Epic Real Estate Investing - Getting Low-Ball Offers Accepted... without Offending the Seller | 717

Episode Date: July 18, 2019

You do need deals in real estate business but you don’t need any deal. Therefore, Matt shares 5 tips to get your low-ball offers smoother, without offending the seller. Get the deal you want under the contract! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-A's.com.

Here's Matt. Hey, rock star. It's Matt Terrio from Epic Real Estate. And today I want to show you how to get your lowball offers accepted without offending the seller. Because I was at our recent Epic Inter Circle Mastermind meeting and one of the members had this very, very question. And what she wanted was just really an approach to presenting an offer that worked for her so that it didn't offend the seller. I mean, her thoughts were, I'm just looking at the market data, backing out my repair numbers and profit. Why do you have to take it so personally? And I get it because I've been in those exact same

shoes and multiple times and it took me a while to really figure out how to do this. And you just have to, a couple of things are like the mindset of the seller. You just have to realize that this is the seller's home in most cases. And, you know, if you're doing your marketing right and you're following the problems, looking for the profit, you know, they're likely distressed in some shape, form or fashion. they're not in their best moment in life or their best phase or stage in life. Things aren't going well. And maybe the thought or most likely the thought of them having to sell their property quickly at a discount is not the, I don't know, it's not the position that they want to be in, but they got something else going on. That's even bigger than that.

So you just have to, you know, take the personal reactions with the grain of salt because there was a lot more going on before you actually showed up to the. door to make an offer on their home and likely a lot of that frustration is being taken out on you. So just keep that in mind. But I'm going to give you five tips on how to get your offer through more smoothly without offending the seller. I think I have five. We'll see. First one is, and this is kind of the old school way of doing it, but offering or suggesting that there's a third party approval process. Like, you know, I'll have to check with my partner. I'll have to check with my spouse or something like that.

I'll have to check with my dog. But it's saying that, you know, like the old car sales trick. Let me go check with my manager, see what we can do type thing. So that's one way. I'm not a big fan of it. I don't know if I even use that even remotely anymore. I did in the beginning just because I was told that's the way to do it. But I didn't have much success with it.

But it is a way, and obviously it's taught by many people, and so maybe I just didn't do it right, but that is one way. That's one idea. Second thing is to just share with the seller that it's just the math, right? I'm just doing math, and this is what it comes out to be. Nothing personal here. It's just this is what the number is saying.

So that's another way. Blame it on the math. The one that I found that works really, really well for me is just kind of speak in your mind and mentioning it up front before you actually present the number. number in the sense that would sound something like Mrs. Seller, I've got an offer prepared for you. I'm a little bit nervous about sharing it with you because I think it might offend you. I don't know, do you want to see it?

So just presenting it that way, especially if you have the vibe and your intuition is letting you know that this is almost going to for sure offend the seller. State that up front, speak your mind. And what I mean by speak your mind, it's the way, I mean, those are my words. But what I'm thinking is, you know, what are the exact thoughts in your mind? Like what's actually at top of mind, whether it's a fear or a hope, something along those lines. But typically that's stuff that you might be afraid to share. Say it. I mean, say that exact thing.

Like if you're afraid, you're nervous, you're scared, you know, you're hoping that they'll accept all those types of things. it's really, really powerful. It's, you know, it's just being authentic, which is what we should all really do anyway. But, so, you know, next time you're with the seller and you feel like you're going to offend them, let them know, you know what? I feel like I'm going to offend you.

And if you're really hoping they take the offer, but I'm really hoping that you take the offer and you see it the way that I see it, like that's a perfectly acceptable presentation, and you'll find that, you know, You know, here's a good test. When you're making your offer and your lip is quivering a little bit and you're a little nervous to say it, that means you're probably doing it right.

That's what happens when normal humans get super authentic and be, you know, very vulnerable and wide open. But it's extremely powerful in human communication as well. So don't be afraid to speak your mind. Next thing. Blame the market, right? We've talked about that a lot here. the market the bad guy. It's not you that determines what a property is worth. A property is only worth what someone is willing to pay for it. And if the market is saying, hey, there's several

people out there in the last 90 days, this is all that they paid for it. I would be a terrible investor. I'd be a terrible real estate buyer if I paid more than that. Don't you agree? So blame the market. And then another way that I'll always say is like, if you want more, then you just kind of have to wait for the market to catch up, and I'm certainly okay with doing that. Do you have the time to wait for the market? Because I really don't know where it's going, but it always goes up. It'll come back. I'm certain at some point in the future it'll be worth what you want, but it's just not there right now.

