Epic Real Estate Investing - Deal Driver #4 - COLLABORATION | 287

Episode Date: August 21, 2017

Epic Real Estate Investing presents the Deal Driver system - an approach for converting your leads into contracts. How much time and money do you spend generating leads? Do you have a process for turning leads into contracts? The Deal Driver system makes every step clear - from establishing the initial connection with the seller, to extending the invitation, to making presentation of your offer to get more contracts signed. Today, we continue with the collaboration step where we have a chance to finally lockdown the contract and create deal flow. Become the real estate investing bad ass that you know you can be with Epic Deal Drivers! ______   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. Yeah. Stop. Hello. 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 is just, it's just shifting your focus,

shifting your focus from making piles of money to creating streams of money. That's where it begins. And you'll have to do that once and just do it once, embrace it, and your escape from the rat race will move at least, at least 10 times faster than those that choose the alternate path. And let me clarify, not get rich quick. That's not what I'm saying. It's not get rich quick.

It's get rich quick. and permanently. And to get started down that path or restarted, if you will, if that's your situation, I've created a free course just for you. So you can 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 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.

That's the goal, right? Okay, cool. So, hey, it's that time, that time again, every 90 days we start our business over. We get back to the basics. We reestablish our vision. We reestablish our goals. And this week, that free training is available where I'm going to show you how to get back to the basics, get an extra dealer to two in the next 30 to 45 days, and how to accomplish more in the next 89 days than most people will do all year long. So this training, it's free, two. to the public all this week and this week only, and then I'll be absorbing that training into the Epic Pro Academy for the members. So if you're not a member, and you'd like to get your hands on this free training so you two can close an extra deal or two

in the next 30 to 45 days and accomplish more in the next 89 days than most are gonna do all year long, go to Epic89.com, EPIC-89.com. Epic 89.com. The training consists of four short videos a workbook downloads, and this week, it's free to all.

At the end of the week, it's for Epic Pro Academy members only. So go to Epic89.com. Grab it while it's still available. All righty. So let's see. Last three episodes, we've been going over the deal driver system. It's a systematic approach for converting your leads to contracts. We spent a lot of time on generating leads.

We might spend a lot of money on the marketing to generate those leads. and now you've got to take those leads and you have to actually turn them into money. And that next step from lead to money in between there is you've got to get the contract signed. And the system, this deal driver system, it comes in four parts. Deal driver number one was making the connection with the seller. Because, you know, when you aren't making consistent connections with sellers, your business is going to be a real grind. But when you make that initial connection, conversations, they really start to flow from the seller and you get acceptance.

Deal driver number two is extending the inventory. to get together at the property because, you know, if you do this part wrong, if you don't do this, your business really becomes stagnant. I mean, nothing really happens. You've got to set appointments. I mean, you're going to end up feeling like you're working and can you're talking to sellers, you're building rapport. But if you don't actually ask for the appointment, if you don't extend the invitation, there's no real chance of doing any sort of business. But when you get this part right, you put yourself in the path of deals. You create your own opportunities. You're in control, right? And deal driver number three was making your presentation.

your presentation of price in terms. That's the offer. Because if you don't do this, as so many investors fail to do because they think there isn't going to be a deal based off their conversation with a seller, they just stop there. And if you don't do this, if you don't put that deal or present that offer, you're wasting your time. And time is money. If you skip this part, if you quit before making your presentation, you're just, you're never going to do a deal. You'll never do it. The amount of deals you do will be in direct proportion to the amount of offers you present. But when you get this part right, you get more contracts signed, even when you thought you weren't going to get signed when you're having that conversation verbally with the seller.

And to do deals, you need to get contracts signed. So you get more contracts signed this way by putting them all in writing. Now, today, we're going to cover deal driver number four, collaboration. So the progression moves from connection to invitation to presentation to collaboration. And here's why this is important, because if you get this part wrong, you get rejection. And rejection, unfortunately, it does not pay the bills, not to mention it really takes its toll on you mentally. But when you get this part right, you create deal flow, which means steady income and confidence builds. And when you essentially position yourself to be unstoppable, you position yourself to be a total investing badass.

And that's what I want for you. So there are three parts to achieving collaboration with the seller. It's a focus on the price, the terms, and the signature. You got to close the deals. Okay. So let's look at price and terms. And the reason I focus on price and terms is because as long as you can control one of them, you can create a deal for yourself.

This is how you create a win-win scenario every single time is you just have to control one and let the seller have the other if they have to have it, right? You don't have to give them both or one away, but you have to control at least one for yourself. Otherwise, you're losing. And part of a win-win outcome is you must win also. So you have to grab one of those control of those. of the price or control of the terms.

So regardless of how much the seller wants for their property, it doesn't matter what they want for the property. As long as you can control price or terms, you can create a win-win scenario. I mean, you are an investor. And from this point forward, you're going to purchase properties in one of two ways. It's going to be your price in their terms

or their price in your terms. As long as you can control one of them, you can create a deal for yourself. And to get the seller to sign the contract, if you've done everything like I've explained up to this point to get the signature, all you have to do is just tell the seller to sign. Just tell them what to do.

