Sellers Aren't Logical? | Wholesaling Real Estate - The Titanium Vault hosted by RJ Bates III

Episode Transcript
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Speaker 1 (00:00):
Today, we're going to be talking about one of the
biggest mistakes newerwholesalers make, which is
thinking that sellers are goingto be logical or sellers are
even going to be nice to you, MrWholesaler, calling to steal my
equity or to buy my house orlow ball me.

(00:21):
These are things that we hearnormally.
This is in reference to when weare cold outreaching them,
right, Cold call, cold text,direct mail, things like that.
But it even happens now withinbound leads through
pay-per-lead services,pay-per-click, running your own

(00:41):
meta ads.
Whatever you're doing, evenwith inbound leads, you're still
going to come across sellersthat are going to be illogical
and they're not going tounderstand what you are trying
to convey to them in regards tothe offer that we are making Now
.
Yesterday, I did a live sellercall review inside of Titanium

(01:05):
University and it was a goodexample of this.
The seller was inpre-foreclosure.
She bought the house in 2021.
She's over a year past due onher mortgage payments, so, by
any standards, she's in a verydesperate situation.
She's highly motivated.
She realizes there is noscenario in which she is going

(01:28):
to be able to afford this houseanymore and, as she's talking to
the TU member, she's explaininghow much she owes on the
property, but how much she wantsfor the property property.
Now, later on in theconversation it comes out that
part of the reason why shewanted that amount was because
another investor had offered herthat amount.

(01:50):
Now, as we're going through theseller call and we're listening
to all of the motivation comeout and we're talking about the
repairs that are needed andthere were pictures still
available online of what theproperty looked like back in
2021 when she purchased it.
It was in livable condition,but it was by no means in that

(02:12):
full retail after repair valuecondition right.
It had some weird, quirkythings, including having a sink
on top of a toilet, which I hadnever seen before.
I believe the sink was actuallydraining into the back of the
toilet, which is one of the mostunique things I've ever seen.

(02:32):
So the property did need asignificant amount of rehab to
achieve that after repair value.
Now, what really threw the TUmember for a loop during the
seller call was that the valueof the property was in the low
100s and that's him beingconservative on that after
repair value but the fact thatanother investor would offer the

(02:56):
$90,000.
Now, as I was coaching himthrough this, one of the things
that we always want to do whenwe identify the four seller
buckets.
One of the things that wealways want to do when we
identify the four seller bucketsand we identify we're talking

(03:17):
to the most common type ofseller wrong price but highly
motivated, which is what thisseller was.
We want to educate them on whatthe property could be worth,
how much work it would take toget there, and that's how we're
coming to our offer, our offer.
Now, where the logic comes inhere is you beat your
competition by explaining themthat, based off of these numbers
, there's no way in the worldthat this investor that offered
that $90,000 could perform.
It would not be a profitabledeal at $90,000.

(03:39):
It's trying to explain that toa seller.
This is where that logic mightnot fit, Because to them what
they hear is someone elseoffered me $90,000.
And I hear what you're saying,how the numbers don't work.
But I'm willing to take thechance and one of the things
that has come to fruition overthe past year and a half, plus

(04:03):
that TU has existed, is seeinghow the members have really
embraced hey, I mighttemporarily miss out on a deal
because of the shittycompetition over offered right.
They're overpaying for theproperty.
But we're not going to miss outon that deal.
We're going to build thatrapport.

(04:24):
We're going to build thatcredibility with the seller by
explaining how our offer makessense through the numbers.
Explain that logic, but also becompletely okay when not
immediately accepting the factthat they're not going to just
accept your logic.
Hey, you want to go with that$90,000?

(04:45):
That's okay.
That makes sense to me.
Why not Give them a shot?
But when they don't perform,come back to me.
When's the closing date on thatcontract?
Let me know when that getsterminated.
And that is how we are pickingup deals left and right, Because
people come in they'll offer$90,000, then they'll want to do

(05:09):
a price reduction down to$75,000 where the deal might be
able to work, and we wereoriginally the ones that offered
the $75,000.
So that credibility that webuilt early on through the logic
, maybe it's not accepted earlyon.
Now see a lot of people theylook at that and they say I
don't understand.
Rj tells me that what I'msupposed to do with these types

(05:32):
of sellers is educate them andit's not working.
Well, again, you should knowthat, based off the metrics that
we have set and we have setthis for a while now like these
are numbers and KPIs that wehave been running at for a
significant period of time is,for every nine of those eight

