Want to start my first deal. How Do I Approach Homeowner?

Question

Ok so I am getting to the point where i have done most research, have my business together,business cards, bandit signs,about 10 cash buyers ect. I think im ready to start my first deal. I can find a great deal and i know my area in and out but Here is the problem. How do i approach the seller/homeowner and what do i say? i guess this is the part that is the hardest to overcome. Some say tell them the process and what i am doing. other say just put in an offer and sign the contract and it dosent matter what you do after. What do you suggest? How do i break the ice? Im a very truthful person and do not intend on being shady. I believe I will go the  "tell all" route but how do i start? Sorry for all the questions.

Nick J. · Answer

Whatever you do end up saying will be completely different from what you're told to say. When you're first in front of a home owner or even on the phone, you will be more nervous than a whore in church. I almost threw up when the first home owner answered the door.

what I have learned though is this: You can't say the wrong thing to the right person.

Adura Sanya · Answer

One thing is disagree with is a newbie telling a seller they are wholesaling. Just tooo many variables and things to explain. Imagine someone telling you "i cant buy it buuut i have cash buyers that can etc etc.

Focus on KNOWING your market so you can make the RIGHT offers. if you are in at the RIGHT number then you can always sell the property to an investor.

This allows you to bypass the whole "i'm a wholesaler convo" I could be wrong, but i know that would def not fly in my market.

I've actually scooped up deals other wholesalers missed out on because they tried to explain wholesaling. and guess what? I Wholesaled the same deal! Difference is i presented myself as a" Cash buyer with access to funds allowing me to close in 30 days"

Make the right offers and you'll be a cash buyer also because YOUR cash buyers will close on SOLID deals.

Robert Burns · Answer

My suggestion is that you get your mind straight about what you are really doing and it's not Wholesaling.  What you are doing is HELPING  the sellers achieve their desire to sell their home.  It really doesn't matter that you are a wholersaler or whatever.  You should represent yourself as someone who is interested in buying their home.  Stay focused on the sellers and not on your objectives.  If you think about helping the sellers the process will take care of the rest.  If they are strongly motivated to sell their home and you are sincerely interested in helping them do that then  the "monkey on your shoulder" is irrelevant.  If you build an offer around a "win/win proposition" then you should not get caught up in telling them about wholesaling or anything like that.  Just talk with them with integrity and sincerity about helping them sell their home to relieve the need they have to do that.  Just BELIEVE you are providing a service so they can go on with their lives.

Ali Samana · Answer

If I may throw in my .02 Jonathan, I would suggest confidence being the key.  Especially if you are dealing with distressed sellers.

Confidence should come from the fact that you already have some cash buyers who are looking to invest.  So, if the deal is right, you will be able to help the seller get out of the house.

Johnny P. · Answer

I agree with Robert!

It will probably be hard to find good wholesale deals in FL... unless you are lucky like myself and get some great calls from your advertising.  If anyone is behind on their payments the odds are that their house will be underwater making it a terrible prospect for a wholesale.  Luckily they will be a GREAT short sale prospect and you can still make a killing.  I would say to focus on submitting offers on REO's to wholesale.  This will give you a far greater amount of houses to focus on and potentially cash checks from.  You will occasionally find a  traditional wholesale deal come along but there are a massive amount of REO's here in FL to capitalize on.

Oh and this way you aren't talking to a homeowner at all....

P.S.  I used to sell wireless also for cellular sales and that really is great sales experience....with that much experience you will be fine either way.

Account Closed · Answer

I like that fact that you're a man of your word. In a business like this relationships are the key to success. I would apporach the owner with a friendly attitude and inform them you have more than one buyer who is interested in a their house. Let them know how quick you can close on the sale. Also, advise them of all their options. If the owner is late I suggest you research the foreclosure process in your area and teach them how it works. After you verbally inform them of the foreclosure process and where they stand in that process give them a print out of the foreclosure process on your letter head so they have something to reference. I would come off as very understanding by conveying them you are there to help not necessarily to make a profit. If they're distressed make sure you explain to them in great detail their different options they have that doesn't include a sale by you. Good luck and please post your results.

Matthew Paetz · Answer

I would strongly suggest reading the book "How to win friends and influence people" by Dale Carnegie.
          I truly believe that the lessons from this book have opened more doors for me than any business book I have ever read. It doesn't matter if you're dealing with a multi-million dollar investor or a renter; the #1 thing is each of them is people! So spend some time learning about the 1 thing that you can guarantee you're going to deal with in any deal, people!

Good luck!!!!

Dan Bilobrowka · Answer

It sounds like your doing pretty good so far. I working on my first deal at the moment. I have waited FAR too long to get started, and it sounds like the same general reasons as you. 
Try not to focus on the fact that your dealing with strangers. I am truly am here to get the best deals for people that I possibly can, while making sure the sellers situation is well taken care of. That's it. Every time. I think it's going to really help having that understanding. And transferring that confidence and understanding to the people we work with throughout our real estate career will be the difference maker.

Plus, we've got to start somewhere.

Jonathan Ferrari · Answer

Thanks guys i guess I will just have to go with the flow and introduce my self as a wholesaler

Scott H. · Answer

I might suggest that honesty and being open is the better way to go.  Here's the thing, you will likely find many that don't want to proceed with you based on uncertainty about what you do and that is ok.  You don't have to work with everyone you attempt to work with.  In reality, if you are open and the seller knows what you do (in essence as you don't want to reveal your complete business model), the transaction will likely proceed much more smoothly.  If they don't, it could result in a constant questioning of your business and process.

Want to start my first deal. How Do I Approach Homeowner?

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