I get a ton of questions every day from students trying to get Real Estate Agents to work with them on their short sale flips. They say things like “this Real Estate Agent won’t work with me.. help!” or “This agent told me to resell the property for a profit was illegal… what should I do?”
More times than not when I ask the student to do a little role playing and pretend that I am the agent I find that they are going about “pitching” them our system all the wrong way.
They go for the “kill” talking about how much money the agent can make working a short sale right away rather than asking them question’s that will lead them to overcoming their own objections and end up agreeing to work with you 9 out of 10 times.
The best way to achieve this is to start by asking the agent what their specialty is (act interested) and then ask them how their short sales are going. 99% of the time the first thing out of their mouth will be “I hate them because of the time frame!”
Most short sale investors will start to go in for “the kill” and tell them to work with them on short sale flips which is a HUGE MISTAKE!
What you should do is first ask them more questions that you already know they will say yes to….
“Does the bank make you discount your commission?”
“Does the bank not more forward on the short sale without and offer?”
“Is it more difficult to sell a short sale because of the wait time?”
“Do the buyers sometimes flake out?”
“Does the bank make your seller sign a promissory note?”
“Do you enjoy talking to these banks and being on hold for 45 minutes?”
“So you pretty much don’t like making short sales?”
So at this point you should have gotten at least 5 “yes’s” out of them NOW GO IN FOR THE KILL….
“Listen Mr. Real Estate Agent I’m an Investor that specializes in short sales and I work exclusively with Real Estate Agents, and I’m not saying DON’T LIST SHORT SALES ON YOUR OWN or DON’T DO ALL OF THE NEGOTIATING YOURSELF and to DO EXCLUSIVELY ONLY WORK WITH ME (this is a form of NLP, you put the emphasis on what you want them to really do without being pushy) but I do have a lot to offer you in working with you on ALL of your short sales. I charge no fees of any kind I just make my money on whatever the difference between what I buy it from the sell for and resell for profit. Here is how it works…
- The next time you have a short sale listing opportunity don’t list it represent me and explain to the seller that you have a buyer that will make an offer on the property right away.
- This will expedite the process so we can get it assigned to a mitigator and get the BPO ordered right away… remember the more time that goes by the higher the probability of it going to auction is.
- I have a team of negotiators that will do all of the mitigation work for you so you never have to talk to a bank ever again.
- We use a special contract that gives the seller and the bank property disclosure that explains to them that I intend to sell the property for a profit.
- You will at the same time list the property for me to resell the short sale to. This is how I make my money.
- Eventually because we are expediting the process we will get the short sale approved verbally or in writing which will make the house easier to sell.
- Because their are 2 transactions you get paid commission on both of them (assuming their is enough profit for me)
Doing it this way increases your short sale conversion from less than 25% (national average) to 50-75% because of timing. If we get to a point where I can’t buy the property I step out of the deal and we close it “A to C” ..I don’t want to prevent the deal from happening just because I can’t make a profit. It’s not what is best for the homeowner.
So WHEN YOU START WORKING WITH ME (more NLP)…
- your going to close a higher percentage of your short sales
- your going to make double commission in some cases
- and you NEVER have to speak to a bank again
How does that sound?”
If the agent doesn’t see the value in this 90% of the time you didn’t use this format.
Hope that helps guys!
The REI Kid
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