Live Coaching: How to Talk to Sellers and Lock In More Deals

Let's talk about scripts a little bit before we do some live calls. And Janice, you mentioned, and I honestly forget what the hell call I posted, but I told everybody to listen to that. Who listened to that call that Janice mentioned that I posted? Okay, again, like half. So if you guys, that tells me a few things.

Rich, raise your hand. We played it last night. Oh, I played it for the group.

Okay, good. So if you guys— you either ran out of time or you're not seeing the Slack messages, so try to stay frequent in Slack, please, especially High 6 channel. That's where I posted it. I said, go, go watch the script channel. I'm going to post the call. I honestly forget which one it was. I did a bunch, but I must have had a reason to do that. Um, let's do this. Go ahead.

Yeah, it was for pivoting to AO and when to bring that up. Because you wanted a down payment. So you pivoted to AO.

Okay. Well, so let's talk about that then, because I think it was— and I don't see— is Kevin on here? Kevin, you want to— John? Yeah. All right. All right. John. John. Kevin. This came up with, with Kevin. So let's just bring it up. And that's what sparked me when I ended that call. I'm like, oh, cool. That would be exactly what I told Kevin we would do. Kevin and I were texting and he's just literally getting his feet wet with a lot of the scripts. And I said, when the guy told you he'd rent, did you pivot to AO immediately? And he said, no, he needs some traction on that or whatever. Right, Kevin? Am I paraphrasing? Okay. Your thing won't unmute for you. There we go.

Hi. Yeah, he, he called back. I was in the middle of a seminar meeting and I took the call and he said, I've decided I don't want to do it if you can't come up with $10,000 in cash as a down payment. Then I'm just going to rent it.

Okay, so let's let's do some script around that seller's comment right now. Who wants to answer that? Who's comfortable in answering that? We just talked about being uncomfortable, but I want to get a script going for Rick and I mean Kevin and help him. Who can answer that? Respond to that. If you were on that call, what would you have said? And then Rusty and I and Rick will comment.

Go ahead, Jeff.

Yeah, I'd maybe say you know.

All right.

We talked about the price and the timing and things like that. Out of those variables, which one is most important? Is it the down payment that's most important? And just see what he says there.

All right. So let's play it out. Kevin, fair to say— it's okay to say, no, that's what I want. I want the $10,000. I'm going to rent it. Right. Okay.

Okay.

How would you respond, Jeff, or anyone else? Go ahead, Steve. I'll give you a layman's answer if you want. I'd say, okay, great. So how do you want to get the $10,000? That's cool because that'll go into the script in one second. I also like, what if you don't get it? Well, you already said it, rent. Let's go to— where'd he go? Robert. Yeah, if I can— yeah, I did.

I'm sorry.

If I can get you the same cash flow without the landlord headaches, would you be interested in something like that? And the deposit?

Yeah. If I can get you 10 and the cash flow without having the headaches. Would you be open to talking about it?

That's what I meant to say. He just kept coming.

And then again, you're using, would you be open to having a further discussion? You're almost pulling back at that point, sort of.

One that I used yesterday on somebody when he said, well, I mean, just, I'm just going to rent because I'm used to being a landlord. I said, why on earth would you rent? There's a much better option.

Did he pivot, Rick, for you or not yet? Yep, he did. Okay. I, I, I don't know a landlord that would say no. That's why when I put a video out, I've done it twice. It's almost controversial. I get all kinds of views on it when I say stop renting your properties, all kinds of people. But why on earth would you want to put someone in there that would rent with a security versus a buyer with a down payment? It's not refundable. Doesn't even make sense. So 9 out of 10, I'm telling you, you can convert. Kevin, are you comfortable with that simple script to call him back? Hey, hey, I had a thought. You ended that last call with $10,000 down on your rent. What if I could— that's his exact words— strip any landlord headaches that you possibly could have when you rent and get you probably more than 10 grand? How much is the house there, Kevin?

Its ARV is about $300,000. He owes $280,000.

Perfect.

And he only wants 10 grand?

Well, yeah, because he's, he's tired of renting it. He's moved back from Florida to Colorado. And if he sells it, I mean, technically he's underwater with real estate commissions. He would probably bring money to the closing.

Yep. I would love you to call back and just say, hey, I had a thought. I should have said it when I had you live. Just be honest and use that script. For sure. And there is another boo-boo in there, Kevin, because we were texting, so I'll share with everyone else. I said, Mike, why didn't you give that script if you were on? He goes, well, I wasn't. The guy called Kevin back and I wasn't on with him. But that screams loudly. When they call you back, guys, you don't pick up the phone. Even if you're not brand new, you've been at this 2 years, there's no reason to pick up the phone. You're not in control. They're in control. Oh, hi, Jeff. Let me— what property do you have? You're not in control. They're in control. So let them put a message, hear their tone, hear what they have to say. When you're in your outgoing mode, call them. And you could have called them with Mike or Rusty or Rick or me, and we would have nailed that. But it's not lost. They're never lost until they rent or sell. So call them back. Yep.

