Epic Real Estate Investing - How to Get the Contract Signed and Secure the Deal | 274

Episode Date: June 19, 2017

Epic Real Estate Investing clears the path to help you get the contract signed and secure the deal. Learn how to better connect with sellers by aligning with them against the market and gain insights on presenting more offers. Discover a process for making your presentation to get consistently the offer accepted and the deal signed. Improve your closing process with these proven methods for fulfilling engagements with sellers.   ______   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. Now, what's that? Hello, hello, and welcome to Epic Real Estate Investing. This is the place where I show people how to escape the rat race using real estate. And if you're just getting started and or you're looking for new and creative ways of making, making money in real estate, I've put together a free course just for you, including a checklist on how to find motivated sellers.

Those are property owners that are willing and able to sell you their property at a discount to access that free course. Go to free real estate investing course.com. All righty, I checked the mailbox today. And two people from the intensive actually moved at the speed of instruction and sent me a personal thank you note. So first one is from Robert. Robert Bohr, thank you.

He says, I can't stop smiling since I left the Epic Intensive and I can't wait to get started. Looking forward to introducing you to my wife at the next Intensive in St. Louis. See you then. Super. And then Paul and his team. Thank you once again for the wonderful Epic Intensive. You guys continue to amaze us with your simple yet effective investing strategies. I look forward to our continued friendship.

One day we plan to return the favor by hosting you in Little Rock. We're never too busy for anyone in the epic community or anyone you send our way. Fantastic. And the next intensive is in St. Louis and those free seats at the Epic Intensive are being snatched up really fast. I think I only announced it here once or twice and haven't even sent out an email or done any sort of advertisement or anything and they're almost all gone. And if you haven't heard, the Epic Intensive is scheduled for August 3rd, 4th, and 5th. It's on the calendar. It's official.

It's officially open. and the first 25 seats are free. I think there's only a handful left. Actually, they're better than free. Yes, they're better and free, and here's why. When you register a $97 seat deposit, that's going to be collected at registration online. However, a crispy $100 bill will return to you

at the registration desk of the live event. That's like a $3 profit. Annualize, that's like a 300% return, not to mention the three days of business transformation that awaits you. priceless. So go to Epicintensive.com to grab your better than free seat at the weapons of mass production where you're going to get the highly potent 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. Yes, and as little as 60 seconds. And for those of you that were in Manhattan, and those of you that moved at the speed instruction Manhattan Beach that is, you generated some leads pretty darn quickly, didn't you? Yes. You just had to give up one little thing. Remember what that was?

You gave up that one little thing and boom, you got leads. And if you didn't get leads, you got amazing feedback on how to do it differently next time. All righty. And as soon as you register, you will also get instant access to the Epic Fast Formula to 10,000 days. 10,000 days in $30 or less. No, $10,000 in 30 days or less, the Epic Fast Formula. and that's kind of your pre-training to the live event training. So it gets everybody there on the same page.

It's not a big, giant, newbie event. So in case you are a newbie, though, I still want you to come. That's why I give you this epic fast formula that $10,000 and 30 days or less. I give you that right up front. So once you do arrive, everybody is on the same page and are ready to absorb, ready to tackle the challenges and tackle the lessons and put it to work inside of your market. All right? Okay.

So today we're going to talk about, oh, that's it. I already said us, epicintensive.com. Dot com. All righty, today we're going to talk about getting the contract sign, getting the deal secured. And there are four stages to doing this, right? Because if you don't get contract signed, you're not going to do any business just so you know. And it all starts with writing offers and it starts with, and then it ends up with getting that contract signed. And that's when you got real control in your business.

Now you get to decide what you're going to do with it. Am I going to flip this? really quick in the form of like a wholesale or am I going to hold onto it, fix it up, and then go sell it retail. I'm going to flip it that way, fix and flip. Or am I going to hold on to this and cash flow it? Or do I want to hold onto it and then resell it right away with seller financing and create some cash flow for myself that way?

