There are a million different creative techniques you can do to close with a seller but there is something important you need to understand first. One of the things most often overlooked is how to present your creative offer so that it actually gets accepted. In fact, your seller's response can be almost entirely dependent on how you present the offer. Presenting a winning creative offer is both an art and a science.
For instance, let's say that you want to convince a seller who is free and clear to hold secondary financing for you. Which of these two proposals is more likely to produce a favourable response?
OPTION #1: "Mr./Mrs. Seller, I want you to hold financing for me."
or
OPTION #2: "Mr./Mrs. Seller, I want to show you a way that I think we can make this work for both of us. If you cash out everything now, the government is going to hit you hard with capital gains. To avoid giving it all to Uncle Sam, I'd like to give you some of the money now and then the rest later in payments. Is that fair?”
In order to get more sellers to accept your creative offer, you need to know how to present it so that they are clear on what benefits them. After all, the saying goes "What's everyone's favourite station? W.I.I.F.M. – What's in it for me?"
There are really only three things you need to do to get your creative offers accepted.
Make sure through you qualify your seller on the phone as for having a real need to sell the property.
Explain how it mutually benefits the seller and you together.
Combine it with assumptive language.
How Do You Know You Have a True Motivated Seller?
Find out if your seller it truly motivated right on the phone.
"Mr./Mrs. Seller, it seems like a nice place, how come you're selling it?"
If you don't find if your seller is motivated on the phone first, your face to face negotiation with the seller can be almost pointless.
So How Does Your Creative Deal Benefit the Seller?
Holding Paper
Avoid Taxes from Uncle Sam
Get paid like the bank
Receive interest on the mortgage which means they'll get paid more in the long run
Get it sold for your price
Mortgage is collateralized by the property for maximum protection
No real estate commissions
Lease-Option
You'll take care of the property because your tenant buyers see it as "their home"
No management required
Monthly rent is guaranteed whether or not the property goes vacant (even though it won’t because you’re taking a down payment)
Property improvements
No real estate commissions
Long term rental, no transient tenants
Short Sale
Avoid bankruptcy
You'll manage all the headaches for them from start to finish
Minimize the damage to your credit
No more stressing over missed payments to the bank
No more threatening notices and/or phone calls
Don't have to search for an end buyer since you are the end buyer
Wholesale Deal
Get your house sold faster than through a realtor
No more threatening notices and/or phone calls
Quick and painless process
Multiple investors in your database who can close on the property
End to whatever is making them motivated
No real estate commissions
Assume That Your Seller Wants to Do the Deal and They Will
There something I call "wussy language" that doesn't close deals. It's that all-dangerous word called "maybe". The use of "maybe" doesn't close deals.
"Mr./Mrs. Seller, would you maybe consider holding financing?"
Use these magic assumptive words to make a fortune.
All that you have to do is tell the seller what you're going to do and then end with one of these assumptive tie-ins.
"Is that fair?"
"Does that make sense?"
"That would make sense for you, right?"
Now compare these two approaches when closing a seller and just imagine which one would like go over better.
"Mr./Mrs. Seller, would you maybe consider holding financing on the property?"
or
"Mr./Mrs. Seller, if we get creative and hold paper, you'll be able to avoid Uncle Sam and make this work for me as well. You'll still get your full price, just some of it will come in payments later. Does that make sense?"
The bottom line is this. Use assumptive language to make your deals go quickly and effectively. It will hit you the hardest in your wallet.
Presenting a Winning Creative Offer
There are a million different creative techniques you can do to close with a seller but there is something important you need to understand first. One of the things most often overlooked is how to present your creative offer so that it actually gets accepted. In fact, your seller's response can be almost entirely dependent on how you present the offer. Presenting a winning creative offer is both an art and a science.
For instance, let's say that you want to convince a seller who is free and clear to hold secondary financing for you. Which of these two proposals is more likely to produce a favourable response?
OPTION #1: "Mr./Mrs. Seller, I want you to hold financing for me."
or
OPTION #2: "Mr./Mrs. Seller, I want to show you a way that I think we can make this work for both of us. If you cash out everything now, the government is going to hit you hard with capital gains. To avoid giving it all to Uncle Sam, I'd like to give you some of the money now and then the rest later in payments. Is that fair?”
In order to get more sellers to accept your creative offer, you need to know how to present it so that they are clear on what benefits them. After all, the saying goes "What's everyone's favourite station? W.I.I.F.M. – What's in it for me?"
There are really only three things you need to do to get your creative offers accepted.
Make sure through you qualify your seller on the phone as for having a real need to sell the property.
Explain how it mutually benefits the seller and you together.
Combine it with assumptive language.
How Do You Know You Have a True Motivated Seller?
Find out if your seller it truly motivated right on the phone.
"Mr./Mrs. Seller, it seems like a nice place, how come you're selling it?"
If you don't find if your seller is motivated on the phone first, your face to face negotiation with the seller can be almost pointless.
So How Does Your Creative Deal Benefit the Seller?
Holding Paper
Avoid Taxes from Uncle Sam
Get paid like the bank
Receive interest on the mortgage which means they'll get paid more in the long run
Get it sold for your price
Mortgage is collateralized by the property for maximum protection
No real estate commissions
Lease-Option
You'll take care of the property because your tenant buyers see it as "their home"
No management required
Monthly rent is guaranteed whether or not the property goes vacant (even though it won’t because you’re taking a down payment)
Property improvements
No real estate commissions
Long term rental, no transient tenants
Short Sale
Avoid bankruptcy
You'll manage all the headaches for them from start to finish
Minimize the damage to your credit
No more stressing over missed payments to the bank
No more threatening notices and/or phone calls
Don't have to search for an end buyer since you are the end buyer
Wholesale Deal
Get your house sold faster than through a realtor
No more threatening notices and/or phone calls
Quick and painless process
Multiple investors in your database who can close on the property
End to whatever is making them motivated
No real estate commissions
Assume That Your Seller Wants to Do the Deal and They Will
There something I call "wussy language" that doesn't close deals. It's that all-dangerous word called "maybe". The use of "maybe" doesn't close deals.
"Mr./Mrs. Seller, would you maybe consider holding financing?"
Use these magic assumptive words to make a fortune.
All that you have to do is tell the seller what you're going to do and then end with one of these assumptive tie-ins.
"Is that fair?"
"Does that make sense?"
"That would make sense for you, right?"
Now compare these two approaches when closing a seller and just imagine which one would like go over better.
"Mr./Mrs. Seller, would you maybe consider holding financing on the property?"
or
"Mr./Mrs. Seller, if we get creative and hold paper, you'll be able to avoid Uncle Sam and make this work for me as well. You'll still get your full price, just some of it will come in payments later. Does that make sense?"
The bottom line is this. Use assumptive language to make your deals go quickly and effectively. It will hit you the hardest in your wallet.
by Matthew David
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"