1. Pre-Walkthrough
1.1. Prepare the seller to do business
1.2. Be confident: You are a savvy Investor! Even if you have never done a deal!
1.3. Know you're # beforehand
2. Walkthrough
2.1. Build Rapport/Make Love
2.1.1. this will make life much easier
2.1.2. people do business with those they like
2.2. Set Agenda
2.2.1. So mrs smith for starters why don't you take me on the tour of the property. Then after that we'll talk shop and hopefully be able to do some business.
2.3. View house WITH the seller
2.3.1. Make sure they accompany you around they house.
2.4. lightly insult the house
2.4.1. point out things that need repair
2.4.2. oh how long has that roof been leaking
2.4.3. hmm, is that mold?
2.4.4. so it looks like we would have to make X repair
2.4.5. key word "lightly". Dont be disrespectfull.
2.5. Look for a ways to connect
3. Position
3.1. create an atmosphere
3.1.1. create the mood of "lets figure this thing out"
3.1.2. reiterate your interest in getting a deal done
3.1.3. "ok mrs smith, now its the fun part"
3.2. Probe
3.2.1. -so refresh my memory. how soon were you looking to sell again?
3.2.2. REALISTICALLY how much were you looking to get for the property if we are able to buy in its AS-IS condition?
3.2.2.1. objective: trying to get a price drop before we even present our offer
3.2.3. peel the scab
3.2.3.1. talk about their situation if there was one.
3.2.3.1.1. oh so tell me what happened with those problem tenants.....
3.2.4. What would it take for us to be able to do business today?
3.3. Express Your Interest
3.3.1. I like the house
3.3.2. We like the area
4. Educate/Present
4.1. Explain what the end product is going to be
4.1.1. embody your Buyer
4.1.2. if it's a flip then build a case for the transformation that has to happen in order to sell the property retail
4.1.3. if its a rental build a case for the rental grade work that has to be done in order to find a suitable tenant.
4.1.4. if it's land build the case for how much new construction is
4.2. How much time/work does it take to get to that end product
4.3. Its ok for the seller to know you are in this to make money
4.3.1. don't be afraid to talk about retail value BUT build your case of how much has to happen in order to realize this value. Ex: Moyamensing
4.4. Show comparable Sales
4.4.1. trick: undervalue + Over Repair
4.4.2. Product based approach: base offer on lowest comps
4.4.3. show actives that have been sitting
4.5. Partnership vs Negotiation
4.5.1. I like the property ms smith AND we are looking to pick up another project. My goal is to create a WIN-WIN situation where you are able to walk away happy AND we are able to take on this project and make some kind of profit
4.5.2. So here are the challenges that i face
4.5.2.1. Repairs
4.5.2.2. Value
4.5.2.3. Odd LAyout
4.5.2.4. Zoning
4.5.3. So i'm going to spend X to fix this up in anticipation of maybe selling it for X
4.6. Paint the Picture
4.6.1. Stenton Ave
4.6.2. Cambridge Ave
5. Closing Time!
5.1. Test Close: if we can do X price for the propert, will we be able to business today?
5.2. Attach the pain/situation
5.2.1. Mrs Smith, If I could give you 50K for your house and close in a few weeks so that you won’t have to worry about your annoying tenants anymore, do you think you will be able to put this house behind you?
5.3. Based on the condition of the property and what is going on value wise in the area. We can purchase the property in its AS-IS condition for X.
5.4. Scarcity Close
5.4.1. Mrs Smith we only have but so much money to spend and we are looking at other houses. If we are able to buy the house for 25k CASH in 30 days, are we able to get a deal done today?
5.5. Always ask for the business. Don't be timid!
5.6. Benefit Close
5.6.1. Mrs smith we can pay 30k Cash for the property in its AS is condition. Meaning you don't have to make any repairs to the property or worry about fees and commissions that a realtor would charge you.
6. Things to Know
6.1. Never offer your best price, so you can have room to negotiate up.
6.1.1. if you must negotiate up ask for a commitment
6.1.1.1. Mrs smith, i'm going to call my partner and see if we can come up a bit. IF i can get him to come up, do we have a deal?
6.2. You will get rejected. This does not mean you are a bad person
6.2.1. Embrace Initial rejection
6.2.2. The Money is in the FOLLOW UP
6.3. Have Contracts available
6.4. Be able to kill realtors
6.4.1. No Commisions
6.4.2. No fees
6.4.3. Why list with a realtor. They are just going to try and find you a guy like me. Why pay 6% when you've got a live buyer in front of you?
6.4.4. Mrs. Smith properteis are siting on the market X amount of days. I thought you were looking to actually sell the house as opposed to just having it sit there!
6.5. Mindset
6.5.1. This is what i DO!
7. Close in Price
7.1. The battle is already won script
7.1.1. Mrs smith, you want to sell and we want to buy. Lets figure out how we can bridge the gap. We literally talking about a few bucks
7.2. Be able to show the NET
7.2.1. Lets say you sold this with a realtor. First the property would SIT on the market. THEN someone might come through and ask you to make repairs. THEN IF you do find a buyer your're going to have to pay your realtor AND the buyers realtor.
7.3. I know you'd like to put this property behind you mrs smith. what's stopping you?
7.4. Closing Cost Trick
7.4.1. My favorite: Agree to pay the sellers closing costs so that they NET the actual offer amount.
8. Overprice
8.1. Mrs. Smith i would love to give you X amount for your property, BUT unfortunately the value is just not there.
8.2. in order to get that number, you have to put X amount of work into it. Is that what you are looking to do>
8.3. Be relateable
8.3.1. Mrs smith. On any given day i am not only a Buyer, BUT i am a SELLER. I totally understand you want to get top dollar, but the reality is sometimes as sellers we aren't being realistic. I go through this myself. I've got houses on the market that i though we could get a certain price and i was totally wrong!
8.4. Bring them to Reality
8.4.1. Lets forget that this is a house. What kind of car do you drive? Ok. So lets say you were looking to buy a honda accord. Let's say it's a 2005 accord. Before you buy, you're going to look at......?what other 2005 accords are selling for right? Lets say folks are paying 10k for nice accords with low mileage and great condition. Now lets say you find an accord that has high mileage, transmission issues, and accident history. Would you pay 10k for that accord?
8.5. Step out of the equation
8.5.1. Lets forget about the fact that i'm the buyer
8.5.2. Re-Paint the picture