Epic Real Estate Investing - 10 Fundamental Principles to Handling Seller Objections | 288

Episode Date: August 26, 2017

Epic Real Estate Investing gets down to business uncovering 10 fundamental principles for handling seller objections. Precisely how can you position yourself to solve problems for sellers and close more deals. ______   The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? • E.ducation • P.roperties • I.ncome • C.oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Broadcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. What's up, Er. Hello, and welcome to the Epic Real Estate Investing podcast. This is the show where I show people how to escape the rat race using real estate. And to make this happen for you, the first step, really simple. The first step, all it is is just to shift your focus from making piles of money to creating streams, of money. That's where it begins. And you only have to do that once and then just embrace it. And all

of your actions afterwards should follow that idea. And your escape from the rat race is going to happen at least 10 times faster than those that choose the alternate path, the traditional path, the old antiquated path of save, save their money so it gets high enough to spit off a stream of income. No, focus on the stream first and let the stream create the pile. That's the idea. And let me clarify, though, this is not get rich quick. It's get rich quicker. And and getting rich permanently. And to get started down that path or restarted, I've created a free course just for you.

Go to free real estate investing course.com and you'll get a crash course on how to find deals and the two quickest and easiest strategies to a paycheck in real estate. And then stay tuned here each and every week and I'll show you how to put that paycheck to work for you in a way that it works harder for you than you did for it, right?

How does that sound? Sweet. All right. So before we get into today's show, got a hot one for you today. but I do have a few save the dates for you. September 13th in Los Angeles, California, we're hosting our monthly live meetup, epic breakthroughs.

And if you'd like to attend, it's $10 to do so. Go to epic meetup.com. And the agenda there is we're going to have at 7 p.m. We start with our open networking, millionaire mingling, we call it. Then we go through Tell Me Something Good and then Savvy Support and then Epic Education and money matchmaking, and then we go through the barrier buster round table, which is always everybody's favorite portion of the night. So we do that once a month.

So go to epic meetup.com. You can join this. Food will be provided. It's $10 in advance, $20 at the door. All right. Then, so that's first. That's on September 13th. Then next, the next Grub and Grow Rich event will be held in Napa.

Yeah, Napa Valley, Central California. That's going to be October 13th. October the 13th where we're going to get together for some timely market updates and wealth creation strategies. We're going to eat. We're going to drink. We're going to be merry. Everything that we always do is at Grub and Grow Rich.

The website, not quite live yet. This is just to save the date, but it will be shortly at grub and grow rich. com. It's just not live as the time I'm recording this, but it should be in the next few days. Which is see, this is being released on a Monday. So, I don't know, Wednesday, Thursday, you probably would be good to go. Grub and Grow rich. dot com.

And if you'd like to stay for the weekend event, yes, you could stay the whole weekend if you want to if you want to make a little travel and make a fun getaway out of it. We have a new event. Drink and grow rich. Yes. If you want to stay the weekend, you can get Grub and Grow Rich and Drink and Grow Rich all at the same time. And what we're going to be doing is we're just going to be hopping on a tour bus to go

around Napa and taste wine. And if you've never been to Napa at this time of year, it is the best. time of year to go. It's when the harvest actually happens and it's just the weather is perfect. More eating, drinking and being merry. This is just a fun event, something we've never done before. We've done fun events, of course, but no work involved. No business is going to be conducted on this wine tour. But if you'd like to hang out with us for the weekend with the whole epic team, the epic staff, hang out with my legal team, my tax team, my financing team. Actually, that makes two people. the legal and tax expert and our financing expert.

If you just want to rub elbows with the best and the brightest the industry offers, you may. While the richest people in the world focus on building their network, the poorest focus on finding work. Right. So, you know, whoever said, it's who you know. They weren't kidding. So join us for the whole weekend. Build your network. That's October 13th, 14th, and 15th.

All the details will be up at drink and grow rich. Now, let's listen. US. Yeah, could go and get the dot com. If you go to dot com, they're going to teach you how to make money selling some sort of fancy shake or elixir. So don't go to drink and rich.com. Go to drink and rich US. Drink and grow rich.us. Do I say that right? Drink and grow rich.us. And that should be up any day this week also. All right. Then the last date to share will be November, second, third, and fourth. And the fifth is optional. But it will be the last chance for you to catch the epic intensive weapons of mass production where for the last time we're going to cover how to get the

highly potent and powerful tools and methods every real estate investor can use to find more motivated sellers buyers and private lenders in as little as 60 seconds even if you think you've heard it all before and as soon as you register you'll get instant access to the epic fast formula at 10,000 in 30 days or less that's a quick little course that gets everybody on the same page gets everybody right at the same level or has the minimum knowledge that you'll need to really grasp what's shared at the intensive. This is not where I'm going to start from the very, very beginning. That's what that course is for us to start you from the very, very beginning to share with you these advanced techniques and the stuff that's working in our business right this very second.