So blame the market. The next one, and what we've talked about commonly here, is aligning yourself with the seller, putting them on your side or putting yourself on their side. Mr. Seller, I would love to give you that price. Let's go out and see if the market will give it to us, right? So you're saying us or we. Let's see if we can both get what we want out of this, if the market will let us have it.

So aligning it with the seller, yourself with a seller. I was thinking of that kind of putting yourself on, say, your grandma's side. Like imagine the seller is your grandma or your grandpa. And if you can get in that space, then that conversation is very different. you know, hey grandma, like, let's go see what the market will do. I don't know what it's doing right now, but I'm going to get you as much as I possibly can,

but we have to take an account all the expenses and costs that go along with selling a house. And I know you want to do this quickly, so, you know, the quick price might be a little bit different than the full market price, but let's go see what we can do. Let's get as much as we both can. So aligning yourself with a seller teaming up. And then the other one would probably be, not probably. Probably. It's another good one. And it kind of goes hand in hand with speak your mind, but just being straight with the seller with what you do for a living. Mr. Seller, Mr. Seller, this is what I do for a living. I'm an investor. It's my job to kind of buy low and sell high. This is how I feed my family. And I recognize that I'm not a good fit for everybody. Because if you're looking for the highest top dollar that you could possibly get for this property, I'm not going to be that person. I mean, that's what a realtor is for. Do you want to go down that route? I have several good realtors.

I could refer you to. But, you know, that's not what I do for a living. I help people move fast. And that fast price is typically much different than the slow price. So there's some tips on how to get those lowball offers through without offending the seller. And very much of them, all of them have to be rooted in, you know, doing the right thing, trying to help the seller and being brutally honest and vulnerable. and detaching yourself from the outcome, right?

So many of us are dependent on that first or next deal. Like we need it. We just made a large investment, maybe in an educational program or a coaching program. We just made a large investment in your marketing campaign. Maybe your spouse or your family has been on your back and you really need something to pop so you can prove it to them that what you're doing is working. There's all different types of pressures that we put on ourselves. I mean, maybe shoot, maybe you've got to pay rent this month.

and you don't have it because you just spend all your money on a postcard campaign. So those are all those different types of pressures that we have. And it can be, you know, some of these tips and tactics can be a little bit. I don't know. You can be nervous on doing it because you're afraid that, gosh, if I say that, they might back out and not accept my offer. Well, just face it, you don't have the offer accepted already. So just trust the process.

Trust what works. Trust what's proven. And recognize that, you know, you do need deals to make money in this business, but you don't need any one deal. And when you find yourself in a situation where you're talking about that one deal, like I need this deal, you've already lost. So there's kind of two ways you can go about it. You can kind of posture up and act like you don't need it, even if you do.

Or the second thing, which works much more effectively, is make sure that your lead generation is not slipping. make sure that you're going all out on your leads because if you've got plenty of leads, then you're not attached to any one deal. You know that, okay, this one's not going to go through. So we'll go ahead and we'll go to my next appointment. And then maybe that one will go through. And if that one doesn't go through, I got another appointment lined up after that.

But you can only be in that position authentically and truthfully with yourself if you've got enough leads going on. All righty. So if you'd like to go deeper with your investing and work on your mastery, then you might like to check out what we do at REI-Ace and the Epic Inner Circle. So head on over to rei-aise.com. Take a look if you like what you see. Fill out the little application there, and we'll hop on the phone to see if we're a good fit.

All righty. So to get your offer accepted without offending the sellers, a few things you can do. You can pose third-party verification, like let me go talk to my manager type thing. You can blame it on the math. Hey, it's just math, and this is what the market says. You can speak your mind.

Mrs. Seller, I'm afraid. that you might be offended by this. I don't even know if I want to share my offer with you. Would you like to see it? Blame the market, right? Hey, the market's been up and down. It's softening up a little bit. There's a lot more inventory on the market than there are buyers now.

And, you know, it's getting really tough, and the days on market is extending. And, you know, I do stuff fast, and this is what the fast price looks like. So I can only do what the market says. And then align yourself with the seller. Let's go out. And Mr. and Mr. Seller, let's go out and see what the market will give us. And then the other one is just being straight. what you do for living. Hey, I'm an investor. That's how I feed my family. I've got to make a little

bit of a profit. If you're looking for top dollar, you know, you might want to call a realtor. That's what they do for a living. I do this for a living. All righty, thanks for listening. If you like to go deeper, go ahead and check out R-E-I-A's dot com. And before we leave, like, who do you know that might find what we discussed today useful? Feel free to share with them. It would be a great favor to me, but more importantly, it would be a greater favor to them. All righty. So to your success, I'm Matt Terry O'Livin the Dream. God bless. Take care. Bye. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow.

Yeah, yeah, we got the cash flow. You didn't know homeworld, we got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.