F2F 135: 9-Step Seller Conversion Sequence (Steps 1 & 2)

Hello again, this is Sean Terry from the Flip2Freedom Podcast. We are on episode #135. Today’s episode is actually kicking off a series of episodes –  a ‘how to’ lesson series for wholesaling houses.

From finding the right property, to estimating repairs, to closing the deal at the right price, to setting expectations as you wrap up a deal… I’m presenting the 9 critical steps that successful real estate wholesalers use to convert a deal into a contract.

Nine important steps that, if followed on every deal opportunity, will make a difference in your business. A big one.

Step one is ‘Preparing Your File.’ Step two is ‘Pre-Appointment Intelligence.’ These are the two steps covered in this episode. Get to it, friends.

Listen and enjoy

Download Episode 135 Here…

What you’ll learn

  • Brief discussion of wholesaling basics
  • Finding deals from distressed owners
  • Marketing to distressed owners
  • Tips for first conversation with seller
  • Importance of preparing your file
  • Components of a deal file
  • How to gather the comps that apply to the deal (and only the comps that apply)
  • Setting the price and sticking with it
  • Setting your fee
  • Importance of pre-appointment intelligence
  • Knowing what the deal is really worth
  • Gaining confidence by gaining knowledge
  • Allowing the seller to do the selling
  • Motivation keeps you going

Mentioned in this episode

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Transcription:

