fbpx

Episode 79: Makin Offers

Show Notes

Makin Offers is critical to Makin Money in Wholesaling.  Dave and Mike discuss Makin Offers today on the Discount Property Investor Podcast.

To get started in real estate learn more at http://www.FreeWholesaleCourse.com Check out the Tool kit to see more products and services that David and Mike use to Wholesale 10+ houses a month.

David: Alright guys, welcome back. Mike, how are ya today?

Mike: Doing good, man, how you doing?

David: Doing great.

Mike: Good. I got a workout this morning.

David: Good for you, man.

Mike: Get to the gym before I start the day.

David: Trying to do that too, but had a couple of appointments this morning, so I couldn’t make it work.

Mike: Yesterday I didn’t make it, it sets the tone for the day, it’s totally different for me. Right now I am pumped up, I’m ready to go, got my pump on.

David: That’s awesome. What are we talking about today, Mike? Let’s talk about something new.

Mike: Today I think we wanted to talk a little bit about the importance of making offers. Not new for us. I hope we have pounded this into you guys. If we don’t then we apologize for not doing a better job just emphasizing it is when you are trying to wholesale making an offer. So let’s talk a little bit about– a quick overview of wholesaling. Obviously, Dave, we’re buying a property at a great price selling it for a good price. A lot of people like to do an assignment. One thing we like to emphasize is full disclosure, be very candid with your buyer, with your seller, when you’re marketing the property. Dave you mentioned earlier you had a really good appointment this morning. We were just briefly talking about the importance of candor. Candor meaning like truth-telling. Fully honest, full disclosure with the seller.

David: Right.

Mike: Do you want to talk a little bit about–?

David: So I had an appointment this morning with a seller in a not so great part of town. She had a fire in the house. So I knew going into the appointment it wasn’t going to be a great deal for us. However I like going on appointments and meeting new people, just looking at the property. So I agreed to meet her over there. I just walked through it. The house needs everything. On the street is boarded up houses, behind her house is burnt out boarded-up houses. It was just a really bad part of town where nobody wanted to be. So it wasn’t very desirable. I told her before I even walked in the house that I buy properties to rehab, I buy properties to lease out. I didn’t have any interest in buying these houses before I even walked inside, because of the neighborhood and the street it was on. So I set the precedent with her right away. I am not going to be the buyer, so I don’t want to make you think I am. Because if you do, and you are trying to wholesale it, you are going to get in trouble later whenever that particular seller expects you to show up to the table with money when you have no intention of ever doing that because I don’t want to own on that street. Set the precedent really early that I didn’t want. However I came in right behind that with– [00:03:43.21 – inaudible] wasting your time calling 50 people, I can essentially send out one text or one e-mail, and maybe, I didn’t promise anything, but suggested it was possible I know somebody, or somebody in one of my networks that may want that property for a couple of grand. That’s it, it needed everything, needed a new water heater, new HPAC, it needed a new panel box because they had cut the wires, pulled out all the copper. They had stolen the kitchen cabinets, the back of the house needed brickwork. It was all boarded up and it needed everything. I would imagine that places need 40-50 grand, and the ARV of it is probably 40 grand. It’s not a great deal but you never know.

I bought a house off the MLS, rehabbed it myself, so I saved a lot of cost. Ended up being what it was worth when I was done. I don’t look at that experience as being a negative experience, because in the process I was learning how to do all these different types of trade, learning the costs and so on and so forth. That’s why I don’t suggest walking away from that, because there may be somebody out there that wants that particular deal. I made it very clear to her that I didn’t want the deal, it wasn’t for me. So what I did was I kind of spun it and said, hey I can maybe help you sell it. If I were to give you two grand for it, I could maybe try and get someone out here interested in between three and five. Would that help you? How bad do you want to sell it? She is like, I owe one year of taxes which is like 700 bucks, and I am not going to fix it, I can’t afford to fix it, so I want to sell it. This was kind of a good win, win, even though I didn’t make any promises. So I signed an agreement with her, I should have used an option contract. I didn’t have any in my car, I need to load my car back up, but I had a contract to purchase. So basically gave myself 30 business days, which is about two months, an inspection period. I booked the close for the end of next month. We are at the beginning of this month. So I bought myself two months on that and I told her straight up, she was signing the agreement right there, I didn’t– I told her I wasn’t planning on opening an escrow until I found a buyer even though I had a contract. I didn’t even sign my side of it, but I will open an escrow if I need to. She said, send it out to my list of investors and try to drum up some interest. If I can help this lady that would be great. This house was worth about 50 grand before there was a fire and she abandoned it, people broke in and stole everything. It caught fire, and they didn’t have insurance. So this lady is out like 50 grand, it’s terrible. So I’m just kind of like, hey maybe I can help you, however, I’m not the buyer, I am going to try and bring buyers in, and you may never hear from me again. I will try and call you in a week or two if I have any interest. If I need to renegotiate with you, we will cross that bridge whenever we get there.

