It’s show time, when the deals are crafted and the cash comes rolling in! Today Matt discusses his 5-step process for having win/win negotiations with motivated sellers. The secret is that if you help enough people get what they want, they will happily give YOU everything you want. Was it Zig Ziglar who said that? If it was, then he sure would have made an excellent investor!
We’re pleased to announce the pre-launch of the new EpicProAcademy.com. Get 75% off during this early launch period — take advantage of it now because this is a one-time offer.
- It’s been great meeting you virtually. Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
- Need money? We have secured more than $15,000,000 of funding for the Epic community, people just like you. Get access to fast cash for your real estate investing business with our “one-of-a-kind” credit-based funding program at EpicFastFunding.com
- Need time? Work on your business rather than in your business by leveraging the time of others. Access free information and find real estate-trained virtual assistants to help you free up your time. Learn more at VAsForRealEstate.com.
- Need training? The ultimate training environment for real estate investors: Version 3.0 of The Epic Pro Academy! New look, new lessons & new content – we’ve got everything you need to know to get your first paycheck!
- Need someone to do it all for you? If you’re an Accredited Investor, you can diversify your portfolio by hitching your wagon to our train and share in the profits. Go to EpicWealthFund.com to download the executive summary.
(Voice Over): Epic Real Estate Investing Podcast Episode 24. Without further delay, your guru. Sorry. Your guide to a better life, the real estate investor, Matt Theriault.
Matt Theriault: Hello. Greetings from The Epic Real Estate Investing Podcast. The podcast that will show you how to build wealth through creative real estate investing. That’s what we will discuss today and for a long time to come so you’ll have the option to realistically retire in the next 10 years or less. And enjoy the good life while you’re still young enough to do so.
My name is Matt Theriault, author, full time real estate investor and family man. If this is your first time listening to the show. You want to do two things. First of all, welcome. Glad that you’re here but you’re going to want to go back and listen to Episode 1 for the ground rules of the show.
Two, I want you to download the Free Real Estate Investing Course – How to Do Deals, No Money Required. You can get at FreeRealEstateInvestingcourse.com.
It’s a step-by-step course of where I unveil the mystery around doing deals with no money or credit. Someone is finally going to give it to you straight. Okay? Now we made it all the way to Episode Number 24. I haven’t promoted one product or one service.
Based on your emails and comments, I know many of you really appreciate that. I promised that this podcast would be somewhere in the realm of 90% to 95% content. I had promised that in the very first episode and occasionally I wouldn’t might ask you to do business with me but I stressed that it was going to be occasionally.
Well today is the day. And by being in the Episode Twenty Four, that would actually make this podcast 96% content. I have successfully under promised and over deliver of which I believe is good business.
And I actually thought my book; The Epic Approach would the first thing that I was going to share with you however it is still enduring the editing process. It’s done. It’s just being edited so that will be available soon. I’ll certainly share that with you.
What I didn’t anticipate was that The Epic Pro Academy would be ready first. Just last Saturday; we entered a soft launch of The Epic Pro Academy. The official pre-launch will begin this Thursday. It’s actually tomorrow, January 19th.
I have several of you that have already taken advantage of the soft launch promotions so thank you for your patronage. Thank you for your business. I’m really excited for our future together.
So head on over to EpicProAcademy.com to watch a 30-minute video that I put together just for you that answers the questions, actually answers several questions: Why real estate, why you, why right now and most importantly how? How to get you some real estate?
Okay. How you can get some real estate enjoying the ranks of the wealthy 1% of the population? Now as I mentioned, the academy is in soft launch. What that means is that the lessons are being refined on a weekly basis.
It’s important to me. It’s really important to me that the academy is extraordinary in every aspect. I really, it’s not going to be worth it for me. It’s not going to be a success in life unless it actually makes a difference in the students’ lives.
So to be able to do that I mean there’s a limit to what I know that my students would want out of the course. What’s actually going to make a difference? So I will be investing a significant amount of time with my initial students during the next couple of months to assure satisfaction for all.