Download episode transcript in PDF format here…

Sean:   Hello again, this is Sean Terry from the Flip2Freedom Podcast. We are on episode number 135, 2017 and I’ve got…we are actually starting a series called the Nine-Step Seller Conversion Sequence. So this is specifically how to, so now you get a phone call from a seller, you book an appointment, you meet with this seller and now that step going the nine-step sequence, step by step, what it takes to get that deal converted into a contract. So, yeah, we are going to talk about the nine steps, it is going to be, a four-part series. So step one is Preparing your File, step two is Pre-appointment Intelligence. We are going to cover those two today. Step three is Meeting the Sellers–strategic leading questions and building rapport and also reading the seller. You’ve got to know exactly, based on the personality type of the seller, so you know who you are talking to. That is critical, going to get deep about that, Evaluating Repairs–specifically, this is a huge component that if messed up it can blow your entire deal. We are going to talk about the Custom Covert Intuitive Presentation, the Three surefire Closing Questions, what questions do you ask to get the deal closed, right, and the Objection Annihilation Method. These are the objections the sellers have and I have got literally the top 17, 18 objections and how to overcome those, we are going to talk about those. Closing the Gap, right, so you offer a $100, the seller needs to be at $120, how do you close that gap after you have overcome all the objections and then the Wrap-up/Follow-up step nine in Setting the Expectation for going forward. So that is the Nine-Step Seller Conversion Sequence, we are going to cover that over the next four weeks, I have got some killer free gifts, I want to give you. Actually if you go to Flip2Freedom.com/gift, Flip2Freedom.com/gift, we are actually…I’m having Erin create an infograph. The infograph is basically the Nine-Step sequence, step by step so you can see exactly how to lead a seller from an appointment all the way down to a contract. So that is going to be, that is going to be killer. Now if you don’t, if you just jumped on here, you have no idea what we are talking about, you have no idea what wholesaling houses is, let me tell you, what we do in the concept of wholesaling house is something that I discovered back in 2003. All I thought about real estate was that either (a) you have to be a real estate agent and represent someone so you could make money or you could fix and flip properties like you see in all these TV shows, you know the flip and flop right, they buy a property, fix it up, you know take a crappy property, make it beautiful, turn around sell it and make a profit or you buy a property and you turn it into a rental property, right. So the bottom line is that that is what I have got, that is the only way I could find to be able to profit from real estate. So once I found out this concept of wholesaling, it completely changed everything for me. So what is wholesaling? Wholesaling is where you target a specific small niche in the marketplace. Okay. 95% of everybody that you and I know is going to call a realtor, list their property and sell their property. I am going to do it, you’re going to do it, you know, most people are going to do it. There is a small sliver, 5% of the population, that don’t want to wait…right…120 days on the market. They don’t want to fix up the property, there might be fire damage, they may have had a tenant trash the property, may be in an inherited situation, may be a probate situation, they may have a pre-foreclosure, whatever the case may be. There is distress there, they want to sell their house quickly. Now, one thing about real estate different from the stock market, you cannot, now look at me, I am looking at the stocks right now and stock went off…flying off the shelf, but Apple right now is a $136 a share, right? Imagine if you could buy Apple for 80 bucks a share, right. You buy as much as you can and then you can turn around selling for a 120 bucks a share, people you sell it at retail for $136 a share and sell all day long, twice on a Sunday. So the bottom line is real estate, you can do that and stocks you can’t. You can buy a $100,000 house for $50,000 or you can contract that $100,000 house for $50,000. So what the whole thing is we target distressed sellers and we help them out of their situation because what happens is, a lot of time, if you’re going to meet with the realtor and the realtor is going to tell them they have to fix a property, they have to wait, they have to show the property. A lot of people don’t have the time or the money to spend, they just want to get it sold, and sold now. So what we do is we can go meet with the seller, through this Nine-Step Seller Conversion Sequence, we can get the property under contract right and now we have an asset, so let’s say you have this $100,000 house for $50,000, you have a contract on it, right, that is incredibly important. Now you can turn around and you can sell that contract or assign that contract, let’s call it $10,000. You assign it, the $100,000, you know it is a $100,000 worth property, you get a contract for $50 and you sell that contract for $10,000 via an assignment. Now that is $10,000, now what happens is, now the buyer is going to fund the entire transaction. He is going to bring all the money, all the $60,000. $10,000 is going to go to the seller, I mean $50,000 is going to go to the seller and $10,000 is going to go to you. Now think about this, you could do this once a month, right, once a month. What if you did it once a year? What would it take on your current job to get a $10,000 raise for the year, right? Others probably look at the angle…who knows what you have to do? What now, what if you did it once a month, that is a $120,000 a year. We have got guys that are listening to this podcast right now that are out there doing deals and I get stories all the time, it is amazing, I love hearing these stories, of people going out, they are taking the information, and they’re applying it and they are getting amazing results. Why? Because they follow the process, they have learned how to talk to sellers, get properties under contract, sell them to cash buyers and be able to…I mean, there’s guys up in San Francisco doing half a million dollar deals, half a million dollar deals and this guy is making $5000 checks all in between. You never know who, what seller is going to call you, which