Overcoming Objections
In this Wednesday Weekly Wisdom coaching call, Justin Colby introduces the first of several discussions on overcoming seller objections. Before he gets to this valuable resource, Justin shares some great insight on topics ranging from the power of persuasion, the “point” of sales, checking your commitment level, and how to project confidence to complete a deal. Justin brings each subject home with scenarios that connect to real life. Get ready for a fast paced and engaging lesson from someone who knows what it takes to find success!
How to use the Power of Persuasion. Click To Tweet
A good salesperson realizes that they are constantly “in sales”. From persuading your spouse why the TV show you want to watch is better than theirs or when you are with a group of people deciding where to go for lunch, most of life consists of persuading people in one direction or the other. Once you realize this truth, you are so much closer to success! Listen in as Justin explains how to live in this mindset that has the power to change the way you do business, overcome objections, and live your life.
Is sales always about the paycheck? Click To Tweet
The oldschool way of thinking about sales focused exclusively on getting a paycheck. Changing the way you think about sales is KEY. The goal is not always about getting that paycheck, it’s about getting a reward. This shift in mindset opens up how you view your efforts in sales. By thinking this way, you can constantly hone our skills at persuading others to your opinion in all areas of life. You are always selling something, but the reward is not always financial! Find out how this principle applies to the issue of sales objections, on this call.
How committed and confident are you? Click To Tweet
It’s gut check time, how committed and confident are you? Don’t let yourself get out sold. You can’t let the seller out sell you. Do you have a high level of commitment? It all comes down to confidence, you can have all the commitment in the world, but if you lack the confidence that you have what it takes, you simply won’t succeed. If you can combine this idea of constantly selling your position over the position of others with a high commitment and confidence level, you will be unstoppable! Listen as Justin gives a firm wake up call to look seriously at how committed and confident you are. This can make all the difference when it comes to overcoming objections.
What are some common seller objections? Find out what they are and how to overcome them! Click To Tweet
You’ve heard them before, “I need to think about it”, “I need to sleep on it”, “I have several other investors that will be looking at the property”. How do you get past these valid and reasonable objections? A big part of overcoming these objections connects back to what was discussed earlier in the episode. You need to have a high level of commitment and confidence. In this call, Justin carefully walks through each of these seller objections and how to overcome them, you won’t want to miss out on his great insight!
Outline of this great episode
- [0:01] Welcome from Justin to Wednesday Weekly Wisdoms.
- [1:22] Introduction to the multi part series on “Overcoming Seller Objections”.
- [4:53] Discussing the power of persuasion and reframing the idea of being “in sales”
- [7:28] What is the point of sales? Let’s talk about the idea of a “reward” over a “paycheck”.
- [10:50] How committed are you?
- [13:01] How do you project the confidence to complete the deal?
- [22:24] Learning to Overcome Seller Objections.
Resources & Links mentioned in this episode
The Monday Mindset & Wednesday Wisdom calls are group coaching calls included in the REWW Academy. These live calls are hosted bi-weekly by Justin Colby and Pat Precourt and cover a specific topic each session – ending with live Q&A at the end of each call.
These calls are designed to empower students to be effective entrepreneurs, creating business that thrive and make money through real estate investing. Students are encouraged to attend the calls and bring any struggles or questions they have about business or real estate.
The REWW Academy program combines our complete suite of software applications with our personalized coaching and a community of like-minded entrepreneurs to provide you with the most comprehensive real estate investing program available.
If you would like to learn more about the REWW Academy, attending these calls live, or learning fast effective ways to get involved in real estate investing, go to https://reww.com/v/reww-academy/ and follow the link at the bottom to apply today.
Below is the full transcription of the Overcoming Objections Wednesday Wisdom call with Justin Colby.
Justin Colby:
What is up? What is up? Let me shut my door, forgot to shut my door. All right guys. What is happening? Today is Wednesday. As always, we do our Wednesday Weekly Wisdoms with me, Justin Colby. Obviously, here I am again for you guys. Very excited. Let’s see here.
