There’s a lot of deal killers that you’ve got to keep your eyes peeled for or else you’ll say “another deal down the tubes.” Some of these deal killers can include attorneys, realtors, and other investors.
However, I’m not going to touch those in this article. I want to go over one of the deal killers I see many investors making that have no clue there making… Talking numbers to quick.
The fact is you’ll dig yourself an early grave as investor by going in for the kill to early by talking about the house numbers. More often than not, investors talk money to quickly when meeting with sellers. And as a result, the seller’s door will shut, while the investor may never get the second opportunity.
So, you wanna increase your profits and the likelihood of getting an offer accepted?
Then get the motivated seller to like you first. When they like you, they’ll feel they can relate to you and a certain level of trust is earned and thus your chances of getting the deal closed just drastically increased.
Use the phone as much as possible to collect enough data to see if the deal is worthwhile, but when you meet in person, it’s better to get to know the seller and find a common ground before you ever talk about the house and the house numbers.
It’s better to back away from the money issue all together and build a strong rapport right from the gate. A couple of years ago, I was assisting a knucklehead investor in another market that was looking at a deal that had about $40K in equity. He’d met with the owners and got nowhere, so he called me to see if I’d meet with them for a percentage of the deal.
At the time, I had a few deals in the works in this area myself, so I agreed. He’d met with these people already and they’d talked by phone on several occasions but he couldn’t land the deal. I spent a little over an hour and learned more in that hour than he knew after three or four meetings. I took an interest in them by listening to their family history, how many kids they had, and yes I walked away with the deed. They did the deal because they trusted me because I invested in them first.
This is so simple to do, yet often overlooked. I know you can pull this off, so listen up.
Look for items that you can make small conversation with to build a level of rapport. Here’s a brief list:
– Awards on wall – Vehicles in Drive – Children pictures on wall – Diplomas displayed on wall – Artwork
It’s literally amazing how much you can learn by just looking at the walls and walking up the driveway. When walking up to the door, pay close attention to the gutters, the way front door looks, the mailbox, and the landscaping. Does it look overgrown, does it look in need of repairs. If so, the seller could be facing some financial hardships. Just be aware of what’s going on by observing what you see with your own two eyes. This alone could open the door for you conversationally plus let you know what type of situation the seller may be in.
About the Author
Derek Pierce is a full time real estate investor that got his start investing in real estate when he bought his first property in September of 2000. Now, he reveals the real estate investing secrets he swears by at http://www.thereisecrets.com