Real Estate Investing with Brian Evans Jr.
"The Magic Words of Real Estate Investing"
If you're ever in doubt when talking to a seller, you have to memorize these magic words above anything else:
“Mr. Seller, if I paid you all cash and closed quickly on your property, what is the least you would take?” “Gosh, I don't know, $100,000.” “Okay, $100,000. Well, is that the best you can do? “I don't know, maybe.” “So you're telling me that if I don’t pay you $100,000, then you won’t sell your house?” “Well, I could probably come down a little bit.” “Okay, well, what’s the best you can do?” “I could probably come down to $90,000.” “Is that the best you can do, $90,000?” “Yeah, probably.” “So you're telling me unless I pay you $90,000, then you won’t sell me your house?” “Honestly, yeah, maybe $87,000, but that's it.”
Just by asking this seller a few simple questions, we made $13,000! There is no need to be a jerk on the phone, you just need to determine the lowest amount the seller is willing to take for the home. They’re playing a game just as much as you are, and they want to get the most for it. And just like when you sell, you want to get the most for a property. In order for this to happen you need to know what to say! What you say or don’t say determines your pay.
This is million-dollar stuff here. You need to study what you say, how you say it, etc., and how you respond to these sellers and be in control of the conversation. This is where the money’s made. This is one thing that, when it comes to where I think we’ve got to deal with seller financing or subject to, or something that requires more negotiation I still prefer to try to get on the phone and do these calls with these sellers. Because again, what comes out of your mouth is everything!
But those magic words are, above all else, what you must memorize. If you ever draw a blank when you are on the phone with a seller, it all comes down to these questions, “Do you want to sell it? Well, I want to buy it. Okay, well is that the least you'll take if I paid you all cash and closed quickly, or close whenever you're ready?”
You also need to make sure all decision makers will be present when you go to look at the house. You don’t want to come out and see the house after you've done some negotiating on the phone and not be able to actually get the paperwork signed right then and there. Your goal right then and there is to get it in writing, get a commitment. Otherwise, all you are doing is wasting your time!