As always, if you guys can … What’s up Rafael? How are you buddy? As always, just make sure you can see me and hear me. Obviously my man Rafael can. We’re good. Andrew. My man, Andrew, got his first virtual wholesale deal. Congratulations, Andrew. He is up in Canada, and he is wholesaling out in Nashville, Tennessee. If you did not watch the virtual wholesaling series I did, if you are wondering if you can do this in a different market, maybe your market is too small or maybe you’re up in Canada, maybe you need to do a different market; it has been proven over and over again by our students that this can be done virtually in any market, anywhere. Congratulations, Mr. Andrew [Ettleson 00:01:07]. Awesome stuff. Joshua, what’s going on? Robert, I see you. I hear you. Diane. Howdy from the ranch. Right on.
All right. Well, let’s get jumping in here. Guys, there’s a big component of this industry that I don’t believe many investors take seriously and that’s this idea that we’re in marketing and sales, we’re not in real estate. I’m going to do a several part series just about overcoming objections, but a lot of the focus that is going to be on that will simply be regarding understanding the communications and the sales aspect of it. You have to understand and be committed to this.
I gave a conversation on Monday, because I filled in for Pat Precourt, about your commitment level. Part of that goes back to you really understanding and being committed to this industry, that you are providing these people with value, that you are going and meeting with these people with the intentions to help them out of the scenario that they are in. Whatever that scenario is, it doesn’t matter. They might have money motivation. They might have a downsize motivation. They might be empty nesters. They might be going through a divorce. They might be going through probate. They might have had a death in the family. They simply just might want to sell their home because they want to go sit on a boat all day every day and travel the world. It doesn’t matter their motivation. You have to sell them that you are the person that they should see your house to, that you are the person that is honest and trustworthy and has good morals and ethics and integrity, and that you will be able to help them reach their goal.
You are in sales no matter how you want to cut it. I know there are probably people out there saying, “I could never do sales.” Tough luck. This industry is absolutely, 100% sales industry and you need to be 100% committed to being the best there is. By the fact that you’re on this call, I congratulate because that is one component of being the best that you can be. Being committed is always be learning, always be growing no matter what it is, to be committed to being the best you can be.
The next several part series that I’m going to go over with you guys, and I don’t know if it’s going to be a 3 or 4 part series, it’s going to be handling the objections, the most common objections; some you may hear, some you may not. I didn’t write down every type of answer you could possible give. If I feel like there’s another answer you could give to the objections I’ll verbally say it to you guys so you guys don’t have to try to read them all. Then, what I will do is I will make sure that these objections are on a document that we will upload so that you can print it out and sit it on your desk so you guys can do it from your phone. You don’t have to memorize them initially. You can memorize them over some time.
We’ll make sure that we get you guys the fully printed out document that will have all of the objections. It’s not going to be perfect. Are there going to be more objections that you might hear? Yes, but being able to think on your feet, being able to really come from a place of you are there to help that person, they called you from your marketing, or if you did reach out to them they engaged with you enough to the point of now negotiating. Negotiating and selling, there’s a word commonly used called persuading. That’s where you need to persuade them whether it’s they’re talking to other investors, maybe they need to think about it, maybe they want to sleep on it, maybe they need to talk to their husband or wife or family members, and blah, blah, blah. We’re going to go over those. You need to persuade them to act quickly, be decisive, come to a conclusion, and make you the person they’re going to sell their house to. That is always up to you to persuade them to use you moving forward.
Again, this concept of sales and you don’t want to be in sales and that’s not a real job and all these old school ways of thinking and even … I’m 35 years old, and I remember when I left UCLA. I graduated UCLA, and I went immediately into sales. My family was all distraught because I spent all this money at UCLA and I got my diploma, and they just didn’t fell like sales was an industry but I was hell-bent to prove to them that it is an industry. As I’ve grown older and found success in sales in multiple different types of sales and now bringing that success as a real estate investor, I have come to the realization, and it is not a new realization because it’s in books and videos and trainings videos, but we’re always in sales.
All of us are always in sales at one level or another. We are selling our wives or husbands on why we should watch this show versus the show that they want or why we should choose this restaurant versus another restaurant. We’re in sales to children about why they should be doing one thing versus another thing, what is bad, what is good. We are selling them. We are persuading them at all times. You are constantly in a mode of sales and you, and I’m saying this very blanket statement, most people do not think of life like that, but it is very true. If you truly think about everything we do on a day-to-day basis, we are always in a mode of persuasion or sales, and to hone in your craft and to realize that no matter what you do, where you are, what type of communication we are working, you are in a mode of sales. Sales doesn’t always mean the result of it is going to be a paycheck or money. That is the old school way of thinking of what sales really is, is if you sell something you’ll get a check. You might get a reward, let’s equate to sales and reward of something that is not financial.
