Wholesaling Houses and Online Dating?

I wanted to bring up the topic of talking to sellers
and not just talking to sellers on the phone but actually getting off your
hiney and meeting with them at the house.

The reason I say this is because I just got back from a lead with a motivated
seller this afternoon. Why did I go out to this one?

It seemed like it was a good candidate for a wholesale deal. The house is in an
extremely distressed condition and the sellers just want to get rid of it..

Seems to fit the criteria, right?

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Ok, thanks for that! Didn’t take too much of your time did it? lol

Glad to see your back!

How many motivated seller leads do you get on a monthly basis?

As of right now I have about 100 for the month (not even fully ramped up BTW) …
and these leads come from all different sources but my main lead generators
are direct mail and internet marketing

If I were to go out to each and everyone of those leads it would require a great
deal of time and gas money… and patience to boot!

There are some that think that if the property has equity (meaning the means to take a steep discount)
you should go out to the property every time.

The example is given of a man and a woman in a relationship.
A dude just does not go up to a woman he sees for the first time and
ask her to marry him (although I kinda did this to my wife… lol… long story)

What he has to do is take time with her and pay her compliments and do nice things
for her like buying flowers and jewelery before she would even consider getting married.
That’s just the way it goes.

Following the above example, we can’t just throw out
crazy offers over the phone and hope we are going to
get our low ball offer accepted.

We have to go out to each house and basically build
rapport and make them feel all warm and fuzzy. We then do
a 7,9, or 10 step presentation on how are company
can help them and blah blah blah blah….

Believe me I have done this approach before and I bet you
have too and it is probably for this reason: You didn’t have
enough leads!

While I think this example does bear some merit, I think the times have changed when it comes to
dealing with motivated sellers.

Take online dating for example… It is a HUGE industry right now that is making millions if not BILLIONS
of dollars.

Would you go out with every single person online in your area that is looking for a life long partner?
That would take a long time wouldn’t it? And who knows what type of people you would be
going out to dinner with!

Not that I know from personal experience…lol… But
what online dating has allowed us to do is enter in your criteria
of what you are looking for and what you are not looking for.
It even matches according to who YOU are automatically
looking for a “good match.”

If you are looking for somebody with blonde hair and blue eyes… lol…
theres a button for that!

If you are looking for somebody in a certain age range… theres a button for that!

All of this is a little tongue in cheek but you get the picture!

While going out and interacting with motivated sellers is not a terrible
idea if you need the practice, I DO think there should be a little
prescreening done besides equity.

What I have done is taken it even a step further and
set my virtual assistant up to give offers based on
preset criteria that I have set up.

I even created a nice little flow chart for him to follow 🙂

I might make that available to ya… I’ll have to think about it 😉

So what do you say about going out on appointments?

Could you take a seller that might not have given you the discount you
need and change their mind to do so?

********Oh, if you want that little blue print, flow chart thingy that I created for
my Virtual assistant and my wholesaling businessgo ahead and leave me a

thought stirring comment and I will email it to you!*******

Did you forget to vote for my blog?

Go here now and scroll to the bottom and type “I vote for Alex Joungblood!”

Thanks

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  • Jon

    Interesting though Alex. I too have the tendency to PRESCREEN too much. When it really boils down how much equity does it have and yes it is like dating.

  • Alexjoungblood

    Jon I actually was coming from the side of INCREASING the prescreening that we do to ELIMINATE the tire kickers
    and truly unmotivated leads

  • Janine

    I used to run out and see every seller that had any type of potential until I finally got wise. When you show up, the seller is thinking you are their “White Knight” and that’s just not the case. The seller forgets that we have criteria to follow in order to make the deal work. They don’t look at it as a “deal”….they look at it as we are going to save them from their troubles no matter the price. Over the past three years wholesaling in San Antonio, I have learned not to jump every time. I’m doing my due diligence first, calling them back within 20 minutes (if I can go over the numbers right then), and then scheduling an appointment if the numbers make sense. I don’t make offers over the phone without seeing the house first. Your blog post hit the nail on the head as far as what the best use of time is. Thanks for helping everyone out with your post. Janine

  • Anonymous

    I just never thought about it, by this business really is a lot like dating (without the guy having to spring for a meal right off).

    Everyone has to prescreen sellers because as you said, you would need your own gas truck if you didn’t. But I have to say, sometimes too much prescreening can come back and bite you in the butt. If you think you can put together a good deal, you are going to have to go out and “date” the seller to know for sure.

  • Alexjoungblood

    Thanks Janine! As you will see in the little blue print I am about to send you I (my virtual assistant) actually makes “ball park” offers over the phone before I even get out of my chair to look at the house! Then if they accept the ball park I go from there. I have actually done plenty of deals without looking at the house by doing the contract with the inspection period and having the buyer let me know what is up… given you have to have a strong buyers list for that approach.

