Where Are All The Deals?
If you are new to the Wholesaling game, you may be asking yourself, “Where are all the good deals?” It’s not quite the way you envisioned when you bought the course the guru sold you… is it?
Well, there are some very specific reasons why this is. In case you didn’t hear, home flipping is at the lowest levels since 2009.
So where does that leave you? Does that mean that “the train has already left the station?” By no means! Quite the contrary!
A New Plan For New Investors
If you are new to investing, congrats! You are in the perfect time! The best thing about being new in wholesaling or real estate is that you have no bad habits!
So often, I find new investing Realtors® or wholesaling investors doing the same old things to generate business. In my mind, for lead generation, you need a new approach!
Some basic understandings however need to be clear in order for any of this to make sense!
- There will always be people who need the services of a highly trained professional who is adept at getting rid of real estate problems.
- These people will be facing tough situations (Divorce, death, disease) that need empathy and a kind approach.
- The houses that they live in are often in rough condition (unpermitted additions, disrepair, or “hoarding” types)
- There are a group of people (Rehabbers, Landlords, etc) who are always looking for below market deals.
- Since there is no licensure required… the entire United States is your territory! You mean out of 365 MILLION people you can’t find ONE? LOL
So with these understandings, let’s look closer at the real truth as to why you can’t find deals!
Truth Train Coming… Choo Choo!
Let’s just get honest. Unless you live in an area that is pretty small (under 50k people), you have someone around you who is considering selling. In fact, a good rule of thumb is to say that within 5 miles of you, someone is considering selling their home right this minute!
So why don’t we find them? Why is it that if they are so plentiful, we have a problem finding the ONE guy we need? Oftentimes, we blame a “lack of motivation” on the Seller, stating that they “just aren’t motivated enough…” How many times have we said that. How many times have I said that? We all do!
But is that really the truth? How often do we overlook the truly motivated and say there are no “good sellers out there” and that perhaps “we should build a buyers list…”
I swear… if I hear that one more time, I might just puke up rainbows! Understand that the very first step in ANY business (not just real estate) is controlling the inventory.
Of course it is hard to get good saleable property. That’s why those who have it call the shots! If you are tired of having your deals fail to close, or people going behind your back for deals, your main focus must be lead generation!
The real truth is, if you aren’t generating quality leads, it’s because you are most likely not hearing their true motivations!
What the Seller Means When They Say No
Often, it depends on the context in which the conversation is being held. In my Premium Podcast Plus, I frequently share actual calls with real Sellers so that you can actually hear what a motivated Seller sounds like. It is difficult on the words of a page to describe the intense feeling a very motivated Seller will have.
The best way I can describe it is to describe hot water. When it’s hot, you know it, and you act right away! You don’t have to be told it’s hot! You move or you get burned! When it’s warm, you might do something… Maybe wash your hands, wring them a bit, figure out if you can wring something out of it. If the water is ice cold, you can’t wait to get out of it!
Listening to motivated Sellers during the Pre-Qualification Step will give you a very clear idea of their motivation. A helpful rule to remember when prospecting or talking to a Seller, is “you can’t want it more than they do.” If they really want to sell, they will talk. If they are reluctant to answer your questions, it may be because you come off as inauthentic, or worse, uncaring.
You can’t want it more than they do…
Good Questions You Want to Ask
If you had just a few seconds to talk to a motivated Seller in order to make a good impression (you do by the way), it makes sense to have some basic ideas about the questions you want to ask. While there are plenty of questions you can ask about their square footage, price, bedrooms, and baths; the true professional looks deeper.
The primary difference between those who use bullying, force and “hard sell” techniques to get a Seller to sign a contract and those who use effective sales skills with an eye to helping a customer is evident. In a market where there are fewer homes that you will be able to flip, the power of “word of mouth” is more important than ever.
I would recommend inserting some (or all) of the following questions into the conversations you have with your Sellers immediately!
- What happens if it doesn’t sell?
- Which is more important? That you sell, or you get your price?
- Which is more important? That you try to sell it yourself, or actually get the home sold? (for Realtors®)
- Is there any good reason why we shouldn’t meet?
- If you were able to sell your home quickly, and net a fair price, would you sell it?
The list goes on and on… for our Coaching Customers, we frequently go over many of these powerful questions to help you start the kind of conversations you need to have to determine the truly motivated. They are out there! You just have to find them!
Further Resources to Look For
This is one of those cases where you would really want to know the statistics for your local market. As you can see in the Tucson Market, our statistics are publicly available through press releases that the MLS puts out. Check your publicly available MLS site for statistics on local conditions.
This is important is to give you proper perspective. For example, I can see in the month of October, there were 1060 homes that sold in Tucson, out of a possible 5600 or so that were on the market. Now, for me, as an Investing Realtor®, that is exciting news.
That means that there were over 2100 potential transactions that I could have had a part in! (Buyer AND Seller sides!) and I only want a couple! I’m not greedy! All I have to do is find a way to get just A COUPLE of those 2100 or so people to do business with me.
Truthfully, not all will because they are of various types obviously. Not all are wholesale deals. However, the purpose of bringing the statistic to mind is to show that even if I was an UNLICENSED Wholesaler in the city of Tucson, there were OVER 1000 homes that sold (that’s JUST the MLS). How Many Do YOU Need???
So the Real Problem Lies Between Our Ears!
Exposed at last, the problem is one of perspective and approach. It is my belief that by changing our dialogues, our approaches, and our expectations, we will be able to more adequately serve those who need us now more than ever.
Would you join me?