For example, if you sell your son or daughter on the importance of college and they go to college and get their diploma, you’re reward is a well-educated son or daughter. If you … you can use this in a million different things. For a husband or a wife about what restaurant to go to. Your reward isn’t always going to be financial but you are persuading your idea, your concept, your belief, onto someone else, and someone is going to be sold one way or another.
Now, there’s always compromise in relationships, and I understand that but always children are the best sellers there are. They’re relentless. I’m not personally a father, but I know many of you are fathers and mothers out there. I know you’re going to relate to this more [than often 00:08:41]. I have babysitted. I probably have 15 nephews and nieces because I have so many close friends. I’m always Uncle Justin, and I have babysat for all of them. I have watched them all grow up. I have been around. I have plenty of experience. I helped raise my cousins. At 14, I moved in with aunt and my uncle, and I helped raise my infant cousins. I’ve seen enough to be able to say children are the best salespeople there are. The reason why I say that is because they will throw a fit long enough, they will talk about it long enough, they are relentless to get what they want, whether it’s simply they are hungry and they want milk from their mother and they’re crying and they will not stop and finally they get what they want to the movie they want to watch to the food they want to eat. They are relentless. They are fearless. They are the best salespeople there are in the world because ultimately they get the reward that they are looking to get.
Let’s get rid of this idea of I can’t do sales or I’m not in sales. The old school way of thinking of sales is gone. Let’s start stepping into the new age world of sales and that is you are constantly selling all day every day, whether it’s you are in the car with a friend and one of you guys wants Starbucks and the other person wants Pete’s Coffee or another competitor. Someone is going to win that. You’re either going to Starbucks or you’re going to Pete’s. There’s a sale being made, and the reward is I’m getting the kind of coffee I want. Whether you’re talking about lunch. I just had a conversation in our office about what we’re doing for lunch. My suggestion won out. The whole point to this is you’re always selling and you’re not always getting a financial reward for it.
I want you guys to take that idea and combine it with what we talked about on Monday about your commitment level and how much do you really want this, how committed are you really to become the best that there is, and how committed are you to really understanding and believing and knowing that what you are doing is what you should be doing. Once you make that commitment, you will be relentless in your pursuit of perfection. You will not give up. You will not take no as an answer. There will be no homeowner who sells you on why they’re not selling you the house. You will sell them on why they will sell you the house, whether it’s you’re honest, you’re trustworthy, you have money, you have many other buyers who you can bring to the table, or whatever combination of reasons that you’re able to come up with, you will not allow them to sell you. You are committed to being the best real estate investor and specifically the best wholesaler, and you will not let anything get in your way. You combine that commitment level with this idea of you are going to be sold one way or another, you either sell the seller and or they sell you and you combine those two, you are going to be unstoppable.
I really urge you to watch Monday’s video, if you haven’t already. It should be up there. If it’s not up there yet it should be up there by some point today. Take that message of commitment and combine it with real estate investing and wholesaling and this idea of sales and what we’re in it for and overcoming objections and you will be unstoppable.
There was an idea, there was a concept that I wanted to also mesh in there, and I’m blanking on it right now. You need to have a commitment to being the best wholesaler there is. Oh. One of the things that I hear … This has nothing to do with the seller or the owner but it’s kind of a side subject is, my negotiations sometimes fall apart because I know I can’t fund the deal so I don’t whole-heartedly believe that I’m the best option. I’m going to ask everyone out there to say timeout. I’m going to call a 20 second timeout, and I’m going to ask you to reframe your commitment level to your business. You have to believe that. It has to be in you that you are the best option for this other person no matter whether you have the funding to buy the home or not. You need to understand and believe that you are the best option for this. A way for you to reframe why the seller should sell it to you and that you are going to be “buying” the property. I use these very specifically because many of you assign the deal and you never buy it. Many of you double close it using the end buyer’s funds. Some of you may use transactional funding and actually truly buy it and then resell it or maybe you need up flipping it.
