Epic Real Estate Investing - How to Talk to Motivated Sellers | 901

Episode Date: January 18, 2020

This Saturday, Matt reveals the techniques to disarm your motivated sellers. Learn how to talk with the leads and get ready when a phone starts ringing! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio 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-Aase.com.

Here's Matt. All right, your phone is about to start ringing. Now what, right? Well, I'm going to tell you exactly what to do. But like so much of this business or any business for that matter, we've got to get your mind right first. And here's what I mean. You see, you just made an investment in some sort of lead generation.

And now you're looking for it to start paying off, right? And depending on your situation, you may need this investment to pay off sooner rather than later. perhaps you're reaching the limit on your credit cards or perhaps your spouse is on your back to produce some results perhaps you've got a job that you know you're just dying to quit I understand fast results better results I got it every time the phone rings right now you're expecting a deal

because you're excited you're expecting someone who's willing to exchange equity for you to solve their problem that's what you're expecting but you're going to get some leads that will fail to meet your expectations and we call them suspects. And you'll get some leads that do meet your expectations. And we call them prospects. And to make sure you spend the majority of your time with the prospects that will meet your expectations,

we're going to cover exactly how to sort the prospects from the suspects. And a first step in doing that is having an idea as to what the person on the other end is expecting. You follow me? You see, there are a wide variety of expectations coming from the other side. and a few are even hoping that you will be able to solve their problem. But for this to work, for you to really be effective at this, you'll have to put yourself in the caller's shoes and perhaps even walk around in them a bit

just to get a feel for what they're feeling. You see, the person calling just receives something in the mail, some sort of message, alluding to that the person that sent it can buy their house for cash and can do it fast. That's what they're reading. But what are they thinking? See, they're thinking this is too good to be true.

Or maybe they're thinking, you're some kind of shark that's going to take advantage of them or steal their house. Or whatever they give me, it's not going to be a real offer. Or this is probably going to be a total waste of my time. There's a lot of variations of this. And it can all be summed up into their guard is up. You know, before you answer the phone, you must understand that that's the likely disposition of the person calling you. Another thing to keep in mind is you just sent a market. marketing piece to someone that's likely got a problem. And they're calling you with likely two other

things in mind. First, can this person really solve my problem? And second, can I trust them not to make my situation worse? So their guard is up. And that's okay. Just understand that it's not personal. They don't know you from Adam. So how could it be personal, right? Right. So if they've got their guard up, it's your job to get them to drop their guard or what I like to call disarm. And I'm going to give you you the exact words to say in a minute. But it's how you say them that is probably more important. So here are some techniques for disarming motivated sellers. First, be respectful. You can do that, right? Be respectful. Two, be interested. And not interested in how you're going to get a great deal on their house, but interested in them, interested in their situation and how you can help them.

Got it? Three, find common ground. For example, if they're a landlord complaining about their tenants, relate how you've had some stinkers before yourself. If you learn that they're into tennis on the weekends and you used to play tennis in high school, maybe that's something you want to bring up. Find common ground. Number four, build rapport. And you build rapport by implementing a lot of those first three tips, you know, being respectful, being interested, finding common ground, and asking questions. Ask questions and listen to the answers. That's an important part. Don't forget that. And genuinely listen. Then five, flattery. Flattery. Yeah, there's an expression that flattery will get you everywhere. You've heard that, right? Now, I'm not going to say

that it's going to get you everywhere in your real estate investing business, but it will get you far down that rapport building road. And here's what I mean with regard to flattery. For example, if they're upside down in their property, acknowledge how they've been able to hold on to it for this long as so many people have lost theirs. Or if they've got equity in their house, acknowledge how good they've done as so many people you speak to have lost their equity. All right, and then tip number six, there's the last one. Mirror them, meaning if they're talking slow, you talk slow. If they're talking loud, you talk loud.

If they've got a little bit of twang in their accent, adopt a little bit of a twang in yours. Now, don't go 100% texting on them. That'd be a little strange. Maybe I overdid it. But a hint of a twang isn't beyond the realm of effective reality. And you may feel a little silly doing this at first. But remember, they don't know you from Adam. Just do it.

Have fun. People like people that are like themselves. This is going to make you likable. And once you do this a few times and witness the results, you won't talk to a motivated seller any other way. It works. Next, let's talk about the intent of the call. The intent, first, is to determine whether or not you have a suspect or a prospect.

You know, prospects being the ones that you're looking for. A suspect, you see, they may want to sell, but a prospect needs to sell. That's the difference. And that's who you're looking for. sellers with such motivation that they need to sell. So that's the first intent of the call. The second intent, if you've determined you are speaking to a prospect, a truly motivated seller, the second intent is to set an appointment to view the property, to set an appointment. Don't try to close the deal right over

the phone. No, set the appointment. Whether it's you or your partner or your spouse or your friend or your realtor, your contractor, your appraiser, whoever it may be, the second intent is to set an appointment to view the property. All right? So we've got expectations and we've got perceptions. We've got that established. They're calling you right with their guard up. It's your job to bring it down. And then we've got our intent of each call to first sort the prospects from the suspects.

And second, to set an appointment with the prospects to view the property. And here's the final word on mindset when you're talking to motivated sellers. Understand that most people you market to will not even call you. and most people that call you will not result in a deal. And that's okay. That's just how it works. If you talk to 30, 40, 50 people and you don't do a deal, there's nothing here yet to suggest you're doing it wrong.

Not yet. In fact, you're more than likely doing it right. You're not looking for those 40 or 50 people. You're looking only for the ones that will do a deal with you, a deal at your price and in your terms. And this works very similarly to gold mining. You've got to pan a lot of dirt to find the little gold nuggets, right? But know that it doesn't take very many nuggets to significantly impact your bottom line,

to even change your life. The more dirt you pan, the more gold nuggets you find. The two are directly related. They're connected. Maintain that perspective on this business, and you're going to do great. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.