Will do.

Cool.

Did you have a 3-way with Mike before?

Yes, but not when he called back.

Okay. Yeah. So use Mike again. Say, hey, I spoke with Mike. We had, we have, we had this, we had this idea, you know, let me run it by you if you— if that's okay. So use Mike again.

So in a situation like that, he— you're talking an AO, right?

Yep.

So we would take the property and market it at $300,000. What would you do?

What was he trying to get? I'll just be general, my numbers and rusty and rickety, but what was he trying to get?

He actually— there was a point where he said he would take whatever he owed and walk away. But I don't know that that's really, you know, true.

All right.

Well, give him $10,000 and buy his sub too.

What?

Yeah.

Like, hit that. What Rusty said.

Why are we talking AO if he's willing just to walk away with $10,000?

Well, because I don't Yeah.

Did Mike— did Mike not hit that? Oh, no, he didn't know about the 10 grand yet on that car.

Okay.

We had talked about $2,000 or $3,000 in cash down, taking it over. We talked about putting the deed in our name and making the payments, and he wasn't excited about that.

Okay, so he did hit sub two. Yes. Let's tie the AO. Yep.

Okay. Okay.

Yeah, you have two options. You either text him and schedule a call with one of us to be on with you because Rusty spit that out because it's exactly what any one of us would have said. Or you you call and you come up with a simple comment and then you record it.

Kevin, what's he what's he not excited about? Mortgage staying in his name or the deed transferring?

I think the transfer of the deed.

Because you could always just do a contract for deed or land contract.

All right. I'm not familiar with that. So—

The attorneys handle it, but basically his attorney would hold the deed until it's paid in full.

Okay.

In escrow.

Okay. That's another avenue.

Yeah. And Kevin, because you're out and about, like, just in the entrepreneurial world and your deals and the stuff you brought to the table, you will get more deals by just doing what you did with Mike and getting us involved because you can hear it. I mean, they're just the normal reaction. Rick and Russ are like, boom, why don't you do that? So pull us into these things and let's rope some in because all the stuff you brought me so far, they're good. We just got to massage them and get us in earlier.

Mm-hmm.

Yeah, that's, that's potentially exciting for you.

Cool. How about one more? Yeah.

And I want you guys to yell that this is a mastermind. So here is for you to chime in and ask questions and let us help. And nothing is a bad question. This is why we're here. That's the format right now. We'll see where it goes, right, for today. So go ahead, Kevin.

So I have a guy who has a property in Cape Coral, Florida. He has it on the market currently at $770,000.

Okay.

It is, it is an absolutely gorgeous property. And the furniture's going to convey with the property is probably $20,000 plus of furniture within the property. And he said that he would let me have it for $695,000. And I got nervous and didn't put a down payment because I didn't know how to disposition it. So I called him back and said, look, rather— and the guy lives in Germany and he wants to sell the property. So I said, look, let's do this. Rather than me give you a deposit, tie it up, and then tell you I can't sell it, let's just have a gentleman's agreement. That if you sell it for 770, or I get it, I get it sold using my number at 695, whatever I sell it for, we do it that way. And he says, I'm fine with that. What?

I got a bunch of questions swirling. No, this is great. Kevin, thank you for bringing it to the table because this is why I'm saying we got to get us involved earlier. So Rusty, go ahead for us because you Who chomped on it? I know you were. And then I got some questions.

I mean, I mean, he's in Germany, right?

Yes, sir.

And he's— what? So why are you out? Did you offer a down payment or deposit? I'm not— I'm not following.

No, but if I had put it under contract to purchase it at $695,000, he would have wanted the down payment.

Yes.

You know that?

Yes.

Well, you're going to make it contingent on finding a buyer anyway, so you wouldn't, you wouldn't give them the down payment unless you found a buyer. That's number one.

Okay.

So you're not committed unless you want to commit, unless you think the deal is—

No.

Classic. And you're—

No.

One of the challenges that I looked at in this situation is in real estate, I've always been taught never buy the most expensive or the highest quality property in the neighborhood because you're going to have a hard time getting comps on it and selling it at market value.

All that's true in the conventional world. If that's like, that's how my wife thinks in the conventional world.

Yeah.

I don't really give a rat's ass about that in our world because if the guy sold it to you sub-2 or 20-year terms, you don't care what it is.

Right, but he didn't want to do that.

Okay, well, making headway here. Go ahead, Rusty. This is good. I'm digging through some—

No, that was, that was my initial, like, thought process.

Okay.

That's where I went initially was owner financing, sub-to.

Was it?

Is it pre-cleared?

Does he have a mortgage? Do we know that?

I think there's a small mortgage, maybe $75,000. Nothing. Okay.

How long? Give me status unless I missed it. This is empty. This is— how long has he been gone? Just give me the story a little bit better.

It's vacant. It's probably 90 days vacant. It's been on the market at 7— it was at $800,000. He's lowered it to $770,000 and still hasn't sold it.

Okay. So did you ask them? I'm assuming because you've done the basics, did you ask the magic question? If I can get you to your number, Can you wait for that money and then let's do it right now type thing?