is so exciting about this business. So, this is the entire podcast. This entire podcast is specifically about that process of marketing to those specific sellers, talking to those sellers, finding the buyer, getting the deal closed and then scaling it to where you can do like we do…15, 20 properties a month, right. We do deals all across the entire country. It’s amazing. So this is what we are going to teach you in this podcast. It is an absolute blast. Now if you go to Flip to #2 Freedom.com, Flip2Freedom.com there are two places you can go, if you go there, Flip2Freedom.com, there is a book you will see right on the front page, it is like a video on there, you got to check it out, but I wrote a book, it is a 129-page book and it explains the entire concept, what I just talked about from start to finish. You can download that for free. Also, if you go to Flip2Freedom.com/gift, we will also give away some cool stuff with this series. We are going to give away scripts, we are going to give away repair sheets, we are going to give away that infograph which is pretty killer, we are going to give away some cool stuff which I think you guys are definitely going to like, right? So we are going to talk about the Nine-Step Seller Conversion Sequence. The first step is Preparing your File. So picture this, right? You send out some marketing, maybe a postcard, maybe yellow letter, you send it out to a pre-foreclosure, you send out to tax defaulter, you send out to vacant properties, send out to inheritance. Calls come in, you talk to a seller, you build some rapport over the phone with them, and then you book an appointment. Now if you are in a local market, that’s what your goal is–to book an appointment so you can meet with the seller. If you are doing this virtually, then this is all done over the phone. This Nine-Step sequence is done over the phone, okay. If you’re doing this in person, then you’re going to do the Nine-Step Seller Conversion Sequence in person when you meet them. So in this particular case, I am going to assume that you are in a local market, they pick up a phone, you book an appointment. Now what you’re doing is you book the appointment and you got a set time, you got a set date to go there. Now what we want to do is we want to prepare our file, right. So we have like, we have essentially a file, right, on each property that we do, right, we have a file on each one. You know so this particular property on 36 Drive, we have a file on each one and in this file is incredibly important, right. We have got to have the lead sheet that is going to tell us you know, obviously the seller’s name, the seller’s phone number, the property address is obviously important. This is called the lead sheet, and any other pertinent information that you discussed with the seller that would help you bridge the rapport with them. Okay, so you’re going to bridge that rapport. So let’s say you are talking on the phone and they are a Cubs fan, right, and they were just like, “Hey I am from Chicago, I am a big Cubs fan,” right, obviously Cubs won the World Series, so you turn around and now you know–you have those notes in there that Cubs is something that is important to them, so then when you meet with them, you can talk about the Cubs which bridges that rapport, right. So you want to have a lead sheet in there. The other thing inside that you want to have which is two purchase contracts, two residential purchase contracts. Now I suggest using your local Board of Real Estate contract. That is something that most people understand, that is what most attorneys understand, that is what sellers understand and it is in a protectable sides, okay, now when you in that, and we will get in the contract clauses and stuff like that, but you want to have two of those, one for the seller and one for you, okay. Or you know if they have a copy machine, whatever, then you know, where they can make copies, you can make them copies, or I’ve even had it where I filled that one contract, I get their email address and I will email the contract after we are done. So anyways, I typically put two blank contracts in there with your or even, you can even have them if you really want to be prepared, have them prefilled out with all the information but even if you have the blank contracts in there, your good to go, you can fill it out with them at the property, okay. So you have the lead sheet, you have the two contracts in there, now you want to have comps, comparable properties. So what you do is now you’re looking and you’re looking for properties that are within…and we are looking for comps…comps are very difficult for new people when they are getting started. This is one big question and big hurdle that a lot of people hit when they are first getting started is how do I value a property correctly and how do I make the correct offer, okay. So let’s talk about that real quick. So first off, every city is different across the country you know and there is different neighborhoods like in Phoenix, you can have some neighborhoods that are high, they are on fire and you get some neighborhoods you can’t sell a thing, so you have to get really neighborhood-specific. So what we use is RedFin or you can even use Zillow, which is great, but what you are going to do is look within a one mile radius, okay. So I fixed and flipped a 100 plus different properties, and when I did, I would always meet the appraiser at the property. And when I go meet the appraiser, I want to do a couple of different things. One, I want to show him what we did for the fix and flip on the property and, two; I want to build a rapport right. In Phoenix it is a 110 degrees, I would always bring the guy water in the summer right. I build a rapport with him, I even help him measure the house like he will be at one end of the house, I take the tape and measure it down to the end and I give the measurement and we would walk the entire house, walk all through the house and I give him pictures of the before and after of what we did to that property. So while I was in the process of meeting all these appraisers of the properties of all these properties, I asked him what specifically is your criteria? So here are the criteria that most appraisers use when it comes to valuing a property. First off, the property has to be of like kind, meaning you have to have a single family house for a single family house, you can’t comp a single family house to a mobile home per se, you can’t comp a single family house to, say, a duplex. The next thing has to be a like property, meaning has to be single-story for single-story, right, two-story for two-story, and the land component has to be similar, meaning if you have one property, it’s on an acre, you have another property on a 10,000 sq. ft. lot, you have to make an adjustment for that and appraiser will make an adjustment for that. So what we are doing is looking for similar properties, right. 