Okay, so you already know that if you really want to wholesale deals you need to get multiple properties for pennies on the dollar. One of your BIGGEST attributes in the business is your ability to talk a homeowner down on their bottom line price. If their mortgage isn’t outstanding and their is some equity to work with it is quite possible that the seller may be more than willing to get the home off their hands.
In this profession we need to be able to evaluate the entire situation as a whole and analyze the numbers involved. For instance, you need to know what the owner owes on the home versus their asking price for the home. The list goes on.
At the end of the day, you have to make sure that you are going to be able to purchase the home at the numbers you know your investors will buy it for. Your number one job at this point is implementing your Negotiation Skills in order to ensure that you are getting your seller to agree to the lowest purchase price possible. This is an area so many people get a tad bit nervous about, especially when they are rather new in the business. They are uncomfortable, with “low balling” sellers and are scared of “insulting” them.
Some investors may even imagine holding a conversation with the seller before the actual offer takes place and all they can visualize the seller saying is, “STOP THIEF!” Is this you? If not, Congratulations, you have passed one of the biggest barriers in the business and that is understanding “No matter who gets offended, this is a numbers game” and if the numbers aren’t in your favor you don’t continue to play the game. It’s as simple as that!
This is not a business that you will do well in if you are constantly concerned about insulting sellers. The bottom line is, You are an Investor, and you are not seeking to live in the property. You are purchasing it for investment purposes ONLY and it would NOT be a wise investment to purchase it any higher than you can resell it for (Plain and Simple).
You need to let your sellers know you are not seeking to live in the property or rent it out. There will be the typical holding and maintenance costs involved, in addition to any repairs or upgrades that will need to be done. Also, make sure your sellers are aware that you will also be selling the home with a big portion of equity still in the property for a quick flip.
Now that you know this, the number one thing you can get out of your head every time you correspond with a seller is, “STOP, THIEF!” Many novice investors feel that they are blindly robbing their sellers, but this is NOT the case. The bottom line is you offer quick home purchases to motivated property owners who are in need of selling their home quickly. If it is not a win-win situation the deal does not need to be done.
There is too much “Genuine Gold out there to get stuck with the Gold-Plated” (deals) that will only tarnish and fall apart. You cannot help everyone out there and for some it is obvious that your offers will make no sense to them. That is okay, keep it trucking and you will finally run into the Jems that when dusted off Sparkles so Vividly, that your pockets will too!
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