The Science of Flipping - Most Common Seller Objection

Starting point is 00:00:00 Yo, yo, what is up? What is up, everybody? Welcome back to the science of flipping podcast. I am your host, Justin Colby. And as you can see, I'm still at the Ritz. Yes, I still have not been able to move into my home. It is very exciting stuff. Now, with this podcast, what I am here to teach you is all the tools, processes, strategies, systems that you yourself can implement to be a big earner, a real estate investor, an expert real estate investor, a wholesaler, someone who buys and holds, someone who's

Starting point is 00:00:44 flipping properties. That is this podcast right here, The Science of Flipping. Now, if you're listening to this on iTunes, I love it. I want you to give me a five-star review. That would be much appreciated. But also, you should be jumping over to youtube.com forward slash Justin Colby and watching these podcasts on video. They're right there. You can ask me questions. You can engage with me right over on YouTube. So again, go subscribe to my YouTube channel, Justin Colby. You can look me up on YouTube or you can go to youtube.com forward slash Justin Colby, subscribe, like the videos, start asking me questions and I'm happy to help.

Starting point is 00:01:29 Now, with all that said, let's talk about what this episode is about. And this is going to be about the number one objection I've been hearing from my students that I hear in my business from my team that quite literally everyone is talking about, which is unmotivated sellers. Sellers that simply say they want an unreasonable number. And by the way, as someone that quite literally just bought his own home from a for sale by owner, I know very clearly what it's like to be dealing with sellers who are quite frankly unreasonable. Let me give you a quick story of something I personally went through

Starting point is 00:02:04 when looking to buy my own home right here in Miami. I was calling a bunch of for sale by owners on Zillow and the vast majority of them, and one sticks out very clearly in my mind, the vast majority of them basically listed it on their give or take, you know, a hundred grand, 150 grand over market value based around the area now again remember I'm buying in million-dollar areas and so again an extra hundred 150 grand isn't it a huge swing but it's noticeable when you start to look at relative comps there was one homeowner who actually had his like five almost five hundred thousand dollars more the The property was probably a 1.3 to a $1.5 million

Starting point is 00:02:49 property. He had it almost at, he had like 1.9 million. And I actually called the guy because I was wondering if there was just something not in the pictures that maybe made this home worth 1.9 million. And he actually started laughing. He was like, do you know how many people call me asking if this home is still available? And I started laughing. I was like, well, what do you mean? This seems really high. He was like, dude, there's nothing else on the market. So I literally put this property at an unreasonable dollar amount to try to see if I can get it sold. I have had a ton of calls and I forget what he told me, but I think it was something like 40 or 50 calls about this property. And it is completely

Starting point is 00:03:30 unreasonable. There's no one that should pay $1.9 million for this home. It probably should be selling around 1.4, 1.5 maybe. And I said, well, have you gotten any offers? He was like, I'm pretty close to receiving an offer as a matter of fact. And it blew my mind. I said, well, have you gotten any offers? He was like, I'm pretty close to receiving an offer as a matter of fact. And it blew my mind. I mean, completely unreasonable. And he would only sell if he could get this top dollar. He really wasn't interested in selling. I asked him all the questions.

Starting point is 00:03:58 I teach you guys on what to ask. And essentially, he told me, I don't really want to move. I'm not really motivated to. but if someone's willing to pay me 1.9, maybe 1.8, I would sell because that number is unreasonable. Now that story is about what I went through trying to buy my own home, but very similarly in our business, my business, and I know your business, you're hearing sellers say the same thing. I actually just had a great coaching call with my elite students. These are the people that are actively doing many deals a year. These are elite real estate investors and I'm helping them scale their business and

Starting point is 00:04:36 transform their business, become more profitable, etc. And one thing we talked about today is this amount of homeowners, whether they're cold calling, PPC, direct mail, that just want a number that's not reasonable. And the first thing is you have to understand those people likely aren't motivated, right? And that's what you got to understand. And the best way that you as an investor, not someone trying to buy their home, but you might. But as an investor, the best way to figure that out is simply ask them, you know, they want a number, you know, let's say they want 250, but the home's really only worth, you know, 200. You might just say, it sounds like you don't really want to sell, or it seems as if you don't really want to sell

Starting point is 00:05:20 and then be quiet. That is the best way to handle a homeowner who gives you a number that you know is inflated, that you know is basically unreasonable, and then allow them to reply. Most of the time you will hear someone say, yeah, I just, I kind of wanted to hear your offer or see what you were going to offer me, but I'm not really that motivated to sell. To be honest with you, I'm perfectly happy living here. That's the vast majority of time, what you are going to hear from these individuals. That being said, you might come across someone says, well, I'd probably be willing to take less if I could get X, whatever X may be. And so you need to do a good job understanding their motivation. And I have something called the sales formula that I walk through with my students, really helping them