The idea that you don’t believe in yourself that your the best option because you don’t actually have the money in the bank right now to talk to a seller about buying their home needs to be reframed right now. Make that change right now. I will tell you the first change that you need to understand is we have transactional funding for you. A good friend of mine, Sean Terry, has Velocity Capital. He’s a partner in our business. He has Velocity Capital where he will lend money to any of our students for the right deal. It has to be the right deal. There are guidelines that Sean and Velocity Capital that will put you through to make sure that they are willing to lend on that. They do not just blanketly lend money to any deal that a student brings. That is not the case. They are going to have requirements, and you will have to meet those requirements. If it does not meet those requirements, just like any lender, they will not lend to you. Moving forward right this moment, you can go into every single seller’s door knowing that you have the money to buy the home if it means you have to buy the home. If it gets to the point of that, you will have the money to do it.
The next reframe I’m going to ask you think about is going to be simply that you might not necessarily tell the buyer specifically, “I’m going to buy the home,” but you can say something to the effect of, “I’m a local investor and either myself or a colleague of mine, I work with many other investors, will be buying the home from you. Sometimes it doesn’t fit my model directly, but I work with many other investors in the area and if we can come to a number, I’ll make sure that either myself or another investor buys a home from you. I’ll be straight up with you, if I can’t buy it myself I’ll make sure that I bring a buyer for you.” Now you’re being very upfront and honest with them that you aren’t necessarily going to be buying the home, that you are likely going to be finding a buyer for your home, and now they understand what the process is going to look like. Now you are being honest. You are being congruent with what you are talking about. That helps you be committed to this industry is to be congruent with what is in your heart and in your mind and what you want to be doing.
I couldn’t go out there and sell an Eskimo ice. A lot of people say, “I’m the best salesman in the world. I could sell an Eskimo ice.” The reason why I couldn’t do it is because it’s completely unnecessary. They live on the ice. They don’t need more ice. I couldn’t sell them ice because I don’t find … It’s not congruent within me to sell someone who has plenty of ice and doesn’t need it, more ice. Though I’m very good at sales, and again, I would argue I could probably sell everything, but it’s not congruent with me so I’m not going to be able to sell that product. Being congruent with yourself and your own issues, there’s always a way around it.
Again, to make that commitment of I’m going to be the best wholesaler in the world might then mean I need to reframe how I’m negotiating with the seller and what I am saying to the seller. First of all, you have funds with Velocity Capital, as long as the property meets the requirements of Velocity Capital, that you can use to buy the home directly. You can always, from this moment forward, go into the seller’s door saying, “I am looking to buy your home and here’s the number I’m willing to give you,” and knowing in the back you have a lender who will fund the deal for you.
Another option to this is having the confidence, because this all goes back to confidence with how you overcome their objections and how you negotiate and how you persuade them and sell them to sell you their home. The second option to give you that confidence is to go straight into it saying, “Listen, I am a local investor. I actually work with a lot of other buyers that I believe is going to want to buy your home, so what I’m going to do is I’m going to present your home to these buyers. I don’t want you to go around me, so I’m going to ask you fill out an option contract that gives me the option to buy or option to resell it that way you can’t go around me or bring you a buyer and then we can move forward.” Now, both of those scenarios now give you the confidence that the seller knows what your about, knows what your intentions are, and then you’re going to move forward. The argument here is you need to find that confidence using these strategies so that you can recommit to this business, stop making excuses for why you believe or think it doesn’t work, and go back into this business with 100% certainty and commitment to make it work for you.
With all that being said, this all, again, comes full circle to your ability to negotiate, persuade, and sell that seller to sell you the home. A lot of sells in that. Hopefully that’s all making sense and I’m closing the circle of your commitment level is going to equal your results and if your commitment level isn’t there that’s because you have not done an appropriate job selling yourself on your success or your commitment of this industry of wholesaling. If you have not done that then, per my experience, the majority of the reason is because you don’t believe you can actually do it, and one of the reasons is money. You don’t have the money to buy the home if need be, so you don’t feel confident to go in there to negotiate the deal.
Buyers is part number 2. I don’t have the confidence to go in there and negotiate the deal because I don’t know if I have the buyer. Well, that’s a whole different subject that we talk about constantly about build your buyers list first. Have the confidence to know you have the buyers so you can confidently go in there and negotiate with the sellers. That’s a whole nother subject.
