In previous “Lessons from a High Volume Wholesaler”, I covered the importance of making a quick decision so you don’t lose the deal or get into a situation where you have to pay more.
I also covered how some sellers are price sensitive and insist on getting their price, but you can still make the deal work by structuring terms that make the numbers work for you.
If you’ve got a motivated seller, you can almost always make a deal work.
After you analyze the comparables and evaluate the condition of the property, you’ll come up with a number that is the most you can pay. That number is NOT the number you should offer to the seller because you need some wiggle room.
In fact, it’s better not to make offers at all. Instead, ask the seller what they would take for the property if you paid cash and close quickly.
DON'T MAKE OFFERS
Let the seller tell you what they will take. And keep your mouth shut about what you have determined is the most you are willing to pay.
Sometimes you’ll be pleasantly surprised that the seller’s magic number is much less than what you were willing to pay. You may be willing to pay $75,000. But the seller might be thinking if they can just get $50,000 they will be thrilled.
So, don’t make offers – ASK what they will take.
Once you have a general idea of what price the seller wants and what their needs are, then you can get creative with counter-offers, seller finance offers, and multiple offers.
Recently I asked a seller what they would take if I pay cash and close quickly. They said they would take $50,000! This is a $200,000 property in Panama that only needs about $20,000 in repairs. If I were making offers, I would have said $100,000 as a starting point and been willing to pay more. Because I DID NOT MAKE AN OFFER, I got a better deal.
On my daughter's first deal, she asked “if I pay cash and close quickly, what's the least you'll take” They replied $25,000 (on a $90,000 house). Then she said, the house really needs a lot of work, is that the best you can do. They said they would take $8,000 if she could close in 7 days. ( She wholesaled this property for $20,000 and got paid in 7 days)
You don't get these kind of deals if you make offers. You need to ASK what the seller will take.
This won't work with listed properties of course. But your very best deals ( and highest profits) will be made when you're dealing with the owner directly.
DON'T ASK…
That brings up another issue. Many investors ask the seller that they think the house would be worth.
That’s a HUGE mistake.
The seller does not have a clue what the house is really worth, so their “opinion” about the value is completely irrelevant. Don’t ask them – they are a civilian!
Hey, you are supposed to be the expert here anyway aren’t you?!
If the seller tells you their house is worth $150,000 and you’ve determined that you can’t pay above $80,000 – then you’ve got to spend a lot of time trying to “justify” your lower price. The seller will be disappointed at your price and possibly insulted to the point where they don’t want to work with you.
If you never ask them what they think the house is worth, then you don’t put either of you in that uncomfortable situation.
How do I know this stuff?
It is from 17+ years of experience with talking to LOTS of sellers and buying LOTS of houses. I’ve made the mistakes so you don’t have to. I’ve also figured what works best and what does not work.
I've offered $75,000 on a house, only to have them tell me at closing that they would have been perfectly happy to get $50,000. Ouch!
I have asked sellers what they thought the house was worth, ( hey, that’s what they teach in all those expensive seminars) then had them chew me out when I told them the best I could do was half of what they thought the house was worth.
There’s a way to say and do things so everyone walks away from closing with a smile on their face. It’s the little things that make a HUGE difference. These are some of the things you’ll learn at www.CashFlowDepot.com
Once you get past the learning curve, your wholesale business can be a perpetual “money machine”
Would you like to learn how?
In all the years that I’ve been buying houses, I’ve developed SPECIALIZED KNOWLEDGE which enables me to get a high volume of leads so I can talk to a lot of sellers… so I can do a high volume of deals consistently.
Now it’s your turn!
It’s decision time. Can you make a quick one?
You’ve basically got three choices. You can head down the road struggling to find success without a road map. You will always be wondering if there’s a better way, an easier way, to do more deals…and make more money
You can attend high priced seminars and HOPE the trainer knows what they are talking about (you'd be surprised how many don't).
Or you join us at CashFlowDepot.com to shave years off your learning curve and get on the road to success faster.
The only difference is the amount of money you can make if you take the trip with a map and the amount of frustration you can save yourself if you learn what really works from an expert high volume wholesaler.
CashFlowDepot.com has the information you need to be successful… faster… at an affordable price. You can join for $29.95 per month or save even more with an annual membership for $197
SIGN UP HERE – GET INSTANT ACCESS TO THE TRAINING YOU NEED
Remember the first lesson… if you want to be a successful high volume wholesaler, you need to be able to make a really QUICK decision. This ONE decision to join CashFlowDepot.com could finally be the turning point in your life and your real estate business.
Just do it! Sign up now at www.CashFlowDepot.com or call Melissa at 1-888-282-1882 to register by phone.
To YOUR Extreme Success,
Jackie Lange
p.s. JOIN HERE for only $29.95 per month
