Hello! Today’s “Ask Tony” segment comes from B.S. from IL (he requested to be anonymous).
And B.S. (his real initials) wants to know…
I hope all is well with your family.
My question is about an overview of the process after we get a contract signed. Is there something already in place that I’m not seeing, or just not able to put together myself?
The reason for my question is to be FULLY prepared to understand the step by step procedure.
I’m not looking for every little detail, but like I said “an overview of the process for buying. So, from the time I get the contract signed…..etc?
Now for the answer…
Hello & thank you for your question, B.!
I’m happy to give you the answer here, and I’m glad you asked, because I’m sure there are a lot of people who would like to know this as well.
As I referred to in my powerful training article, “The Five Steps of How We Buy Houses,” there are obviously 5 steps to doing what we do, whether it’s buying OR selling a house. They’re more than adequately covered in that article, so no need to cover them again here.
So today, I’m going to show you exactly what to do in this process in more detail. It goes a little something like this…
After you have a preliminary negotiation with the seller (usually done on the phone, before going out to see them at the house but there are exceptions), you’ll make an appointment to physically see the house and do your more aggressive negotiations in person.
If you’re not able to go out and actually meet with them at the house, you can tour the house virtually.
Reasons you might not be able to see the house or meet with the seller in person:
Before you go meet with them…
Here’s a little checklist to make sure you’re not going to waste your time:
Make SURE that when you go to the house, you bring the THREE ESSENTIAL Documents with you:
All of these are easily able to be found, along with full instructions on how to use them (and share with me for help) by going to this page:
Contracts For Buying Houses. (Opens in a new window)
When you go out to the house, you’ll want to dress sharp & be professional, yet still be easy to talk to and deal with.
Greet them by name & introduce yourself, then ask if you can come in. Take control of the situation!
Take a quick tour of the house. Don’t dwell on things. You should know very quickly whether you want to move forward or not.
After the tour, you’ll sit down and begin to negotiate. I’ll write more details about this soon.
Your goal is to first agree orally, then GET THE HOUSE UNDER CONTRACT!! Yes, in writing. This is what the contracts are used for.
Just like a master craftsman uses the appropriate tools, our tools are our contracts. We get them signed by using our skills: Negotiation, communication, sales, etc.
Wake Up & Pay Attention, Here’s Where I Deliver The Goods…
Now, after you get the house under contract, you’ll shake their hand and set the next steps with them, then get the heck out of there.
Once you’re safely in your car, you can scream “YES!” as loud as you like and do your happy dance! It’s required.
You might want to take a few flattering pictures of the house and the neighborhood to use in your marketing while you’re there. And put up a few signs if you have them and have permission to do so.
After you get back to your home or office, you’ll want to contact your real estate attorney/closing agent/title or escrow company. Tell them about the deal, scan and send a copy of your signed documents, and TELL THEM TO CHECK THE TITLE. Note that checking the title is almost always one of the first things we do after getting a property under contract. This is part of doing your due diligence.
Good News!: The closing agent (attorney) will be the one to prepare all the rest of the documents, including the deed, the note/deed of trust/mortgage, and everything else you need. YOU only need to bring the docs we’ve already discussed here. The professionals take care of the rest, so you don’t have to worry about that crap. How cool is that?
Want another Checklist? Fine… Here You Go…
Checklist For Getting A Property Under Contract:
…And there you have it: Exactly what to do after you get a property under contract!!
Now you know, and I believe that this (more than) answers your question, B.
And for everyone else, I hope this helps to fill in the gaps of your knowledge, so that you can have a better big-picture view of what to do!
Thanks for reading, and have a great day!
In this article, we’re going to discuss something VERY important for you to know when it comes to making offers. Once you grasp the EASY strategy here, you’ll be able to make offers just about anytime, anywhere…without facing or feeling rejection or any negative feelings most other people often associate with this part of the business. In fact, I’m going to do like I always do – make this simple, easy, and FUN to use. Best of all, you’ll be able to put this to use right away, starting TODAY if you like!
Ready? Let’s go…
Are You Scared to Make Offers?
Let’s face it – When we’re asked how many offers have we made lately, we feel ashamed, because many people just DON’T make offers. And that’s why they often struggle or don’t succeed at first. And as you should know by now, “If you ain’t makin’ offers, you ain’t makin’ money!” That’s what one of my early mentors taught me.
But why be scared? It’s actually really easy… once you really know how to do it the right way.
The OLD Way of Making Offers:
Before we get to the right way that we make offers now, let’s take a quick trip down Memory Lane…
Making offers used to be kinda hard. Especially for ugly houses. Many investors would go to the house themselves to personally inspect it. They’d take their tape measure, note pads, materials estimation lists, etc. Then they’d go get 3 estimates for repairs from different contractors (often a good idea – but not in the early stages of making an offer!).
Then they’d crunch their numbers, double check the formula, make sure all the “i”s were dotted & “t”s were crossed, and work out an exact, specific number to offer.
By the time they were finally ready to think about making an offer, another investor had already come along and scooped up the deal because that first investor took too long! Classic definition of ‘you snooze, you lose,’ right?
Plus, I think we can agree that this is an awful lot of work to do just to make an offer, right?
Surely there has to be a better way! (Don’t call me Shirley)
The New/Right Way to Make Offers
Thanks to a some relatively new understanding and breakthroughs in sales & psychology, we have practically perfected some amazing new ways of making offers to sellers… or buyers… or private lenders. Or anyone, actually! This “New Way” of making offers is a LOT easier & more fun. Plus – let me remind you of my original promise – it’s a lot more fun, too!
