WHOLESALING REAL ESTATE ➡️ 2 ways to ask a seller for price reduction

WHOLESALING REAL ESTATE ➡️ 2 ways to ask a seller for price reduction

January 15, 2020 1 By Luis Garrison


CLOSED CAPTION BY YOUTUBE!
but this $7,000 so your end buyer needs
to come up with 72 thousand dollars in total in addition to that the hey this is all are coming to you live
from my empire pool studios on the road I’m excited to bring you this video
today again are the question of the days what is the best way to ask a seller for
price reduction so let’s that sector through real quick
okay um so you already know what wholesaling is right you’ll find a
motivated seller you’ll find an aim fire and you link them both together and you
make some nice chunk of change typically around 10% of the after repair value in
between what I just said is you find $100,000 home after repair value you put
it under contract with a seller you find a motivated seller that has a reason to
sell very cheaply they need to get rid of the property properties uh as a
trouble you know it’s uh the property is a liability for them and they agreed the
property needs some work ten thousand dollars worth of work they agreed to
sixty five thousand dollars but you said a listen property is worth you put the
property on that contract for sixty five thousand dollars right so you thought
you had a good deal or because she thought the price was one hundred
thousand dollars well here’s the thing that happens that often happen at times
in real estate wholesaling right you turn around you’re trying to find a
buyer or link this property together with that end buyer you’re trying to
assign the contract that you have on this property to an end buyer for your
fee you’re trying to make seven thousand dollars not bad right $10,000 $12,000
you’re trying to make some money for finally deal so I said wholesaler you
make money from finding the deal right so you try to assign it and none of your
end buyers are biting they’re basically you’re getting feedback such as the
comps are no good the property is not worth $100,000 the property is only
worth $80,000 the property is now worth $100,000 after
repair they can’t pay more than $30,000 for the property that happens a lot of
time especially with newbies who may have overinflated what the value of the
property is a lot of time unknowingly a lot of times the data you have is not
good a lot of times the load data may be off to the idea may be off the
comparables are not comparable and right because the idea of comparables or comps
means it needs to be comparable so a lot of times people the subject property is
a two-family but you’re looking at the for sorry the
subject property is a two-bedroom house you’re looking at a four-bedroom house
and you’re comparing them and because of that your value has been off now a lot
of time there’s a bathroom in a master bedroom on one on the on the on the
comparable property but your subject property only has one bathroom in the
basement clearly that’s a bad idea that’s not gonna work so once a buyer
see this an end buyer see this information and they try to see if they
can hide that value but it’s not working out
then they’ll turn on and say hey you’re over is overpriced really all you needed
was you got the property under contract for sixty five thousand dollars right
all you want is seven thousand dollars so your end buyer needs to come up with
seventy two thousand dollars in total in addition to that they need to spend
about ten thousand dollars on repair so the total cost is gonna be at eighty two
thousand dollars but then we after repair value is eighty thousand dollars
right so that numbers is not working out that will happen a lot in your business
if you are marketing enough you will get a lot of people calling and you may have
a property under contract where your numbers was off a lot of times is beyond
your control so now they be one of the beauties and as a wholesaler is that you
are obligated to execute the contract but sometimes it’s just impossible and
you may have fear that what if they try to enforce it what if they try to file a
lawsuit well what you’d first of all let me
address that they’re not gonna file a lawsuit in most
cases because it’s not what that time they’re not in the game to be looking
for lawsuits they’re in the game because they need to get rid of a house so what
case scenario to find out you can’t as acute they move on that’s what most
people do but first of all you would have built enough rapport with them
right I’ve said first of all 15 million times but you get my point
right you would have built enough rapport with them to the point that
they’re not they’re not going to be nasty to you you know because if they
were nasty to you on day one you really should not be dealing with such seller
most sellers will be nice to you they just want you as a cute they are nice to
you because they really need to be out of the deal they are motivated
motivation means they’re desperate they need to get rid of the house their house
is bad on their financial profile the house is bad in their books and they
need to get rid of it so because you can’t as a kid doesn’t
mean they’re gonna what you do is you go there I said let’s talk about this you
know like I told you before so I’m talking to the seller now right like I
told you before I’m gonna do everything in my power to help you get rid of this
property that’s the conversation okay you’re solving a problem you’re helping
them get rid of a liability okay so if you haven’t you need to basically have a
sit down with them or get them on the phone is fine too again you have that
rapport with them because you learn how to listen a lot you make them do the