Cash and cash flow in that strategy. What do you want to do? But you can't really do any of that until you get the property under contract. So let's go through this, the four stages of securing the deal. right so you do your direct mail you got your PPC going you got your bandit signs out there you got your Craigslist ads running you know you've got all of your advertising and marketing you got your YouTube and stuff out there you got your property finder website bringing in the wholesale deals bringing in the bird dogs you got all of these deals coming in right all of these leads we talked

about that last week the lead machine how to create that lead machine and now when that phone rings now it's time to pick up the phone okay and that's step one you have to make the connection. You've got to make the connection with the seller. And the next step is you've got to extend that invitation. That's the invitation to whether visit the property or that questions or surveys that you have on your intake sheet right there over the phone. Both ways work. I prefer that you do it in person, much more effective, but it can be done both ways. But you've got to extend the invitation. Then you have to make your presentation, right? This is how much I'm willing to pay and how I'm willing to pay it.

and then you have to reach that fourth stage of collaboration, where you and the seller come to an agreement. So we got connection, invitation, presentation, collaboration. Now, let's start with the first one. Connection, if you get this one wrong, you're just grind and day in and day out, this can be really frustrating and annoying business if you're not good at making that connection,

if you get that part wrong. And if you don't extend that invitation, what you experience there is, stagnation, your business becomes stagnant. And if you don't make the presentation, if you don't present the price in terms to the seller, you're just wasting your time. And if you don't get that collaboration, what you got there is rejection. Got it? If you get the part wrong, you've got a business of rejection and nobody wants that. But when you get the connection right, you get acceptance. When you get the invitation right, you create opportunity for yourself. When you get that presentation,

right, you nail that down, what you've got are signed contracts. And when you're consistently getting collaboration inside of your business, what you've got there is deal flow. All righty? So that connection, that phase between the connection and the invitation. The reason that's important that comes in that sequence is the connection over the invitation, what you got there in the middle is you got relationship. You're creating a relationship there. And then when you go from the invitation to the presentation, what you're doing is you're getting permission, permission to make your presentation. And when you get that the overlap of the presentation and the collaboration, what you got there is agreement.

All righty. So connection. How do you make the connection? Three steps to making the connection. You've got to ask questions. This is an interview process. Okay? You are interviewing the seller.

That's the mindset I want you to be. I don't know if I can help you're not. So let me ask you some questions and then I'll let you know. You got to ask questions. Second thing is you've got to listen to the answers. This is the time to uncover what the seller knows, what the seller is thinking about, what their situation is.

You're just asking questions. the time to inject your opinion on what the market is doing and what the what the property is worth and all that no you're just pulling out information you're just pulling that information you're making a connection and you're listening the best way to make that connection is just listen and make it all about the person that you're trying to make the connection with and then you want to relate you know you're an investor they're likely an investor or some sort they've or whatever challenge they're experiencing with their property you've likely experienced it or something close to it you want to relate you know you both have daughters that play softball. You know, you want to relate. You want to point those types

of things out. Just normal things that you do when you talk to anybody. Okay. Don't go for the kill so soon. You got to make the connection. You got to build the rapport. All right. So then you cross over and you're creating a little bit of relationship and now it's time to extend that invitation. The invitation for the appointment. It could be a phone appointment or it could be an in-person appointment. But this is the time when you're actually going to start talking about the specifics of the property. So three steps to extending that invitation. You have to ask. Yes, they're not going to offer.

They're not going to say, would you please come over and look at my property and tell me how much you could pay for it? No, they're not going to do that. That's what people do to or sellers do for real estate agents, but they're not going to do that for investors. Okay, so you have to ask for that appointment. If you don't ask for the appointment, you're missing the boat. That's the whole objective of that first phone call is to get the appointment. You want to first sort for motivation. Second, you want to get the appointment.

Then, once you've got the appointment, you've got to set the expectation. This is so crucial. And what we use is called an upfront contract. And once you've got the appointment, okay, Wednesday at 6 o'clock, great, I will see you there. So here's what's going to happen. I'm going to come over. I'm going to take a look at your property. I'm going to walk around.

I want you to point things out to me and what you think is valuable about the property and then show me whether the property needs some assistance and just kind of tell me everything you know about the property so I can make you a fair offer. Now, I don't know if I can make you a fair offer or not. And while I'm there, if at any point, as soon as I realize that this isn't going to be a good fit for me, I promise not to waste your time and I will let you know. Now, if at any point in time that you get some sort of vibe or you're getting the idea that I'm not going to be able to solve your situation, do I have your agreement that you'll let me know? Great. So what you've done there is you've kind of dropped everyone's guard.