3-bed 2-bath to a 3-bed 2-bath on a 10,000 sq. ft. lot on a 10,000 sq. ft. lot is a single-story, that is a single-story built within at least a minimum of five to ten years of that age. So you can’t comp a house that was built 2017 to a house that was built in 1984, it’s not going to make sense, right. You want to have something within a five to ten year time frame for pulling those comps. So now we understand the property, and we are looking for like property, right. Now what we want to do is we want to pull properties within a one mile radius okay. So in this one mile radius, okay. So in this one mile radius, right, we are looking for similar properties in this one mile radius, it’s incredibly critical, right. So in one mile, we are not going 10 miles, roughly 5 miles, we are going one mile radius, right. Now what we do in this particular case within that one mile, we are looking for properties that have sold within the last 90 days, okay. So properties that have closed and sold, not properties that are listed, not properties that are pending, but properties that have sold. Now within that one mile radius what we are looking for in our particular case when we are creating a file for the seller is we are looking for the lowest of the low comps, okay. Because those are comps that are essentially wholesale comps, lowest of the low comps. So within this one mile radius, you’re going to find that there are comps that are higher, on the high end the property has been fixed up, you know that granite countertop, stainless steel appliances, they are going to be all decked out with pretty, great landscaping and then you are going to see properties that haven’t been touched since the 1970s, right? So the bottom line is there is going to be a big gap right, or sometimes, depending, you might be in California and you might be in an area where all the houses are new and the gap is going to be pretty tight, right. That becomes a little bit more difficult. So what you’re doing is you’re looking for the lowest of low comps in that one mile radius that you can use and say “Here, this property is similar to your property Mr. Seller,” assuming that it is similar to their particular property. Okay. So what you do is now you think the lowest of low comps, now out of those and you’re looking for three, three of the lowest of low comps that is sold the last 90 days in a one mile radius, that is a similar property. You take those comps and you put them in part of your file. Now what we are doing now is we are going to be negotiating off those comps. Now here is the thing is that and, this is a golden nugget for anybody listening right now, you get the best deals, the biggest spreads, the large checks off deals that are on properties that are older properties. It is very difficult to get huge spreads on properties built in 2005-2006 that are brand new houses. You can get gigantic spreads on houses that are built in 1980 and below, 1970 and below, 1960 and below and you might be parts of like say St. Louis, are parts of like, you know, Detroit or Memphis…different areas so you might be in a different area where your houses are…like in Kansas, houses are you know built in the 1900s and below, right, it has never been remodeled you know, pretty rough shape. But with the properties that have a huge amount of deferred maintenance on the property, there was a ton of stuff that needs to be done–the roof, it needs an exterior paint job, it needs landscaping, it needs interior to be updated to 2017 standard, those are all things that allow you to get massive amounts of discounts on the property. So the key point is, there are two key points of getting huge discounts and huge checks. Number one is distress, right? If you target distress in your mailing and you target vacant properties, you target tax default properties, you target pre-foreclosure properties, you target you know, inherited properties, probate properties, you target all those type of properties, those are considered distress properties. And if you target distressed properties, and if those properties have a lot of deferred maintenance on it where they’re older properties that have not been updated, that is the formula for huge checks. Now what we are talking about is how the negotiating get those discounts on those deals okay. That was a piece of gold information, if you guys maybe listening to the podcast before I can tell you that is gold, when you’re going and pulling your list, make sure that that list that they have owned the property for a while and there is a…that the property is an older property right and make sure that you are targeting distress, those things will make a huge difference in your business. Okay, so now you have got your, you got your lead sheet, you’ve got your two contracts – one for the seller and one for you – you got your three lowest of low comps, then you going to need what is called a letter of authorization. A letter of authorization allows the title company to talk to the bank, right, so they can pull a payoff, right. And if they are in pre-foreclosure, it allows you to talk to the trustee that is managing the foreclosure process, so you can pull a payoff and you can pull a reinstatement on that particular property. So a letter of authorization is important because otherwise now you are relying on the seller to get the payoff and your relying on the seller to get information from the bank. In this particular case, you get it directly from the bank as you have letter of authorization. You send over that first, you send over payoff request and then you can get the payoff. So now your file is complete. You have your file, right, you got your three comps, you got your letter of authorization, you got your contract, you got your lead sheet, boom, you’re ready to go meet with the seller. There is one more thing that is critical that you need in your file. It’s an offer price…your highest and best offer. So let me give you the generalized wholesaling offer formula, so you have an understanding going in because you always want to write and see, inside we have a file right here, inside