Epic Real Estate Investing - Deal Driver #1 - CONNECTION | 284

Episode Date: July 24, 2017

Epic Real Estate Investing has the technique to establish connection and build rapport with sellers. Work these simple, effective communication tactics into your process and quickly get a better understanding of the seller's motivation. Discover three straightforward questions that will allow you to easily sort the prospects from the suspects. Get the inside track on closing more deals with Epic Real Estate Investing! ______   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 Terio Media. Broadcasting from Terrio Studios in Glendale, California. It's time for Epic Real Estate Investing with Matt Terrio. Hello, hello, and welcome. 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, to make it happen for you, the first step is a simple one. It's just to shift your focus from making piles of money to creating streams of money.

money. That's where it begins. And you only have to do that once. Just do it once and then embrace it. And your escape from the rat race is going to move you at least 10 times faster than those that choose the other way, the alternate path. And let me clarify, though, this is not get rich quick. That's what I'm saying. Yes, it's 10 times faster. But it's not get rich quick. It's get rich quicker. And it's get rich permanently. All right. So to get started down that path or restarted, I've created a free course just for you. Go to free. estate investing course.com and you're going to get a crash course there on how to find deals and you're going to get the two quickest and easiest strategies to a paycheck in real estate.

And stay tuned here each and every week and I'll show you how to put that paycheck to work for you and how to put it to work for you in a way that it works harder for you than you did for it. Got it? All righty. So if I sound a little bit different this week, it's because I'm doing a lot of traveling. So I've got my traveling studio, my mobile studio with me. Probably be this way for the next few weeks. I've got a lot of traveling that I've got going on.

But I'm here for you each and every week. All righty, so today, I've actually got a little bit of a bone to pick. I'm not sure who I'm picking it with, however. But here's what has led to this episode. You see, one of my lead generation strategies is through paid ads with Google, pay-per-click advertising, PPC. And through the strategy, it's where I'm looking for motivated sellers that want to sell. their house quickly and easily, right? Just a simple strategy. But what's different about this strategy is, you know, when we do direct mail, that's when we're looking for them. When we post ads on Craigslist

or we post our bandit signs, that's what we're looking for them. What I like a lot about the pay-per-click advertising is you just put your self in the way or in the path of people that are looking for you, those motivated sellers that are looking for you. So it's a really good strategy. It's working really well for us. It has been working well for us for a very long time. But in the last few months, however, we've noticed something. And it's like almost someone just turned on the faucet and boom, all of a sudden we had this new occurrence with these ads. And what that is, I'd say close to 50% of the people that are contacting us through our ads are actually like newbie, inexperienced wholesalers, trying to sell us their deal. And I use the word deal very loosely.

or they're trying to co-housale a deal, something that they don't even have control over. And I use the word deal in this example even more loosely. So I got three words for you. Stop doing this. Stop it. It's a waste of your time and it's a waste of ours. I don't know who is out there teaching this, but stop it. You're doing a terrible job of training your people.

I don't know if there was just a someone else's podcast or an email that went out or there's a course or a workshop that came. to town? I don't know. I don't know who is out there teaching this, but you're doing a terrible job of training your people. You're teaching this as an exit strategy to find a buyer. But it's not going to work unless you first teach them how to find a seller and put a decent deal under contract. That's the most important thing. I mean, anyone that teaches you that you need a massive buyers list is doing you a terrible disservice. I mean, if you can find a deal, there are no shortage of buyers out there. There is no shortage of money willing to find its way to your deals. If you're good at finding deals, the money's going to find you. If you're good at consistently finding deals,

you're going to have a buyer's list so darn big so quickly that it'll blow your mind. All right? I mean, especially in this market. It's always the case. And it's always been the case. But especially in this market, I mean, nationally, inventory is at an all time low. If you've got a deal and you can't sell it right now, either you don't know how to market or you don't have a deal. It's that simple. And when it comes to marketing, when I say you don't know how to market, I mean, there's one really simple, one simple factor here that all you really need to focus on, you just got to know who your customer is. Like, if you don't know who your customer is, then it doesn't matter what type of marketing you do. And if you've got no meat on the bone, meaning you don't have any equity on your deal, and there's no cash flowing ROI on that deal, other investors are not your customer.

right they are investors they're there to buy low and sell high and if you don't have anything there that you can sell low they're not customers you're wasting your time you're wasting their time i mean if that's if that's your situation i'm not saying you can't sell the property just the investor isn't your customer i mean go ahead clean up the property a bit you know send send molly made through there and clean it up get the stench out and just put it on the mLS there's resident owners out there looking for for a new place to live right now and their pickings and their choices are really limited. That would be your customer. Stop wasting other investors time with your crap. Now, so now that I got that off my chest, let's spend today, and maybe I say

the next few episodes, on how to actually get a deal under contract. That's where you should be really focused. Now you've just expanded your buyer pool. You can now, you have resident owners still, and you also have the potential of investors being your clients as well. All right. So let's focus on that, how to convert a lead to a contract that actually has some equity or ROI in place. So what you need there to do that is you need a deal driving system. That's what we call in our office and it's what we create for our clients, a deal driver. All righty. So here are the four components of the deal driver.