  • Alexjoungblood

    but what is the qualifier here? asking price straight off the bat? that is usually what I go by… if I offer half of what they are asking what is the chance they are going to take it… that would be a good national percentage to know wouldn’t it?

  • Larry

    Great article. Everything you said is so very true, and I have learned my lesson not to go chasing after every lead that comes in. When I got started all I had was unemployment checks coming in, so I felt like I had to make it happen and just chased after all the leads (definitely not the way to go!).

    The Blueprint for the virtual assistant was a great idea as I am looking to recruit an assistant very soon. I did my first deal back in August and I am now probably averaging about 3 deals a month and I am letting a lot slip through the cracks, because of a lack of time and I am still getting my system down and in place!

    Thanks again Alex for another awesome article!

  • Alexjoungblood

    that is where a great virtual assistant comes into the picture… today I might have a great deal in the works because my VA is relentless when it comes to followup…

    Also having a great lead manager is extremely helpful as I used to operate by multiple pieces of paper all over the place… I actually use Freedomsoft for my leads and it works great… it is going to be launched soon and you can check it out here http://bit.ly/cVpYO7

    thanks for the comment larry!

  • Aaron

    Alex, I heard that if they have equity go…and it has wasted a ton of time. The fact is i only market to people with equity. So everyone that calls me is qualified. I have been driving around like crazy, meeting a bunch of very old landlords that have taken great care of their property and in no way want to give me any sort of discount. Thanks for the tip…What do you do with the leads that don’t quite meet your additional prescreen criteria? Do you follow up with them? What is your additional prescreen criteria? Looking forward to your blue print…absolutely love the blog man….

  • Ibas001

    I met with a seller yesterday. They already let me know over the phone what they wanted for the property but I figured I would go to the property to see if I can get a lower price. After meeting them and building some great rapport I realize they were already taking a lose at the price they were selling at and being that I am already making a nice profit I decided to leave the price where we originally agreed. I prefer to negotiate over the phone even for the discount because sometimes I tend to get a little soft hart for the widow Granny 🙂

  • Anonymous

    That’s a good question. Most of these folks don’t realize yet that you have no intention of paying what they are asking. My gut reaction would be that if you were to offer half right off the bat, you would get a lot of hang ups. However, if I had 500 calls a month, I would probably make more ballpark offers over the phone han I do now. I’m anxious to see your blueprint Alex.

  • Alexjoungblood

    I am all for being fair with the seller… If i can make a nice profit and they can get what they want I am not trying to be a hog… you know what they say
    “Pigs get fed but hogs get slaughtered!” Not that I am calling us pigs! lol

  • Unemployeedmillionaire

    Alex, I am a new investor. Barely getn my feet wet… Lol, but reading through this blog post has settled some of my anxiety(fear) if you wanna call it that. To be able to settle a lower offer over the phone first, then follow through meeting if necessary. I am not one who mingles among ppl too often. I think i need to change that. Thanx for all ur postings…. keep em coming

  • Anonymous

    that is the great thing about a virtual assistant… they can spare you a lot of dealing with the rejection…
    If you are new I DO suggest you go meet with seller and build up some experience talking to them…
    it will only help you as you train your VA to do the same for you over the phone

  • Aaron

    Alex…How much direct mail did you send out to get those 100 leads…How many of those 100 leads are turning to deals?

  • Anonymous

    For that batch of leads so far I mailed out about 5000 postcards.. there is no telling how many deals I will get because I get a lot from follow ups from previous mailings… thats the way it works!

    We are working on 3-4 deals in that market right now actually

  • John

    Good stuff Alex keep up the good work. I’m subscribing for sure

  • Larry

    I am currently working with Open Road, because I do some short sale work too and Freedomsoft when released didn’t have those features. I currently have 135 open leads in my Open Road and it is nuts, so I can imagine where a lead assistant could come into play too. Do you recommend the new release of Freedomsoft over then new open road 3? (not sure if got to test them yet)

    Also, I looked at your blueprint and saw the acronyms TAV, PDR and CSR. What do those stand for? I assume TAV is similar to ARV?

    Thanks,
    Larry

  • Greg

    Nice analogy on the dating thing, Alex. Like dating, I think taking the journey to the house and going through the motions depends on how desperate one is for the desired outcome.

  • I’m curious when people talk about presecreening leads. What are you looking for? Do you carry some piece of paper with you all the time, like a questionaire that you can use to “interview” the subject and see if he has what you are looking for?

  • Anonymous

    No Luis the whole idea behind prescreening leads is that you don’t even go out to the house until you have a REALLY good reason to. In my case I dont really talk to a seller until I have a really good reason to..

    My leads call my number and then get asked questions to see if there is a remote chance of it working for them

  • John S.