of a file, we write inside here at the very, inside and very small, our highest and best offer because what happens is when we’re meeting with the seller, we get excited right. We’re meeting with the seller and we don’t want to let them down, right? We are negotiating with them and what happens is most people are pleasers. They want to get that person to like them and they don’t want to offend them with a low offer, right? So how do you do that? So you put your offer amount and that is your max that you’re willing to go. The biggest mistake you can make in wholesaling is signing a contract for too much. If you sign a contract for too much, now you’re stuck with it, now you got a contract, now you got to try to sell it. That becomes distress on your part because you are going to have a problem trying to sell that property, right. You’re going to put it out to the market and no buyer is going to want it. A week going to pass, two weeks is going to pass, you’re going to have crickets. No one’s going to be calling, you’re going to be putting bandit signs out, you’re going to put on Craigslist, vFlyer, blasting the thing out and no one is going to call, you could be freaking out, right, you’re going to go, “Holy Cow, I got it for the wrong price.” But on the other side, you signed it for the price that makes sense for you and it is a win-win for both situation then you put it out to the market and buyers flood your phone, now your excited because you got that deal locked in. Remember, in real estate you make money when you contract, right? You get when you buy, they call it buy the property, you make money when you buy, right not when you sell. So the thing is if you got a good contract on a deal it is money in the bank, essentially, because you can sell that property and make profit. But if you get a contract for properties too high, forget about it, it’s going to become very difficult. So have the offer amount, that number inside there is critically important, I can tell you it is important. So how do we determine that? So what we do is take the three lowest of the low comps, right, and then what we do is, based upon the seller’s information that they give us over the phone, on, you know, when was the roof replaced last. Well the roof wasn’t replaced since 1982, okay, well, guess what, we need a roof. When was the interior last renovated, well it hasn’t been renovated since 1982, when was the kitchen last renovated, hasn’t been touched since…nothing has been done since 1982, right, and the house is 2000 sq. ft., nothing has been done, landscaping, these all need renovations. So for a real simple quick and dirty on repairs…and then you can get little bit more granular when you’re on site and on premise…is take the property square footage times…now, if the property is in fairly good condition, you might use $8 to $10. But let’s say a property hasn’t been touched since 1982, you might want to use $20. Well 20 times $2000, now you’re talking about $40,000 in repairs and that might even be higher when you actually go there and get more specific using the repair sheet which we’ll talk about…which is step 4, Evaluating Repairs. We’ll get into detail on how to kind of do that. We have a killer little sheet that we use to make that happen, but the bottom line is that you got to have it generalized, so let’s call it $40,000, right. So now you have got this you know, I am going to do this math real quick, yeah is a $200,000 property, right, and you got the lowest of the low comps or $150 minus repairs $40,000 right, so let’s call it, retail value is $200, right. What you do is for offer price you take 70% is that now it is a $140,000 right. So you have a $140,000 minus $40,000 in repairs equals $100,000. Now that is what you can roughly sell it for. Now I want to make something…there is a generalized essential rule, 70% less repairs, less your fee equals your offer price right and you’re going to sell the property for 70% less repairs, right. That is the generalized rule in this business. Now if you have been listening to me for a while, you have been watching content for a while and stuff like that, is that the more sophisticated you become, the more advanced you become in the business, that number is going to change based upon the neighborhood and the demand of the area. For an example, we got a property in a contract we just analyzed on Monday, right? We got the contract for $70 and our initial thought was to sell it for $80,000. Now, looking at the neighborhood, there is nothing available under $100,000. And all properties that have sold under a $100,000 have sold in under 15 days. So what does that tell you? That tells you that anything under $100 is flying off the shelf and there is nothing available. The next closest property that was available was $125,000. So we…now the property was in fairly good condition, it wasn’t completely trashed but it was a one bedroom with two bath one bedroom, right. So when you looked at it, well guess what, instead of selling it for $80, we can push that property up to like $89,000 and now pull a potential $20,000 spread out of the deal versus selling for $10,000 spread. We can even potentially push it higher if we want to do that. The only issue is that $125,000 property is three bedroom/two baths, where ours is a two bed/one bath. So that is why we decide to price it like $89,000 for a quick sale. So here’s the deal, is that, what I am trying to say is, that if you’re brand new and getting started, use the formula. 70% of ARV, the top, so you have got the lowest of low comps and you get the highest comps right. You take the highest comps; there are similar properties that is your ARV, in this particular case, $200,000. You multiply that times 70%, boom, now you’ve got $140,000. Then we just determine repairs…$20 a sq. ft. $20 a sq. ft. times 20,000 is $40,000. Minus $40,000…boom…we’re down to $100,000. Now that is your exit price. That is your exit price. Now, let’s talk about your fee, right. The fee is incredibly important because your fee is how you get paid, your price, and guess who determines that, you do. For example, my first extreme freedom event was, I don’t know, five years ago. A guy named Michael Cox was there and he was flipping houses in Virginia. And he was like, I don’t know what I am doing, I cannot get my fee above $5,000. I don’t get it. I have done some deals and I cannot get my fee above $5,000. What do I do, right. I am saying, let me ask you a question, I said, “You know what do you put when you