First, you've got to make the connection. Second, you've got to extend the invitation. Third, you've got to give the presentation. And fourth, you've got to achieve collaboration. All righty. So today what we're going to do is we're going to focus on the first step of the deal driver. I'm making the connection. The making the connection, it's vital because when you get this part wrong, your business, it's going to be a real challenge. It's going to be a struggle. I mean, when you're not making consistent connections with sellers, it's going to be a grind.

And it's going to be a grind that you're not going to enjoy very much and you're going to eventually burn out and probably burn out pretty darn quickly. But when you get this part right, now everything changes, the conversation. really start to flow. You enjoy talking to sellers, right? You get actual acceptance. Another word for making a connection with the seller, it's rapport, right? Building rapport. And it's probably one of the more important skills in any people business. And real estate investing, it's really, it's one of the ultimate people businesses. You know, the brightest and smartest minds in Silicon Valley have been trying to push people out of this business to remove investors, to remove agents, to remove all the middlemen and just put technology in between buyers and sellers, but it's not working.

I mean, the perfect example, I mean, there was, I think, 1.2 million real estate agents in back in 2002, 2003 nationally. And I remember that when I was a real, that's the time when I was a real estate agent. And every agent was so concerned and so scared of all these different platforms coming out of trying to automate the whole buying and selling of real estate. And here we are. What's this, I guess, almost 15 years later. And still, there's like 1.1, 1.2 million real estate agents nationally.

It's a people business. Every piece of real estate you buy or sell will be from or to another person. And making a purchase that large for most people, they're going to want to touch it. They're going to want to see it. They're going to want to interact with people. The concept of pushing a button is that's a scary endeavor. And I don't know if we'll ever get to that point. but right now we are still a people business very much a people business.

And distressed sellers will more times than not sell their house at a discount to the person that they like, the person that they trust, and the person that they feel that can actually get the job done in the interest of mitigating, if not entirely alleviating in their distress. Basically, in short, sellers will exchange equity for peace of mind. They'll do that every day of the week. All right. So to make the connection or build rapport, there are three points to focus on. One, ask questions.

Two, you got to listen to the answers. And three, you got to relate. Okay, so first, asking questions. This is key. You know, from the very first phone call with a seller to the end, you want to be asking questions, right? You want to ask questions because questions pull the seller towards you. Statements, those push. They push them away.

And you want to pull the seller towards you, not push. Questions do this. questions pull. Now, initially, this is really, I mean, and, you know, if you kind of put yourself in the right mindset that that is an initial phone call with the seller, it's an interview. That's what it is. It's an interview. You are interviewing the seller to determine whether or not you're going to be able to help them with their situation. And if your lead machine is working, you're going to want to get through stage one of this interview rather quickly because you're going to have a lot of people to talk to You don't want to spend hours and hours trying to make a connection with each and every person you talk to.

You want to move to this stage one really quickly. And we use three different questions for this. And there are three questions that are going to sort your prospects from your suspects. Prospects are those that need to sell and need to sell soon. And your suspects are the people that want to sell. And they might need to sell, but not right away. Okay? So we're looking for the prospects.

And there's three quick questions that we can go through to sort the prospects from the suspects. So the first question is, can you tell me? about your situation. And when you ask that question, and it's a little bit tough for some people when they first get that call, and sometimes the seller doesn't really know what you're asking or they might not answer it directly. So if there's any sort of stumble right there, they don't understand what you're asking, we follow up with, yeah, hey, you obviously saw my marketing somewhere and you decided to call

the number on that marketing. So why me and why now? Right? Take control. And start your sorting right there off a question. one. And when they start telling you why you, why now, you don't want to move to question two too quickly. This is where you're going to want to be asking more questions. You're going to do a lot of listening. If you ever get stuck, like repeat the answer that they just gave you. And that gives

you a little bit more time to phrase your next question, whatever that may be. But don't go straight into the property. Don't go straight. Really focus on their situation. Focus on why they would call a little postcard that they got in the mail or a yellow letter that they got in the mail or why would they call some decal that they saw on the side of a car you know right so why what's going on why didn't you just call a realtor i love that question why didn't you call a realtor because it it's an indirect question it shows that you're not desperate for the deal but what it also does is it really it most of the time it will hash out why uh why they're actually selling because you want to get to their motivation and that's that's really what you want to get in touch