Mike: So this is– a really interesting kind of thing, because— Dave mentioned it was a lower-income– it’s a $50,000 property at best. So it’s not a high dollar property, there is not a ton of demand. But there is in my opinion a market for those properties. You have a lot of want to be landlords; not trying to screw anybody over.

David: Everybody has to start somewhere, maybe they are not experienced enough to know where to get the best property, but that property may work for them.

Mike: It will work for them because they are doing things differently too. We say it’s going to cost us 40 grand to rehab. If somebody is going in and doing all the work themselves, they are going to do it in maybe half that. Again, maybe they are cutting corners, maybe they are not, I don’t know. But if somebody goes in, maybe they are in the trades and he can do everything to code, get permits and all that for ten grand. He is just paying for materials, he just does it all on the side. Again, to him that’s a $50,000 property when he’s done, he is willing to put in $15,000, he will pay ten grand for that house. It’s not a dead deal just because it is in a rough area. I personally, that’s kind of where I started. It’s easier to start in low-income areas, less competition. There are less– I don’t know how to say this nicely, I guess the sellers are less savvy as well about all their options. They wouldn’t necessarily have the money to repair the house themselves, so kind of like this lady’s situation. Dave mentioned he felt bad for her. She doesn’t have the means to fix it up. She couldn’t even go to a bank most likely, get a loan to rehab the house and try to sell it. That isn’t even an option for her. Whereas somebody who has a $200,000/$300,000 house, first of all they probably had it insured, second they might be able to get a loan against the property to fix it up and actually pull some of their equity out of it.

David: Right.

Mike: Again, it’s a good place to start. So a little bit tougher sales, but that’s the importance of being truthful with the owners. I don’t want to own anything here, but I’m happy to try–.

David: The takeaway here is that I didn’t leave there with an item on my list to do. I didn’t contract in my car, I made it very clear that I didn’t really want to buy the home, however, I could maybe help her. I brought a contract back. You have to execute right there and get those properties under contract. If I did this ten times, the odds of me being able to sell this property that I don’t even want to buy, maybe one or two out ten. So you have to send contracts and a lot of them. For a while there– Mike you still do make offers on listed properties.

Mike: Yeah all the time.

David: Let’s talk about some of the numbers. We buy some of the properties on the MLS as well as tons of off-market deals as well. For the wholesaling business, also for our rental acquisitions business. When you are making offers on properties that are listed, you have to get them at 70-75 cents on the dollar, because our lenders are going to lend us 75-80 cents on the dollar [00:09:59.11] worst-case scenario. Usually 50 cents on the dollar. So you are making hundreds of offers probably to get to or three of them accepted.

Mike: Yeah it’s a lot, it can be frustrating at times, especially because you feel like you’re making a lot of enemies. Agents take it personally when you make low offers, they get offended by it a lot of times. I personally– I guess I get it.

David: Somebody was offended by my offer this morning, and I spun it so hard on her it was kind of funny. I said, what would you buy this house from me for if I owned it? They didn’t have any money, they were trying to sell it. I said, well there you go, that’s exactly my point. I don’t care what it was worth at one time, what could I sell it for? Well I’m not going to pay more than that. I’m in the business to make money, not charity. I am not being rude or mean at all, but you just need to be kind of blunt. What would you buy it off me for? Well, if you are not going to give me five grand for it, why on earth would I give you ten or twenty of fifty for it?