And this is all taking place on November 2nd through the 4th in Birmingham, Alabama. Yeah, we're coming way out east to Birmingham. And the reason the fifth day is optional, we're going to be touring our turnkey properties with our Birmingham partner. So if a turnkey properties are an idea or something you've been thinking about putting inside of your portfolio. This is a great time to go and see the before, the during, and the after, meet the team, Seattle and Operation Works, potentially see your property. There will be properties for sale. Certainly, sales are not required, but it's just a way for you to, you know, take a peek

behind the curtain, so to speak, in one of the hottest markets in the country. Again, the registration is not officially open there yet, as of the recording of today, show, but it will be this week. Okay? So I just want to make sure I got this out and got the dates at least in your head. And if you want to come to the intensive, that's at epicintensive.com. And again, we're going to do the first 25 people to register will be admitted in for free. And then the price will rise as the closer we get to capacity for that event. All right. So lots of dates, lots of domain names. Thank God for rewind. So you can go back and catch that stuff if you missed anything. Or you can just go to the show notes at epic real estate.com where all of this

information will be there for you for your convenience. I'm sure I'll mention it once or twice before it comes up, but just heads up. Save the dates. All right. So over the last four episodes, we've covered in pretty good and deep detail, the deal driver, the deal driver, the framework for turning your leads into contacts. Step one is making the connection. Step two is extending that invitation.

Step three is creating your presentation. And step four is achieving collaboration when we actually get the contract signed. And then if you get that part wrong, if you don't do this, if you don't have a systemized way of doing this and that moves you through that exact process, you're going to go broke on marketing. Or you're going to be spending just way too much per deal. Or you're just going to seriously discourage yourself as it won't matter how many leads you generate if you can't convert them into signed contracts of deeply discounted real estate. But if you get this part right, your marketing costs will go down, your cost per deal will go down, your your profit will go up, your bottom line is going to look better. overall you're just going to, you'll be able to smoke your competition because you know how to get the deal closed, right? You know how to get that signature. So mastering the deal driver and using it

is really the highest and best use of your time. Talking to motivated sellers and negotiating contracts, that's the highest and best use of your time. This is the skill that's going to pay you the most, the skill that will render you the highest return for your time. So if you missed any of this, you're going to want to go back four episodes and soak it all in. Maybe listen to it more than once. soak it in, steal it, and use it in your market. You have my permission. All right. Now, as I've said to you, I don't know, once or twice, this is a people business, right? Every piece of real estate you buy ourselves is going to be firmer to another person. And that presents a countless number of variables and scenarios inside of this business. It's why anytime someone asks me a question,

I have to start with, it depends. Because there's just too many moving parts, right? In short, though, with how we're talking about the deal driver in context with a deal driver, you're going to get a lot of objections from sellers. You know, you might have your framework. You might have your script. You might have your words down. But they don't know theirs, right? You've trained for this.

You've prepared for this. And they don't always play by your rules. You're going to get some objections from sellers and you have to be prepared for them. Or the seller is going to throw you off track. And they're going to throw you off your deal driver system and suck you into theirs. Okay. And you don't want that. So let's go over 10 fundamental fundamental.

principles about handling objections. Being the problem solver that you are, everyone calls them handling objections or objection handling. I prefer to call objection handling problem solving because that creates a very different mental picture of what's really going on and what your role is in this whole process. Remember, it's you and the seller against the market. You and the seller are trying to solve the seller's problem together. The only person that's going to get in the way is the market.

And, you know, one of the greatest fears for an untrained investor is hearing objections or hearing the seller's concerns after they've given their entire presentation. And that's because most people don't understand really the tremendous opportunities that the objections can be to getting the contract signed. So here are 10 fundamental principles about handling objections towards what could really be, you know, one of the greatest assets you have when it comes down to signing. getting contract signed. All right.