Like he's like, now they're thinking, wow, I hope he'll be able to help me or I hope she'll be able to help me. And not like, oh, God, when they come over, I have to have my guard up. And what that is, it's, it's an upfront contract, but it's filled with something called a release statement or there's release statements in there. What a release statement is is you've taken the pressure off. You're releasing the pressure and you're giving the person you're talking to the ability to say no. you will never get a true yes from somebody unless you give them the ability to say no. And that's what that whole upfront contract and release statements give the seller that you're going to go meet with.

All right. Then the third thing is before you jet out that door, you want to confirm that appointment. It's better to know that the seller is going to stand you up before you go than it is once you arrive at the property. Okay? So you want to ask for the appointment, set the expectations. confirm next it's time to make the presentation right you had you've walked the property I told you everything you've had your little intake form where that we use

the seller information questionnaire inside the academy you've got all your spaces filled up and now it's time to make that presentation so there's three elements to making this presentation and it's you and the seller you are on the same team got it it's you and the seller verse the market. The market is the bad guy. You've heard that expression, good cop, bad cop, right? They've got the criminal in an interrogation, and the bad cop comes in and he throws chairs around, he screams and yells, and then the good cop comes in and calms him down, actually throws him out the door, and then the good cop comes in with, you know, maybe a soda and a Snickers bar,

and he's the good cop, and he's all mellow and da-da-da-da-da-da. Good cop, right? So you get to be the good cop. the market that's the bad cop so if the seller's like gosh i really hope i can get a hundred thousand dollars for this property he said i hope you can do i really hope the market is going to allow us to do that for each other right it's not oh boy you'll never get a hundred thousand dollars for this you think i'm crazy no if the market allows it you're darn darn scooting i'm going to give you a hundred thousand dollars as long as there's some profit in it for me that's what you're really thinking that's what you should be thinking that's how you align yourself with the seller they've got a problem it's their problem first of all and you've got the solution hopefully and you're on their side to help them solve

that. I mean, just think for example, if you're in the right mindset, if you really have this mindset, all the right words are going to come out of your mouth. So if you were going to buy a property, let's see, let me see how we do it this way. If you were trying to help your parents sell their property, right? if you were trying to sell their property, you'd be trying to get them the best dollar that they possibly could, right? You would say very different things about selling that property to your parents trying to

help them get the top dollar for it than you would if you were trying to buy that property from a stranger. Okay? And one is you are in alignment and you have your parents' best interest at heart and you want them to get a good deal and you want them to get satisfied and solve their problem. If you're buying from the stranger, it's all about you. trying to get the good deal. So try and think of your, try and think of your sellers like close family members and you're trying to help them out of their situation. Okay. And it might not be through

top dollar. It might be through a great discount, but you solve some other issue in some other form or fashion without currency or without cash. Okay. So that's the, that's the presentation. It's you and the seller versus the market. Do that and you're going to go a lot further because now you're coming over as a consultant. You're coming over as a problem solver. You're coming over as a friend. And you're a friend that's going to deliver peace of mind to that seller. And what that piece of mind is going to compensate you with is equity. Got it? People will exchange equity for peace of mind every single day twice on Sunday. Got it? All right. So the next stage, collaboration. Collaboration. Now this is where you come to an agreement on price and terms. And then the third thing is you get the

signature. That's the, that's the flow of getting that deal secured. So what I want to go over at this point is really a part where a lot of people have trouble with. You know, they might be good at their marketing. They might be good at building that rapport once those calls come in. They might be good at setting the appointment. They might be good at making friends. In fact, they might even enjoy all of those things. But when it's time to present the contract, they freeze up.

They don't know what to do. They don't know how to say it other than I'll give you 75 grand for your property. And then they sit there and they're terrified. Well, well, I wish I could give you more. and they start mumbling and bumbling, they mess the whole thing up. Right? Or they go in there like an absolute pit bull, and they try and force their price in terms on the seller,

and all the seller does is push back, push back, push back. And I actually was one of those people. I was really good at building rapport. I was really good over and talking to sellers and discovering what their issue was and trying to help them. And I didn't know how to, like when it came to the moment of truth to put that contract in front of the seller, I was always kind of like, let's see,

how do I do this? So what I did is I came up with a way of doing this, a formula of doing this, that fit my personality when I was always a little nervous and afraid at this part. Okay, so I'll give it to you. And it comes in five steps, five steps. And if you get the contract signed in step one, you don't have to worry about two, three, four, or five. Okay?

