Explaining Offer to Motivated Seller.

[Raden Mantuano]

Hey guys hope everyone had an awesome Thanksgiving! 

I wanted to ask, what were ways you guys explain your offers to the sellers..

Lets say the number is in your head and you know where you need to be in order to profit from the deal. You explain to the seller where you need to be and the Objection of "PRICE" comes in..

Are you explaining the cost it would take to repair the place?

Are you showing actual comparables from the MLS that are REHABBED... In other words, are you mentioning the ARV to the seller? and mentioning that in order to reach that ARV i would have to pay all this in repairs? So this is why we need to meet at this Number?

or

Are you basing it off of current appraisal of the subject property and telling the seller, "since your home is worth this much and the cost of repairs is SUCH and SUCH, this is why we need to meet here at this number."

just trying to see what negotating strategies work.. and etc.. thanks again. 

[Blake Woodham]

I am still a fairly new wholesaler (3 deals to date) but I would always do as you said above. Explain the repair cost and make sure you point out any issues as you are walking through. 

Then it comes down to the offer... I usually do it something like this..

Always preface it with saying that the price we offer will be the "net" to you. This is what you will walk away from the table with. No closing cost, realtor fee's etc. 

I will usually lead in with "based on the repairs needed, and the condition of the property, we would be able to offer you XXX to meet our current business model." Then wait...   ... and wait... it may even be a long awkward pause, but wait until they respond. Do not say another word until they respond. ( I did this with my 2nd wholesale, sight unseen, using the 70% rule, and made a 9K fee) 

Making an offer that you think will get accepted has a lot to do with how much rapport you build. Feel them out, and see what they really need to get the deal done. I have often asked, "If I wrote you a check today, what would be the lowest you would take with out losing sleep at night?" 

Sometimes, I will explain that we will not do a deal unless ALL parties are 100% satisfied with the terms. Say this is how you feed your family, and you have a business model that you have to meet. 

Just let them know that you are the real deal, and not some silver tongued scam artist, and they will usually open up about the current situation. 

I am no expert, just a guy trying to figure it out like the rest of us, and this is what I have learned so far. 

Cheers, and let us know if you have any other tips!!