So principle number one, if they're not sharing any objections, you know what? They're probably not motivated. If they're just going along with the flow and it's too easy and they haven't raised any questions or concerns, they're probably not motivated. All right. So it might feel good that you're not hearing objections,

but then you're going to, something's going to come up at the end and you're like, oops, I don't think they just weren't motivated to give me a deal, right? Or they weren't qualified or the property's not qualified. There's something there that's going to get in the way. So you want the objections, okay? If they're not sharing them, then your antennas should be going up. Principle number two, address the objections or problems first, you know, whether they be in your presentation or your conversation with the seller.

You bring them up. Expect them. They're going to bring them up. Just you bring them up first and you prepare for them. You know, one of the, and just this is kind of a little bit of a tangent. But when we were talking about how to raise private money, we've done that a couple times here, We did a couple times at all the intensives and a couple webinars recently. When you're borrowing, when you're looking for private money, you want to be prepared to answer three questions.

And you just want to build those questions into your presentation, right? So everyone wants to know when are they going to get their money back? They want to know how much of it am I going to get back? And they want to know what happens if I don't. Right? So those are three things that we know those questions are coming from the person that you're going to be borrowing money from. So that's why we build all of that and we answer all three of those questions in the presentation. So the same thing right here, dealing with a seller.

Just expect them and prepare for them. They're going to want to know when is their house going to sell and when are they going to get their money? And what happens if it doesn't sell or falls through? Or what happens if they have to readjust and come back with some sort of price adjustment or whatever it may be? They want to know all of that stuff. They're concerned. And so you need to expect those to come your way and you need to prepare for them. all right. So principle number three, objections, they come in two types. It got minor objections

and major objections. The minor objections are really just nothing, typically nothing more than the seller's way of just trying to slow down the process. You know, they understand, a lot of them will understand that they're in this negotiation game. They want to kind of stall it a little bit so they can collect their composure and they can gather their thoughts. I mean, and also, this is a really big deal for them. You know, they've likely never been in this situation before, that they're currently in and there's some fear there. But you do this every day, right? So you do this every day.

So understand that this is a big deal for them. It's just another seller meeting for you, right? So they're gonna want some time to process. Give it to them. If you don't like what you're hearing, change the conversation. That's kind of my first attempt at objection handling. If I don't like what I just heard, then I just kind of change the conversation. If they bring something up that's an objection, I'll acknowledge and I see, okay, so

then I'll change that and change the subject basically. Because most minor objections, they tend to disappear on their own. And I really kind of want to hear the objection twice. And it's very common if given enough time for the seller, if you give them enough time to they'll answer their own objections. All right. So that's minor objections. Major objections, those are the types of objections that are really beyond your control.

For example, if the repairs on the property would cost more than the property is worth, it's pretty close to impossible for you to help them. You're an investor. You've got to be able to buy lower than what you can sell it for. And if just the repairs alone are going to boost you at that price too high to where you can't sell it above that, you can't really help them. And when you encounter a major objection like this, it's time to disengage. Be courteous, be polite, be gracious about it, but it's time to move on to help your next seller. You know, you say, Mr. Seller, I'm sorry, based on the condition of the property and what the market is saying, I don't think the market is going to allow us to both get what we want.

So I wish you luck. I wish there was something I could do, but this is just the situation you're in. Right. So, and basically what I'm saying is if you can't win, just don't play. Okay. Principle number four, don't interrupt an objection. Avoid this temptation that we all have when we start hearing something, especially we have the answer, right?

Resist the temptation to jump in, interrupt, and answer that objection right away. I mean, the more you let sellers talk, the more likely they'll talk. talk themselves right through the objection or handle it on their own. I mean, maybe they just, you know, they just had to get it out, whatever it may be, right? See, I just don't interrupt. Next, principle five is don't argue. And don't argue even if you're right. That's something a lot of people, it's another temptation that's very dangerous, is that you, if you know you're right, I mean, you have proof and you absolutely know without a doubt you're right.

Give it up. Don't argue. I mean, selling a property under distress, it's an emotional experience for the seller. And be sensitive to that. I mean, if you're on the same side, right? So remember that you're on the same side. You can be right and not get the contract signed. You can be right and not make money.

You can be right and go broke. All right. So just take the high road and don't have to win. Don't have to win every argument. And you just take the high road and you get the contract signed, right? principle number six repeat the objection back when you hear one and inquire about it's important so typically i'll i'll make them say it twice to make sure that it's a real objection something i really need to address and then i'll repeat it back to them and then i'll just kind of say really so you know

how important is that i mean this works really well when speaking to a husband and a wife one of them is going to object then you repeat it back and then the other often give you the solution It's pretty, it works more times than it doesn't. But repeat it back to them just to make sure that you understand them. And that's coming up in a later principle. But principle number seven, inspect what you expect, meaning not always what you expect is going to be what so. So when you hear an objection, inquire, right? Ask for more detail.