with right as fast as possible. A lot of sellers are a little bit reluctant to reveal that information right away, but that's what you want to get to because the foundation of every real deal lies within that seller's motivation to sell. Okay? So when that part after, can you tell me about your situation? Why me, why now? When that comes to a natural close, then you're going to go to question two. Okay? Next question would be, what would you like to have happen? What would you like to have happen? And we phrase it this way because I want to know what the seller wants before I propose anything because a lot of times distress sellers depending on their their distress depending on the type of their distress or their situation or the the urgency of their situation money might not be

what they actually want and before you start proposing money and start proposing prices you want to know what's really going to fix their situation it's not uncommon it's hard to believe because you're probably not a person that's in distress right now but it's not uncommon for a person to call you a distressed homeowner to say, you know what, I just want this off my back. Can you just take it away from me and get this situation or this problem out of my life? That happens and it happens more frequently than most people realize. Okay, so that's the second question. What would you like to have happen? Then the next question would be after they've explained to you what they want to have happen. Great. If I could make that happen, how soon would you be ready to sell? How soon would you be ready to

sell? We're typically listening for 30 days or less. That's, that's what we would consider a prospect. It's not a foolproof system. It's not 100% doesn't work 100% of the time, but that's kind of our barometer and we can take the conversation on further. But this entire time, through these three questions, I'm just listening, relating, and asking more questions.

I'm just listening, relating, asking more questions, listening and relating. This is how rapport is built. You know, if you want you and your services to be interesting to someone else, the shortest path for that is to be interested in them first and be interested sincerely. And when you do this, you make a connection.

Because the most important person in the world is you, right? It's the person you're talking to. Like, I'm the most important person in the world to me, and you are the most important person in the world to you. My problems are more important to me. Your problems are more important to you. So to connect with somebody, shift your focus and your interest in that other person and that other problem because people

like people that are interested in their problems. Okay? That's how you make a true connection and be interested sincerely and the more sincere that that connection is going to be. All right. So now if the seller needs to sell up in 30 days or less, the next step is to extend an invitation to get together at the property. And I'm going to cover that next week. but to really cement the connection and create a relationship between you and the seller.

Because at this point, rapport has certainly been built. If you've gotten this far, rapport has been built. But you want to make it to the next level and create a relationship, a relationship of trust. And we do that with what is called an upfront contract or a release statement. And it sounds something like this. And it doesn't have to be exactly like this, but you just need a few elements of it. And you can probably grab these elements out of here. You'll get it.

but it'll go something like okay mr. miscellar it sounds like the next step is to you know get together view the property and to determine whether or not i can help you because at this point i'm not even sure if i can but i'll make you this promise if at any time while viewing the property as it relates to your situation and the current market conditions if i determine i won't be able to help you i promise to let you know right away so as to not waste any of your time is that fair and i'll just sit there and i'll I'll wait for the answer. And they'll always say, of course, that's fair. Great.

And all I ask in return is that at any time you feel that this isn't going to be a good fit for you, that you'll just extend me the same courtesy and let me know right away as well. Is that fair? And they'll say, well, of course. So what we've just done there by doing that is we've gone a little bit deeper in adding trust to the relationship. See, I've taken the position that I'm not this drooling, you know, money-hungry wolf at their doorstep trying to steal their property. I've presented this scenario that I might not be able to help them.

I'm prepared to walk away if I can't. You know, if it's not a good fit, that's, you know, I'm going to let you know. But I'm also giving the seller, the second element of this is I'm also giving the seller the option to walk away themselves. And here's why you want to do this. this. It's called a release statement. And that's when you give the seller. You create an environment for the seller to freely and comfortably to actually say no. Because sometimes saying no, that's really tough for people. You know, when they say no, they sometimes they're being polite. They say no. Sometimes

they don't understand or they're confused. They say no. Or they'll excuse me, they'll say yes instead of no because they want to be polite. They'll say yes or agree because they don't want to show or reveal that they're confused or don't understand. They'll just say yes because they want the thing to end so they can move on to their next option. So to eliminate that from happening to you, you want to give them the ability to comfortably and freely say no.

So you don't get this fake yes because it's infinitely easier to get a true yes, a real yes, if you've given the seller the ability to say no. All righty? So there you have it. You've made a connection with the seller. That's the first step in driving your deal. You do that by asking questions, by listening a lot, and relating. Okay, so next week I'll cover with you the second phase of the deal driver, the actual invitation.

All right? So that's all for now. 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 C-suite Radio Network. For more top business podcasts, visit C-desweet Radio. com.