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.