You know actually based on the rate, new students are joining the academy. I anticipate hitting my pre-launch capacity by the end of this weekend. You know this pre-launch; I’m offering a 75% discount off the regular price.
Not 50% but 75% as well as I’m also offering a 45-day 100% money back guarantee. Once I reach my pre-launch capacity, I will be closing the doors to al new students until the official launch until further notice.
I don’t know exactly when that’s going to be. When I re-open for the official launch, I will launch at the normal price. I will never ever make this 75% discount offer again. Never. I promise you that.
You have my word on that that I won’t make this discount offer again. Okay? So if this is making sense to you. If it’s resonating with you in any way if it’s resonating whatsoever. Visit EpicProAcademy.com to view that 30-minute video.
Get all the information that you need to make an educated decision about whether the Epic Pro Academy is for you or not. If so, join. Take advantage of this ridiculously low price if not that’s 100% okay with me too. You know your situation better than I do.
Now just as I’ve done with this podcast it’s also my intent to successfully under promise and over deliver with the academy. I’m not going to be satisfied until I accomplish that so go to EpicProAcademy.com. Watch that 30-minute video and make the decision for yourself.
There. That’s it. That’s my sales pitch. You might be able to tell that I’m a little bit different. A little bit different kind of businessman. I tell you exactly how it is. I tell you what it is. I am completely transparent. There’s nothing to hide. Okay?
Either way you can breathe now. We got at least 20 more episodes to go before I pitch anything to you again. On that note, let’s get on with today’s show.
I know last show I promised a great interview with the Flip That House girl but we were unable to coordinate our schedule so I’ve got something just as good if not even better for you today.
We’ve done a bunch of interviews actually lately. Maybe it’s okay if we do take a break for a minute and get down to some real nuts and bolts real estate investing. What I’ve put together for you. I’m going to share with you my five steps negotiating system.
The one I used when I visit a motivated seller’s property. But before I go there, speaking of negotiating. I want to share an awesome comment I just received over iTunes. It’s relevant today in today’s show.
It comes from Michael Curry. Michael writes, actually I have to write the headline because this is a great headline. Its one of the greatest headlines I think I’ve ever read. Michael wrote one of the best real estate investing podcast! Isn’t that awesome?
Thanks, Michael. Michael writes this is probably one of the best podcast I’ve ever listened to. Matt gives so much information on how to expand and grow your real estate investing business. Matt gave a tip on one of his podcast stating that the next time you go to a hotel. Ask the guests services attendant if they can do you a favour and upgrade your room because it’s a very special night for you and your significant other.
Well I followed the same exact tip in my stay in New York City and they upgraded my room from $150 a night room to a $300 plus a night suite on the 25th floor. The point of this tip is just to pen your mouth and just ask. Good things will come. Thanks, Matt!!!!!!
Well, Michael, you’re welcome. Thank you. I mean I really appreciate all the nice words. You know what is so satisfying with Michael’s comment is that he took one of the most mundane suggestions that I think I ever made on this show. I actually forgot I made that suggestion on this show. It has nothing to do with real estate investing.
Well nothing directly to do with real estate investing but actually has everything to do with it indirectly. He took my suggestion and he gave it a shot. He got results. He got great results so there are several points inside of this that I want to draw your attention to.
First, this is a people business. Business happens between people. You’ve got to communicate with them. That’s the first point. Second, he opened his mouth and asks for something and because he asked he got.
That’s the second point. That’s a biggie. Even he recognizes that one. Third, he found some money for his transaction. He found some money. By asking that question, he made $150 a day during his stay in New York City.
He made $150 a day while on vacation or maybe on business. I don’t know. If he was business, he made an extra $150 a day while he was working. So you’ve got to get that there is cash value to your negotiating. I mean how many of you make $150 a day?
That’s a $50,000 a year job. Michael made that salary while on vacation while visiting New York. The fourth thing he got here is he probably looks like a rock star to his significant other. Right?