Mike: Exactly, you kind of have to put in terms that make sense.

David: Spin is the wrong word, just change the perspective. That’s a better way to describe that.

Mike: Yeah so let’s talk about making offers on the MLS, let’s talk a bit more about that. We did a lot of the stuff with the MLS, Dave you know a lot–.

David: Yeah done it in the past–.

Mike: A bulk offers thing. But what I’m getting into now, and what I’m finding a little bit more success with this, is actually going through and doing the work for finding auction properties. So there is a lot of properties on the MLS, and there is a lot of competition right now. When a property is listed as a little bit less, I am frequently told the owner is getting multiple offers, or send me your highest and best. Sometimes I believe the agent, sometimes I don’t. I find it hard to believe when a property that is listed for 120 days, then all of a sudden my offer goes in, and so do three others. But it happens, it’s happening. There is a lot of people buying properties right now. So doing the work, and going to the [00:12:07.01 – inaudible] auctions, and Auction.com is– you are finding fewer people are able to go through all those steps. Not really able but willing to. It’s a difficult playing field, it’s a lot more work, you have to monitor the auction, you have to pay the extortionate fees to the action companies, it is usually three to four grand on top of the purchase price. You have to factor all that stuff in. Again, you have to [00:12:32.02 – inaudible] ahead of time. You have to go out and look at the property, there is no inspection period, there is no– but again, that’s what I’m finding the best way for me to acquire deals for our rental side. We probably will be able to sell most of them if we wanted to. It wouldn’t be a true wholesale, but we could probably sell if we wanted to once we were the owners. That auction just eliminates a little bit of the competition. Then making offers to agents, put everything on our special sales contract. I’m a licensed realtor, so I use the board-certified forums. When you are licensed, you kind of have to disclose that you have an interest in the property, you have to disclose your license. There are all sorts of things you have to do differently than when you are just– when you’re not an agent, when you’re not a licensed person just going out and buying a house.

David: Right.

Mike: Again, there are a lot of different things you have to do. A lot of it is in just my opinion at this point CYB, cover your butt. You can’t– so even in our off-market contracts that we send now, we add some of the stuff from the other contracts, because it’s that important in terms of not getting sued. We have made tons of offers, we’ve got the coolest thing I think which is offers, contract [00:13:51.04 – inaudible], we talked about CRM’s last time. But even in our simple contract we include the fact that we are licensed agents in that. We want to disclose that to people, we want to make it very clear, hey we are not trying to get an upper hand on anybody. I’m an agent, I can pull comps, again we are just very truthful with all that.

David: Love it, man. Got to make offers, that’s the point here today, guys. You have to make offers. The other day somebody was in one of the big huge massive Facebook wholesaling groups, I think it was Wholesaling houses full time. They were posting about making an offer on an MLS listed property. Every single person was in there saying, quit wasting your time. You are not going to be able to get it. Some people were suggesting offered amounts. People were arguing about it. I made a comment to this guy, I go, I buy houses off the MLS all the time, but you can’t expect to get a great deal that you can wholesale on the MLS. You are willing to pay a little bit more than a wholesale price you can get them, but the numbers are still very few and far between. You can make 30-50 offers to even have somebody consider it. There is so much time wasted on over-analyzing it, just make an offer for what you are willing to pay and move on, period. I was like, don’t respond to it and tagged like six people above me I was like, don’t respond to these people, or me. It’s a waste of time, just make the offer and move on. Every single person on the thing was like, great advice! That was the point, quit talking about it, just do something, make the move, make the offer and move on. There is an 88% chance that they are not even going to respond to you. But if you don’t make the offer–.

Mike: That’s funny.

David: Yeah, then how would they ever know to respond to you? Just like this offer right here, I got this house– this property this house under contract for two grand, and I am going to try and push it out for five or six and maybe make 12-15,000 bucks, maybe have two hours of time in it, so it’s not a huge time suck, it’s not a huge profit center either. But if I can do a hundred of these, that’s a quarter of a million dollars.