    Sellers always seem to want to prescreen you on the phone and find a reason not to do business with you, how can you overcome that?

  • Anonymous

    I let sellers prescreen me all they want, John. The fact is that if they do not want to do business with me that they don’t have to and I let them know that. If sellers sense you are not confident in what you can do for them or that you do not want to answer their questions the chances of them doing business with you is on the slim side.

    So be confident in what you can offer them and also let them ask all the questions they want. Just be sure to ask them questions as well to control the deal and the situation.

  • Rhunley

    Alex, I pretty much did the same thing with my wife. I hate talking to sellers because I am an analytical guy (engineer) not a salesman. I would love to use your blueprint so that I could get a VA to talk to sellers for me. What website did you get your VA from? My email address is rhunley@comcast.net

  • Thousandhill

    I would be happy to have 50 leads in my pipeline. Only so many hours in the day, and we need to good plan to qualify sellers. I’d love to see the blueprint.
    Judie

  • Anonymous

    Yeah I have come to realize it takes a lot more time to process a lead than you think… the key is to sort through them almost like a deck of cards like… no deal, no deal, no deal, no deal, no deal, DEAL,,, …. and so forth..

    I have pretty much taken the sifting and sorting and even intial offers off of my plate..

  • Hi Alex. So far I’ve been coming across leads one at a time….I haven’t expanded into a solid marketing program to generate leads. That would probably be my next step….if I could only get past the fear!! Looking forward to your blueprint!
    Gail

  • Garrison

    Spending two hours or half a day driving on useless leads will motivate you to adjust.
    Thanks for your info! Great blog.

  • I just went to vote for ya but looks like the competition’s over! Wondering what’s the lowest profit you ever made & if you did it to bless the seller as well.. You know, like “paying it forward?” Thinking more quantity deals may be made that way where it’s truly a mutual blessing. (Well you did ask for a “stirring” comment!=) Also if your VA retires I’d like the job! Okay now, blueprint please? Thanks! RC

  • Luthhog

    I am an investor who is looking to invest up to $5m into a great idea or operating business. I am looking for an equity stake in the company and can be a silent or hands on partner (every opportunity is different). I have unlimited access to print facilities and major distribution networks. I am an owner of a successful business that is still operating and has been for 10 years. I get tons of offers from people with their hands out and horrible ideas. I am looking for a person that has a great idea but might need some cash, experience, business mindset or contacts to get the business off of the ground. Please do not tell me your business idea over the internet. What I need to know is how much money you are looking to receive, how long have you been perusing current idea or business, what you have invested yourself, and what industry your product or service falls into. I understand you cant tell me everything but again I need to be sold. Thank you

    luthhog@gmail.com

  • Missthegirls2much

    Bottom line? The more leads, the greater your chances of landing a sweet deal. I’d love to review your blueprint! Im looking quite forward to this! Thanks for the post.
    @999e005c9584d673ac77ac6c4f72261f:disqus 
    Missthegirls2much@yahoo.cm

  • Philldu

    Hi Alex, I have been investing with private sellers for about 5 months. I have hired my first va to handle a portion of my marketing, I can see the benefits of using va’s to help. I’m about to find someone to handle my incoming seller calls. I put the proverbial cart before the horse and sent 1000 post cards and had a 12% return before having a va. That was a lot of calls to field myself, and yeilded 0 deals….LOL… But it was a good learning experience and I can now see why you set up your business the way you have. I should only be reviewing prescreened deals and going on appointments. I’m hoping that your blueprint will help me hire a great va, thanks. P.S. love your blog!

  • Heather Patterson

    HI Alex!
     Im a brand new real estate investor and Im loving your blog. There seems to be A LOT to understand before one can even get started with wholesaling. I would LOVE to see your flow chart. Can you email it to me?

    chase_patterson@Hotmail.com

  • Online dating is really important..

  •  Online dating is not only for those young but also seniors. Love is sweeter in second time around.

  • Don Benvenuto

    Hi Alex,
    I am new to your blog, ( and new to wholesaling) and I’m really enjoying the articles. I like the way you
    break down the concepts into simple terms that even a new person can relate to and understand.
    I’m a big believer in delegation and time freedom in business, so I would enjoy the flowchart you created
    for your virtual assistant.

    My email is : donb5302@gmail.com

    Thank you!
    Don

  • Sam

    Alex, 

    Great blog post! I am definitely going to be putting some of this into my systems.

    I would like to get your flow chart  sam@auxohomes:disqus .com 

  • baby george

    i have recieved sellers leads using bandit signs and craiglist but to this date no deals processed . i dank need your blueprint
    and flowchart and your recipes to tell me what to do next

    thanks
    george

  • Chris Hake

    Great stuff thanks for the ideas/concepts. Please shot me over a copy of the visual blueprint/flowchart. thnx