In this instructional video, Tyson Smith outlines a step‑by‑step sales script for real‑estate investors to close novation deals. He emphasizes starting with a low cash offer (about 50% of ARV) to anchor the seller, then negotiating that offer for 15‑30 minutes before introducing a novation pathway that can meet the seller’s asking price without commissions, closing costs, or repair expenses. The pitch is kept brief, focusing on price, convenience, and fee avoidance while positioning the investor as a trusted market insider with access to a nationwide network of vetted cash buyers and MLS listing capabilities. Smith also provides a ready objection‑handling script for the common question, “Why not list with an agent?” and explains how his company’s partnerships offset typical listing fees. Finally, he promotes the “Wholesaling V2” mastermind, offering training, contracts, and process hand‑holds for agents who want to integrate novations into their business, and invites viewers to book a free qualification call.
Chapters
The way you make your novation offer is going to be important. And if you don't do it right, all you'll end up doing is confusing your prospect and you'll have a hard time getting anyone to sign anything that they're confused about. The reason why my team and I have so much success with novations is because we have our entire process for making novation offers completely dialed in. Now, there are two keys to success when it comes to making novation offers so good you can have sellers begging you to sign the contracts. The first is to juxtapose the novation offer with your cash offer. And the second is to explain it in such a way that the seller understands what's going on. In order to correctly juxtapose your novation offer with your cash offer, you need to beat the cash offer into them hard. The reason why we have such an easy time getting these deals closed is because we hammer them with our cash offer first. Now, the goal here is to anchor them low, so we give them an honest offer of what it would take for me to personally buy their house. Now, this is typically going to be around 50% of ARV. Now this part takes some finesse because you don't want sellers to just get upset and hang up the phone. In order to prevent this, you need to make sure your entire sales process on the front end will build enough rapport and trust with the seller so they don't just think you're calling around lowballing homeowners looking to get lucky. The biggest mistake I see beginners to novations make is that they learn this new strategy that allows them to offer so much more, and then they just skip over the cash offer part and go straight to offering the novation. At the seller's asking price. Now, this is not only going to kill your average spread per deal, but also you're going to set yourself up for failure. The way to do this correctly is to hammer them with the cash offer and then negotiate on that for as long as you possibly can. A good offer call will typically take between 15 and 30 minutes of strictly negotiating on the cash offer, and only when it seems like there is no other possible solution and there's just no way that the prospect and you are going to be able to work together That's when you're going to get a little idea. You're going to tell them that you're not sure if they would even be interested, but that you may be able to get them more money if their property qualified for another program that your company offers. You then explain to them that as a real estate professional, you're well acquainted with all the investors in their area, and you let them know about how you know all the different local and national investors, the hedge funds, and all the realtors in the market and you could even utilize listing their property on the MLS. And although their property didn't specifically fit well in your company's buy box, let them know that you could probably guarantee them the price they want and they still wouldn't have to pay any fees. That's right. You could actually come up to their asking price and hopefully you manage to beat them down a little bit, but you could come up to their asking price and they still wouldn't have to pay any realtor commissions, closing costs, repair costs. And they don't even have to pay for you as well, as you will be making the buyer pay your fee. Now, if you've done a good job of haggling with them on the cash offer, most sellers are going to jump at the opportunity and ask you where they can sign. Now, at this point, you will let them know that in order for you to do this, you are going to have to schedule some appointments for just verified and vetted buyers to come through the property, but they aren't going to have 50, 60 people trouncing through their house. Now, notice how in the pitch I don't bog them down too much with complicated information about the process. Instead, it's mainly just about about how we can help them get their number while still avoiding all the fees and giving them the convenience of a cash offer. Now, when you speak to the seller about what it is that they're looking for, you're going to have a much easier time closing the sale. Time and time again, I'll see beginners talk themselves out of a sale by saying too much and confusing the seller. So it's very important to be brief in this pitch and only let them know the most important factors, which are, hey, you can get them the price you want, they're still getting the convenience they're looking for, it's just you're not going to be the buyer. Now, when I explain this pitch to people, the most common question I get is, well, why wouldn't they just list it with an agent themselves? And although I don't really get asked that much by sellers, it's really an easy objection to squash. I just say, hey, look, you absolutely could list it with an agent, but when was the last time an agent guaranteed them a price? To the agent, it doesn't matter if the property sells for less than what you want, because they're still going to get their commission. And then when you start to walk them through all the fees associated with listing their property with an agent, the closing costs, the realtor fees, and the buyer concessions that could easily eat up all their profit, And then finally, I let them know, look, my company has access to over 4 million verified and vetted cash buyers across the country who have a proven track record of buying houses just like theirs. And wouldn't working with us be so much better than getting stuck in a 6-month listing agreement with some part-time realtor? Now, you may be asking yourself, well, if you're going to list the property on the market, aren't you still going to have to pay all those fees? And the answer is yes, but we've spent the last few months dialing in our processes and partnerships to make sure that even after paying those fees, the seller is still gonna be able to get their number and we're still gonna be able to make our fee. Now, if you want access to all of those processes and partnerships, you need to join Wholesaling V2. Wholesaling V2 is a mastermind I started to help others learn how to implement Novations into their existing real estate businesses to double their close rates and increase their average profit per deal. In the mastermind, you're gonna get access to our entire sales process to ensure you're able to build all the rapport and trust you need in order to successfully pitch novations, and you're going to get your handheld through the entire disco process of getting the house listed and fielding offers. And you're going to get all the contracts and paperwork you need to start implementing novations today. To see if you qualify to join the mastermind, click the link below to book a free call with me and my team to discuss the goals you have for your business and see if it would be a good fit. Now, if you're going to implement this pitch into your business today and you're going to start locking up novations, I want you to go ahead and give this video a like. If you have any questions, don't be afraid to ask them in the comment below. And as always, guys, thank you for watching, and I'll see you on the next one.