Mike: Thing is, if you don’t do it, you are losing out on that potential profit, so how many appointments do you go on a week? Say two or three a day?

David: I’d say five to eight.

Mike: For simple math let’s say it’s ten appointments a week. Alright so say you do this on every appointment, you get one of these a week, a thousand dollars a week, that’s fifty grand a year.

David: Yep.

Mike: That’s a ton of money, guys.

David: Right.

Mike: Again, it’s just for going that extra mile, taking the time to–.

David: This lady isn’t going to be calling me every day or week asking when we’re closing, because I took the precedent with her– expectations is a better word, the expectations with her, I didn’t want it. However, I am not going to leave there and not try to help. I’m going to try and help at a minimum. If I can’t get anything drummed up for four to six grand in the next two to three weeks, I might just pass it to realtor friend and see if they are interested in listing it for her. Again, if I can make some commission, a kickback, a marketing fee, or a JVC, whatever that might be on the deal, why wouldn’t I?

Mike: Let’s talk real quick on what are we doing, why is it okay to do what we’re doing?

David: Sure.

Mike: Dave– again he said it, you have to make the offer, have to get the contract, have to get the contract signed. He has an interest in that property, so he has an equitable interest in that property.

David: I want to use an option agreement if I had one on me. That would have been a better play, because then I would have zero obligation. But in this scenario where I don’t open escrow anyway, it will expire on its own. It’s not a big deal, but go ahead, Mike.

Mike: My main point is, just that you have to have that equitable interest to market this contract slash property for sale. That’s why Dave is not acting as a–.

David: I told her that she could do exactly what I was about to do, but it wouldn’t be easy for her. If you want to call 50 people over here and have 49 of them tell you before they even walk in the house that they don’t want it? Or do you want me to send an e-mail out to thousands of people on my list, and just try to get two or three people that have interest in it, and want to walk through it–.

Mike: The thing is Dave, she probably has owned this for ten years.

David: Yeah. She said it was like that for 10-12 months.

Mike: Probably already had 20 people come out. Then you are probably the first one that said I will try to help you.

David: Another way I could have run this is just to do a joint venture with this lady. That is potentially what I’m doing, but I needed to get equitable interest while I was there. And the only agreement I had was purchase and sale, so I just make it work for her and I. It was definitely a win-win.

Mike: What was the lowest offer you’ve made compared to their asking price this week?

David: There was a guy asking 120 and I offered him 70 this week. That wasn’t crazy, but it was also a higher cost house. There was one I went on last week that wanted 12 grand and I offered $300. Really like I wouldn’t have even bought that one because they owed two or three grand in taxes, that’s what it would sell for.

Mike: So this week I made an offer on a property that has been listed for 180 days or so, so six months. It’s listed at $210,000 right now, I offered 50.

David: Good offer.

Mike: It was a really weird house. Guy paid 85 for it in 2008. So it’s not like it was really that crazy of an offer. I think he rehabbed it extensively but he’s in way over his head. Yeah, again I offered 50 on his 200. I am not afraid to, sometimes I feel bad about it. But hey, this is the number that works for me. If you can make that work I would love to buy the house. If not, thank you for your time.

David: Right.

Mike: Yeah you have to have a little bit of a thicker skin because people get offended pretty easy.

David: Mike listen to this, this is a funny story I will share with everybody listening too. So last night– right now we don’t have the– we don’t have a call center at this point we got rid of it. So occasionally we will point the phone after hours to different people. Last night I was monitoring the phones. I’m laying in my bed at maybe 9 pm with my wife watching TV. The phone rings and I could tell immediately it was a motivated seller from an ad word or something along those lines. I answered it and this guy talked my ear off for nine minutes before I could even get a word in.

Mike: Oh Jeez.