Number 3 is you don’t feel like you’re congruent with what you’re telling the seller. “Oh, I’m going to come in and I want to buy your home for $225,000.” In the back of your head you know I don’t have $225,000. I can’t go get a bank loan. I don’t have the money. Well, we have that solution for you with Velocity Capital and transactional funding. If the deal meets their requirements you absolutely 100% have money to fund the deal. Everything else should be removed, and your commitment to this business to be the biggest baddest wholesaler should be reinvigorated, relit, and that fire in your belly to go do whatever it takes should absolutely be there. Then, it comes down to being able to have the knowledge in knowing how to negotiate, how to sell, and how to overcome the objections that they’re going to give you. If you know the objections they’re going to give you, you know how to overcome them, it gives you confidence to persuade or sell them on selling you the home, and that’s the model. That’s the flow of all this.
Let’s jump into these slides and let’s start overcoming some objections why don’t we. What up, Ruth? Eddie Marlow lost audio. It’s back, okay. Ron, what’s going on buddy? Okay. We are learning how to overcome seller objections. One of the most common objections is, “I want to think about it.” I know if you guys were out there you’re probably shaking your head, your raising your hand, you’re saying, “Yeah, I’ve heard that before.” Let me just walk through one example of how this goes down. I’m just going to read it because it’s easier for me to sit here and read it then come up from the top of my head.
“I can appreciate that Mr. Seller, but wouldn’t you agree,” … You’re trying to make the sellers agree. There’s a philosophy behind this. You’re always trying to make them agree and say, “Yes.” “… that two minds are better than one? If I leave you and you have questions, the chance of you picking up the phone and calling me is slim to none. Wouldn’t you agree?” Again, in sales, part of sales training, and things that we learn in sales, and you should always be learning about sales, is you want that person to get in the habit of agreeing and saying, “Yes,” because when it comes time to go pen to paper, they’re already in this habit of saying “Yes. I agree. I would.” In bold is obviously the seller, “Yes.” “Let me ask you a question, Mr. Seller. What specifically would you like to think about? The contract, me or the process or about the price?” Then, shut up.
You just asked them a question. Don’t keep talking. Just shut up. Stop talking because those 3 things or those 4 things; they either don’t understand the paperwork and it scares them and it confuses them because you didn’t do a good enough job reviewing the paperwork. They either don’t trust you; you have not given them a reason to trust you, you have not built up a rapport to have them or allow them to trust you. They don’t understand the whole process of selling real estate. They never sold a home before, so you did not do a good enough job of explaining or describing the entire process of opening up escrow, earnest money is being put down, that the payoff gets given by a bank to the title company, that they no longer have to do anything. You didn’t do a good job explaining the process or you simply are not at the number that they want to be at, which is the price. Allow them to answer.
To continue with this, the seller says, “Price.” “Okay, Mr. Seller. You do realize that I am paying cash, and I will be paying all the closing costs as we negotiated as well. Remember, you do not have to pay any commissions to a realtor, so you’ll save thousands and thousands of dollars. With that being said, what price did you have in mind?” Shush. Shut your mouth. That’s it. Let them answer. When you ask a question, do not continue to move forward and continue to talk and to continue to sell. Receive the answer so that you will have a well-thought-out response. It’s all about knowing what you are going to say when they give you an answer. It’s about repetition and knowledge and experience, so you shut up.
The seller says, “I was thinking more like $135,000.” “Okay Mr. Seller.” Make it light-hearted. “You’re killing me here.” Laughing. “If I agree to $135,000, can we get this done today?” That’s what we would call the nail down close. “Can we make this done today? Can you sign the paperwork today? Can we go ahead and wrap this whole thing up right now?” You are conceding to his price. “Great. Let’s get the contract filled out.”
They might give you a number that isn’t doable. You can’t concede to $135,000. What do you do then? At that point is when you’re going to have to start talking and negotiating a little further and learning the skills of negotiating. You’re going to have to say, “Wow, Mr. Seller, let’s start working this backwards.” This is where I would jump into walking the numbers backwards. I’ve done a video. I’ve done several trainings on this about how you … “Mr. Seller, you want this, but this is what we would consider retail. You understand I’m an investor, and I’m in this to make some money. I don’t want to steal the home from you or anything negative like that, but we have to make this a win-win. You want retail.”
“Well, retail means you’re going to have to spend 6% on commissions, so now the number that you’re really getting here. Retail means is you’re going to have fix up your home enough that a bank will lend up on it, so you’re going to have to put another $10,000 into your home. Really what you’re going to get is here. Then, no one really buys a home on the MLS at the asking price. They always ask anywhere from 2-5% discount. You’re really going to start netting from here and for that that is why my number is here is because I am not a retail buyer. I’m a wholesaler. I’m an investor. I need to make a little bit of money, and I’m going to put rehab value into this. The reason my number is here is because I simply just walked backwards from what you would actually get if you were to sell it retail. I’m cash and I can close quick. You don’t have to wait 45, 60 days for the deal to close.”