So many of the sellers, especially those that are in distress, especially those that are going to be in the position to exchange equity for peace of mind, that really want their peace of mind. They don't understand. They're not professional sellers. You are the professional investor. So they want to know what to do. So you've got to tell them what to do.

All right. So after you've reached an agreement on price and terms, all there is to say is Mr. Seller, all I need you to do now is sign here. And I can get started with my due diligence. and then insert the seller's motivation. Okay, so, and I can get started with my due diligence, and I can get you to Florida before the auction date. I can get started with my due diligence

and get you to your new home before the next payment is due. Or I can get started with my due diligence and I can get you your cash proceeds before the tenant can cause you any more headaches. Whatever it is for the seller, whatever their motivation is for selling, just insert that in there when you tell them what to do. And if you did everything right up to this point

and you've got the rapport and you're on the, and you've positioned yourself on the side of the seller and the market is the bad guy and it's it's easy peasy okay but just remind them why they are selling their property it's so they can get down to see their grandkids in florida before uh before the next payment is due before the auction date or before the tenant gives them any more headaches whatever it may be okay so here altogether it sounds kind of like this so uh mr seller the current market conditions have your property's value right around 100 grand and based off what you shared with me about the repairs needed and thank you for showing around the property I really appreciate it but and based off what you shared with me with

those repairs and what you pointed out to me and you know then just making room for a small profit for myself you're saying we're right around $65,000 is that right see what I did there it's all their idea this is what the market said is worth this is what you said needed repairs and then I just have to create a small little profit for myself so you're saying we're right around 65 grand, is that right? Boom. If they agree, get the contract signed. Perfect. All I need for you, Mr. Sellers, to sign right here. I can get started with my due diligence and I can get you down over to your new home before the next payment is due. Sign here. Done, right? Now, if they don't agree, got to take another stab at it, okay? Okay, so based off what the market is saying and what

you've shared with me, what is the lowest number you would accept? Again, it's their idea. And if the market will let them have it, then we'll go ahead and do it. And right now, I'm going for the price. I would prefer equity over terms every single time. So I go for that first. I'm trying to get control of the price. Okay? So what is the lowest number you would accept?

And if they come out with the number and they say, well, you offer, you had it at 65, but I couldn't take a penny less than 70. If that's a deal to you, if that's acceptable, don't waste time. Get the contract signed. Hmm, the lowest you would take is 70. Is that right? Perfect. Well, you know, if the market's going to let us do that, then I'm certainly down for it. I'll give it a shot.

So all I need you to do is sign right here. I'll go ahead and start my due diligence and then we can get you down to Florida before the auction date. Okay, boom. You get the contract sign. Now, if they don't agree or if you don't agree, like 70, that's going to be way too high for you. Okay, so next one, next stab is, hmm, well, Mr. Selle, you know my biggest goal here, not to make the biggest profit. although it is to make a profit. I mean, this is my business.

It's how I feed my family. But my bigger goal is to make sure that I'm safe and that I don't lose money. And based off the current market conditions, what you're proposing, just a little bit beyond my risk tolerance. I just don't think the market is going to allow us to get it. Would $67,000 be doable if I could close quicker? Okay, so what I did is I just introduced a new term. I introduced terms into the conversation.

So I took two chances at trying to get the price, couldn't get the price, right? So now we're going to go back and forth. So I can come up a little bit on the price, but let's go ahead. If you can come down on the price, I'll close a little quicker, right? So I'm introducing something new into it. And that could be if I could close quicker or if I increased my earnest money, or if I shortened to my due diligence period, or if I paid for your moving truck, whatever it may be. If I paid your first months and security deposit at your new apartment, it could be anything.

You just have to introduce something new. I like to do quicker. So if I could, would $67,000 be doable if I could close quicker? Now, if they agree, perfect. So all I need you do right now, Mr. Seller, sign right here. I can get started on my due diligence. And then we can get you into your new apartment and so you show up on time for work on the 15th, whatever may be. Whatever the motivation is, just insert it there, okay?

So, boom, you got it signed. Now, if they don't agree there, don't stop, we're still going. Okay? Well, Mr. Seller, you now know my biggest goal. What is yours? Is it to get the highest price or is it to sell fast? Okay? Is it to get the highest price or is it to sell fast?

So now we're going price and terms, right? We're introducing price in terms. So they say, well, I need the highest price. Okay, well, I get it. I can't buy them all. the market's not going to let me to pay the highest price. So to get the highest price, you're probably going to have to go to a retail buyer, and I can introduce you to my realtor if you'd like.

You probably will be able to get that price. It's just going to take a little bit longer. But you told me you needed to get over there before the auction date, right? Ah, so that's our dilemma. So which one would you want to do? All right. So that's your conversation. So if you're still unable to reach an agreement, it's, okay, well, Mr. Seller, I'm sorry.

