but I've found that inspectors do not check every nook and cranny like I do - it's not their money on the line. I use our state's standard contract because it's legal to do so here, and title companies etc are familiar with it, sellers aren't suspicious of it etc.

Good luck!

[Brian Utley]

Very helpful, Tyler. Thank you for sharing your experience so far. You provided some good guidelines to go by instead of a script, which I wasn’t looking for. Reaching 400 people early on is impressive. What method(s) of marketing are you using primarily to gain this kind of traction?

[Account Closed]

@Brian Utley It's been hard to find good deals in my area so I have been doing a lot of things - I started with one type of lead and began branching out from there as time allowed. I mostly do calling though, to answer your question. I am working maybe 4-5 types of leads at this point, to see which ones pan out better. I will tell you it has not been a quick process at all - the chances you are going to call/mail/etc someone at the exact moment in time they happen to have decided to part with their property, or are considering doing so, are quite low when you think about it, especially given the circumstances of how you are approaching them and so forth. I spend a lot of time just organizing all the leads and keeping track of everything, not to mention figuring and organizing everything at the beginning. I think it will work out well in the long run, but the jury is still out on if the time commitment and expense of keeping up with all it is going to be worth it. Based on progress so far I do think it will be - but remains to be seen. 

[Brian Utley]

@Account Closed What I admire most about your reply is your hustle & willingness to continue trying new things to gain traction on your leads.  I'm working to find which marketing channel is going to be most effective for me, too.  I know once I find it & develop consistency the results will follow.  Thank you again for sharing your experience at a similar stage of the business as myself.  

Brian