Then, you go into your closing and why you’re number is where it is. It goes back to bringing up the 3 comps that you brought to the property to say, “Look Mr. Seller, I understand you want $135,000, the reason why I’m at $115,000, not only because of these 4 or 5 reasons of reduced from retail, but the comps right here are suggesting your home really is worth this. I’m showing them to you. You see that these are homes that were sold at $115,000, the price I’m offering you. Can we be more reasonable and get closer to my $115,000 number? I’m open to negotiate, but understand let’s be realistic here.” That’s how you start to approach or attack that number.
All right. Let’s go to the next one. The seller says, “I want to sleep on it.” “You’re right. This is a big decision, shouldn’t be rushed into necessarily. You told me earlier that you really wanted to sell your mother’s house because you want to sell the estate and pay off some bills. Is that correct?” “Yes. That’s correct.” “You see that by selling the property to me you can achieve that. Correct?” “Yes. That’s correct, kind of.” Again, getting them in this habit of saying, “Yes.” “Okay, Mr. Seller. What is your concern? Is it me? Is it the process, the contract, or the price? Again, those are the main reasons someone will say, “No.” If it’s the contract, “I don’t like being rushed through something like this. It’s important.” Now you’re going to want to take your time again. “Okay, Mr. Seller. I can appreciate that, so let’s go through the contract line-by-line so you can ask me questions because two brains are better than one. Would that be okay?” “Sure.”
Answer all their questions, get to the end of the contract, and have them sign the contract. If they still won’t, if they still want to sleep on it say, “Okay, Mr. Seller. Why don’t we sign the contract, I’ll call you in the morning, you say yes and I’ll proceed, and no and I’ll rip up the contract. Does that sound fair?” You might get people to sign there or not. This is where you need to really, again, go back to your negotiating skills about saying, “I agree with you. This is a big decision, but if I can answer all your questions regarding this contract, are you will to sign the document right now? Can we move forward right now?” You do the nail down close. “Can we get this down right now?”
You go through it. You ask them to sign. If they still say, “I want to think about it,” you say, “Okay. Sign the contract. I will not open up escrow. I will hold the contract until I call you in the morning. At that point you can make a decision, and if it’s no then I’ll rip it up.” Now, if they say, “Oh, but I don’t want to sign a contract.” Say, “Okay. Well, I have an option contract here. This is less than a real contract. This gives me the option to buy it, it’s not quite as serious as a typical purchase contract. Why don’t you give me a 48 hour option that way you can’t go around me, that way I’m allowing you to think about it, we won’t open up escrow, and that way you have full access to me and I have full access to you. Does that sound fair?” Then you want to use the option contract. Either way you want to get them to sign on the dotted line right then, right now.
All right. Let’s go to the next one. “I have several other investors that are willing or will be looking at the property.” This is the hot one right now. I know it’s the third one we’re reviewing. This is the hottest one in my market. My market is super saturated with other investors. My good friend, Sean Terry, Cody Sperber, and so many other people that you may not know their names are heavily investing in the Phoenix market. We are overly saturated with investors. That being said, I make no excuses about our ability to get deals. We still get deals. I don’t care what market you’re in, you can absolutely get deals. There’s not a market in the United States that has too many investors. You can absolutely get deals. Remove all excuses.
“Okay, Mr. Seller. That’s kind of a shock. I’m sorry, Mr. Seller. I don’t play bidding wars. I’ll have to withdraw my offer.” Stand up and take the offer and start walking. “Is there something I said or did that you do not like me?” “No.” “Okay. Then you like me. Are you confident that I can close the deal?” Back to the fact that we have transitional funding we can get you. “Yes, I am confident that you can close the deal.” “Is the price a fair price?” “Yes.” “Did you know that most of the mail you receive is from newbie investors that went to a weekend seminar and will tell you anything to get you to the sign the contract? You know that, right? Then I don’t understand, Mr. Seller. I’m sitting here with you, you like me, the price is right, and you’re confident that I can get the deal done. You want to waste your time talking to other so-called investors and you’ll lose the one sitting right in front of you right now. Does this make sense to you, Mr. Seller?”