It doesn't look like the market is going to allow us to both get what we want in the time that we want it. So as a final attempt in creating a win-win scenario for us, what I can do is leave you with this letter of intent, or what I can do is I can send you a letter of intent. And you'll see that it has three different options, or when you receive it, you'll see it has three different options of how I'm prepared to purchase your property.

So just go ahead and you can take a look at it. Let me know if anything there resonates with you. I'll give you some time to look at it, and my number is right there at the bottom, or my number will be at the bottom, if you'd like to call me and discuss further. Okay. So now I've really introduced price and terms. Now they're really seeing, wow, okay, this is how I get my price, this is, but these are the terms of how I'm going to get that price.

So this is where they really get to see it. And up to this point, you're still friends. Hey, it's the market. We can't, we can't win them all, right? The market is, it is what it is. It's nothing else but that. So that's how it's done. Nothing weird, nothing awkward, nothing difficult. you're just having a conversation with a seller like you do this every day and have that conversation like you do it every day because you do do it every day right it's no big deal sometimes it's a fit sometimes it's a not it's not that's got to be your attitude it's no big deal you have to detach yourself from the outcome you've got your minimum deal standards in mind you know what you can pay for the property and if the market is not going to allow that seller to sell it to you for that price

then no big deal you can't win them all you can't buy them all you got to move on to the next one right So if you've gotten this far and you did not walk out with a signed contract, it's likely because the seller's motivation isn't strong enough to sell at the price and terms that you need to make it work. And in my eyes, that's a victory. Don't walk out because you didn't get the contract sign and kicking yourself and beating yourself up. No, it's a victory. It's better to miss out on a good one than it is to buy a bad one.

And if you start compromising your own minimum deal standards too much to where you pay too much for a property. You've bought a bad one. And once you close, boom, that's your problem now. You don't want to be the motivated seller. Right? So it's better to miss out on a good one that is to buy a bad one. And if you know your minimum deal standards, you didn't buy a bad one. That's a win. That's a victory. Right? Now, with all that said, though, I don't give up there. No, no, no, no, no, that's, don't, don't get that idea. I'm not giving up. I am just, I have lived to fight another day, and that day will probably be tomorrow. So I don't give up here.

I'm not going to just walk away. No, the seller stays in my follow-up system because a no today doesn't mean a no tomorrow. In fact, I will call the seller back tomorrow, the very next day with these exact words. Okay. Mr. Seller, hey, good to talk to you. I left a couple of other options with you

in which how I'm prepared to purchase your property and help you get down to Florida before the next auction date. And I was just curious, you know, if you had a chance to look it over and which one did you like best. Did you like an option number one, two, or three? And then I'd just be quiet. Okay? Which one did you like best? One, two or three.

They have to answer, right? They have to. If there's any motivation there, they will. So if they say none, right? I ask, well, which one was closest? And when they tell me, because they're going to tell me, I ask, okay, so how far apart are we? And then I'll re-engage with going back and forth, back and forth with price and terms.

But I get to re-engage now. I've been given permission. Now I know where we stand. I know after a night's sleep and after presenting the price and terms and all the way up to this point, don't forget. You've created a rapport. You're that person's team member. You guys are on the same team playing against the market. Let's find a solution.

You're a problem solver. You're there to find the person's problem. So if you've built all of that up and that relationship is built and you did it exactly why I told you to do it up to this point, this is a really comfortable conversation. It's not weird, right? So you get to reengage and try to find another solution. And what happens frequently, like if when you say, when you initially called and he said, which option did you like best, one, two or three, what happens frequently is the seller might say something like, I actually like option two. But, you know, I've got a mortgage. how are we going to deal with that?

And then what that does is that opens up the conversation to a subject to possibility. It now gives me the ability to educate the seller on another possible solution. Got it? So that's the structure of the deal driver. It's a framework for turning your leads into contracts. You go to connection, to invitation, to presentation, to collaboration. Now, this is a people business. And that presents a countless number of variables and synonymous.

scenarios. I went through a very, the last three episodes and today, I just went through a nice, simple scenario to get you through the entire deal driver. But there are people involved, which really means there's so many different variables, so many different scenarios, like an answer to all the questions that might be going through your head where the answer is going to be, it depends. Okay. But what that's good about that is there are more problems for you to deal with that could cause you to get. get off track with your system, right? Just out there. The seller could say something right in the beginning, in the invitation, and boom, you're off track and now you can't get back to the presentation and the collaboration, right? So next week, this is what we're gonna do.

I'll go over objection handling, a framework for handling objections and how to maintain control over the deal driver system, regardless of what the seller throws at you. Whatever they say, you can still be in control and you can stay on track and you can move it down as easily as this sounded as simply as this sounded over the last few episodes. Okay?

So after next week's episode, you'll be completely impervious to objections. How's that? Which, what that does is it just kind of translates to endless opportunities for you to create smoking deals for yourself. That's what's available for you. Okay, so I'll see you next week. That's all I got for today. God bless to your success.

I'm Matt Terrio, living the dream. You've been listening to Epic Real Estate Investors, 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-sweetradio.com.