How to properly introduce self to seller in 1st conversation.. Also what all information should I have before even contacting seller?

Question

Good Afternoon BP

Ok so my research is coming along well, Im more comfortable with presenting the information  to Investors then I am with how to sell myself to the seller. I will hopefully be moving on my 1st wholesale experience within weeks... I do have a few questions as far as the 1st few steps.

So once you locate a potential home and have located the owner(seller) What is done immediately after?.. before even contacting the owner.

In that 1st conversation, how would I properly introduce myself and what I am doing to be able to captivate them? .. Where can I find a detailed property research form? ( I have googled, this is the only form I cant find)...

Then there's Property Inspections, Do you all have these before contacting Buyers?

The last question is.. Can someone please explain the whole ARV % calculations... I understand its after renovation value but as far as keeping it 70% I don't understand how that percentage is calculated. Thank you in advance to anyone that read all this and willing to set me in the right path to begin.

Have a great afternoon.

Account Closed · Answer

Remember if sellers are educated, they will not accept what you tell them the repair cost is because they want to get someone they trust to give, then what the real repair cost will be. I would say over 70% of investors will jack the repair cost.

Joe Gore

Terry Evans · Answer

@Jennifer Williams

As far as what to say when speaking with the sellers?

I am new as well, however, what I have learned so far is that immediately introducing your self as in "investor" is a sure shot way to immediately put your seller off.

Most of the "motivated sellers" are heading to foreclosure and do not want to deal with anyone.

I have started by introducing my name and stating I would like to speak with you about purchasing your house.

That method has lent itself to giving me more time to speak with them, instead of getting a "no" real quick.

Hope that helps!

Please give your thoughts once you get out there and start knocking, I would love to hear what is working for others.

Ben G. · Answer

@Jennifer Williams  getting on the phone and talking to sellers is all you need for now.  As you start to scale your business and increase your leads, then you will want to do more filtering.  When I started I was focused on learning and finding good deals not scaling my business.  All I did was talk to sellers they will give you all the info you need.  Don't waste your time on time wasting activities. You'll spin your wheels if you focus on.

The simple way to calculate 70% of ARV is take out a calculator.  Type in the value of the house multiply that number by .07

Example: $123,000 (ARV) X .7 (70% in decimal form) = $86,100

Then subtract repair cost and subtract your wholesale fee.  This is your MAO (Maximum Allowable Offer)

Hope this helps!

Account Closed · Answer

Always be honest with the seller and most sellers want to know how much money you are putting in their pockets.

Joe Gore

Jennifer Williams · Answer

Thank you @Terry Evans and @Joe Gore... That makes great sense, I found my 1st home to move on in my neighborhood, Its abandon and over-grown but has great potential. I found contact for the owner and plan to write her this week. I'm so excited, Thank you again

Jennifer Williams · Answer

Thank you @Ben G.

This helps a lot ;)

Gerald Harris · Answer

No Problem.   Have a great day!

Jennifer Williams · Answer

Thank you so much @Gerald Harris for breaking that down, Its becoming more clear.. Thanks for your link too.

Gerald Harris · Answer

ARV is After Repair Value

its the value of the property once all the repairs have been done

Example:

- House is a fixer upper for sale for $50,000

- House needs $15,000 in rehab

- After Repair Value(ARV) is $100,000

looking at the numbers above I would wholesale it myself with with a wholesale fee of $5000.    why?

50k  plus 15k  plus 5k  equals 70k

the example above is 70%  of the future value of 100k

Look at the numbers above my rehab costs are pretty much fixed.   If I want to make more money as a wholesaler, i need to try and get a better price.

If i got this deal for 40k   I would charge a wholesale assignment fee of 10 to 15k.

In my case, the profit is in the negociation.  When i "Buy" it I know i can sell it becasue i have bought it at a great price

Here is a link that will help you out.  Its for new investors.  I created it several days ago

http://www.biggerpockets.com/forums/93/topics/1362...

Welcome to Bigger Pockets.

How to properly introduce self to seller in 1st conversation.. Also what all information should I have before even contacting seller?

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