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Hey Moguls, Steph Davis here…
The first call jitters. We’ve all been there. If you’re a rookie wholesaler (welcome), you may be thinking that making those much-needed calls to sellers can be a terrifying experience! Even for those of us who aren’t so wet behind the ears anymore – seller calls can still be intimidating.
Let me first say this to put your mind at ease. You’re not alone. That’s the good news. The even better news is that seller calls don’t have to be scary (breathe), and here’s what I mean…
Get the 411 First
The first call doesn’t have to be a heart racing, sweaty palms, cotton-mouthed situation.
Use your first call to gather information from the seller. Let them know that you simply want to get important information on the property and that you’ll need time to do your homework and get back to them. Don’t put so much pressure on yourself to make an offer upfront.
If you’ve already done your market research (pat on the back), or if you’ve already got some buyers lined up (g’on wich-ya bad self), then you’ll probably have the confidence to make an offer right away. And good for you.
Truth is most beginners aren’t quite ready to talk about the future (numbers in this case) on the first date. So give yourself time to talk to other wholesalers and buyers to better know where your numbers should be.
411 Basics
Here’s the list of key details you’ll need to gather during that first call:
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Get the property address up front (as if it wasn’t obvious, better to mention it to you anyway)
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Find out the number of bedrooms and bathrooms and square footage of each room
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Ask if the property need repairs and to what extent
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Find out why the seller is selling and how quickly he or she need to sell
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Be sure to get the seller’s asking price
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Ask if the property is vacant or not, and who is occupying it
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Find out what the tenant is paying and when the lease is up
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Ask if the seller’s payments are current or how far behind payments are
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Conclude by asking what is owed on the property
You Must Verify and Be Confident
Now that you have plenty of good info, you must verify property details on your own; don’t take the seller’s word for it, or I promise you, it will bit you in the butt.
You can learn a lot about the seller’s motivation by asking these questions.
If your seller recently lost a job and is behind on the mortgage then you know you’ve got a fire under your tush. Bottom line is the seller will probably be willing to sell at a discount to get the property out of their hair. Yay for you!
When it comes to the asking price, stand your ground, and don’t shy away from this one. It’s important for both you and the seller to be on the same page and in the same dollar range. Otherwise you’re just wasting each other’s time. And who has time for those shenanigans? I’ll tell you – no one!
If the seller says “Just make an offer,” you say “I buy and sell houses at a discount. Give me a ball park, so we don’t waste each other’s time.”
Make it sound like you’re doing them a favor . If they still push back, just do the due diligence step and get back to them. Suck it up.
Now this is key, so pay attention...
Save this question until the end of the conversation when you’ve (hopefully) established somewhat of a rapport and you’ve started to (fingers crossed) build some trust with the seller.
If you hear “That’s none of your business” or “Why do you need to know?” certainly don’t panic and definitely don’t bang your head against the wall, although it will be tempting. Just reply that “asking saves me an extra step instead of having to spend time looking it up in public records.”
Again, it’s about saving you both time and energy.
Finally, ask if there is anything else you need to know about the property. You may be surprised at what you hear. (Nothing shocks me anymore.) Politely thank the caller for their time, remind him or her that you’re going to do some homework and you’ll be back in touch shortly.
Now get off the couch. Chop, chop! Again, this one should be obvious – don’t take your time calling back. Make it a priority, do your homework quickly and efficiently, and get back to that caller ASAP!
Good stuff, right? Well, be sure to check out my other awesome previous lessons too.
Give us a Shout
Please leave a comment below about what I’ve shared with you today. I truly enjoying writing about REI, and I love hearing from you guys, so speak up! Your feedback is helpful to all of us.
Crush your fear of that first call.
Gather information first.
Do the due…your due diligence, that is.
Follow up fast.
Flip more houses.
Make more money.
Kick more butt (yep, I said it)!
Steph Davis
started wholesaling in October of 2006. At the time, she had been stuck at a job bartending for the past 10+ years. She was broke and miserable, and desperately wanted out of the bar scene, which I had been stuck in for the last 10+ years.
She ended up closing four wholesale deals by the end of 2006.
Since then, she's closed more deals than she can count, has written two best selling wholesaling courses (Flip This REO and The Cash Buyer Ninja) and continues to teach others how to wholesale with videos, interviews, and as much useful information as she possibly can, because she knows what it’s like to be a broke beginner, struggling to get that first deal.