negotiate, when you find out your number, what do you put in your little file, what is your number?” Well he goes, “I usually put in $7,000 on a deal.” “Well here’s the thing,” I said, “Michael,” I said, “Listen, I said, you determine that number, said you can make that number $7,000, you can make that number $5,000, or you can make that number $20,000. You determine that deal, you determine what number goes, you determine your fee.” And a light bulb went off in his head, boom, he had an epiphany. And he said, “Oh my gosh, you’re right; I am the one that determines the number.” So what he did was he went back, he changed up that one thing, just a simple mind shift, that’s it, and now I mean now, I mean I just saw him two months ago, at one of our Boardroom Mastermind events, now he is knocking down $17, $18,000 per deal and crushing it. Doing over a million dollars in business in Virginia right now and killing it, and I look at just a little mind shift. So the bottom line is that you determine your fee, so $100,000, let’s call it $15,000 boom. Now your offer, right, your offer is going to be $85,000 or less. So the number you’re going to write in your file folder here is $85,000. Now obviously you want to start lower than that and negotiate from there, but guess what? Now you’re probably thinking…going, now who in their right mind is going to sell a $200,000 house for $85,000? It happens all day long and twice on Sunday. That’s the business we’re in. People want out for, they want to be done with the house, right? If you have the comps and now the comps are, let’s say the comps are $120, $130 on the low side, you’re going to get $200 on the high side right, $120, $130, and now you take that, you take $40,000 repairs in what you do, $50,000, $60,000 on repairs, boom, you will easily get down to your offer price. And, it is totally logical for you and it is totally logical for the seller, and it makes complete sense, okay. So when you’re determining that, you take the lowest of the low comps when negotiating with the seller minus the repairs, minus your fee, and that is going to be the offer price, right. That is going to be your offer price, okay. So now, so we have got preparing your file, right? That’s everything you want to go Prepare your File, that’s step number one. Step number two in the Nine-Steps Seller Conversion Sequence…remember this is a series, so we have got, we have got, we are going to do two steps in this episode, two steps in the next episode, two steps in the third episode and three steps in the last episode. We will give some really cool juicy stuff on negotiating and stuff like that. Anyways, so the bottom line is step number two, it is called Pre-appointment Intelligence. Okay, what the heck does that mean? Well, you have your file, you know what you’re going to offer, you have a good idea, you looked at the comps in the neighborhood, you looked at everything that was going on, you got your number going in, you’re good, right. Now you’re going to get in the car and you’re going to drive to the seller’s house. You just don’t drive right to the seller’s property, pull up in their front yard and go and knock on the door. You’ve got to do Pre-appointment Intelligence. You’ve got to know that neighborhood inside and out. And it’s critical because the seller will always say, almost always say, “Oh the house down the street selling for $X, why don’t you offer me $X?” And if you don’t know and if you go “Oh, yeah, really, I didn’t know that, I was”…you look like a moron, like you don’t know what you’re doing. How do I know? Because I looked like a moron hundreds of times until I figured out pre-appointment intelligence. So here’s the deal. You drive…you show up 15 minutes early on the property, and you do a couple of different things. Number one, you’re going to drive the entire neighborhood and you’re going to, I have my Zillow app open, so I have my Zillow app open and what I do is I drive around the neighborhood and I look at all the properties that are for sale and then I will take my Zillow app and I kind of look at the pictures and I get an idea of the square footage and I get an idea of the property and also, more importantly, how long the property has been on the market. Okay, that’s important, right. Now I’ve also looked at the comps of what has been selling in that area so I kind of have an idea from when I was preparing my file. So that is number one, I drive around the neighborhood. Number two is I am looking for For Sale by Owner signs and I am looking for For Rent signs and I am looking for vacant properties, okay. I have went to, drove out to a seller’s house, I have cased the neighborhood, I pulled a couple vacant properties, couple for sale by owners and for rent properties and I wrote those down, I just put them in my app there and they actually have I can’t remember the name of that app, what’s that app, can’t remember the name but there is an app, you can take a picture of it and it tells you what the property is and the address and you can actually save that picture and go back and research it later. Anyway, the bottom line is that, and we will try to find that put that in the show notes for you because know Brandon, one of our guys use, it is pretty killer. But anyways, the bottom line is you’re casing the neighborhood, you’re looking for properties, either you can focus, research on the neighborhood, wouldn’t it be great to get into the property in that neighborhood, right? So I have gone out and drove to a seller’s house and I didn’t get a contract on the seller’s house but I happened to get a contract on the neighbor’s house that was selling…the house for sale by owner. And it turned out to be a smoking deal but if I never would have that exercise and never have done that pre-appointment intelligence, I would have never got that contract. I am driving out there anyways, might as well break down every possible vacant property, every For Sale by Owner, for rent, I possibly can and see if I can get those deals under contract. Anyways, so now that you are doing that, you’re driving the neighborhood, you’re understanding the comps and you’re making a mental note because–to overcome…and what we are going to get into objections on the…down in the series in the fourth episode there…but when a seller comes up and says, “Hey, the house four doors down is selling for $230,000 and your offering me $85,000. How does that work?” you are going to know that that house is fully renovated, that house is 3000 sq. ft., that house