All Forum Posts by: Account Closed

Speaking to sellers face to face or over the phone can be very intimidating for a newer real estate investor/Entrepreneur, the fear can be discouraging and immobilizing. 

What if there was a way to shake off some of that anxiety so that you could approach these potentially lucrative situations with more confidence...Or at least composure? 

Enter what I call "The Reversal Theory" put simply, it's the belief that with a simple mental shift you can overcome- or at least better handle- the anxiety that comes along with speaking to sellers (this could be applied to buyers and lenders but I want to focus on sellers now). 

Let's dive in to how this all works: 

Newbies often engage with sellers as if they (the newbie) has to prove something to the seller, they start talking and go on and on about how they have access to cash, how great their company is, how they can "close quickly", etc, etc.

 I believe that is the wrong way to approach it. For one, you have to remember you're the one with the solution to the problem, you're the BUYER (or you're connected with the buyers), you're the one that has to decide if YOU want the deal or not..I'll take it a step further to even say the seller should be making you the offer, I personally never make an offer, I always ask: "What's the best you can do knowing that I can do XYZ and provide (insert services here)?" Or some variation of that. 

Make the mental shift, Reverse the situation in your mind and realize that they are trying to sell something to you, not the other way around. You should be the one asking most of the questions not the sellers. 

If you Reverse it in your mind from "I have to prove something" or "What if they don't accept my offer" to "They have to prove they're Serious about wanting to sell" and "If they can't come off of that price or term I can't do business with them in a way that would make sense for me and my company", you'll be much more successful. 

Now I am in no way saying be rude to sellers or anything like that, it's really about being more assertive and knowing the value you bring into the transaction, it's like when the pretty girl knows she's pretty, you have to be picky too...Not every seller is going to be rational or open to how you do business and that's fine, qualify them Quickly and move accordingly. 

You have to view the seller as the salesperson, not you. They have to prove to be agreeable enough to do business the way you do it so that you can help them. 

Approach it like this a few times and it'll become a habit and you'll end up with BiggerPockets. 

***Disclaimer: This is about PRIVATE sellers. So for all the BiggerPockets trolls who like to attemp to 'correct' people...Just leave it alone. 

Pick someone within the field of REI you admire and implement their systems and processes, tweak them as you become more experienced.

It all comes down to picking a way you feel most comfortable with, that's where the education comes in. 

For sellers: Direct mail/SEO

For buyers: MLS

I guess sometimes it's the messenger and not the message. 

Don't understand where all the negativity is coming from, but this is social media so I'll take it. 

Whenever I mention "Wholesaling" I'm 100% talking about buying a property and reselling it NOT assigning the contract, there is a difference. 

To all the people that can read through the garbage follow the tips I gave and go out there and make some money, legally! 

Best of luck, 

You have a cash buyers list of 500 people?..

Avoid all the legal issues and start with a small mailer, even if it's $100 a month. Close using private funds, seller financing or transactional lenders then resell. 

Learn the laws in your state, excercise your equitable conversion rights, this game is not that complex.

The value you bring to sellers is your knowledge of how to turn a property quickly (get LEGALLY paid for you knowledge) all you need is intellectual capital you don't need to be a millionaire to get into real estate flipping. 

The funny thing is it's all so preventable: get a license, line up some money or buy creatively...

No need to broker with a license, people need to use their heads and stop listening to gurus from Arizona. 

Once a month until you either A). Get a contract or B). They tell you not to call anymore

We use transactional funds provided by our hard money lenders or private lenders. 

We base the entire conversation with sellers off of as is value, we back out what we want to make fees from that (example: as is value = $100,000 we back out $35,000, 15K goes to closing and realtor fees the rest is profit). ​

We're using an appraiser or BPO agent to determine as is value and we're in the Wisconsin Market. 

When you get the seller to think in current as is values instead of a more speculative "ARV" I've found it's a lot easier to talk the price down and get them to see it your way. Of course, there are more 'intricate' details pertaining to this but this is the jist of it.

We use a hard money lender for transactional funds and list on the open market. 

Dealing with licensing issues and a limited pool of cash buyers can be tough. Why not go to where 75% of the buyers are (MLS)?

You can reduce recurring costs and grow your business nationally and not have to learn every single new market by leveraging inspectors, appraisers and Realtors, they'd only be paid on a transactional basis so capital expenditures would be directly tied to how much revenue you generate. 

Also, please stop calling yourselves "Wholesalers" if you don't know the definition. 

Flipping contracts is basically brokering securities, Buying and selling a home is not. 

Let the truth free you lol.