Seller Objections: I Want To Keep The House As A Long Term Investment


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When you make Zero Down Real Estate Offers to Sellers, you will often get questions. Answering these questions is called Objection Handling.

The next few videos are ‘objection handling techniques’ that we use when talking to Sellers that give us credility, show that we know what we are talking about and help the Seller understand we can solve their problem.

Here is one objection we get and how we handle it:
“I Want To Keep The House As A Long Term Investment”

You can watch it in this video.

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Read Transcript for “Seller Objections: I Want To Keep The House As A Long Term Investment“

Joe: There are a few people that have sent out questions about objections that they’re getting when they talk to people using the “For Rent Method”. The For Rent Method just to refresh your memory for those who don’t know it – there’s lots of stuff on my blog that explains the For Rent Method – but basically, we get property under control by getting the right to buy it on a lease option, making us a principal in the transaction, and then we turn around and sell that property or sell the right to buy that property. We take the down payment, the bulk of the money goes to the owner of the property and the first month’s rent goes to the owner of the property. That’s what we’re doing to flip lease option deals and I call it the “For Rent Method”.
Joe: Sometimes you get questions from people when you ask them if they want to sell their property rent to own rather than selling it outright. And one of those objections is, ‘I want to keep it as a long term investment.’ There’s a couple of answers to that.
Joe: First of all, you have to ask questions to find out and really understand the question that they’re asking. One of those is ‘Are you doing that because the goal is to make more money?’ Presumably, the reason they’re going to keep that property is to make more money. It could be that they just want to keep it because they want their kids to move in next door, or it’s a family home and they have to keep it for sentimental reasons and it’s not about the money – it’s just about the fact that they want to keep that home. But most people aren’t in an attractive position to be able to keep an extra house that they’re not going to use for any purpose.
Joe: So if their goal is to make more money, then the next question you ask them is, ‘What if I could show you a way to make even more money by doing it the way that I’m suggesting? Would that be interesting to you?’
Joe: These objection handling technique, by the way, are in the Mentor Program and the Push Button Method program as well.
Joe: ‘If that’s the case, one of the ways to make the most money on your house is to sell it as a lease option. There is less than a 30% chance that they will exercise their option, so you’ll probably end up keeping it long term anyway, which is what you want. But if they DO exercise the option, they’ll give you full market price, and you can use that money to buy another property that is under market value and then put a new lease option tenant in it. You don’t even need to pay capital gains taxes on the profits because you can do a 1031 exchange and defer those taxes forever if you like. If you don’t know what a 1031 exchange is, just type it into Google: ‘1031 exchange’ and there will be some good explanations. Basically, you’re exchanging properties and you’re deferring the taxes until later. You don’t have to pay taxes on it if you buy an equal or greater value property. Do you think you could find another house right now that is substantially under market value and might be a good investment if you sold this one?’
Joe: So this is a good example of an objection handling technique for someone who asks this question. If they’re looking to make more money, this is how you can show them to make more money in this process. Alright, I hope that helps.

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