I recently started putting out Bandit signs. I started getting calls the first day to my voice mail service I have set up. I want to start calling them back but I’m not sure what questions to ask to make sure I sound professional and also to make sure I’m not wasting my time pursuing something that is not a good deal. What questions should I ask and what should I do to make sure I am maximizing every opportunity I have to Wholesale a house? Thank you for all your help. 
google and print out a bunch of real estate investor lead sheets. call each lead and fill in the blanks. when you get to the asking price ask them just like this: “if I paid you all cash and closed quickly what would be the least you could take for the property?”
the answers will determine if there is a deal or not. I am assuming you know the difference between a deal and a dud am I correct?
Mr/Mrs. ____, first let me say I really appreciate you inviting me over today, and it’s been my experience that at the end of our visit one of three things will happen:
First, you may sell your home to me and that would be great.
Second, you may not sell your home to me and to be honest with you, that wouldn’t be so great.
Or third, I may be unable to buy your home.
Would that be a fair assessment?
The fact that I may be unable to buy your home may sound strange to you so let me explain, You see _____, I’m a investor and I run a business and I’m not just in the business of buying and selling homes, I’m in the business of satisfying needs and problem solving in creative ways to meet those needs.
So as we visit here today, we come across a need you have that I feel I cannot satisfy. And if we reach that point, I simply may be unable to buy your home.
Does that make sense?
Great, because I want you to understand that there is a definite difference in the way investors as well as realtors choose to behave.
I believe 1% of the industry behaves like my company does while 99% of the industry behaves simply as investors trying to strip out as much equity from homes and real estate agents that just want to list a home and hope some other realtor sells it for them, chances are you are going to come in contact with one or more of these types.
How will you know?
Investors will tell you right off the top, that they must buy at no more than 60-70% of your home’s true value. Real estate Agents will come in and assume that know what it is you need in the sale of your home without even asking you, They will assume you need the most amount of money in the shortest amount of time with the fewest hassles: and then they will start TELLING you how they can satisfy those assumed needs and SELLING you on them and their companies image. More times than not, working with an agent leads to a win/lose relationship because ultimately it’s all about their need to list a home.
Now compare that to an investor who will not assume anything. A good investor will ask you questions and then listen to what it is you need in the sale of your home. When we hear what your needs are we will decide whether or not a win-win relationship can be created. Working with a good investor always leads to a win/win relationship because, it’s all about what each party needs and expects to happen.
Does that make sense?
Do you see a difference between the two behavior patterns?
Do you see the benefit in working with a investor like myself?
Great, with that in mind, lets talk about what it is that you are needing in the sale of your home.
Pull out your YELLOW LEGAL PAD and write down just the core items the seller is about to give you in the following answers…
What one thing has to happen for this experience of selling your home to be a great one?
Define that.
What is important to you about ___________.
What else is important to you about ___________.
What one thing could we add to make this an even better experience?
Define that.
What is important to you about ___________.
What else is important to you about ____________.
If we could just add one more thing that would put icing on the cake, what would it be?
Define that.
What is important to you about _____________.
What else is important to you about _____________.
Mr./Mrs. _______ of these three needs, which is MOST important to you?
So, if you had _______, and didn’t get _______ or _______, you would be okay with that?
Great, what’s the second most important thing on this paper?
So, if you had _______, and didn’t get _______, you would be OK with that?
Mr./Mrs. ____, lets review for a moment. What you’ve told me is the most important thing to you in the sale of your home is ______. The second most important thing is ______, and the third most important thing ______.
Is this correct?
Mr./Mrs. _______, has any other Investor or Realtor talked to you about the sale of your home?
No
If I can show you a way we can satisfy or exceed these needs will you do business with me?
Mr./Mrs. _______, has any other Investor or Realtor talked to you about the sale of your home?
Yes
Did they uncover these specific needs and then consult you on the best ways to satisfy these needs?
If No, How do you feel about that?
If Yes, May I ask why you didn’t list your home with them?
If I can show you a way we can satisfy or exceed these needs will you do business with me?
Well is there anything I can do or say tonight that would result in doing business with me?
If the seller has a need listed you know you can’t satisfy, change the dialogue to:
If I can show you a way we can create a win/win relationship, will you work with me?
Great, then let’s see how we can go about satisfying these needs.
Explain how your methods will solve their problems. Pull out the Option, fill it out and hand it to the seller and hand them your pen that you just used.
Don’t be afraid to push at this point, they will like it if you do, since it shows them that you will equally push to resale the home with the same tenacity.
This is where the GURUS are so out of touch and outdated that it frightens me people still listen to them. The most important thing in this market isn’t LEADS, but rather buyers.
