When you watch professional wholesalers close deals, do you ever ask yourself, “How did they do that?”
It’s okay; that’s a common reaction. Many investors either don’t know how to close deals or struggle to close the big ones.
So to help, here are ten tips and tricks that you can start using now to help you close your next deal.
1. Be Willing to Walk
Here’s the most powerful negotiation tool in the world: be willing to walk away from a deal. If the seller’s terms aren’t a good fit for you, walk away. Never chase a lousy deal in the hopes that “it will just work out.”
Not only will you save yourself from a bad experience (and a potential monetary loss), but you may convince the owner to accept your offer. Remember that they want to sell, and if they see the deal falling through, they may change their stance on your offer.
2. Avoid the Convincing Trap
Trying to convince owners to sell is a trap. All the time you spend convincing is when you aren’t listening and learning about what a seller wants.
Even worse, talking instead of listening can make an owner feel disrespected and ignored. It’s not a good way to start when getting a reasonable price on a property.
Instead, start your interactions with sellers by listening. Often they’ll tell you exactly what they’re looking for. When you listen, not only will you build rapport, but you’ll know exactly what to include in your offer!
3. Lead with Clarification
Before starting with a sales pitch, make sure you understand the owner’s situation and needs. Try to summarize what you’ve been told and ask questions to make sure you understand the situation. Not only will this ensure you don’t make the wrong offer, but it’s also another great rapport-building tool that will make the seller more open to your pitch.
4. Carry a Script
There’s nothing wrong with having a script or a few bullet points to help you stay organized. Write one out and use it when you make calls or go door knocking! It will help you look more professional and ensure you don’t leave out important details or questions.
5. Talk About Benefits; Solve Problems
This is a classic law of marketing. People pay attention to what benefits them and solves their problems.
Will selling save them from foreclosure? Will they be able to pay off debts? Will they avoid repairs? Spend time thinking about how selling will benefit the property owner, then use those benefits in your pitch. Remember, the seller is interested in their problems, not yours, so keep the conversation focused on them, and you’ll have no issue moving forward.
6. Look (and Act) the Part
Real estate transactions involve large amounts of money, and property owners want to talk money with someone professional. That doesn’t mean you have to wear a suit and tie, but you should always think about how you’re dressed and how you’re carrying yourself.
This includes having a professional email address. Owners may want to send or receive documents via email, and you want to make sure you’re presenting yourself professionally at all times.
7. Remember the Sweetest Sound
How do you feel when someone gets your name wrong or forgets it? You don’t want to make property owners feel that way. It kills the rapport!
Avoid this mistake by clarifying names during introductions and writing them down. Then use the sellers’ names throughout the conversation. This will also help build the relationship you’re trying to establish. Remember, the sweetest sound anyone can hear is the sound of their own name.
8. Qualify your Deals
Before you ever show up at a property, you need a good idea of how much it’s worth. If it’s not the kind of deal you’re looking for, don’t even see it. Move on. With just a bit of extra research, finding the right deals will become a lot easier and faster.
9. Tell the Truth
Wholesaling sometimes gets a bad reputation. Sellers feel deceived if wholesalers promise a lot of money and then drastically reduce their price when they make an actual offer.
It can be easy to make an offer seem better than it is to get a seller on board, but dishonesty won’t benefit you. It will probably make the deal fall through, and then you’ll have wasted a lot of time on a deal that was never going to work in the first place.
10. See People, Not Dollar Signs
Finally, remember that you’re talking to motivated sellers. They probably don’t want to sell, but they may not have a choice. Treating them with compassion will go a long way in convincing them to work with you. It can be easy to see (and treat) motivated sellers like dollar signs, but doing that will hurt your chances of closing any deals at all serious buyers.
Becoming a master negotiator takes time and practice, but closing deals don’t have to be complicated. If you fit these ten pro tips into your process today, it won’t be long until you start closing more deals. It doesn’t matter how experienced you are; your operation will never look the same if you put these tips into practice!