Genuinely explore the objection and be serious about your need for more information. This really gets the customer talking. It gets them thinking and this is going to do a few things. One, it gets you more information, right? It gets you closer to the true motivation for them selling. Second, it gives them the opportunity to handle the objection themselves. And three, it also gives you which is a nice benefit. It gives you time to develop a really strong answer.

All right. So inspect what you expect. Principle number eight, provide the solution and give options, multiple options. You're a problem solver. That's what you do for a living. That's why you get paid the big bucks. You are a problem solver. You are solving big problems for people.

And you should have a toolbox of solutions for every objection. And badass investors are ready for objections as opposed to worrying about them or creating nightmare hypotheticals in their head. I just hate the whole hypothetical scenario. That's one of my rules at our live events. You're not allowed hypotheticals because those hypotheticals what they typically represent is some sort of nightmare you got going on in your head, some sort of fantasy you have going on your head that you're going to interact with or you're going to encounter. All right. And if that's the case, then just prepare for them. This is your craft, a craft that pays very well.

Study problems and create multiple answers for solving them. Okay, so provide the solution, give options. Number nine, I kind of mentioned this just a couple seconds ago. Stephen Covey is a fifth habit of his seven habits of highly successful people. A very, very famous book, if you haven't read it, that's probably next up on your list. Seven habits of highly successful people. And the fifth habit states, seek first, to understand and then be understood.

So up to this point, you've done the understanding, right? You've made them express the objection twice. Then you inquired about its importance. Then you asked for more information. Then you repeated it back to them to make sure that you really understood it. So now at this point, you've done all the understanding at this point. Be sure to see it to it that the seller understands your answer. Now it's time to seek being understood.

seek first to understand then be understood and now this is the time to be understood it doesn't have to be any more complicated then so this solves your concern with the market values across the street doesn't it something like that what insert that that solves your concern with insert the objection doesn't it right just get confirmation on it number 10 principle 10 move on once you've answered the objection and you've confirmed that it has been understood move on, move on to the next step in your deal driver. All righty. And then lastly, it's a bonus principle.

At least it's lastly for today. If you feel you've done everything right and you still don't get a contract signed, you've got to accept responsibility for that. Accept responsibility for when you get the contract signed and accept responsibility for when you don't. So rather than pointing you. a finger at somebody or blaming someone or something, use that experience as an opportunity to learn, an opportunity to practice your performance, an opportunity to perfect your technique.

If you walk away from every failed transaction with the idea in your head of, hey, that was my fault, what am I going to do next time to prevent this from happening again? Make that your normal response when it doesn't go the way you want it to go. Make that your normal response, and it won't be long before it's my mind. My fault shifts to it's my contract. You take responsibility for all the good that you do. You've got to take the responsibility for when it doesn't go right also. Got it?

So that's all for now. Next week, I have a very special guest joining me here to share with you his own techniques and strategies for talking to sellers. The dude is totally ninja with his gift for Gab. And I'm really focusing on this a lot because this is the highest and best use of your time. And no one else out there is going to dedicate this much time. to this most valuable skill for you. And so we've spent the last four episodes

giving you the framework. We did a little bit on objection handling, the 10 important principles of objection handling today. And then I'm going to give you some new techniques and strategies and approaches over next week with our special guest. And we'll just kind of keep on refining this and practice, drill, rehearse.

I mean, that's the mother of mastery, right? It's massive repetition. So stick around long enough and it's all going to rub off on you. Okay? You're going to start soaking it in. You're going to start understanding it. Just going to repeat, repeat, repeat.

And go back and listen and listen and listen. Because this is the best thing that you could do. Your people skills, this is what's going to pay you the most. This is why we make the big bucks in direct proportion to how we have that conversation of getting people to know us, to like us, to trust us, to have confidence in our competence to where they give us our business, where they allow us to solve their problems so they can give us equity in exchange. Got it?

All righty, God bless to your success. I'm Matt Terrio, living the dream. You've been listening to Epic Real Estate Investing, the world's foremost authority on separating the facts from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening. We'll see you next time here at Epic Real Estate Investing with Matt Terrio. This podcast is a part of the podcast.

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