This is a hard close. This is a close that you have to be confident in to make sure that they sign. You have to go in there and be confident in yourself and confident in the situation and go in there and put their feet to the fire. You are pulling the offer away from them at this moment. You are saying, “I’m right here. I’m right here, right now with a real offer. If you do not sign with me then I’m packing my stuff and going to another home to go buy that home. I only have so much money, Mr. Seller. Does this make sense to you Mr. Seller?” He says, “No.” “Great, would you like to close on the 13th or the 15th?” Start filling out the contract. You’re assuming the sale. You walked him through the process of does this really even make sense to you? I’m real, I’m right here, you like me, the price is right but you want to wait to talk to more investors. What are you crazy? The second I walk out of the door this offer is gone. “Does this make sense to you, Mr. Seller?” “Well, no it doesn’t.” “Great. When do you want to close, 13th or 15th?” You assume the sale.
This takes courage. This takes an ability for you to realize that you’re the guy that they need to sell. Back to this commitment level, back to this confidence level, you need to have that confidence to walk in there and say, “If you’re not willing to sell to me …” you need to be willing to walk out the door just like any negotiation. “If you’re not ready and willing to sell to me, you need to be willing not to get this home sold. Let’s sign this right now. Let’s close in the time you want. The price is right, you like me, you believe I can close the deal. Let’s not tippy-toe around this. Let’s get this done.” This is a confidence close. This is you being willing to walk away. Just like anything in negotiations, you have to be willing to walk away.
Again, there are other ways to approach it in terms of the confidence close but you need to make sure that you’re selling yourself, “You like me, you like the price. I’m right here, I’m right now. Don’t go with anyone else. There’s always multiple offers. There’s always grass is always greener until it’s not. What I’m telling you is the grass is greenest when you make the commitment, Mr. Seller because the money goes in your pocket. When you’re unwilling to make a commitment and you want to go window-shopping, you ultimately will never get what you want because your first option is usually your best option. I’m sitting here. I’m live. I’m in front of you. The contract is right here. Go ahead and sign and we’ll close on the date that you want.” Confidence close. Have the confidence.
Here’s another one. Again, these two tend to be the hottest that we’re seeing in Phoenix because there’s so many investors that these are some of the hotter ones that we are seeing. “What makes you different from everyone else?” “That’s a great question, Mr. Seller. I’m different because I’m honest. I’m ethical. I’m moral. I have integrity, and I get deals done. I’ve been doing this for a while and I have a great team of people around me that are accomplished and produce results. The question is, Mr. Seller, would you prefer a check or a bank wire when we close?” Sorry about that guys. I’m not even sure who that is. Again, this goes back to your confidence, your commitment in your business, your understanding, your drive to learn more, to be the best you can to say, you know what let me bring up a couple points in here. I have people around me that are accomplished and produce results. You can leverage me, your coach. You can leverage other students that we work with, that you work with that are in your market. You do have people around you. Believe that, because you really do. That is why you are a student of ours is so you can surround yourself with people that are experts at this, that do have results.
Again, I’ve been doing this for a while. Maybe you’ve been doing it for a week or two, maybe you don’t have that sense of confidence with you yet, but a while to you could be something different than what it means to them. If you’d been doing this for a week or two and this is your first negotiation, maybe be honest at that point. Instead of saying, “I’ve been doing this for a while,” say, “You know what? This is actually the first time I’ve met with a seller. I’m very excited. I’m ready to buy my first home. I’m really hoping that you work with me because I am committed to this. I do have a great team around me. I have people around that are accomplished and are producing great results, that would be me, your coach, and I want to do this.”
If you’re honest with the seller and you’re coming from a place of integrity, of ethics, and morality more often than not those people want to work with you. They don’t want to work with a slick sales guy. Come from a place of honesty, integrity, and say, “This is the first time I’ve actually been looking at a home with a seller. I’ve been looking around, but you’re the first person I’ve actually walked into their home and done this with, so I’m a little nervous. Forgive me, but I’m telling you the truth. I come from a place of integrity,” back to the first part, “I’m honest. I’m ethical. I have integrity.” Be that way. Be honest. More often that not, people will appreciate it so much they’ll work with you over the other people. “I wanted to talk to you a little bit about that. I am surrounded with people that are accomplished. The question is, Mr. Seller,” this is where you go for the close, “do you prefer a check or a bank wire because I can do both.” He says “Wire.” “Great. Put your name here.” That’s the close.