Stores have all sorts of inventory. Heck, I don’t think Circuit CIty had a hard time getting product on the shelves but rather buyers in to buy that product. Getting leads on properties for a wholesaler is having product. The question is, do you have the products your buyers want?
I wouldn’t open up a steak or BBQ place in a community of Vegetarians, would you?
So, you have to get BUYERS first, then go after the products they want and will buy. If you have buyers and they only buy 2-4 flats, but all your leads are for single family houses, you won’t be doing much wholesaling.
FIND YOUR BUYERS FIRST, talk to them about what they way, then create a marketing plan to bring in those products. The GURUS ARE PLAIN WRONG HERE. IN the Real Estate BOOM, of course the mentality was “If you build it they will come”. That just isn’t the case now, nor should it have ever been!
Find your buyers first!!! They are the ones that pay you after all, not the sellers!
I can’t say that I disagree with you, but how do you know he doesn’t already have a buyers list? He still needs a way to prescreen sellers.
@WCRT. Your strategy makes more sense to me and thats what I’m doing. I have have only talked to a couple of buyers and I am driving and putting bandit signs in the areas they are looking to invest in. @nsu1997. I really don’t know the difference between a bad, good and great deal, That’s is and area I would like to be more confident in. Let me give you all an example of one of the prospects I have and tell me what you think. Guy calls me selling his mothers 2 family flat. he wants to move her into a nursing home. He tells me off the top he is looking to get about $6,000 for the place. to me this sounds great. However it is not in a favorable neighborhood and is not where any of the buyers I have are looking to invest. The 2 family is all brick. Everything looks solid on the outside but the inside will probably need to be totally gutted and rehabbed. After talking with him a while that day he said he isn’t going to be a real haggler on the price meaning he will come down from the $6000 he originally asked for. He just wants to get rid of the house. He says the title is clear. What do you all think of this deal?
@dlsmithsr I commend you for taking action (something most people seem to resist doing) but you need to be trained to recognize a deal from a dud; I’d do that before spending any more money on marketing.
What I’d do in the meantime is get those lead sheets filled out completely and present the deals to your buyers. They’ll tell you what they’re looking for and if any of the leads are potential deals.
To start, here’s a good formula to prescreen wholesale deals:
ARV (after repaired value) X 65-70% - estimated repairs = MAO (max allowable offer)
Never offer MAO to the seller. MAO is the most a typical rehabber will pay. How much below MAO depends on several factors such as the condition, location, etc. However, again your best bet is to find out exactly what yourbuyers want and go find it.
Get trained though, seriously. I’d start with the flip2freedom.com podcast, it’s totally free and highly informative. Also theres a 100+page ebook you get for free too. Good luck!
Thanks NSU1997. I already have the E-Book. Guess it will just take getting my feet wet and learning the ropes. I learn better hands on anyway. While I have you alls attention let me ask. I have a lady that have 2 properties right across the street from one another. They are in danger of foreclosure and the mortgage company has agreed to short-sale one for $15,000 and the other for $10,000. She is working with a Realtor to sell the property. I haven’t closed a deal before. 1. Can I wholesale a Short-Sale? 2. Should I fool with it being a newbie? 3. If I can and should, what do I need to do to close the deal? I am also in need of contracts with some good “out clauses”. I have some contract I got from another source but they don’t have any “out clauses” in them. Thanks again ladies and gents. You all have been a huge help.
You’re welcome. Nothing wrong with learning while doing but I’d suggest learning the basics down cold first. Paramount on that list is the ability to recognize a deal, because unfortunately the overwhelming majority of leads will be straight wood. And what happens is many new investors, unable to immediately recognize a deal is wood, try to cut deals with unmotivated sellers just utterly wasting time. Then what happens is they get frustrated & discouraged, start to doubt themselves, and/or say “this doesn’t work.” I don’t think this will happen with you because you have already taken more action than most…that’s really a great sign. But trust me, not being able to recognize a motivated seller will eventually take out the best of them.
Regarding the 2 short sale properties it all boils down to the numbers. You can certainly wholesale a short sale. If you can get them under contract for below MAO and you can risk the deposit then go for it. Keep in mind since they’re listed you won’t be able to give a realtor a token $10 deposit…it’ll be in the hundreds at the very least. Other than that it’s just like any other deal, just find a cash buyer for it and see it through to closing. Don’t worry too much about “out clauses” in your contracts because if you can’t close your only risk is your deposit…you won’t be getting that back if you can’t close no matter what (nor should you). Besides you won’t be using your contract with listed properties anyway, you’ll be using the realtor’s.
Good luck and keep it going…you’re on the right track!