How to approach the owner to wholesale their property

Question

Good morning!

So I have come across a potential investment property. It’s in bad shape.

I have found the owners name and contact info (phone#).

What should my introduction look like when I call? I’m not sure what to say off the bat. I don’t want to scare the owner away either.

Any thoughts? Thank you!

Jared Prevost · Answer

@Janet Hansen It really depends on how you found this lead. If you drove past, I would encourage knocking on the door as opposed to doing a cold call. It is so much easier to build rapport knocking on doors and you can talk to the neighbors about the property to get additional information beforehand.

You can ask an indirect question so you don't come across as soliciting. I like to ask, "Hey, I was wondering if you knew of any homes for sale in this neighborhood - I was just walking through and it seems like a nice spot?" If they have any motivation they will probably let you know. If not, you can compliment their property some and mention that you'd love to buy a place like this one.

If you want to go for the cold calling route, I would call and use a script like this,

"Hey is this ___________? This is Janet calling, we haven't spoken before, but I drove past your property on XXXX Ave the other day and just thought to myself that I would love to own that home, I wanted to see if you had any interest in selling"

Let me know if this helps!

Scott E. · Answer

You need to introduce yourself and explain where you got their number as quickly as possible. They are going to immediately assume that you are a scammer/telemarketer so you have to try to convince them otherwise right away.

Beyond your intro just be honest and transparent.

-You're a local investor looking for properties just like this one

-Wondering whether they would consider a cash offer for their home

-Condition is not a concern because you or your partner plan to renovate these homes you're buying anyway

-If they need help with moving expenses you can accommodate that as well

Jerryll Noorden · Answer

No no no and no!

there is no difference between your situation and you approaching some stranger in walmart and ask them where they bought their pants.

why does everyone act like a scammer? ALl the advice given here is coming from "I am a scammer douchebag and I need to hide it, so what do I say to them to not show I am a scammer".

friggin be you. Be normal. Tell the truth. Hey. I am a wholesaler and if you are interested in selling your house for cash I can help.

Think about it.

if you are direct to the point and they say no, no matter whay shpiell or lie you tell them they are not magically suddenly be interesred right?

And when you are 100% transparent straight to the point they will have a warm feeling of thrust and they will hear you out or just say no thanks. Then you just move on.

you are overthinking it.

the reason why you don't feel confident is lack of experience. Experience will come. Just get ready to hear a lot of no's and that is ok. That is experience.

Renee Harris · Answer

Check out Brent Daniels cold calling videos on youtube.

Will Barnard · Answer

I will add to @Jerryll Noorden post and state that aside from being honest and transparent (something I have been preaching for years on this site) you are doing it backwards too. Let’s say you have this convo with seller and they agree to a price with you, how do you know this price is good and that you can find a buyer in time to flip the contract too? You are essentially brokering without a license.

But, if you have a cash buyer already, then you know what they are looking for and at what numbers so you can confidently negotiate with your sellers (you know these things because you ask you buyer and get the answers). Plus, you can easily and legally structure the deal properly now without violating brokering laws. So aside from how to approach the seller, you first need to have proven cash buyers in hand first.

Can it be done the other way? Of course, but you have zero downside to doing it in the manner I laid out and many downsides to doing it the way you are attempting now.

Dwayne Poster · Answer

My most positive responses have come from being straight up. I identify myself, then state that I'm interested in their home and am calling to inquire if they are considering the sale of their property.  A pause on their end is an invite to discuss. I am clear and concise, because I don't want them distracting the conversation with the whos, whats, let me think about its. My objective is to qualify, discover need, then set up a schedule to further meet, which will likely include the initial offer. You will be making many of these calls, and most will not meet your qualifications. No big deal, you've gotten their permission to contact them in the future, and you move on.

Ian Ross · Answer

While I agree with you in theory, Jerryll, that a lack of transparency and overthinking are often a huge detriment to both the investor as well as the homeowner, there is a lot of room for having a game plan and strategy for talking to someone about selling their house for cash without being scammy.

For instance, most homeowners have no idea what a wholesaler is, and declaring yourself as one before giving context often confuses sellers, and that ultimately turns them off. If you haven't built rapport, saying, "If you are interested in selling your house for cash I can help" can result on people hanging up on your or saying No instinctively before giving you a chance to explain the benefits of your cash offer.

There seems to be a big misconception that using sales tactics in wholesaling is scammy, and homeowners will see it that way.

If you sound like a telemarketer on the phone, that's sure to be the case. But if you go through discovery questions and carefully outline the value of your cash offer (besides just the number), and how that offer will work, you will end up securing far more deals than if you just called them out of the blue and said, "I can help you sell your house for cash."

Simply put, you will get more qualified and valued deals by using a strategy.

Jerryll Noorden · Answer

No offense (and I mean it), but what you think about this in theory or practically is completely irrelevant. I make millions by doing this transparently bluntly and honestly. Right?

This is what I am doing.  I did, I do I AM!  I.AM.DOING.IT!! Successfully.

So I repeat... transparency honesty is the way to go. You just need to learn not to look act and sound like a scammer... but that is on you.. not the strategy. Now take it or leave it, but what I said is the solution whether you agree with it or not!

But I absolutely get it though. Common sense does say, why would anyone pick you when you bluntly tell them you are not going to buy their house. So I absolutely see where you are coming from. Here is where confidence, body language and .. being straight to the point comes to play. People just absolutely trust you when they see you are transparent. They see that you didn't HAVE to disclose that info but you did. So anything else you will say is received very differently now, with understanding, and trust. Just try it.. you will get "no's" absolutely.. but that is fine... you will also get a lot of "yesses" and those are the ones that matter. Just try it and see for yourself my friend! Connect with me and I will tell you how exactly I do it, what I tell them and how I handle it.

To your success bud!

Ian Ross · Answer

I do not doubt that if you put yourself in front of enough motivated sellers that you will get a multitude of deals and make money that most people can only dream of. When I talk about building rapport with a seller, and using the techniques involved, there's a lot more involved than simply getting them to move forward with me. A lot of the houses I get under contract are from skip traced lists of residential properties with certain "distressed" criteria, and I am very rarely the first or last wholesaler to speak to them. Like any sales training, a lot of this involves standing out from your competition.

It has not been my experience that investors operate in a vacuum, at least not in my markets. Taking the time to carefully connect, and building up the specific value of your cash offer, will get any wholesaler who chooses a strategic approach more "yesses" than those that do not.

Hope this helps.

Jerryll Noorden · Answer

Exactly, proves my point (again).

How to approach the owner to wholesale their property

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