There’s going to be more to that. That is at the point of the close … what makes you different from everyone else? You’ve already built the rapport. You’ve already walked the property. You’ve started talking about numbers. They’re just saying what’s different about you. Why you? This goes right back to how I started this training. You need to have the commitment level. You need to be honest with yourself about your commitment level and how important this business is to you and your financial freedom. You need to be honest with yourself that this is sales. You are a part of sales, but you need to reframe what sales really means. It doesn’t always mean you’re trying to be shady and sell someone something they don’t need. You are helping them and you are persuading them to go with you over someone else.
Believe in yourself. Come from a place of integrity, of honesty, of morality, and be honest with them and say, “Listen, there’s a lot of people out there that won’t do what I’m doing and I’m telling you this is the first time I’ve met with you. I’m honest. I have the money to buy a deal. I’m looking to buy my first deal. This will be my first investment property. I want to work with you. We seem to get along pretty well together. I like you. I want this to be a win-win, and I’m just shooting you straight. I’m just a straight shooter. I’d really love to be able to buy your home. Do you want a bank or a wire because we obviously agree on everything else.” Go for the close.
The key to this is you need to close a minimum of 3 times before you ever walk out of a house. You can never … Again, I’m going to do several of these trainings about common objections. The last 2 that I just did for you are the most common about us because there are so many other investors. In Phoenix, those tend to be the most common. You need to come from a place of integrity, a place of confidence. That confidence comes from your commitment that I will not fail at this, that wholesaling is what is going to provide me financial freedom, the life that I want to live. Have that confidence going to every single door and you absolutely will succeed. That is this training.
Again, this is going to be a 2, 3, or maybe even a 4 segment training about the objections that you will commonly receive. We will have an actual document uploaded about those objections so you can read them and memorize them and work through them and edit them and add to them. If you guys are hearing other common objections I would love to hear of them. Why don’t you actually go ahead and write me, email me justin@reww.com, justin@reww.com. I would love to include them into the new trainings or the future trainings that are going to be coming up so that I can help you actually overcome them live on these weekly trainings. That being said, that is what I have.
Rafael, “How does it work with Velocity Capital if I find a deal?” Well, first of all you need to get in contract with the property. That is the first thing that they’re going to require is to see your contract. They want to make sure that you have an end buyer in place, so they are going to want to make sure that your buyer has a contract with you buying the home. If that is going to be the case, they are going to look at the numbers to make sure that there is a spread there. More than likely they will fund the deal. They’ll usually fund the deal for 24-48 hours max, maybe a week long if you really need it. Again, Velocity Capital is a partner of ours that will fund those deals.
Thank you, Diane. I really appreciate it.
Velocity Capital, Rafael, is not a lender who would allow you to lend for long-term for a buy and hold rental. In this industry you would have to … lendinghome.com, lendinghome.com might be a good opportunity but rental properties, not a lot of lenders in the hard money or quick money. You might want to go to a bank. You might want to ask your family and friends, but Lending Home is another money partner that we work that may be willing to lend you on a rental.
Thank you, Debbie. I really appreciate it. Ron, I appreciate it.
“If I have someone helping me on meeting a seller and want to split the fee at close …” Teresa is asking, “If I am going to split a fee on a close, how do I do that?” The other individual can actually submit a very simply word document saying, let’s say it’s me, “Justin Colby to receive 50% of the assignment fee.” You sign off on it and send it into the escrow company. It’s really that easy. You send an email to your escrow officer saying, “Justin Colby deserves 50% of my assignment fee.” They will send an email saying I’m requesting 50% of the assignment fee and it is easy as that.
You’re very welcome, Rafael. Right on, Andrew.
If you guys are not coming to the Boardroom Mastermind you are missing out. You need to be in San Diego. For the Boardroom for the beginners it is June 20th and 21st in San Diego. Mastermind. We take you to the next level. Get there. For those of you very experienced, we have the Boardroom Elite. That is the students who are really doing some things, doing big deals, and looking to get their game to the next level. That is the 16th and 17th in June. If you want to know more about the Masterminds please reach out to me. You really need to be there. I myself am a part of many Masterminds. I pay a lot of money to be a part of them, and they are the reason why we have built our business to be so successful. If you are not going, I really encourage it.
Teresa, you’re very welcome. That is all I got for today. Have a great rest of the week. I will see you next Wednesday. Peace.