David: It was funny. So then I just kind of– firm but not rude, I just said, sir let’s start with your name, what’s a good number to reach you back at, and what’s the address? I mean this guy was just talking and talking about this house. I didn’t even pull this up on Zillow or anything. I was just listening to this guy and said, sir what would this house sell for in its current condition? He’s like, I don’t know maybe 100, 120 ish. He’s like, neighbor’s house sold for 160. I said, but what would your house sell for? I am not buying the neighbor’s house, I’m buying your house. He goes, I don’t know, I think I can get 120 for it. I go, okay is that with you listing it with an agent, and all that other stuff? He’s like, yeah probably. So you are basically going to clear 90 after all the times and holding costs and everything else? I said my offer would be like 70-75 grand, somewhere in that range. I’m not trying to make your problem my problem. I’m an investor, this is how I feed my family. If I’m going to buy something I’m not even going to gamble on it. I’m going to make sure there is a profit in it. However, I could be the solution to your problem if you need to sell quickly, otherwise, I am not the guy. I am not going to be very transparent with people. I wouldn’t take my offer if I were you either. But how bad do you need the offer? How bad do you need to get rid of this? I was like, this is where I’m at. He’s like, you’re crazy. That’s fine. Thank you for calling, I will call you back in six months and see if you are still on it. If you’ve been trying to sell it that whole time, you are probably asking something unrealistic, that’s kind of where I was going with that. You have to make those offers though. I didn’t even look the property up. This morning I did look it up, his estimate was 120 on it, we very rarely pay over that, even though that is a terrible indicator of true value, it is a good thing to look at when you are buying at a discount, because you should always be under that number no matter how bad or wrong that number is. Wouldn’t you agree, Mike?

Mike: Yeah for the most part. Again, sometimes Zillow is–. When something is not accurate, it doesn’t mean it’s always not accurate. It’s all over the place.

David: Right.

Mike: Yeah Zillow is good at what it is good at.

David: Right.

Mike: I’m going to put it out there, give you ideas, it’s a ballpark for sure. But it’s definitely not the– I am not going to say we never– we pay more– sometimes Zillow is great because it shows less, Dave. I mean there are times when I’m like, I’d pay more than that. I mean it is few and far between.

David: Few and far between for sure.

Mike: That’s the psychology of people in general. Everyone thinks their stuff is worth more than it actually is once they own it, so it’s kind of just human nature.

David: But make the offer, guys, that’s the point, make the offer.

Mike: Yeah make the offer and follow up. I think we talked about that a lot last week as well. The importance of– on your offers. So make those offers, make those offers low, make them honest and make the fair–, be honest with the people, build some rapport with them, and you are going to eventually get some offers accepted. That’s the name of the game, and that’s how you make money in this business by having properties under contract.

David: You have to have an inventory. This is– we are in the marketing business as wholesalers, we can be investors at the same time. But as a wholesaler you have to have something to sell people. This is funny, a lady contacted me yesterday about being new to wholesaling, wanted to know if I would be on her buyers list. I said, sure, if you can bring me a deal, I don’t care who brings the deal, I will buy it. So I spent a couple of minutes talking to her and explaining to her– what I was looking for. This morning she sends me an e-mail that says, hey I found a property on the MLS or [00:25:02.10 – inaudible] would you be willing to pay me a $10,000 assignment fee in buying the house at 35? So I responded and said, well first and foremost as an investor I don’t pay retail. So if they are asking 25 I am going to have to be at half that number, around 12 grand, okay? So as a wholesaler, because she was obviously new but I didn’t want to be rude.

Mike: You did a great job I saw the e-mail.

David: You did? I said you need to be under retail, especially under what you’re asking me to pay in terms of retail. I gave her a link to our free wholesale course, she checked it out. She’s like, thank you so much this explains it. She obviously didn’t understand that as a wholesaler is– the first thing Mike said when was started this episode was– buy great sell well. Retail is above good, retail is bad.

Mike: Retail can be good.

David: It’s essentially too high. So if you’re a wholesaler you have to get below that number, and go below even further to make your spread. In that case I told the lady I would be interested in 12 grand and she was asking 35. You can’t up sale on– it’s happened in the past, I’ve done it, but it’s rare.

Mike: It’s pretty rare. So there is also what we mentioned before, you have to have the equitable interest in the property.

David: I told her that too, go get it under contract.

Mike: She doesn’t know what she’s doing, and that’s why she is doing something– technically illegal, I don’t know.

