(WARNING: LONG READ)
How would you like to double your assignment fees by tomorrow? What about TRIPLE them? Sound too good to be true? Read on!
I’m going to give you 3 Ninja Tactics (3 Golden Rules, really) that if properly implemented, will EXPLODE your assignment fees!
Some of what I’m about to tell you goes against the norm. Some of it may even be a bit controversial. It might just not be what you’re used to doing. What I’m about to share isn’t theory or hyperbole!
These are things that I’ve learned along the way and have implemented in my own business. I’m convinced that if I didn’t learn this stuff early on (and put it into practice), I wouldn’t be half as successful as I am today with Wholesaling.
So let me break down these 3 Ninja tactics for you.
1. Get as many agents on your cash buyers list as humanly possible!
Yep, you heard me right…agents! There are NO better cash buyers on the planet then agents! Without question, agents are the absolute BEST and highest paying cash buyers, PERIOD!
Here’s a perfect example: I just sold a property last week through an agent and walked away with a $17,000 assignment check!
Today, these types of amounts are common in my business and more often than not, my BIGGEST assignment fees come from, you guessed it…agents.
When I first started out and didn’t know any better, I NEVER would have thought this. Back in those days, I was just happy to get a deal…with anyone! In those days (which weren’t that long ago, btw), I was typically making assignment fees of around $2000!
Maybe some of you would be happy making a $2k assignment fee. Imagine if you could be making $10k, $15k and even $20k assignment fees consistently?
Well…YOU CAN!
2. NONE of your cash buyers should find out about your deals until ALL of them find out!
Like it or not, don’t be looking for silly excuses to be calling up your cash buyers. Some people will say, “Tom, but this cash buyer really knows the market, I want to get a price.” Or, “Tom, this cash buyer has bought so many properties from me.”
That is BS!
Do not let ANY of your cash buyers know about a deal until all of them find out about the deal simultaneously. This way they can bid the deal up…so that you make more money!
Think about it: As Wholesalers, we bust our butts to find deals and get the “right” deals under contract. Don’t sell yourself short by giving them away to a “buddy”.
Btw, if you’re calling your cash buyer a buddy, that’s a problem. That’s a BIG problem! I’ve got news for you, they’re not your buddy. There’s a reason they’re cash buyers. There’s a reason they’re wealthy.
Don’t tell anybody about your deal. You can tell your mom, your sister, your spouse, your partner, whoever, just don’t tell one cash buyer…until you’ve told them all.
3. You must put somebody between you and the buyer!
This is REALLY important! Why? Why is this so important you ask? How will putting someone between you and your buyer lead to doubling and sometimes even TRIPLING your assignment fees?
Here’s the deal: Most of us are not great negotiators. We think we are, but we’re really not.
I’ll give you an example: If you’re showing me a contract and I’m negotiating with you, I know that as the wholesaler you can make the final decision, yes or no. So, I’m already looking at your price and I want to negotiate that price down.
So what you need to do is put somebody in between you and the buyer.
I don’t care who you put there, just put someone! You can hire what they call a disposition manager. That’s just a fancy name for putting somebody in between you and your cash buyers. This way, when you put your purchase agreement out there for sale, your buyers are calling that person and not you.
Shut your phone off! There is no reason why you should be talking to ANY cash buyers!
If you are not already doing this, it’s probably one of the reasons why your assignments are small. If they’re small, I can almost guarantee you it’s because you’re breaking one (or more) of these three rules.
You’re either telling a small group or a handful of buyers about your deals prematurely, you don’t have enough agents with cash buyers on your list, or you’re selling them yourself.
Now, if you don’t have a lot of money to do this, here’s a simple solution.
Just tell the person that’s going sell the piece of paper for you that you’ll give them $500 or maybe a percentage of the deal (10%) or whatever.
Regardless of how you structure it, I can guarantee you that you’ll make a LOT more on your assignments if you have that person in place.
So here’s how the conversation should go;
Mr. Buyer: “Ok, disposition manager, I want to buy Tom’s purchase agreement.”
Disposition Manager: “Sure thing, I will let Tom know. Today is Monday, put in your highest and best offer for that purchase agreement by Wednesday at 2 o’clock.”
Mr. Buyer: “Well, I just want to offer what he’s asking.”
Disposition Manager: “Oh, okay, that’s fine.”
What happens is that they’re going to at “least” put in what you’re asking or an even higher offer.
This is how you grow your assignment fees. By putting someone between you and the buyers you are now in MUCH greater control and the decision maker. Otherwise you can fold, you can lower the price, you can negotiate special terms and allow a buyer to hold the property without a deposit or a signed assignment agreement.
So don’t do that! This way is SO much easier too.
By putting just that one piece in place you’ll be removing a LOT of unnecessary pressure! You’ll be lifting a BIG weight from your shoulders and…make a LOT more money in the process!
And trust me, the money will start rolling in when you have somebody doing this for you.
And best of all, that person doesn’t have to be some kind of expert. It could be your wife, your brother, a cousin, somebody on Craigslist, even an agent. If you have an agent, broker, or even a title company friend, go for it!
My title company’s daughter has done it for me. I’ve had agent friends do it for me too. I now have a full time person who does it for me but the bottom line is this: somebody needs to be in between you and your buyers.
So again here are the three rules for MUCH higher assignment fees.
1. Agents (lot’s of them) on your cash buyer list
2.None of your buyers, no matter how tempted you are to do this, no matter how excited you are about a new deal, should know before they ALL know!
3.You MUST put someone, anyone, in between you and your cash buyers.
I’m raising my glass to MUCH higher assignment fees guys!! Good luck!
