When it comes to the real estate industry, wholesaling is probably the most untapped market. But, it’s for good reason. Wholesaling is probably one of the most difficult markets to reach. This is because trying to buy a property at wholesale can prove to be a difficult task. However, if you are determined, willing to learn, and do your due diligence, you can actually make good money by wholesaling.
One of the biggest keys in wholesaling is learning how to talk with sellers. By learning how to properly talk with sellers, it determines whether or not you are ambitious enough to be successful. Believe it or not, there is the science behind talking with sellers. And there is vital information that you need to gather, as well as communicate.
One of the most important things you can do in dealing with a seller is build rapport. After all a majority of people will want to do business with people they like. Building rapport isn't always the easiest thing to accomplish. But, there are things you can do to help in the process. For instance, one thing you can do, is try to find a commonality between you and the seller. Whether this is a sports team, social group, hobby, or even an experience on a family vacation. Having something in common with the seller can help get your foot in the door.
Also, in order to build rapport you have to be a astute and observant. Study your seller; don't be so eager to talk, but instead listen in to what they have to say. Listening is the reallink in finding out key information you will need for the rest of the buying process. When you are an active listener you will be able to steer the conversation in the direction you want it to go. This is definitely easier said than done, but you don't have a ton of time with each call or visit, so steering is critical.
By steering the conversation you will get more information about the seller and their situation quickly and efficiently. For instance, in some cases a seller may or may not actually be interested in selling their house. And since time is money, you don't want to waste your time. So, it's important to steer the conversation in a direction that will quickly answer the question whether or not they actually are interested in selling. Make sure when you do ask questions they are asking closed ended questions. That way you can get information quickly and concisely.
The next thing you need to do is find the pain. Simply this means answering the question “why did they call you or why are the interested in talking to you?” Again, this real link into determining weather or not you will actually have a chance at buying the house. Ask yourself this question repeatedly while you are listening to the seller, and you may be able to answer the question. If not, just ask. In order to find the pain you can ask a certain series of questions to glean this information. For example, questions you can use to find the pain are:
· What are you trying to sell?
· Is the property rented or vacant?
· How is renting in that area?
· What exactly would you like to see happen? What is the ideal solution?
· Why haven’t you tried to list the property with a real estate agent? (This should be your last question.)
Once you've established the pain, you will then want to get a property description. Sellers always love to talk about their property, so this is a fairly simple task to accomplish. Again, this can be obtained this through asking a series of questions about the house. For instance, you can ask about the condition of the house, how old the furnace is, if their have been any recent renovations, etc.
Once you know what the condition of the house you then you want to assure them that you can solve their problem. Let the conversation now be focused on what you can do for them. Address the problem. If you took your time and asked the right questions you should know what it is they need. Make them feel comfortable and that once they hang up the phone their problem will be solved.
Next, explain the process of how you can finalize and close the deal. Don't expect them to know what the process will look like. Instead explain the purpose of the title company and how they will receive the information for signing. Show them where the earnest money will go, and when they will receive their money. When you explain the process, you will reassure the seller that they are in good hands.
In conclusion, wholesaling is not the easiest part of real estate. But, it can bring you a lot of success if you can master the art of talking with sellers.