Starting point is 00:06:10 understand this formula. I bring them through to find motivation first, before we talk about price, before we talk about the property or remodeling or anything like that. I want to know why is this property? Why are we even talking right now? Because in my world, the lead is either from cold calling, pay-per-click advertising, text messaging, or direct mail. Somewhere along the lines, they've raised their hand. If they came from a cold calling lead, they've answered my cold calling company. I work with a company that I pay to make the calls. So they've told them, yes, I'm interested in hearing about an offer. I'm interested in selling my home. So they've said, yes. If they're coming through PPC, they've likely either filled out my form

Starting point is 00:06:54 or gave us a call in the first place. If they're coming through direct mail, they gave us a call back. If they're coming through text message, they've responded to our text message and is saying, yes, I'm open to either an offer or talking about selling my property. They've responded to our text message and is saying, yes, I'm open to either an offer or talking about selling my property. They've raised their hand to some level. So why? That's the biggest thing that you need to understand. Why are we on the phone? And if you can do that, it doesn't mean you're going to get a deal.

Starting point is 00:07:19 There's no super ninja trick to make someone sell their home that doesn't really want to sell their home. But it allows you to at least have an honest conversation about why we're on the phone. Is there really any interest in selling? Is there any real motivation? And if not, that's okay. But I'd like to have that conversation now rather than following up and following up and trying to whittle this person down that really doesn't have any motivation. Now, some people are going to say, well, Justin, that means you have to go find a niche list that has hyper motivation, niche it down. That's what you got to do. I would argue yes, but as someone that needs to be running or I don't need to be, but has a business model that runs, you know, 15, 20 homes a month on a consistent basis, I can't do a niche list that has like 2000 people on it or

Starting point is 00:08:06 5,000. Quite literally, we're making a decision real time that starting in December, and I know it's only November right now, we might be jumping up into 50,000 calls a day. A day, not a week, not a month, a day. It may not get that high, but that's what we're looking at. How much skip tracing we need to do, what states, how wide do we need to go with cold calling? Because it absolutely works. Now, for those of you who don't know, I skip trace all of my data through batch skip tracing. So if you go to TSOF batch, TSOF batch.com and use promo code TSOF. They will give you a huge discount on your skip tracing costs, roughly 4 cents off. Um, I use TSOF batch.com to do that. I also pulled my list from prop stream. So I've had a call prop stream already. I now can, uh, download a hundred thousand,

Starting point is 00:09:03 uh, people a month, which still isn't even enough. But as a good start, that's where we would go. And we already have millions pulled based around my history. And so I would tell you to go to tsofdata.com. And if you use promo code TSOF, that will give you seven days free. And you can download a list of 10,000 people for absolutely free. Just go to TSOFdata.com and use promo code TSOF. For most of you that don't know, I'll tell you now, anything that I use, I always negotiate a better deal for myself and a better deal for you guys. And you get a reduced price. Yes.

Starting point is 00:09:47 Do I make pennies on pennies? Fine. I do make pennies, but who cares? Cause I'm reducing the price because I have influence over my audience. And so they give me a reduced price. So for both batch skip tracing and prop stream, uh, T S O F data.com will be prop stream. T S O F batch.com will be batch gift tracing and always, always, always use promo code T S O F stands for the science of flipping. It's quite literally there to give you a discount. So always use that. That being said,

Starting point is 00:10:21 guys, cold calling is still massively valuable. You should be doing it. I'm doing it on a very big scale. I realize that. But you should be doing it in the markets you want to be doing it in. And ultimately, if you are hearing what everybody is hearing, which is likely an unreasonable number, ask them one single question. It doesn't seem like you actually really want to sell. And that's more of a statement than a question. But if you ever read Never Split the Difference by Chris Voss, you'll understand they immediately are going to give you a response.

Starting point is 00:10:58 And most times it's going to be, you're right. I don't really want to sell. I was just seeing what your offer would be. And that's okay. You just move on to the next. You don't need to nurture those individuals, right? You need to find the person that is going through the right thing at the right time that you called and has motivation.

Starting point is 00:11:15 That's what you're looking for. And the more calls you make, the more marketing you do, the better off you're going to be. The more people you talk to, the more deals you're going to get. That I promise you. So, this helps you guys. Again, go to youtube.com forward slash Justin Colby. Subscribe to the channel. Check out all my videos. I have hundreds and hundreds of videos right there for you to become a great and expert real estate investor. I look forward to seeing you guys on the next episode. Peace.

The Science of Flipping - Most Common Seller Objection

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