You can’t put a price on that. The fifth thing is what I believe is probably the most important thing is Michael did it. He took the instruction. He applied it. He got the result. That is a huge lesson.
There’s no bigger confidence booster than that. Confidence inside every real estate investing is priceless. Michael took a small step without a hotel room and experienced success.
Now I have no idea what his experience inside of real estate investing is if he is just beginning or if he has been doing this for a while but either way the bigger step or that next step is going to be that much easier.
And the more steps up the ladder that you take, the easier it gets. The easier it gets, the more money you make. This real estate investing thing is a process. It’s a journey. It’s an evolution. It’s not about doing one wholesale deal or flips so you can go pay your bills.
That’s not what it’s about. It’s not even about the money at all. It’s really about who you become along the way. The freedom that you get to experience in life would be in direct correlation to who you become.
I so hope you’re getting this because it’s everything. Not just in real estate investing but life. Now when you start stretching yourself, when you start getting out of your comfort zone, when you start moving at the speed of instruction and you start taking action just for the sake of taking action just because you know that by taking action, it creates stuff in your life.
Once you start doing that light bulbs will start to go off. You’ll see things that you can’t even see right now. You’ll start to discover things that you don’t know. There are –things right now in your life about your life, about your success, about your real estate investing that are completely invisible to you.
That’s why moving at the speed of instruction is so important. You must travel as far as you can see. When you get there then you’ll see further. I mean that’s how it works. Don’t do it when every one else does. Don’t wait to get all of the answers before taking that first action. You’ll never have all the answer by the way.
I mean travelling home to your work everyday. How far would you get if you decided not to leave for work not until all the traffic lights turn green? You might have heard me say that before.
But how silly would that be if I’m going to sit right here in my drive way and I’m not leaving this drive way until all of those lights turn green. How far would you get?
You would never get to work. Would you? No. I mean that’s what normal people do when getting started in real estate investing or getting started in really any business or any new endeavour. If you do what normal people do, you’re going to get what normal people got: mediocrity at best.
You know I’m really passionate about this. You might be able to tell. Maybe you think I’m making a big deal out of our over hyping Michael’s hotel room discount but it is a big deal. It is huge.
You can tell in a way he wrote his comment. It was huge. Lots of exclamation points. If you all see that if it’s not huge to you. It’s likely because you’re not taking enough action yourself. You’re not on the court playing the game.
Yes. It is fun to be a fan and stand on the sidelines and watch your team win. I love it when the Lakers win. I feel good when they win. I love it when Dodgers win. I love it when the Rams win. Although it’s not very often these days but how do you think the players feel when they win?
I mean as good as it feels to me when my team wins, it’s not nothing like the players are experiencing down the field. Nothing. I mean it’s good as listening to the podcast and attending seminars and watching webinars about real estate investing.
As good as that all may feel, it doesn’t compare to actually getting on the field and playing the game. If you haven’t experience it, trust me. People love to learn but very few love to do.
All of that pales in comparison to actually being on the court and winning your own game. So today is the day. Commit to getting out of the stands and on the field. Play the game.
You know what’s so cool about real estate? If you play this game, if you prepare for this game and play it as if you were a professional athlete, I mean if you prepare and train for real estate just as professional athletes prepare for their sports.
Then you get on the field, you get on the court, and you play with as much intensity. I mean play to win. You will earn a greater and longer lasting income than that professional athlete. How’s that for perspective?
I mean it doesn’t matter if you’re Alex Rodriguez, if you’re Kobe Bryant or if you’re a first day Rookie in the NFL. Because there’s somebody up there that writes Kobe Bryant’s check. You know how he made his fortune?
Real estate. In my last note on Michael’s experience, he got a great story now. Doesn’t he? I mean he can share that story over and over. Inside of real estate, those types of stories make you money.
They find you deals. No actually they have deals delivered to you. Those types of stories. They attract deals to you. I mean most people are so scared to do it what Michael did that they’re so impressed when they hear someone or meet someone that actually did it.