Yeah, he didn't want to wait. He wants his equity while he's in Germany. He wants to sell it and take the money.

Okay.

All of it or some of it?

All of it.

Okay, so this is on my list for today too, Rusty. And that is, I think I just had another call this morning with this one, and that is, is there a date? This is exactly where I would have went next if this was a live call. Is there a date, Kevin, if you were the seller, where I know you want all your money now? So doesn't everyone I buy from, right? Because of blah, blah, blah, the market. Is there a date by which you might go, I got to look at other options now? And what is that date? That's what I ask people. Okay, then I know my follow-up. My— all my calls this week, I thought this is one of you guys. All my calls this week are people that said, and the notes are crazy. I, yeah, I have no problem selling. They tell them, yeah, I know it's going to sell. Yeah, I know all of them. And they're all right. They all turn into appointments because they didn't sell. Right. So is there a date you want to know that date when you should follow up? Not sure where to get started? Go to smartrealestatecoach.com/getgoing for free books, strategy calls, and a whole bunch more. We're going to help you get going the wicked smart way. We've been after this for over a decade doing exactly that.

I understand that. But now my question is, If this is a viable property, well, we can't do subject to, we can't do owner financing.

Why?

Why? He doesn't want to do that.

He doesn't want to do it today. So you ask if it doesn't sell. I'm telling you this, I could share my screen in a minute if you want. But the guy, the guy said to MJ 3 months ago, oh no, I'm not interested in lease purchase owner financing because I'm going to sell it. And this is a hot market, Mystic, Connecticut. You guys, some of you know where that is.

Yeah.

So I called him last Saturday from my house. I know it's been a while and he's like, oh my God, I can't sell it. I don't want to go back and do work. I said, I can take care of it right away. So I'm going to go see it Friday. I think that's why I was asking John and Paul how far away they were. I think I can just go out there. But this guy was dead set. All the people are going to tell you this, so just ask them. I— hey, Kevin, I get it. Everybody wants full price tomorrow and chuckle. But if it doesn't sell, what's the date that we should chat about other options? Because who knows? Congrats if you sell it. If not, what's the date we should be chatting about Plan B? Because that might come.

Yep.

So on all your calls, this comes up a lot. It was on my notes here, my iPad. So glad this hit right away here. On all of your calls, I'm hearing this, you guys. You're not getting the— just ask the date. Don't fiddle around with all the stuff you do and how good you are. Just say, well, what's the date? And get off the phone. I got one this morning. It was an older gentleman. He said, I'm going to list it. I said, same as I told you to ask him about the equity. No, I'd rather get it. So I know you'd rather get it. 99% of the homes they buy, they tell me they'd rather get it bought. And you give them the market stats. So how long you list it for? Not more than 90, right? Because the market will tell you by then. He said, yeah, I was thinking 90. He was an older gentleman. I said, all right, so I should call you around 85, 90 days. He said, yeah. I said, okay, if you— now the realtor script comes in. If you don't get full price in that time or you cancel sooner, call me. If not, I'll call you in 90 days. Just get the bookend so you know when to call back. All of my calls are that. I don't waste time on them. They're 1 or 2 minutes.

And listen, I've listened to your calls. You see how Chris was assumptive? Like, I'm going to follow you up, follow up, and you didn't ask, right? Oh, can I follow up in 90 days?

No, I hear that a lot.

It's assumptive. And then Kevin, find out what his walkaway number is because he's been dropping it, right? So you could also Get into that. Like, hey, you know, if you sell it at whatever it was, was $770,000 or something? $770,000? What was that?

He's on the market at $770,000, but he gave me a price of $695,000.

Yeah, that's after—

and he wouldn't— he said, I won't go any lower than that.

Sure.

Okay, got it. All right. So what's his walkaway number? That could be a question you could ask him. And don't get that number. What are you going to do? Right.

Yeah. And I know you guys all want deals. I remember When I needed what feels like I needed water, I get it. But I'm telling you now, I literally look to get off the phone and just ask them when they're gonna. I don't say when you're gonna give up. When you're gonna consider other options, because that's the lead I want. Then it turns into automatic appointment. On the way home last night, I got another call. The guy blew off two appointments. I think I mentioned to you guys he blew off two appointments to me, so I just ignored him. Call me yesterday apologizing again. Him and his wife were on the speakerphone, apologizing, saying when can we talk? Just if you just give these things time, they're either going to sell or be begging you. So you're dealing with people that really want your help. That's a positive thing.

Okay.

There's questions built up. Sorry, Lance.

Yeah.

So question I have is about the appointment I went on yesterday. So it's a residential house that used to be zoned residential, but they built it. Sorry, hold on one sec. I just want to make sure we leave Kevin hanging. Kevin, you have your kind of marching orders in that second one.

Yes.

Okay. And pull us in because we all know it now, right? Rick and Rusty anyway. Mike's away, so I'd pull Rick or Rusty and me into that.

Okay.

Awesome. Good leads.