talking first and all you do is you solve their problem that’s really the
key wheezing why you’re having that conversation that is gonna be dead the
more you can do this the better you are the more you can do this the more money
you’re gonna make you simply ask quality questions okay and then you wait for
people to answer you and sometimes you need to say what you need to say so
remember so I’m about to say it again right now remember that I told you I’m
gonna help you do everything in my power to help you get rid of this property
listen I really wanted to get you that fifteen thousand dollars that you asked
for but the numbers are not hiding up okay the numbers are not hiding up so I
want us to look at it together and come up with something better
so I can help you get rid of this house that’s one way to do it okay that’s one
way to do it there’s another way to do it again you really just want to push
things from a problem-solving standpoint if you do that you always win and
sometimes like listen if you can’t execute you know if somebody’s being
nasty like that you really don’t want to be doing that deal anyway just keep it
moving and go market some more okay that’s what you want to do okay so now
let me catch my train of thought you have a person and the price was a e that
you agreed to was $82,000 you’ve just found out that the property is not even
what eighty thousand dollars after repair okay and you simply need to go in
and say listen that number I really thought I was gonna make you work with
my partner’s okay cuz you always have a partner right as a wholesaler your end
buyers are your business partners okay so I really thought I was gonna make it
work with my business partners but the numbers are not adding up okay so I need
we need to reassess the numbers so I can make you happy but also we need to be
happy because we are in this for profit we do this because we make profit from
it for me personally I enjoy doing this but my partners didn’t need to make
profit and I gotta be honest with you on that so this number is now working out
we argued on $82,000 but we’re actually finding out that after repairing your
property is only worth $80,000 so the numbers are not high enough to be honest
with you because they’re gonna have their money on the line they’re gonna
have workers working at this property they’re gonna be paying and hiring
contractors to do the work the numbers are not adding up okay so we need to
reassess that number and then you shut up and you listen at that point when you
just set that to them you’re gonna prequalify them for the next phase of
what you’re gonna say right at that point if they go crazy and they start
making noise and they strike yelling all over the place then you were dealing
with the wrong person that wasn’t a motivated seller in the
first place okay just leave okay but usually if you get to this stage in the
game they’re not gonna be nasty Dobler really
man so what do we have to do now that’s the right person to be talking to the
person who says oh so what do we gotta do now what can we do when they ask you
what can we do then you go like okay yes we can still do something but we gotta
do the numbers this is the kind of profits that my partners are looking to
make okay they pay me a fee for my services
but this dessert money they kind of make so this is the number that work out for
us can you do sixty thousand dollars and they’ll go like that’s crazy man it’s
crazy like listen I just showed you the numbers you need to get rid of this
property they need to make profit that’s when Wayne so let’s make it happen and
they may come back and say can they had two thousand dollars can be had three
thousand dollars and you be like let me make a call and they said you know what
they’re gonna do it and then you put on that contract again I mean you made the
deal happen but really the key thing in everything I just share with you right
now is really your rapport you built with them the posture okay your posture
is affected by your confidence knowing that you’re there to serve your problem
and knowing in your heart of hearts that you’re gonna help them out
makes all the difference if you don’t know these things you’re gonna suffer
the deal is gonna suffer they’re gonna mouth treat you they’re gonna stomp all
over you so you need to show up to that game like you are confident how do you
know that you’re confident that comes from knowledge okay you know what you’re
doing and you know that it’s okay to share with them that your partner’s must
make profit because they’re gonna gonna gonna fix the property they’re gonna put
about back on the market so your partner your partner’s have to make profit and
you have to make sure they make coffee because they do business with you all
the time and you want you want to keep them happy that’s how I make money too
but I want to make you happy too so what’s gonna be a win-win for all of us
right now you have conversations or harness conversation like that with
sellers they have no choice okay because and they will like you even better
because you are being honest with them honesty transparency will work for you
in this game it will I promise you okay and you really have to keep it that
simple the only reason why you will try to do anything else
Sneaky’s got your non market enough remember you have to market
enough you have to have enough leads coming to your pipeline that way you can
operate with confidence hopefully you’ve been a light man you get it click share
click like download the book it’s absolutely for free smart real estate
wholesaling calm and I’ll see you on the next one and peace