David: She wasn’t publicly marketing it. I wasn’t going to report her or anything. But at the same time I hinted that she shouldn’t be doing what she’s doing, because she has no interest in this property.

Mike: Again, hopefully, we make a great bird dog out of it, hopefully, we can make somebody that goes out and wholesales.

David: How did you see that e-mail?

Mike: It went to one of–.

David: Interesting. Make the offers no matter what, no matter if you’re embarrassed. Let’s talk about making offers blindly real quick. If you don’t know, ask them what they are asking for the property and cut that number in half to start. That’s a good rule of thumb for me. They may hang up on you, they may laugh you out the door, but at least you are doing a strategy called anchoring. You are basically saying, here is where I am going to start. It could be really, really low. If you want to meet them in the middle and anchor really low, that middle could end up being a really great number. If someone is asking 100 and you ask for 50, you can meet them at 75, that’s way better than them starting at 100 and you saying you can maybe do 80 then take it down to 75, you’re already above it.

Mike: It sounds a little crazy what he’s saying, ask half of what they asking but it’s not.

David: That’s not really what I’m willing to pay, that’s what you say, that’s where the negotiation starts.

Mike: I mean it’s crazy to think– what if they were already selling it for kind of low? Well you don’t know that though until you run comps and really look at it. My point is– if we take a $100,000 house here in St Louis, I will just use 100,000 for rental numbers. If they think their house is worth 100,000, because that’s what the houses around here are selling for is 100,000. But you know they are calling an investor because that house needs some work, then it is probably not worth 100,000 right now, it’s probably worth a bit less. So if they are asking 100,000 and you come and say, I would probably be closer to 50,000. That’s what I would pay cash to take it off your hands. If they balk at that, then you know they are not motivated. If they say, well come and check out the house and see, then you know there might be some motivation, and you know the property probably needs a lot of work. So that’s kind of where I was at with what Dave was saying. Again, if somebody has a decent property and they are already selling it at a discount, they kind of blow upon you. But again, it’s a great strategy, and I like anchoring, I really do.

David: You have to start with anchoring, why though? Because a lot of people, a lot of the newbies, myself included when I first started– still learning, so what’s the principle? The principle is that there is so much cost that goes into selling something if you are wholesaling it not so much, but if you’re buying something, and you are trying to sell it at retail; you have to pay an agent most of the time to sell that property, 6%, then you have to pay all the taxes on that year, the insurance. If you own it you might have to have utilities on it. So the holding cost is going to be a ton If you have been lent money to purchase it you have an interest. Those costs are always there. Then if you sell it to a buyer that wants to get an inspection done, you are going to have to fix those items or settle with that individual. That is called seller concessions. That right there can be anyway from a couple of hundred bucks to several thousand dollars if they decide they want a new roof, or foundation wall fixed or just anything in general. It doesn’t come to the end usually. So you may think you have a good profit on a deal until you do the inspection, then start renegotiating. So the cost is so high, so whenever I go out and I’m making offers to people I am including all that. I say, well okay you think it will sell for 120, but does that include the eight or nine thousand dollars worth of commissions you are going to get? So let’s talk about it selling for 120 in six months from now, how much are you going to net from that particular property? You have to take 20-30 grand off the top for holding costs, commissions, taxes and everything else, it adds up so fast, plus it might need work. That offer really isn’t that crazy, okay?

