Epic Real Estate Investing - When Sellers Attack! | 812

Episode Date: October 21, 2019

In this episode, Matt is joined with Jeff Garner in St. Louis, Missouri, as they are getting prepared to host the last Ground n’ Pound School of the year. Tune in and have a sneak peek into their preps and learn about pendulum theory in real estate. 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 REA.

iAase.com. Here's Matt. Hello and welcome to the epic real estate investing show. Coming to you live from St. Louis, Missouri. I've been doing a lot of traveling and made a stop here to visit my good old buddy, Jeff Garner, as we're getting prepared to host the last ground and pound school of the year. And we're revamping and revising the curriculum a little bit. And yeah, so I thought Jeff and I could chime in here and just kind of give you an idea of what that looks like.

like Jeff say hello hello good to have you your bud love your new house thank you sir nice so one thing that we were talking about here was this thing called the pendulum theory and during the process when you're buying a house just like a pendulum sellers will swing between the two extreme positions and those positions being a positive position and a negative position and then there's a nice little spot there in the middle that we call neutral now let me turn the old phone off there all right And so sometimes when the seller is positive, they're ready and they're eager to buy, like, you know, we'd be very interested in more information in selling our house to you type of thing, right?

That's an example. And then when they're negative, what's an example when they're negative? We just want to hear your number. We go with a realtor, but first we'd just like to see what you had to say. Right, right. Then you've got those sellers that are just neutral. They're somewhere in the middle. and, you know, they're thinking about selling.

We thought about it. We're not sure if we're really ready to do it yet or not, right? Exactly. And but the whole point is they have those positions and they're not really, whether they're positive or negative or neutral, they're not really showing any signs and maybe that conversation is stalled out a little bit. So you use this thing called the pendulum theory to get the process going, right? Absolutely.

Okay. So to get that pendulum going, the seller, that's positive, you're going to, you're going to, kind of push them a little bit towards the negative and then just kind of let go. Yes. So you're going to let them swing, right? And same thing. When it's that when they're being a negative, you're going to be like ultra positive and just let go. Yeah.

Right? Because they're expecting you to be negative with them. They're expecting you to be positive with them. Yeah. So you kind of do the opposite, which gets the pendulum swinging. So let's give a couple examples of what those would look like. So great. When a seller is positive.

Absolutely. So give me an example where a seller's popular. Well, you know, when a seller's positive, they're, you know, we want to sell, we want to sell as fast as we can and just get out of this house. It needs too much work and we're ready to move to Nebraska. And I say, great, great. You know, I can't buy them all, you know. So really I need to come and ask you a few questions and look at the property to make sure it's a fit for me.

But if it is, I can make an offer. And if not, then I'll let you know. Right. So the dynamic there is they want you, they want to sell. They want you to come over. Yes. And they said to come by the house. And they're expecting to be like, okay, I'll be right over. Here comes the offer. Yeah. Right. But no, you're going to go to the negative way. Like, you know what? I'm not sure if it's going to be a good fit. I can't buy them all. Yeah. I really won't know until I look at the house. And, you know, if it's not a fit, I'll certainly let you know right away. And if it's not, if you don't like anything I got to say, well, you tell me that too. Yes. Right. Exactly. So they're not expecting that. No, they're coming back at you at that point. They're trying to sell you at that point is what you want. Okay, well, we think, you know, it's nice and it only needs a little bit of work and we look forward to meeting you. Right. You know, versus, okay, with this guy, you know, maybe we can get a little extra money or, you know, they start to forget about their number.

Because when they called you, they had this big number in mind. And now they're going, oh, shoot, is he even going to want it in mind getting them even be able to go to Nebraska. Right. Right. Exactly. Exactly. So then the other end of the pendulum is someone that's negative, right? Yes.

Don't think you're going to come over here and steal my. house type thing. Yep. Right? Or I heard about you real estate investors, how you guys come in and just give low ball offers, don't waste my time, right? So what would be the response if you had that type of seller? Well, in that case, they're expecting a slimy salesman that is going to tell them everything

they want to hear and just really put the sales pitch on them. And when they say that, I go, okay, it's really similar in those cases, honestly. you know, okay, well, I'm not sure that it is even going to be a fit, to be honest with you. We've bought a lot of houses this month, and we really only buy, you know, probably 10, 20% of what we look at because we're kind of picky. Have you thought about calling a realtor? I mean, it sounds like you want to get max dollar for your house, and sometimes realtors can get you more than what we can get you. So we kind of start to act as a consultant. Oh, well, then you don't want to sell at a discount.

