Real Estate is a people business

#1 reason people have a hard time getting started or fail as a real estate entrepreneur.

What is it?

Instead of focusing on how to create solutions for sellers, most people focus on how to make every real estate deal fit into a certain technique they want to use.

Real estate is a people business. Instead of asking sellers if they will sell with a lease option or making half price offers to every seller, you need to sit down and talk with them so you can discover what the seller's problems are. You need to determine what the seller really wants and needs and then create a solution which will help them achieve that goal.

Here are a few examples:

EXAMPLE #1

A few months ago I sent a lead to a new investor in California. The seller had an older mobile home she wanted to sell for $8,000. The new investor immediately offered her $4,000 with hopes that she could flip it to another investor for $6,000 - $8,000. ( the investor just wants to do wholesale deals)

What was missing?

The communication with the seller! Why were they selling? What repairs were needed on the mobile home? Why did they need $8,000? What did they plan to do with the money? What was Plan B if they could not find a buyer? What were they paying in lot rent, taxes, insurance? Where were they planning to move to.. and when?

Unless ...and until you get the answers to some basic questions you can't make a reasonable offer that will solve the Sellers problem.

For example, if you found out that the $8,000 was going to be used to pay off medical bills... then you can see how your $4,000 offer would not solve their problem

But if you offered to pay the medical bills for them - over time... it would solve their problems.

If you could negotiate monthly payments that are low enough on the medical bills, then you could rent the mobile home (or sell with seller financing) for a nice down payment and a positive cash flow.

EXAMPLE #2

Another investor calls every FSBO seller and makes half price all cash offers. He has had very little success. Why? He failed to talk to the seller before making his offer to determine if there is a mortgage and what the balance is. A half price offer of $50,000 won't help a seller with a $80,000 mortgage on a $100,000 house.

But there are other solutions. You must get all the facts before you can formulate an offer.

EXAMPLE #3

Another new investor is contacting every seller and asking if they will do a lease option.

Well, some will, but most won't. Until you discover what the Seller needs and wants and why, and the details about the financing on the property the chances of you making a deal are slim to nothing.

You need to thoroughly understand the Seller's situation then CUSTOMIZE a solution which will work for you and work for them. Then you need to explain the benefits of your offer to the seller in simple, easy to understand language.

Peter uses a T-Bar with the benefits to him on one side and the benefits to the seller on the other side. The VISUAL helps the sellers to understand "what's in it for them" and that will get more Sellers to say YES! to your offers.

Spend more time talking to Sellers about the total situation BEFORE you make offers. If necessary, get on the forum to get help structuring offers.

The result will be that you are able to help a lot more Sellers, you'll do many more successful real estate transactions, and you will be able to achieve your goals as a real estate entrepreneur.

To Your Extreme Success,