When they hear that they won, boy forget about it. Most people look up to people and respect people and give business to people that aren’t afraid to get on the court and play the game.
Now when you actually win, all the better. That’s is true for your real estate investing as it is for negotiating a hotel room. Don’t ignore the numerous lessons in here. They’re invaluable.
Okay. Let’s get on with today’s topic. Five steps to win-win negotiating with motivated sellers. Let me cam down for a second. I get so excited when I hear about success stories.
All right. Five steps to win-win negotiating with motivated sellers. Okay. So let’s imagine that you just got a hot lead form someone in your network or you just got a call from one of your direct mail pieces or maybe you knocked on a door of a distressed seller and you’ve been able to establish that there is indeed motivation there.
It doesn’t really matter where you got the deal or how you got the lead right now with regard to this episode. We’ve discussed that in the past several times. So today is what to do once you find the lead specifically a motivated lead.
Now you made an appointment to visit the property. You knock on the door. They answer, now what? Right?
Okay. Perfect. We are in the right spot. I’ve got five steps to work you through this. Actually I’ve got five leading questions. I guess they’re steps or questions but I’ve got these five leading questions that will run you through the steps kind of like on automation. So I need you to memorize these questions. Okay?
So you might want to get a pen and paper or you might have to come back and listen to this later depending on what you’re doing right now. Okay?
So if you commit to these five questions and if you commit to these five questions to memory. You’ll naturally go through these five steps. Okay?
So step one, you’ve got to build rapport. I cannot stress this enough. If there’s no rapport, there’s no deal. There’s no negotiating. You’ve got to build rapport. I mean the heart of any negotiation is the affinity and the trust you build with the other party. To build rapport with the seller, you want to ask relevant questions and most importantly you want to listen to the answers. I mean really listen.
You have to listen as if there’s going to be a test afterwards. You have to listen until it hurts. I mean the fastest path to build a rapport; the fastest path of being interesting to other people is to first be interested.
So the seller answers the door and your first leading question is thank you for inviting me over, Mr. Seller or Mrs. Seller. Can you show me around? That’s your first question: thank you for inviting me over, Mr. Seller or Mrs. Seller. Can you show me around?
From here, you just want to walk around the house and look for stuff that you two might have in common. Look for places of where you can show genuine admiration and respect for the seller.
Maybe you see a golf trophy or you see their college diploma hanging on the wall or anything. It could be anything. Don’t be all awkward and weird about your questions. Okay? Just ask basic genuine answers because that is all you really want to know.
Okay? You want to know the answers to those questions because you’re being interested. Remember? Be interested. Your goal here is to make a friend is to create a connection with the seller and is to ultimately develop trust.
And the key point of this first step is to focus on the seller not the house. Okay? Focus on the seller not the house. Look for commonalities and mention them if they come up. Give authentic complement or two. I mean if it makes sense too of course.
And you’ll probably spend I don’t know five to ten minutes during this step. If the seller wants to take it longer or if they want to draw out, go ahead and let them. I mean if they’re talking is because they’re comfortable with you. That’s what you want. Mission accomplished.
You don’t want to destroy that by rushing the process along. Okay. Once that conversation has come to an end and you’ll know when it does. You would be ready for step two.
What your intent for step two is to set up what’s called an upfront agreement. This is a technique that I’ve used in all of my sales ventures so if you have a sales talk you might want to work this in your sales presentation if you haven’t already because it works really, really, really well.
An upfront agreement or an upfront contract sometimes is referred is where you get the seller to agree that at the end of your visit that they will let you know exactly where they stand. They’re either going to give you a yes or they’re going to give you a no.
A yes being let’s move to the next step. Okay? A no is no not for me. The messages that you are conveying when you put this in place is it’s let’s not waste each other’s time.
If it’s a yes, I’m going to spend as much time as we need to get the deal done but if it’s a no. I want to know right away because I’ve got other things to do. I’m an important guy. I’m busy. I know you got other things to do as well. That’s what you want to convey with this upfront contract.
