How To Get 1 In 3 Sellers To Say “Yes”?
Question: How To Get 1 In 3 Sellers To Say “Yes”?
Hi Joe, Your Push Button Method is phenomenal. I’ve already started implementing some of your ideas and last week I closed my first two deals and made $6000 on one and $2000 on the other. I don’t think I had more than 3 or 4 hours total in these deals. Thank you. But I have a question. Can you explain your “For Rent” Method and how it works?
Deena in New York.
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Read Transcript for “How To Get 1 In 3 Sellers To Say “Yes”?
With the “For Rent Method” I teach, you can get 1 in 3 sellers to say yes to your offer. This is a phenomenal way to start flipping properties and making money right away. Let me explain how it works.
“Your “Push Button Method” is phenomenal. I’ve already started implementing some of your ideas and last week, I closed my first deal and made $6,000 on one and $2,000 on the other. I don’t think I had more than three or four hours total into these deals. But I have a question. Can you explain your For Rent Method and how it works?” – Deena, New York
Joe: The “For Rent Method” is the system that I teach everyone who is just coming into my mentor program. It’s where we go to the newspaper, we find all of the ads that are listed as homes for rent, and we start calling through it. We have some ways to do this, like automating it with voice blasts and autoresponders and things like that; just very basic things…
Joe: This is what I do at my Two Day Buying Event. I take people through this process. I teach them the whole thing. I teach them how to talk to the sellers and how to do this whole process. I’m actually in the conference room. We do it right here in Indianapolis usually at the Two Day Buying Event.
Joe: I get them in the room and I teach them for a couple of hours and then we actually do some role playing, and we get on the phone and actually make offers right there in the conference room. The last time we did it, we had about 47 people in the room and within the first three hours in class, they bought 98 properties.
Joe: We have the for rent ads that we’re getting from the paper. We just call down every one of those ads and ask them, ‘Hey, would you consider selling your home rent to buy rather than just renting it?’ We find that one in three say yes. This is such an easy thing to do. When they say yes, what we’ll do is send them over a one page lease option agreement memo, and what that does is it makes us a principle in the transaction.
Joe: The reason we do it this way is because most of my students are not agents. Most of them are just regular people out there who don’t have a license. So we have to be the principle in the transaction before they go out and sell the property.
Joe: As an agent, you can do it a different way if you like, but using this lease option memo is very easy because it makes them possible for them to get out of it. I made the lease option memo specifically to protect the seller so that it’d be much easier to get signed. It’s just a one page lease option agreement between you and the seller and it allows you to assign your interest in that lease option agreement to another buyer.
Joe: So, now you’ve got this lease option agreement, you’re the principle in the transaction and you go out and you’re going to sell this property and go to your list of buyers.
Joe: We have lots of great ways to find lease option buyers. These are the easiest leads out there to find right now because it’s so difficult to get mortgages. And I know that you’re all dealing with this problem right now, so if you find properties for lease option buyers, it’s going to be a lot easier for you to put deals together. And, you can usually get a commission that is as much or more than what you would get if you were working as a real estate agent and getting a co-op fee. These are great source of leads.
Joe: It’s much nicer to get 30 or 40 calls from buyers a week than getting one or two calls from buyers a week from classified ads when you’re trying to sell a property that you have listed. This changes your business dramatically when you have that kind of business coming in. Then, once you start building a list and using the autoresponders and the other automation techniques that I’ve been teaching on these other videos, then it works phenomenally.
Joe: So, you go out and you get the lease option buyer. The lease option buyer is now going to pay a lease option fee and the first month’s rent. The lease option fee goes to you, the investor, as the assignment fee, so you’re going to get that. It’s a nonrefundable fee. If they don’t buy the property, they’ll lose it because it’s gone to you. If they do buy the property, it applies to the purchase price.
Joe: The seller’s going to tell you how much they want for the property. Let’s say they want $200,000 for the property and you were able to get a $5,000 lease option fee. You get $5,000 from the new buyer. They’re buying the property for $205,000. Now, they still owe $200,000 to the seller. The seller gets full price for their property. They don’t have to pay a realtor commission.
Joe: It’s really a beautiful thing for the seller, it’s a beautiful thing for you and it’s great for the buyer as well because they get into a property that they couldn’t have gotten into otherwise because they don’t qualify for a conventional mortgage.
Joe: You’re going to be looking for people that have jobs and income. You’re not going to want to put deadbeats in there. But that’s what these people are looking for anyway; they’re looking for good tenants for their property. So if you can come to them and say, ‘I’ve got 23 people on my list right now that are looking for properties in your area. Would you be interested in selling it rent to buy?’ it’s a very, very powerful approach and a very, very powerful offer.
Joe: We’ve got it down to a science. We’ve expanded it and made all sorts of great ways to talk to these people and automate it as well. That’s what I teach in my “Six Month Mentor Program”. So, hopefully that helps. Good luck with it.