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Real Estate Articles
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| HAVE YOU
GOT YOUR ACT TOGETHER? |
| by Louis
Brown |
|
Satisfied Customer |
| I just want
to let you know how valuable your courses
are to me. I bought "the
whole enchilada" at the Super
conference, and there is hardly a day that
goes by that I don't use one of the forms or
listen to your tapes. I also appreciate and
am impressed by your "next day service" on
my faxed questions.
In a time when a lot of products don't
live up to their expectations, I can say
that yours have exceeded expectations and
have become my new default documents.
I appreciate them more each time I use them.
In addition, and more personally, your
ethics and honest, wholesome style is closer
to my own than some other "gurus," and so I
find in you a role model.
So I was just feeling appreciation for
you and wanted to let you know.
Sincerely,
Shawn McCarty
Encinitas, CA
|
Recently my son began to show an interest in developing
his own portfolio of real estate. He started looking at
properties and making calls. He came to me and said,
“Dad, I know your forms work, I know your system works
because I’ve watched you and Mom work all these years
and create a lifestyle I want. What I can’t seem to do
is talk to sellers. I don’t know what to say, when to
say it, or where in the conversation to say it. I can’t
seem to arrive at the point where I can get answers for
those questions on the Seller’s Questionnaire form where
you decide what the best deal might be for that seller.
Dad, I need help.” I realized as I looked at him that I
had the same problem when I started out. It isn’t easy
to ask personal questions of a stranger. It’s not always
easy to feel like a professional who not only has the
right to ask those questions, but deserves the answers
to solve that seller’s problem. I started looking for a
way to provide a feeling of professionalism and
credibility while presenting a solution to the sellers.
Have you ever been visited by an insurance sales person,
a gutter, siding, insulation or sunroom addition
salesperson? Do you remember what they all had in
common? It was a presentation “flip chart” where they
explained through visuals who they are, what their
product is, how they differ from the “other guys”, and
how they could benefit you. Several years ago, I
realized that it was fine to explain to people that I
was experienced. I worked hard to give them the
impression that I had the backing and the
“where-with-all” to close. I explained who our buyers
were and how we made our money. But I realized something
was missing. When I spoke to my son, David, about how he
felt in talking to sellers, I remembered those flip
charts on insulation, windows and sunrooms. I realized
the written word was a powerful convincing tool. I
realized a presentation or “flip chart” could benefit me
in telling my story. It could benefit David in providing
him with a guide through the conversation and, most
importantly, providing him with credibility as well.
Another problem for many of us, especially beginners, is
that we are uncomfortable with these strangers called
sellers. Sometimes we are uncomfortable telling our
story, since some of us don’t have one yet. Have you
ever had a situation where your brain “locked up” and
you couldn’t remember anything…like possible offers you
could make? With a flip chart, you have a guide to the
conversation and a tool to use to provide you with time
to think.
I learned the real power of the written word when I used
my “Standard Real Estate Purchase and Sale Agreement”. I
saw that this contract did a lot of my negotiating for
me. I created this contract with a lot of language in it
that is slanted in my favor… things like who pays the
closing costs, built in “subject to the existing loan”
language and favorable owner financing language. But a
contract alone, your good looks, and your silver tongue
are not always enough for some situations or some
sellers.
I thought, “What if I had a credibility kit to show
sellers who we are, who we sell to, how we work, even
provide testimonials". I realized the sellers would look
at me, my salesmen… or you… in a different light, as a
professional who had a clear, concise story to tell.
With a credibility kit, David would have a starting
point to begin getting the experience he needed to
create his confidence, develop his negotiation skills,
and start his portfolio.
So I started experimenting with a “Seller Credibility
Presentation Kit”. I started looking for sellers’ “hot
buttons” …those psychological touch points to tap into
the concerns and objections most sellers have. I’ll list
for you some to the areas I felt needed to be addressed
and how I dealt with them.
First, I felt sellers want an assurance that they
are dealing with a professional… someone whose business
it is to buy property.
Second, I felt sellers want some insight into how
we operate. It makes them more comfortable to know who
our market is. I show them on my flip chart that we work
with buyers who don’t want to wait to move in through
the long loan process and that we work with folks who
have credit issues and need time to work those out. I
explain that we work with them to clean up their credit.
Third, I’ve seen sellers want to know that you
have the business professional contacts and the know-how
to get the job done. So I outline those items so sellers
will understand that they will not have to handle a lot
of things they don’t really understand.
Fourth, I learned that sellers really don’t know
what it costs to go the traditional route of selling.
So, I outline how a traditional sale works and show what
it costs to sell. I include a chart to show the
Realtors’ “dirty little secret”… “ It will cost you to
sell your home”. This shows the costs and
psychologically pre-frames sellers into a discount…
before you even discuss repairs or your profit!
Fifth, I discovered through my trial and error
that sellers like to see testimonials of others we’ve
helped. I included photos of those homes and quotes from
those sellers praising how we had helped them.
Sixth, I included a checklist that
outlines types of offers we could make… things like “we
could take over payments until we sell” or “if there is
enough equity, we could make payments to you” or “we
could give a little cash now and more later”…these are a
few of the types of solutions or offers on that
checklist.
Seventh, I included a checklist of the paperwork
I would need from the sellers. It is easy to forget what
you need to craft a deal and you do not want to rely
only on the seller’s memory.
Eighth, I included a worksheet to show what all
the potential costs of sale are for the seller and blank
lines so we could calculate the actual costs of a
traditional sale to that seller. With this we could take
their asking price, deduct those costs that we jointly
worked out, then come to a number to START our
discussions about what we could offer. This works very
well to get the sellers to a starting point we can make
a profit at.
So I recommend that you create a color presentation kit
to show your seller what you do, what you have to offer,
how you can help, testimonials, and illustrations of the
true cost to sell. This will be a powerful
representation of who you are and will immediately
fatten your bottom line. If you would like mine, I’ve
got that available to you.
You can customize my presentation with your company name
and your name. I include a black and white print out of
the pages and suggestions on how to bind them. I’ve made
it easy for you to implement this valuable tool in your
arsenal of wealth-building tools. Do it yourself or take
advantage of my years of trial and error. Either way,
you’ll be glad you did. Good luck! |
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