So your leading question is where is a good place for us to sit so we can discuss this through. That’s your first question. And the seller will direct you to a location wherever that maybe. It might be in the backyard, might be a kitchen table, and might be on a couch in front of a TV. Who knows?
Once you found a good place to talk, you’ll present your upfront agreement. It might sound something like this, Mr. Seller, I don’t know if what we’ve discussed is going to make sense for either one of us or not but if we talk things through and you determine it’s not a good fit for you. Will you please be straight with me and just let me know.
That’s your question. I almost always get a yes here almost always. I mean, know what? I don’t think I ever got a no so yes I can officially say I always get a yes here. So once they give you a yes. You’ll say something like, super or great!
On the other hand, though, if we what talked about do make sense to you and it is a good fit, will you let me know that as well? You know what? You will always get a yes here also.
I’ve never gotten a no here either. And then you just kind of wrap up your upfront contract by saying something like, that’s great. So you know I’m going to extend you the same courtesy. Mr. Seller, I promise to let you know when we’re done today that if I want to move forward or not. All I ask is that you do the same. Is that fair?
You’ll always get a yes there too. Pretty much. If they’re ready to make a decision and if there’s motivation there, you’ll always going to get a yes.
So there’s your upfront agreement or your upfront contract. The goal here is to get a strong commitment from the seller that they will give you a clear answer: a yes or a no. You’re not collecting maybes or not an option.
Maybe is just a slow now actually so you want to get that yes or no by the end of the appointment. Nothing else is going to do. I need a yes or I need a no. That’s your mindset.
The key points here are always referring to your time of the seller as a visit or a conversation and not a negotiation. I know these are the five steps of negotiating with the motivated seller but that’s not what this is. It’s just a visit. It’s just a conversation. Okay?
Then always start with asking if the seller would be comfortable telling you no first. Then ask for the yes second. That’s important. You want to remember that. Always ask for the no first then once the upfront agreement is in place. You’re now ready for step three. Okay?
Step three is to establish the seller’s motivation. You can’t create a win-win negotiation unless you know what the seller actually needs to win. To discover the seller’s motivation, I have a very simple that I ask.
So what were you hoping I could do for you here today? Very simple question. Most of the time, you’ll get the answer: buy my house. Not most of the time but probably 9 times out of ten. Nine and a half times out of ten. They’re going to say, buy my house.
When I hear that, I then pull out my seller questionnaire. I give you that exact questionnaire inside of my Free Real Estate Investing Course at FreeRealEstateInvestingCourse.com. The one I announced at the beginning of the show.
My actual seller questionnaire there is a free download. Okay? I pulled out that questionnaire and I say something like great. That’s kind of what I thought you’re going to say and in order for me to do that for you. I have a series of questions that I need to ask. They’re the same questions that I ask everybody.
I have them written down on this piece of paper. I read them right off the paper to make sure that I don’t miss anything. I don’t want to forget anything particularly something that might cost you an opportunity or cost you some money. Is that okay?
Okay. I just got permission to read the questions off of my sheet. I don’t have to memorize those. I just want you to memorize the five basic ones that are walking you through these steps.
Now as you’re going to these questions, don’t lose sight of your rapport building. It’s not over yet. Okay? Now this is more of the sensitive times so this is where it’s going to be critical and if you built the rapport up right in the beginning, it’s going to make this section that much easier.
You’re asking these questions because you’re really interested in the answers. Okay? So don’t be in a rush. Be relaxed and act as if you do this all the time because you do do this all the time. It’s no big deal. That’s your mindset.
This is no big deal. I’ve got five other houses to go to after this. That should be your mindset. Your goal here is to discover what the seller really wants. If you’re anxious or if you’re nervous, they’re not going to open up to you as much.
So your goal is to discover what the seller really wants so you can give it to them. You can’t create win-win unless you know what the other side needs to win. The key points here are to just be relaxed and be interested.