If you get the contract signed in step two, you don't have to worry about three, four, or five. If you get the contract signed in number three, you don't have to worry about four or five, okay? It's just if you keep getting nose, then you keep going to the next, step. All right. So step one. You've looked around the property. You're putting everything together and you're just going to kind of throw this number out there. You say, Mr. Seller, Mr. Seller, the current market conditions have your property's value right around $100,000. And based off what you've shared with me about the repairs needed and then making room for a small profit for

myself, you're saying we're right around $65,000. Is that right? Okay. The phrasing was very, very important there. Mr. Seller, here's what the market says. The market conditions, say it's about $100,000 bucks. And then it says, based off what you shared with me, Mrs. Seller, Mr. Seller, that's their opinion, right?

Based on what you shared with me about the repairs needed. So you're just using their numbers. And then making room for a small profit for myself because, you know, I'm an investor. This is how I feed my family. I have to have something for myself. Okay, so a small profit for myself. Then it says, you are saying,

we're right around $65,000. Is that right? See, it wasn't you that said it. It was the seller that said it. And that's how you phrase it. So what you're saying is we're right around $65,000. Is that right? Goes down a lot easier.

And the seller goes, ooh, bo, boo, boo, boo. I guess I did say that. Or they say, whoa, whoa, whoa, not too fast. Whatever it may be. Okay, but that's how I always start the initial presentation of my contract and price in terms. Okay. So if they agree, get the contract sign. Don't waste no time.

Get the contract sign. if they don't agree, all right? So if they say, no, no, no, that's not. That's too low. Well, all right. Well, based off what the market is saying and what you shared with me, what is the lowest number you would accept? Again, it's all the seller's idea, right? So based off the market conditions, because you got no control over that.

So it's based off what the market is saying. And then what you shared with me, what is the lowest number you would accept? And if they drop out a number that you find acceptable, get the contract signed. Get it signed. If you don't, if they don't agree, then you go to step three. Number three, I like this one a lot. And there's very key points in this.

Hmm. You know, my biggest goal here is not to make the biggest profit. Although it is to make a profit. This is my business and this is 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 is beyond my risk tolerance. Would $75,000 be doable if I could close quicker?

All right? So I just asked what the number, would this be doable? And then the very key important part of this whole thing is if I could close quicker. Because if you just get in a back and forth on price with the seller, there's got to be a winner, there's got to be a loser. Okay? You want to go for win-win. And the way you go for win-win is you never let a negotiation be reduced to one element, in this case being price.

So that's why I always introduce a second element. If I could close quicker, or it could be if I could help you move, or it could be if I could increase my earnest money, deposit. It could be anything or if I could remove my contingencies. It doesn't matter what it is. But I like to do if I could close quicker. Okay, with $75,000 be doable if I could close quicker. Now, if they agree, boom, get the contract signed. Okay. If they don't agree, we're going to move right on to step four. So, Mrs. Seller, Mr. Seller, you now know my biggest goal. I'm just curious, what is yours? Is it to get the highest price or is it to sell fast? Is it to get the highest price or is it to sell fast?

Now, what you've done, if they say our goal is to get the highest price, boom, what did you just do? You just revealed motivation. There isn't any or not enough? Hey, I got this great realtor down the street. And, you know, we work together hand-in-hand. She's got a really good marketing system in place to get top dollar for prices. Let me make an introduction to her and she can help you sell the property. Right?

or if it's to sell fast, well, what we're proposing, what the market is saying, what the repair is saying, what you said about the repairs, the sell fast price is right around 75,000, but you said you couldn't do that. So what is our choice? Do we want to go for the fast price or the top dollar? So that's the whole, you might not say everything there, but that's the line of thinking. And then if you're still unable to reach an agreement there, this is how I always ended up. Now, Mr. Seller, I'm sorry.

It doesn't look like the market is going to allow us to both get what we want. 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. Now, you'll see right there on the paper, it has three different options of how I'm prepared to purchase your property. So take a look at it and let me know if anything resonates there with you. My number is right there at the bottom. So if you'd like to call me and discuss further, feel free to do so. and then I'd walk out the door. Sometimes they follow you out to the car and say, wait, wait, wait, and sometimes they don't.

