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How Understanding Sellers Options Creates Many More Deals
Joe: Hey, it’s Joe Crump. Today I’m going to show you how to understand the seller options so that you can use that information to do more deals. If you can understand how deals are put together, how people make money and what their options are, if you understand all of their options, then you can tell them what those options are and then they can pick the one that makes the most sense to them. I find that most of the time when I tell people all their options, they’re best option is working with me. Whether it’s because they’re in pain and they can’t sell their property because they don’t have any equity, or they’re trying to make more money in the deal. Let me show you how we do it.
Joe: If you understand the seller’s options, what’s possible for them, then you can speak to them more reasonably. Because what they’re going to want to do is not probably what they’re going to be able to do. So what you have to show them is here’s what’s possible. Out of all these choices, which do you want? It’s like, you go to the doctor and the doctor says to you, “You’ve got cancer.” He says, “You can do chemo, you can do surgery, you can do radiation. Which one do you prefer?” And you say, “Well, I don’t want to do any of those things.” And the doctor says, “Well, that’s not an option. You know, the other option is that you die. So if you want to accomplish, you know, you want to continue to live and you want to accomplish what you’re trying to accomplish and what we’re talking about here is, sell your house. If you want to sell your house, you’ve got these specific options.” And if you can understand what those specific options are and explain them to them in a way that shows them the pros and the cons and why they work, or why they don’t work and why they might make sense or why they might not make sense to those people, after you understand all the different things that they’re trying to accomplish because you’ve asked them those questions using the seller questionnaire, then you’re going to be able to convert a lot more of these deal. Because you’ll actually be solving problems for people. You know, the more people you help, the more money you make.
Joe: Let’s look real quick at the seller sheet, or the seller questionnaire. And so, you’re talking to this particular lead and you’re in the seller questionnaire and you’re going through it and you’re asking them questions about the property and you’re getting the details, the address and the money and the down payment and when they need to leave and how much they own on the property and all this stuff that you’re getting from them. And once you have all that information, then there’s, you need to start helping them decide what to do with it. It’s like a doctor saying, you know, “Okay, you know,” you go in to the doctor and say, “My stomach hurts.” They’re coming to you saying, “I want to sell my property.”
Joe: The doctor says to you, “Well, where does it hurt? Is it a sharp pain? Is it a centralized pain? Is it more to your right side or to your left side?” You know, and by asking you all these questions about it and doing his own diagnosis, then he’s going to be able to make a recommendation. He’s going to be able to create a prescription for you and tell you what you need to do to solve the problem. And that’s what we’re trying to do by asking all these questions so we understand their situation. And then once we understand their situation, then we can look at the seller options and we can start going in here and we can almost directly read this information because these are options are pretty true for almost everybody depending on you know, how much they owe on the property and where they’re at and all the things they’re trying to accomplish.
Joe: And you’re probably going to want to tell them the options that make the most sense for them and you’re going to understand that if you go through here and read these things. And it’s not, none of this is rocket science. You know, you can continue to sell for sale by owner if you’d like to. But we know that 85% to 95% of for sale by owners don’t sell. There’s still a possibility it’ll work, you know, but, as a seller you have to decide how long you’re going to continue to try this method. If you want to wait one month, two months, six months, you know, the advantages are you don’t have to pay a realtor fee and associated expenses. You know, sell for cash and are through with the property once and for all. You no longer have to have your name on a loan. You know, this is the golden ticket for most people and the reason why they try it this way.
Joe: So you can go through this script and you can, you know, even if you don’t have it in your head, you can read it and they’ll be able to understand what you’re saying. You can show them the pros of it, the cons of it, and then the analysis of why it might make sense to do it. So that’s their first option.
Their second option is have you thought about selling it with a real estate agent? You know, and if you have, do you know how much it’s going to cost to sell it with a real estate agent? Well, here’s a breakdown of those costs. So it’s going to be between 10% and 17%. If you can explain this to people and help them understand how much money they’re leaving on the table, because this is their, this is the option that most people, most for sale by owners eventually list with a real estate agent, if they’ve got enough equity to do so. If they don’t have equity, then they can’t, that’s not one of their options. They could do a fire sale, if they’ve got enough equity. They could do it as a short sale, just give it back to the bank, which is the same as going into foreclosure. And I call these, instead of calling them short sales, call them a short sale foreclosure so they understand that that’s the same thing as foreclosure. It screws up your credit just as badly. It just makes it impossible for the lender to come after you for a deficiency judgment.
Joe: You can do it subject to if you like the deal for subject to or land contract or lease option. And sometimes you’ll use these and sometimes you’ll not, depending on the situation of the property and whether or not there’s enough cash, and whether it makes sense for you to keep the property or turn around and just flip it to somebody else. And most of the time, at least with my beginning students, will go with the lease option on this and it’ll still make the most sense for them. And then there are all the reasons a lease option makes sense in these situations.
Joe: So, these are the things that you’re going to be able to do inside the Automarketer and ways that you can explain to people while you’re there, while you’re on the phone with them, you know, moving around in this system and once they say yes to you, you can send them to your lease option memo, if you go to your clone sites you know, there’s a list of clone sites that you can look at. And you’re going to want to show them the lease option memo and all you have to do is click on the lease option memo, it’ll open it up, you can tell them go to your, go to my website, and you can have your own domain, mine’s at buyersforyourhose.com/memo.html and they can fill out this form and when they fill out this form, and hit “I agree” this is a signature. And this gives you permission to sell that property. It makes it legal for you to sell the property without having a license. And that’s a really wonderful thing to have and that makes it possible for you then to start selling it to your buyers and the people that are on your buyer list. That’s when you’d start doing your broadcast message and getting it out to the world.
Joe: So, all in all, learn the options that your sellers have because you’ll be able to speak intelligently to them and you’ll close a lot more deals if you can do it.
Joe: Good luck with it.