There's other ways. Have you thought of rehabbing the home yourself? Have you thought about calling a realtor? A lot of times in that case are, well, you know, we just don't want to give it away. I mean, we'd like to get your offer and hear what you have to say. We hate realtors or, you know, we want to, we don't have time to fix it up. And you start going, oh, okay, well, you know, I think it might be worth coming in looking. I can't guarantee you, but I'm going to, I'll try.

Exactly. So they're negative. Yeah. And you're like, yeah, you know, those investors, there's some real dogs out there. Yeah. I would really consider calling a realtor because if you want to get that top dollar, that's probably the best way you're going to do it. Absolutely. So that's coming to them from a really positive perspective.

Yep. When they're being negative, right? So that's how you get the process moving forward when it's seemingly stalled or where you seemingly feel stumped. Maybe you're stalled, right? Yeah. And you want to keep the process going. It's just do the opposite of what they are expecting. Yep.

And the pendulum will swing mid appointment and mid call, right? They might start off negative and then you start going positive and trying to consult them in other ways that they can get all that money they need because, yeah, there probably are some bad guys out there and they will turn to trying to sell you. And then next thing you know, you are having to go to a negative place, you know? Well, you know, looked at the house. It does need quite a bit of work. And I don't even want to offend you by giving you an offer. Did you think about that real, I mean, did you? Did you, you know, you're going to go back and forth, you know, or I think you're right.

You can do better than us. The house is nice, really nice. Are you sure you even need us? Usually we buy homes from people that need a lot of work and they want to do, they want to move fast. I don't know that you have those needs, do you? So we're, you're going back. That pendulum is swinging and you're trying to get to a point to where you get their number before they get yours. and then you present the offer.

And then you can present the offer. The whole point is just you can take control of this whole thing by just doing the opposite of what they are expecting. Absolutely. One of my favorite things that I've learned from you, Jeff, was when someone says, I think I'm just going to hold on to it or something like that. You know what, I would probably hold on to it too.

Yeah. You could go down to Home Depot. You could get some paintbrush and get your hammer out and fix it all up and probably sell it for a lot more because that's what I'm going to do. Have you thought about doing that? Right? Yeah.

I do that all. a time because it usually comes around I say gosh you know it's like $40,000 in repairs and that's why my number is what it is and I'm really sorry so it's probably not going to be a fit or I'm along those lines and I'm saying what you know I can do 60 and they say you know we might just keep it and fix it up ourselves you know that's a great idea because the truth is I might have to pay $40,000 to fix it up but you could probably get it done for a lot cheaper doing it yourself because you won't have all those labor costs and they're usually like,

uh, well, we don't have the time to do it. Well, well, okay, well, within,

you know, then you're probably going to be in my situation to where even at best, heck, I have my own cruise and it's going to be 40,000. So if you really went about it

the, um, smart way, you invest you're going to do is 40 grand. Somewhere along those lines. Mm-hmm. Perfect. Yeah.

And I think one, like just to keep it really simple, one of the most common, questions that we asked, that's this reverse selling type thing. Pardon us, guys. We're outside. We've got kids running around by the pool. We've asked to be quiet, but the, yeah, we're poolside right now. Anyway, but just the time-honored question of, well, have you considered calling a realtor? Yeah. Right? That's just a really simple example of it, but it can go in so many different

directions. And you can play with that type of this pendulum theory all through the entire process of the... Absolutely. And it's always the... what you're going to go negative on is always whatever their other option is. Heck, if we were car sales, when we'd be saying, you know, yeah, we have what we have on a lot. But if none of them fit what you're looking for, you could always go to AutoTrader, or you could get online and put up some alerts and wait, you know, you're going to push them to whatever their other option is. For one, they're going to clear out that objection for you.

And two, it's going to bring them back to you. So, Realtors, the one we use because that's our number one competition. and that's the thing we're up against. So we do hit on that a lot. Right. Well, cool. Let's get back to work. This hard work we're doing by the pool.

Yeah. We actually are working. We've got the laptops out and all that stuff. The kids aren't working. We are. That's why we do it. Awesome. All right, Jeff.

So I'm looking forward to the next couple days. And then just heard that there is a new intensive on the schedule. I'm excited. Mercedes and I thought this was going to be our last one. And we really did. It wasn't a ploy or a trick. or anything at all. We were just tired of traveling.

But we decided we could have the best of both worlds, and we're going to do another intensive. But we're just going to keep it at home. So we're in Vegas now, so it's a great place to visit, a great place to come. So those details will be out in the next couple months or so. But we were talking about that too, and I just letting you know about that also.

All righty. So, yeah, the kids can't contain themselves any longer to be quiet. So let's sign off. And I will see you probably tomorrow, I guess, right? All right. Great guys. Thank you. You bet.

All right. So God bless you're saying. I'm Matt Terrio. Living the Dream. 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.