Are you able to properly present an offer on a property, without wavering or back peddling?
If you struggle to make offers on real estate, either out of timidity, uncertainty, or naivety, then rest assured. I can train you to have better results.
Broad offers with little to no direction or education lack more than conviction. You must be presenting three-tiered offers that are appropriate to the situation and property in question; offers that will benefit the seller, allow enough room to make a profit, and result in a gain after being sold quickly on the retail market. And I can train you on how to do just that (stay tuned for contact information if you’re interested in learning more).
But, for argument’s sake, let’s say you have your offers right. You’ve stacked and tiered your offer appropriately, but can’t seem to put anything under contract.
How you SOUND when presenting an offer or connecting with a homeowner could have more weight than you think.
When you present an offer to a homeowner, does your delivery establish the image you want (the knowledgeable, confident persona that will ultimately get you a signature) and reinforce your offer, or will your delivery undermine your offer?
When speaking with owners of distressed properties, there are nuances to the conversations that you should take to heart and form into your habits and behavior. Let’s discuss a few.
If you have a homeowner who is motivated to sell and interested in your offer, but you say something that doesn’t sit well with them (we all do it eventually), there are two ways you can respond.
Let’s say they’re offended by your offer (as they should be sometimes; if they’re delighted by if then you probably offered too much). They immediately fly off the handle, berating you for offering such a disrespectful amount. How do you respond?
1) “What are you TALKING about?! That’s the BEST offer you’re going to get! You need to calm down and look at the numbers, and then you’ll THANK me for offering so much!”
2) “I understand you’re shocked by the numbers I’ve presented. Perhaps we can better discuss what your goals are because if you want more money, the sale of this property could be delayed significantly, in which case, it might not be in our best interest to work together. Tell me again why you want to sell this property so quickly?”
#1 adds fuel to the fire (or at best, they’ll suggest you switch to decaf) where #2 gives you back the control and maintains that the important thing is that you connect on a resolution that will benefit you both.
“Define what your brand stands for,
its core values and tone of voice,
and then communicate consistently in those terms.”
BE SPECIFIC AND HONEST
If you go into a conversation with an owner of a distressed home and start making outlandish promises that have nothing to do with your true mission statement, it’s going to be obvious. Even if you can sell water to a drowning man, you won’t get far with a false mentality.
Let’s say you begin discussing the sale of a distressed home with an out of state homeowner who wants to dump a duplex fast. If you go into the conversation promising how it’s your passion to reinvent the community when that isn’t true for you but you believe it’ll give your offer “an edge” over the competition, then your dishonest promises could eventually surface and give you a bad name. AND the homeowner might not care because they just want fast money for their property, anyway. Especially if there is a claim of passion without supporting evidence, the result of which could be compromised credibility.
If you’re honest about your intentions (without disclosing things you aren’t comfortable sharing) and specific about your plan, then your words have more gravity.
“My parents taught me honesty,
truth, compassion, kindness
and how to care for people.
Also, they encouraged me to take risks,
to boldly go.
They taught me that the greatest
danger in life is
not taking the adventure.”
DON’T JUST TRUST YOUR VERBAL CUES
If you meeting someone in person to present an offer, your nonverbal cues count for just as much as your words. You should express the same gravitas with your eye contact, firm handshake, and hand gestures as you do with the language you speak.
Whether you know it or not, most people [uninfluenced by drugs or alcohol] can correctly identify the sincerity and power of a person by their body language. If you’re dishonest or attempt to skirt around questions simply because you don’t know the answer, then your behavior will eventually be recognized.
Go back to the basics here. Offer a firm handshake; look people in the eye and address them as Sir, Ma’am, or Mr. Jones, not “Hey Jim”; nod occasionally when people speak to assure them that you’re listening.
Maybe you’ll find there are exceptions to these old rules, depending on your area, demographics, and/or existing relationship with the seller. But if you’re at a loss on where to start, I recommend the basic forms of etiquette and practice. Who you are in the “real world” will reflect who you are in business transactions. Strive to be your own personal best every time.
“I have no contracts
with my clients;
just a handshake
Irving Paul Lazar
(We suggest you have contracts.)
If it’s true that 55% of the recipient’s understanding of a conversation happens on the nonverbal level (i.e., you’re judged more on your body language than your words), then it’s enticing to attempt to master your facial expressions more than your investing knowledge.
I would never recommend that a firm handshake and sincere eyes trumps a factual understanding of the necessary processes. Though it’s important to be aware of how you appear to others during business transactions, what you say and present is vital.
Your knowledge of the content of which you speak is what makes you a leader in the conversation. You know why you’re offering what you are, you understand the process that will take place once a house is under contract, you know the end result where the seller doesn’t. You must explain and express as much as you feel necessary and be available to answer questions as they are asked.
Don’t let this be daunting. If done enough (and if you’re following my Rule of 56, you’re making plenty of offers to be well-practiced on your verbiage), then you will eventually know the answers to all the potential questions people ask. I’ve spoken to thousands of sellers and a question has yet to shock me. Well, unless you consider that one time where the inquiry consisted of my tolerance of the property being used as a burial ground…
For more on understanding the necessary steps to the process of property acquisitions, visit www.LeeArnold.com or call NOW to speak with our team at (800) 473-6051. You must understand enough about investing to answer the basic questions homeowners ask. And if you don’t, it behooves you to find the answers first. We can help with that.
“Any fool can know.
The point is to understand.”
Whether you know it or not, life is a series of presentations. Just ask Kim Dower and Tony Jeary who wrote the book “Life Is a Series of Presentations: 8 Ways to Punch Up Your People Skills at Work, at Home, Anytime, Anywhere.”
The way you speak has just as much if not more power than the words you say and put into writing.
Now, does this mean you need to be self-conscious about every interaction you have in your business? Absolutely not; especially since we all have so much room to grow…
“Without continual growth and progress,
such words as improvement,
achievement, and success have no meaning.”
…But you should be aware of the way you speak to people, how you interact on the phone and in writing, and make adjustments where necessary to drastically improve your interactions.
The question, at this point might be, “Lee, why are you going into all this? If I’m writing good offers, isn’t it just a numbers game? The more interactions I have and the more offers I give, the more properties I’ll gain control over, right?”
You can look at it that way, and it might not hurt you.
But I’m in the business of helping investors make the most out of their investing skills, time, energy, and efforts. If I can help you improve one aspect of one process, it’s not only going to improve your results (purchasing more homes to wholesale or fix-and-flip), it’s going to set you up for future success in your investing business.
I want you to succeed so you can email me and say, “Lee, that really worked! One small shift and I got a house under contract!” Then, I want to fund that deal!
If you need help with your delivery, let us know. You could qualify for a 30 minutes free call with a Business Development Consultant. Simply call (800) 473-6051 to schedule your consultation today.
To Your Success;
Lee A. Arnold
The Lee Arnold System of Real Estate Investing
Follow me on Twitter: @CogoCapital and @LeeArnoldSystem
Have a deal under contract that you would like a quote on? Let us know. You can fill out a quick questionnaire at CogoCapital.com to receive a rate quote via email or you can call us anytime at (800) 747-1104 to talk to a loan officer. With millions deployed and millions to deploy, we want you to get the capital you need for your real estate investing.
When you come to Cogo Capital® looking for a private money loan on a property under contract, we’ll assure you have quick turnaround, excellent terms, and millions to lend. Cogo Capital® serves both local and national real estate investors, real estate agents, and private money lenders in quality, multiple loans.