One thing we haven’t really touched on that much, Mike, we did a little bit earlier with me and this appointment this morning, this deal I got locked up. But we are really here to offer a solution to people. We need to circle back to that. We are not here to make offers that are low so people think we are here to steal their property. If you explain it properly, your offer will be a reasonable offer if you explain it properly. I will say it again, any offer no matter how low it is, if explained properly will make that offer look realistic and come across that way, if you explain it properly. So if your offer is low you need to explain why it’s low. It needs work and I need to sell it just like you, it’s going to have these holding costs, commissions, concessions and all that other type of stuff. But again, we are here to offer a solution to people. So most of the time when we’re out, people are not motivated enough to like those offers. But sometimes when we’re out, people are so motivated that they might not even care why they are just happy that you are taking a problem off of their back. We are there to offer them a solution, and they know you are going to make a profit and they should, that should be expected. A lot of times whenever I walk through a home and people say, what do you think? My response to them is, I think I could make a little bit of money on this if I can get the price right. Just tell them straight up. I am not interested in buying a property to rehab and lose money, I’m not interested in buying a rental that doesn’t appraise for what I am all into it for. I need to be at 70% of that, right? So again, you are there to solve a problem. If you’re struggling with this scenario to where you can’t come across the motivated sellers, or well-motivated sellers, or enough of them; the problem is not you it’s your marketing, okay? It’s just not being seen by enough people, and having enough reach and enough audience to let everyone know that you are there to help them. You are not there to be a charity, you are not there to pay retail for their property so that problem becomes yours. You are going to make a profit or get paid for taking on the problem. Therefore you are there to solve a problem, give them a solution which essentially is a liquidation, I am here to liquidate and that’s it. If you pay more than that liquidation price as a wholesaler, you are never going to be able to get a spread because you basically paid too much. Have the mindset that you are there to help, you are there to solve a problem, and often times you will meet people that don’t have a big enough problem for you to help them solve yet. Now a lot of people are calling us all the time, especially now that we have radio ads. Oh, I heard your ad I have been thinking about selling, I’m kind of just wanting an offer. Well I don’t really like going on those appointments. I just go, what’s the house worth? Let them tell me. How much work does it need? Let them tell me. I will basically take the work it needs, double it, take it off the price, and start there. A 100,000 house that needs 20, I will say I am maybe interested in 60, maybe, because I am going to need to put 20 back in it, there is going to be building costs and everything else, guys. You have to get in low.

There are so many ways to increase the number of offers you are making without increasing the amount of work you’re doing. That’s the thing, people get paralysis analysis and spend 3 hours analyzing a deal and they never even get the offer out because they can’t decide where it’s at. Just start low and keep it low.

Mike: Write the contract, get it in writing, get something going.

David: You have to take action to make things happen. So the lady this morning who sent me a deal she marked up. I wasn’t even mad, I started laughing when I saw the e-mail. I am like, this lady doesn’t know what she’s doing. But you know what? At least she has the courage to like– even made this move and mistake.

Mike: She’s trying to make money.

David: Now she has a free course we delivered to her because she sent the right e-mail to the right person. So she is going to learn. If people are just going to sit around reading books, or wondering how they are going to get out there and do a deal but they are not talking to anybody about doing deals, how are they ever going to do a deal?

Mike: It doesn’t happen.

David: It doesn’t happen. It’s funny, if we were to give that lady one of our daily checklists, she would have checked off like eight things on it.

Mike: Yeah make the offer, exactly.

David: She is doing something, that’s what I loved about. I wasn’t even mad or upset, I was like, I’m going to help this lady out, here’s where I’m at, this is where it’s at, this is where you need to be. By the way check this course out. So if you want to check it out as well, FreeWholesaleCourse.com, we are going to teach you what it takes to wholesale, it’s a great course.

Mike: Alright.

David: Alright guys, make the offers, that’s the important thing today. No matter what makes the offer. Try and make them written, even if you do a verbal, maybe send an e-mail follow up, maybe a text to the people.

Mike: The thing for me, when you are on an appointment–. I love to– that’s one of the things of having a buyer credibility packet. We go in with a folder most of the time with a contract, some comps, and all that stuff. Having it in writing is great. I always like to get their e-mail as well. Most people use e-mail, it’s easy. If they don’t like the contract and they say–. I say, let me e-mail you a contract and I will follow up with you–.

David: So this lady wanted– didn’t even want a copy of it. I was like alright, I will just text you a picture of it, and she’s like, that’s cool.

Mike: You want to leave it with them for sure. Cool, guys, so let’s go ahead and wrap up for today and we will see you guys next time.

David: Sounds good guys, next time we will see you then. Let us know if you have any questions or anything.

Thanks for Listening

As always If you liked what you heard please help us grow by adding a review.  Your reviews help us rank higher and reach more people. Thank you! Talk to you soon.

Related Articles

Responses