(05:54):
you are going to fail on, yourjob is to get one out of every
nine of those to sign a contractwith you.
Now, the way that you reallycompound the effect of this is
by building this rapport withsomeone, building that
credibility, explaining thatlogic, not assuming that they're

(06:14):
immediately just going toaccept it and say I understand
what you're saying, RJ, I'mgoing to sign a contract with
you.
Does that happen?
Yes, Will it happen a lot morewhen the other investor, the
other wholesaler, tries torenegotiate or terminates that
contract 30 days later?
Yes, that will be a lot morecommonplace inside of your

(06:35):
business, as long as you'redoing things correctly Now in
regards to how friendly or notfriendly sellers will be to you,
just because it's an inboundlead doesn't mean that their
situation has changed.
Put yourself in the seller'sposition.
Put yourself in the seller'sshoes and understand that if

(06:56):
they truly have motivation tosell this property for a
discount, that means there is somuch going on in their life
that the largest asset that theyare going to own in their
lifetime they're willing to sellto you for a discount.
Now, that means there's a lotgoing on.
They're probably stressed,they're probably not thinking

(07:18):
correctly and the last thingthey're probably thinking about
is is, hey, this random strangerin which I filled out a form
online I need to be courteous to, I need to listen to their
logic and, quite frankly,they're probably thinking I need
to listen to RJ's bullshit.
I don't care what RJ has to say.
I care about my situation andwhat I need to accomplish and

(07:40):
how much money I need in mypocket to walk away from this
deal, this stress that is goingon in my life.
Now, putting yourself in theseller's shoes, now actually
think about your actions.
How do you treat people whenthey cold call you?
How do you treat someone whenyou look at your phone and it

(08:02):
says potential spam on it?
You're probably not verycourteous.
When you fill out a form onlineand that company calls you and
starts asking you a bunch ofquestions and then trying to
pitch you something, are youreally courteous, Are you really
listening, or are you reallyjust caring about what you need

(08:22):
and trying to move towards thatas quickly as possible?
I think that's how the majorityof us probably handle those
situations.
So why would you expect it tobe any different when you're the
person that's placing that call, you're the person that
received that online form andit's them selling a house, a
piece of real estate, for adiscount?

(08:44):
That is illogical on our part.
So the key here is to keep yourcomposure and to ask more
questions than dictating to themwhat you need.
Understand their situation Now.
I talk about this all the time.
Embrace being the buyer.
Embrace, no, Well, truly.

(09:05):
If you're doing this, you willunderstand why this seller needs
you, and your goal at the endof each conversation is to point
that seller in the rightdirection, whether it's with you
or whether it's not with you.
Go listen with a realtor.
Go with that competition thatoffered you more money.
You need to hire a short salespecialist, Whatever it is.

(09:29):
Point them in the rightdirection.
If you go into each conversationwith that mindset that, no
matter what win, lose or draw, Iam going to make sure I offer a
solution to the seller, youwill end up with more money and
more closed deals in your bankaccount.
That is an absolute fact andthe reality of it is, and this

(09:52):
is something that I've beensaying repeatedly inside the TU
group lately is, if you can getgreat enough to close 10% of
your leads, you will literallybe one of the greatest
wholesalers of all time.
Now the inverse way of thinkingthat is, that means we are
allowed to fail 90% of the timewhen we get leads.

(10:16):
That's insane.
What other industry, what othercareer path tells you you can
be one of the greatest of alltimes if you fail 90% of the
time?
I don't know many out there.
So this is a massive opportunityfor you to go into these calls

(10:36):
without pressure, without thatoverwhelming sense of I have to
perform on each one of these andgo into it, where I'm going to
ask questions, I'm going tolisten to what they truly mean
and I'm going to be the realestate professional that
understands what this seller'ssolution truly is.
And ultimately, when you getdown to it, you'll see 10% of

(11:00):
the time it's you, the other 90%is someone else, and you'll
have a lot more closed deals.
So don't make the mistake ofthinking that sellers are
immediately going to be logicalwhen you explain to them, or
that they owe you any sense ofcourtesy or niceness whatsoever,
Because you don't even do thatwhen you fill out forms online,

(11:22):
when you're trying to buysomething Imagine trying to sell
the largest asset that you'llever own for a discount how
courteous would you be Let meknow what you guys think of the
comments and show me some love,Like today's video.
We'll see you guys tomorrow, onbeautiful Labor Day.

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Sellers Aren't Logical? | Wholesaling Real Estate

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