How do you describe your Value Added

Question

I'm just getting started investing in real estate investing(marketing) and was curious how my fellow wholesalers describe the service they provide when talking to: a. Sellers b. Buyers. Any particularly good verbiage or one liners you find effective when selling your service and why you deserve your cut. Mine : "(Seller), the traditional route of hiring an agent, putting a sign in the yard, holding open houses, and praying for a qualified buyer is great when your homes show ready and your schedule is open enough to deal with that process. How about we write a Cash Offer for X amount and so you get do (motivation for selling)." Something along those lines. Interested to hear everyone's pitch.

Steven Leigh · Answer

You're not trying to talk them out of using a realtor, so don't go that route. Instead, do the opposite.Example of what I often say:If you have the cash to fix up the house and list it with a realtor, and you can afford to wait a few months, that is going to be your best option for getting the highest price. What I can offer is a cash offer, so you don't have to wait around for loan approval, I pay the closing costs, and there are no realtor commissions of any kind. I can also be very flexible, so you can choose your closing date and your move-out date, and I never ask you to do any repairs.In fact, it's a good idea when you are talking to sellers to give them the other options first.Why not list it with a realtor?Why not rent it out to a tenant?Because once they have given you reasons why they can't do either of those things, they are also realizing that you are the only option left. AND you've built some trust with the fact that you're actually suggesting things that would be in their best interest instead of yours. I've told sellers that I'm not their best option, because they were looking for a price that was too high, etc. I even recommended a realtor to them, wished them luck, and we hung up. Then they called me back a few weeks later and said, "So just for the record, what kind of price would work for you?..." It's not hard to see why. I gained their trust by giving them good advice in their best interest, instead of trying to push the hard sell. They now see me as a straight shooter who will tell it to them straight. And there is also a lot of power in "pulling away" instead of chasing them. If you start to pull away from the deal, they will start to chase YOU instead of you chasing them.So you're on the right track, I would just avoid bashing realtors (unless they start doing it first) and just focus on your own benefits.

Mike B. · Answer

Bryan, if you are solely going to be wholesaling the property then you should either already have Qualified cash buyers buyer lined up and interested in the type of property you plan to get under contract, and/or, have a clause in your contract which you will talk to sellers about that allows you to give the property back to them if you dont sell your contract.Getting a property under contract at prices that most investors would pay (discounted 35% or more) will be extremely challenging. Most people want the most money possible for their property, even if they have to wait a few months.I wouldn't look at this as if you're providing a "service" per say to the seller - rather a solution, and in a nutshell, here's your solution:You (or a partner or another investor in your network) can buy their house right now and Relieve the seller of the Problem. That's it. You Buy Houses Directly, Fast For Cash. When a seller NEEDS/MUST/HAVE TO sell their property Right Away (because of whatever super distressed situation they have), you can buy their house Fast (20 Days or Less), All Cash, Any Condition, No Hassles, No Commission, No Cleaning, No Repairs, and you even Pay The Sellers Closing Costs, you handle all the paperwork to get things started and then everything is processed through escrow/title/attorney. When you buy their property, there is no need to wait for bank financing, no appraisals or home warranties or seller credits, no listings and showings and negotiating various offers. By selling the house to you Right Now with all these Benefits, they will sell for a discounted price in order to get rid of the property and move on with some cash in their pocket. When selling a house traditionally, they will have 10% of their sells price eaten up in commissions, closing costs and holding anyway, and have higher taxes to pay which reduces profits. Yous can relieve their stress, worry, headaches, hassles, and just get this property off their hands at a fair price for the current state of the property and their situation.Personally, I'm not a big fan of sales and trying to convince a seller that wholesaling is their end-all-be-all only solution. I'd present it very friendly and matter-of-fact, and if you're able, present other solutions as well, including a lease option or seller carry type scenario.If you have a Truly Motivated Seller, all this stuff will make sense to them because they Really Need to sell their house right now, otherwise, they'll probably decline and hold out for more money by listing. Wholesaling will work best when that Must/Have To urgency exists with a property, otherwise probably not. Either way - always be polite, understanding, and Honest.

Bryan Hull · Answer

Love it! Thanks for that, Mike.

Bryan Hull · Answer

Brandon, I can assure you that during my stay as an admin at a major realty company here locally, I found many agents doing little more to sell homes then described. I won't argue the usefulness of a good agent though. I AM currently offering to always cover closing costs as well as offering to close as soon as title clears due to my ability to get funds immediately for them. I like the lease option idea though. Haven't thought to include something like that. Thanks for the suggestion!

Brandon L. · Answer

@Bryan Hull Sellers are very educated these days, so I think when you approach them presenting real estate agents in a negative light they will see right through it. Most of them know the tremendous value an agent brings to the transaction even if you do not. A successful agent does not just throw a sign in the yard and pray it sells. They are putting in the work daily in multiple ways. Most sellers know this, and they are smart enough to distinguish a good agent from the bad. If you want to bring value to someone in desperate need of selling a house: I would suggest showing them proof of your ability to purchase, and close on their house, opposed to wasting their time by getting the house under contract, and failing to pawn off the contract to an investor.I would suggest paying all the closing costs for them. I would suggest giving them an option to just get up and go leaving the house as-is if they choose.I would suggest offering a lease back situation so they can stay in the house after you close on it.Anything to make the transaction easier on them. Be creative.Also, I would suggest caution when you describe your "service" because brokering real estate transactions without a licensed is illegal in most states.Hope that helps you out :)