I do a role play of this in my Free Real Estate Investing course so you can see exactly how I do it when you go watch that.
So step four, money. Okay? We’re going to get to the bottom line now. The leading question is so what do you want for your property again? Just real curious nonchalant. Okay? So what do you for the property again?
Then regardless of what they say you may of course listen and when they’re done talking, the next question is okay. Got it. So actually what were you realistically expecting to get?
The operative word “realistically.” Change your tone on the word “realistically.” Okay. Got it. So what were you realistically expecting to get?
Then just be quiet and listen. Nine times out of ten you’re going to get a price reduction right there on the spot. Just like our friend, mike, at the hotel. He asked. He got.
The question that question right there works often than not in the exact same way but it’s not $150 discount off of a hotel room. We’re speaking real estate. Right? Discounts come in the thousands.
You have to recognize that you’re negotiating as actual cash value. Okay? This discount comes in the thousands. If you’re in my market, they can come in the tens of thousands. Once you’ve got that number, once you’ve got the number of what they realistically expected to get, you can quickly go to step five to establish the terms.
When you’re doing this, what you want to understand is the seller really wants the price but you really want the terms. The price is not all that important. It’s the terms that really count so you might say something like this.
I don’t know if this is going to make sense to you or not. You’re going to hear me say that a lot and get you saying that yourself. I don’t know if this is going to make sense to you or not because what that actually is that it’s a release statement.
What a release statement does is it makes it easier for the person on the other end to say yes. See, you’re not going to get a real yes unless you give the person the ability to say no.
That’s what a release statement does. If you don’t have to go on research release statements. It’s a big giant sales technique and that’s an all-day training that I attended awhile back. It has work for me extremely well but what I always use is this when I was just starting this comment to this question.
I don’t know if this is going to make sense to you or not. Quite honestly if I don’t even know if I could do it but what if I were to make you payments for a periods of time and at some point down the road I completely cashed you out of the property. Is that something that we should even talk about or probably not?
That’s what you say. Now you’re getting into the nitty gritty. Now you’re getting to the deal. We ask that question. Is that something we should even talk about or probably not?
Then listen. First person that talks typically is going to be the loser so don’t be the first person that talks. Just ask the question and shut your mouth. Listen. The goal here is to get a commitment from the seller that they like your what if idea without you formally presenting an offer that they could accept or reject right then.
Okay. If you get an acceptance to that, you can then start pinning down the price and terms of the deal. You can start narrowing your focus and get into the actual number and the actual terms of which I’m going to show how to do that on the next episode.
Actually I’m going to share with you more than one way to do that. But going back in and listen to this again if you were unable to write those questions down because maybe you’re on the treadmill or you’re driving right now.
Go ahead and write those down and I want you to practice those. Okay? So Mr. Michael Curry, if you’re listening this is the next step for you. I expect you to implement and report back the results.
That’s your homework. In fact this is everyone’s homework. It’s homework for all of you. Practice drill and rehearse this conversation. Commit these five questions to memory. Keep it simple. I f you get these done, there’s not a whole lot more that you’ll need to know about meeting with the seller.
But getting good at this is the key to your business. This is where all the money is made. This is where the deals are created. So until next time
So until next time. As a very wise person once said, “you have to learn the rules of the game then you have to play better than anyone else.” Extra credit if you can email me who actually said that. All right. Get on the court and play the game. You can’t win unless you do.
Oh and head on to EpicProAcademy.com to check out what I’ve pit together for you. All right. That’s it. No more promotions from me for at least 20 more episodes. I promise. To your success, I am Matt Theriault. Living the dream.
(Voice Over): Thank you for spending this time with Matt Theriault and the Epic Real Estate Investing podcast. When you have time, stop by iTunes to leave your comments and let us know what you think of this show. And if you haven’t done so already, get started investing today by visiting FreeRealEstateInvestingCourse.com to access Matt’s free course on how to deals, no money required. Until next time. To your success, to your success, to your success.[End of Transcript]