is also been on the market for 140 days. So now you present to the seller, and say “Hey Mr. Seller, I know the exact house you’re talking about. Did you know it is 1000 sq. ft. more than this house, did you know that it still hasn’t sold yet, it has been in the market for 140 days and did you know that the house is debt, the house probably has $100,000 worth of work. So if we take those same competitions, we put a $100,000 work on your house, and we price your house on 3000 sq. ft. on a price per sq. ft. basis, my offer is going to be lower, you don’t want me to have a lower offer, do you Mr. Seller?” Nooo… okay, then you know maybe we should take this. What it does is now you know, your professional, you know what you’re talking about. When you go in and talk to your seller, you know exactly what is going on. You know that neighborhood inside and out. You can walk in there with confidence, so if they say anything about the neighborhood, you are so dialed in and razor sharp that you understand exactly what’s happening in the neighborhood and you’ll be able to overcome any objections. Okay. So that is why you do pre-appointment intelligence. It gives you confidence walking in the door that you know exactly what you’re talking about, that is half the battle, right because when we walk in the door and we shake that seller’s hand, we don’t want to be scared, we don’t want to be afraid, we don’t want to be doubting our self and not confident. You’re the guy buying the house, right. Think about it. Think about when you go buy a car, you go to buy a car. What do you do? You negotiate. You walk in, you go, you go, you know, please, please, show me the car; you know I am just hoping to see it, sell me the car. No, you’re going there and you’re inspecting the car, you’re determining if the car is right for you and your family. You’re determining if the car rides just right and feels just right, okay, and goes just as fast as you want it, and turns on a dime just like you want it, okay. So you are in that car and you’re just driving down, you want to make sure that you are confident, right, and you are confident. So what happens now is you have got the seller selling you the car just like the seller should be selling you the house. So you go back and you are saying, “Hey Mr. Seller, so why should I buy this house and not the house down the street?”   So here’s the problem. Most people get into this position, right, when they are meeting with their seller and they are in a position where they are begging the seller to sell them their house and that is the wrong position. I want you to picture this. I want you to picture you have a $100 million in the bank and you’re this top-tier, elite investor and you can buy any house you want for any price you want, and you are walking into the house and you’re going to make a decision on why this is the best house for you to buy. That is the attitude you want to come from when you’re meeting with a seller. You’ve got a $100 million and you’re inspecting the property, determining if the house is the right investment for you. Problem is, you know, I know when I first got started, I’d go walking into any house, I was like, okay it looks great, I would walk in, I walk around the house, I look at couple of things, okay great, let’s sign a contract. And the seller says, whoa, whoa, whoa, whoa. Well I don’t get what’s happening here because I messed up how the relationship should be. The seller is selling me the house and I’m saying “Let’s just sign it” and it wasn’t congruent. So when you walk in the house, act as if you’ve got a $100 million in the bank and you’re picking between this and five other houses and you want to make sure this is the best investment. This is going to make you the most amount of money and the most return for you. When you have that attitude walking in, everything will change, everything will change. All right. So that’s step two, Pre-appointment Intelligence, talking to seller, we are going to get into the next step, Meeting the Seller and Strategic Leading Questions, building for, imagine knowing how to read a seller like a book, right? Imagine if you knew if they are very analytical. Imagine if you knew they are aggressive. Imagine if they knew they were personality where they just want to build friends and talk because if you treat an analytical like an aggressive, you are done, right? Or a social conscious person who is more worried about what happens to the neighborhood, how the transaction affects people and is there third-party documentation, right. All those are different personality types and if you treat each one different, guess what, you’re going to lose the deal. Some people, they don’t know what they don’t know. So we are going to talk about that–step number three and step number four, the Repairs, the repairs are huge. Repairs, doing that correctly will make or break the deal, so that is the next episode. Make sure you subscribe to the podcast right now. After we’re done, subscribe to the podcast so you can get updated when the next podcast, episode number 136, comes out because we are going to talk about those two steps… step number three and step number four next. Now remember, go to Flip2Freedom.com/gift and you can get the infograph that basically explains the entire Nine-Step Seller Conversion Sequence and also tune in the next episodes, we are going to give away some cool stuff like the objection annihilation method, I am thinking about giving away the repair sheet, I don’t know, how many, you know, cool…I don’t know, we will do something fun, I will think of a cool little game or something like that we’ll play. But the bottom line is I hope this helped you out. Now, along with this business, right, comes motivation. Now I always try to find something killer that is exciting and motivating. So what I am going to do is, I going to break right now and I want you guys to listen to this clip real quick. It is a cool clip that, you know, I love finding motivational clips on YouTube or anywhere and stuff and listening to because it just gets you pump up, so check this out right now. Audio:     I am in control here. I am not going to let this get me down. I am not going to let this destroy me. I’m coming back and I will be stronger and better because of it. You have got to make a declaration that this is what you stand for. You are standing up for your dreams, you’re standing up for peace of mind, you’re standing up for health, take full responsibility for your life. Accept where you