But what I like to do, and there's two schools of thought on this. Some people don't like to leave their offers around because they get shopped. But this is a letter of intent. Shopped, meaning they compare it to the next investor that's coming in right behind you. And that's okay. It doesn't matter if it gets shopped. You put your best foot forward and you came, through that line of questioning, you were able to come. up with this is the most i'm going to pay for it and if you go ahead and you try to compete and pay more

for it chances are you're just inserting unnecessary risk into your business if you know your minimum deal standards you went for it you proposed your minimum deal standards before you walked out that door okay so if they shop it no big deal but also with the letter of intent keep in mind it is just that it is a letter of intent this is not an agreement i'm not making you any promises letter of intent says feel free to read the three options below and I am and I am prepared to purchase oh what does I say oh thank you for consideration of reviewing your property based off what I've learned and what you've shared with me I am prepared I am prepared to purchase your property in one of three ways so I'm prepared to doesn't say I'm going to it's not locking you into anything

so it's really it makes it a little bit more difficult to shop because it's not a commitment And then at the very bottom, we double down on that lack of commitment by saying, go ahead and give me a call, tell me which one you like best. This will be contingent on the repairs and a clear title. I can close in this little seven days. Okay. So it still says it's contingent at the bottom. So I'm not really concerned about that being shopped around.

What I am more concerned with is them having something to think about and having my contact information. And I guess thirdly, or maybe this might even be most important, I leave something written behind because my competition doesn't do it. They go in there and they take one swing, two swings maybe, and if they don't get that price in terms that they want, they walk out the door. Now, just because it's a no today doesn't mean it's a no tomorrow. And if things change tomorrow or next week or next month or in next next

year in some cases that we've closed deals where we left a written letter of intent behind over a year ago when that comes time for that person to sell guess who they're going to call they're going to call the first person that they can reach that where they can find their phone number and if you left something behind and nobody else didn't you're the one that's getting the call all right so um then i leave that three after Letter of Intent and go on about my business, go back to my office and work new leads or whatever it may be. Then I will hand that to my virtual assistant and they will call back. And they'll give it 48 hours or so.

And they'll say, hey, I know we dropped an offer off to you. And I was just curious. Which one did you like the best? Option one, two, or three. That's what I have the VA say. which one did you like best option one two or three you can train anybody to say one two or three right get to sell by the numbers or buy by the numbers so which one do you like option one two or three and they might say oh number two or they might say none of them so if they say none of them

my VA knows to say next okay well great I understand which one was closest okay so then they'll Let's tell you which one was closest. It was a one, two, or three. And then when they say their number, it was number three. I like number three. Then you just say, oh, then the VA says, so how far apart are we? So now you know the real deal.

How far apart are we? And you don't have to have a VA to do this. You can do this yourself. You can have your assistant do it. It might even be good for you to do it. If you don't have anything else, do this would be a really good use of your time if you're not busy with other leads.

Okay. But now you're back in the conversation. Now you're back in communication. And then if that is a workable number, you can come up with another offer that gets you closer, right? Maybe it's, okay, so we're part $50,000. Okay, so what if I gave you $25,000 now and then I broke the rest up into 300 monthly payments? Something like that. That's just a quick example.

All right. But there you go. So now you've taken basically six stabs or six swings at the, this offer in this presentation, when most people do one or two and they stop and then they go and they move on and they don't follow up. And so that is how we're able to maximize our marketing dollars and spend less in marketing dollars and still do the same amount of deals that everybody else that has a same size business as we do. Okay. So that is how you get the contract signed. That is how you secure the deal. Hopefully you found that helpful. Hopefully you found that

useful, even if you don't like the whole thing, hopefully there's something in there you can pull out and start implementing into your own sales system because you have to have a system like this if you expect to get consistent results. You have to have a consistent approach for consistent results. Okay. Remember that. So come up with your own system. Steal this one, make up your own or smush them together, whatever feels best for you. But just make sure you have a system and make sure you actually do it and you do it consistently if you want to get consistent results. All righty.

So that's how you get the contract sign. That's how you secure the deal. And that's it for today. I'll see you next week on another episode of Epic Real Estate Investing. God bless. And 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. I'm 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.