{"id":360,"date":"2015-05-11T13:35:00","date_gmt":"2015-05-11T13:35:00","guid":{"rendered":"https:\/\/stepstonetexas.com\/?p=360"},"modified":"2020-10-01T18:15:27","modified_gmt":"2020-10-01T18:15:27","slug":"be-the-yes-man-or-woman","status":"publish","type":"post","link":"https:\/\/blog.stepstonetexas.com\/?p=360","title":{"rendered":"Be the Yes Man (or Woman)!"},"content":{"rendered":"

<\/a>I work very hard to make sure seller’s understand two things: \u00a0That I am there to help them and that my offer is not a negotiation, but a formula. \u00a0I do this by first selling myself. \u00a0I wrote about my techniques for doing that in a previous blog: \u00a0Stop Buying Houses!<\/a><\/p>\n

I then follow that with a very meticulously-crafted presentation of my offer. \u00a0I broke that down in a blog that explained why investor offers are not low-ball. \u00a0It was ironically titled: \u00a0Investor Offers are Low-Ball.<\/a><\/p>\n

As much as I would love the sellers to always be sold that I am there solution prior to the offer, and as much as I would love for them to always just accept my offer and sign, that just isn’t always the case.<\/p>\n

Sometimes, its time to sell myself a little more.<\/p>\n

After I present the offer, the seller will usually respond in one of two ways. \u00a0First, they sometimes accept it. \u00a0This is the easiest route for them as I will always close on my initial offer… one way or another. \u00a0But if they insist on getting more for the property than the formula really allows, they will generally counter.<\/p>\n

Obviously, if they counter at full retail, it’s time to discuss more with them the option of listing the property. \u00a0That’s the only way they will get retail. \u00a0They may not have the time or the ability to list retail, but educating the seller about the positives and negatives of each option is\u00a0our job.<\/p>\n

Other times, though, they will counter at a price that we would consider to be “in the ballpark”. \u00a0It may not be strictly formula, but still a significant discount. \u00a0I have one strategy at this point.<\/p>\n

I become the Yes Man.<\/p>\n

Let’s say the seller’s home has an ARV of $200,000.00 and needs $40,000.00 in repairs. \u00a0Do the math and the offer would be $100,000.00. \u00a0But if the seller comes back and says, “Well, I really needed $130,000.00”, my response is “YES!”<\/p>\n

OK, so maybe not quite so succinct. \u00a0But at that point, my goal is now to get that contract for $130,000.00. \u00a0So, as you can probably guess, I have a little speech I give the seller. \u00a0It goes something like this:<\/p>\n

“OK, seller. \u00a0$100,000.00 is definitely my slam-dunk no-brainer going-to-close offer. \u00a0But, let’s shoot for $130,000.00. \u00a0It’s not a definite close, but it’s in the ball-park and if anyone can get you that number, it’s me. \u00a0I know everyone in town and have a lot of access to various networks. \u00a0Here’s what we can do. \u00a0Let’s write up a contract for $130,000.00 and at that point, I’m going to go to work for you.<\/p>\n

“I may still be able to close it at $130,000.00. \u00a0Obviously, the $40,000.00 in updating (note: \u00a0I didn’t say ‘repairs’) was kind of a ball-park figure itself. \u00a0One of the things I will do is see if I can’t beat up the contractors a bit to get that number down. \u00a0I will also re-look at all the comps and see if there aren’t some touches I can add to your house that will get me a bit more. \u00a0We will try to make those numbers work.<\/p>\n

“In the meantime, I’m going to talk to every other investor in town. \u00a0I’m going to bring out potential partners to help diversify risk, potential private and hard-money lenders to help me leverage or potential investors who may want this property for a longer-term hold where the numbers will pan out over a longer time period.<\/p>\n

“I am going to work as hard as I can to get you that $130,000.00. \u00a0If anyone can get it for you, it’s me. \u00a0Let’s get started.”<\/p>\n

I like two things about that speech. \u00a0First, I set things up to make it easy for me to gain access to the property to show it to all of those people. \u00a0Nothing in that speech was an exaggeration or a lie. \u00a0I really am going to do all of those things. \u00a0I want\u00a0to go to work for that seller. \u00a0Better me than someone else!<\/p>\n

But now, instead of trying to wholesale a property by lying to a sellers and telling them the investor I’m bringing over is just my contractor (and making the investor pretend to be the same), the seller expects\u00a0that I bring several people over… contractors, investors and lenders.<\/p>\n

The second aspect of that speech I like is it sets it up for a renegotiation later. \u00a0I don’t renegotiate out of greed… just to increase my spread. \u00a0But if I need to renegotiate to create a\u00a0spread, I will. \u00a0Because that is what is right for the homeowner. \u00a0To let them know, at the end of the day, whether or not $130,000.00 is an obtainable number. \u00a0And if not, then what is\u00a0an obtainable number. \u00a0Perhaps I can find an investor who will pay $130,000.00. \u00a0I put a lot of work in and deserve a payday for my efforts. \u00a0I don’t think its unreasonable at that time to go back to the seller and say, “I can’t get $130,000.00… you saw how many people I brought out and hard I worked for you… but if you can accept $120,000.00, we can close this next week.”<\/p>\n

More often than not, they agree. \u00a0They agree because I treated them fairly and honestly and because I really did go to work for them. \u00a0I really did try everything I could to get them the number they wanted. \u00a0And at the end of the day, they got the best number they could.<\/p>\n","protected":false},"excerpt":{"rendered":"

I work very hard to make sure seller’s understand two things: \u00a0That I am there to help them and that my offer is not a negotiation, but a formula. \u00a0I do this by first selling myself. \u00a0I wrote about my techniques for doing that in a previous blog: \u00a0Stop Buying Houses! I then follow that […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-360","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/wp\/v2\/posts\/360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=360"}],"version-history":[{"count":1,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/wp\/v2\/posts\/360\/revisions"}],"predecessor-version":[{"id":466,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/wp\/v2\/posts\/360\/revisions\/466"}],"wp:attachment":[{"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}