are and the responsibility that you are going to take yourself where you want to go. You can decide that I am going to live each day as if it were my last. Live your life with passion, with some drive. Decide that you are going to push yourself. The last chapter to your life has not been written yet and it doesn’t matter about what happened yesterday, doesn’t matter about what happens to you, what matters is what are you going to do about it. This year, I will make this goal become a reality. I won’t talk about it anymore. I can. I can. I can. Sean:      Now I love that and I love that because it speaks to the human spirit, right. See because we’ve all got knocked down before. We have all been in situations where things suck. You wake up and your life sucks and your family sucks and your job sucks and your money sucks and everything sucks, you know, and in those moments when you can make a decision to be resilient. And here is the bottom line, is that I know I have been in some very, very dark places in my life, very, very dark places, negative thoughts, negative emotion, didn’t like where I was, didn’t like who I was, didn’t like the situation and it took a shift in my mindset, a vision of what could happen. So let me create this vision for you, what if you took this information and you listened to all my podcast and you just watch my YouTube videos and you learn from other people about this business and let’s say you can turn around, you can go out and do your first deal, and you get your first check, so you prove that can happen for you, right. So you go out and you find a motivated seller, you talk to him, you get everything straight, you get that property in contract, you sell it and you make $10,000, boom, something happens to you, right. What happens is now you have proof of concept, you have confidence, it works, you have to get past that point, you have to get there. Now once you know it works, guess what, it’s all downhill from there because there is now rinse and repeat. The hardest part is in climbing that mountain, is getting that first check. Once you do that, everything changes, right. Now, it becomes now how can I scale this and do it over and over and over and over and over again. That is what we are talking about. So picture now that you have a team of people…four, five or six good players that are working with you, right, you have marketing that is going out to motivated sellers, calls are coming in, appointments are being booked. And guess what, you have got some sales guys, they are going out that know this Nine-Step Seller Conversion Sequence inside and out, they are meeting with sellers, they are getting properties under contract, they are bringing them back to you and you are turning out, you have someone that goes down and sells the properties to the buyers, they get the properties under contract and manage all the transaction coordination and you are doing 15, 20, 30 deals a month without your participation. You are talking millions of dollars and you are talking about a lifestyle where you can come and go as you please, you can do whatever you want. Now there have been some very hard times in my life and I had this vision back in 2008 when I was down in one of the rock bottom, I mean, I bought millions of dollars’ worth of land that went to zero. $30 million worth of land that went to zero, right? I was in a cash flow crunch. I had two choices.  I can crawl up in a corner, tuck my tail between my legs and cry like a baby or I could have this vision and drive forward to it. Once you create that vision, now it just becomes how can I put the pieces in place to make this vision a reality? The problem is a lot of people, they get beaten down, they get in these hard situations, they get in these tough times and they lose their vision. What’s your vision? What’s your vision for you? What do you want to accomplish? What do you want to become? What do you want to have? What do you want to do? Where do you want to go? Right? What type of legacy do you want to leave for your kids? That is what I am talking about. I am talking about having a vision and if you turn around and you make that vision crystal clear as if you taste it, as if you can live it, as if you could smell it, right, guess what. That vision will become reality and will pull you out of the swamp because it is going to give you the action and the motivation to go and make it happen, that’s what I am talking about. That’s where you can accomplish. So go to Flip2Freedom.com, Flip2Freedom.com, go download my book for free. It’s right on the front page there, go to Flip2Freedom.com/gift actually there is a little thing up in the top gift there and you could download the infograph for this particular episode, Nine-Step Seller Conversion Sequence, and give yourself a shot. I know you might have tried stuff and failed before, I know I have. I tried all these things and failed before, but what if this was the one thing, what if this was your one thing, what if you really got a hold to this thing and took off with it? All your friends, your family, your relatives, they are going to think you nuts. You’re flipping houses you don’t own, what? They will think you’re crazy but guess what, you are going to do it in silence, you are going to do it and you are going to crush it, you are going to get that first check and that first check is what I call a ‘shut up’ check. I remember my father-in-law, he told me you cannot sell a house you don’t own. I did. I made $11,008 my first check, I got really, it’s called the ‘shut up’ check. Now I was nice about it. I smiled about it, right, it was good and I want that for you. So get started, make a commitment, create that vision, drive forward to it, don’t let anything stand in your way, anybody stand in your way and make it happen no matter what. Because I believe this is the greatest opportunity. This leads in to a whole, doing killer stuff… property syndication, larger apartment complex, big deals. Real estate is vast. It’s more than a $50,000 dollar house, you got $100 million dollar deals. That is what you could be doing, you know what I am saying. So get started, get up and go. We have webinars up on our website at Flip2Freedom.com you can join every day. It is happening. Make sure you like us on Facebook, Flip2Freedom.com, Instagram: Flip2Freedom.com, and I look forward to spending more time with you in the future. So again, thanks for your time and God Bless.

 

 

 

 

 

 

 

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