The way I like to think of it is if you divided this “New” way into TWO parts.
And the FIRST part sets up the SECOND part…
1. The “Soft” Offer
A SOFT Offer introduces an idea or Concept to the prospect to see if they like it.
It’s a simple way to prepare them for the next type of offer (below).
As I wrote in the article, “Baby Steps to Success,” we don’t always want to just jump right in to making an offer with many sellers or prospects. It really depends on a few things, such as how much rapport you have with them, what stage they are in the sales process, and your own individual skill, experience, and confidence levels.
Just like going on a date, it’s often better to find out what they want, then give them a TASTE of what you’re offering, gauge their understanding and interest levels, and proceed accordingly.
For example, if you’re talking with a seller, and you find out that they’re selling their beautiful $1.2 Million dollar house because they want to downsize & move to Costa Rica to retire, you wouldn’t just jump in and say, “I’ll pay you $400,000, cash, close in 21 days. Take it or leave it!”
That would be like going on a first date & telling them that you want to get married & have 3 kids…and you’d like to start tonight!“
No, rather than trying to shove your offer down their throat, you’d be much better off by first taking a couple of minutes to find out what’s important to them, and what they want out of the situation. We like to call this finding out their “needs & greeds.”
After that, we look to find out what they’d be open to doing by presenting them with a CONCEPT of what we can do for them, along with a couple of benefits that fit their needs.
Here’s an example. Let’s use that same scenario of the $1.2 M house where they want to retire in Costa Rica (nice!)…
Suppose you said something like this, “Since you’re moving to another country, it sounds like you’ll probably want to have some cash flow coming in so you don’t have to worry about your living expenses there, right? What if there was a way that you could get some great monthly income from this house for a while, and then get a big, fat check some time after that? Is that something that might work for you?”
Here’s another, more common way of basically saying the same thing, but in a way you’ll probably use yourself for a long time. This is a great way to introduce the IDEA/CONCEPT of a seller taking TERMS for a while:
“What if there was a way we could buy your house at a price that works for both of us, close whenever it’s convenient for you, and make this a really easy transaction so you can move on with your life & not have to worry about this house any more. Would that work for you?”
When they say yes, you continue by saying, “Well, we can definitely do that! The only thing we would need to know is if you could take payments on your house for a little while until we’re able to get you fully cashed out. Is that something we could discuss?”
Boom! Do you see how that introduces the foundation CONCEPTS of the main things we can do for them on a terms deal?
This is a simple example of making a SOFT OFFER. Remember that a Soft Offer is where we make an offer by presenting a simple CONCEPT or IDEA of what we can do, then listen to their reaction/answer, and go from there.
How Did They React To Your “Soft” Offer?
After you present your simple concept (another ‘baby step’ in the right direction), you’ll need to LISTEN to how they react and go from there. If they do NOT like that idea, no problem! Just present them with another idea or concept and do the same thing. If you run out of ideas and they don’t like anything, they’re probably not motivated and this most likely isn’t a good fit for them at this time… Which is fine! In fact, MOST sellers you talk to will probably fit in this category.
But here’s the GOOD news! You’ll find out EARLY. You won’t be wasting your time. You won’t be begging, or trying to ‘convince’ anyone of anything! You’re simply presenting an idea and seeing if it will work for them or not.
Another way of putting it: You’re giving them a ‘taste’ of your cooking and seeing if they like it. If they don’t, offer them something else until you find something they like or it’s determined that they just don’t like your cooking.
NOW, if they DO like what you have to say, then you’ll continue to work your way towards…
2. The “Hard” Offer:
A “Hard” offer is one where numbers and timelines are named. This is where the rubber meets the road. This part can be frustrating for some – until they master the art of doing it the right way.
For the sake of comparison, let’s go back to the ‘Old’ way of doing it for a moment. This is where YOU have to do all the heavy lifting of crunching numbers and present them to the seller for their consideration and approval. Then hope that they either accept or counter to continue the game. We’ve already been through the pain of that, and how this is probably the wrong approach to take for the right prospect.
Of course, if this prospect is NOT ready to do business, there’s nothing wrong with throwing out 2-3 offer scenarios for them to consider, then follow up with them later.
Now let’s look at the NEW way of making an offer to the right prospect. Once we’ve introduced the SOFT offer (concept of terms, for example), we now move to working on negotiating a HARD offer, where we start to work out the numbers of buying their house.
What are the ‘numbers’ we use? It’s simple. As I wrote in my other article, “The 5 Points of Negotiating a Terms Deal,” we’re going to look at:
How We Negotiate a Killer Deal
Now that we have the WHAT out of the way, let’s look at HOW we do it…
The simple idea is that we want the SELLER (Prospect) to make US the offer! How? By ASKING! We simply ASK them what they’d accept, and we present it in a way that works best and easiest for us. I’ve found that the best way of doing that is to present the questions in a way that gives the prospect the maximum benefit for them for the best price for us.
For example, when it comes to Purchase Price, you could ask this (pay close attention here)…
“So, if we could buy your house as-is, close whenever you like, and make this a really easy transaction for you, what’s the least you could accept for your house?”
Do you see how that works? We give them 2-3 benefits, then ask the question so that we get THEM to name the lowest price!
Just make sure the next question you ask them after they answer you is, “Is that the best you can do?” 🙂
The Easiest Way to Buy Houses With NOTHING Down
Immediately after asking that question, you’ll want to move on to the down payment. Let me share my KILLER way of asking the magic ‘nothing down’ question. This just WORKS – almost every time. Check this out…
“Ok, well, if we’re going to pay you a high price like that, we usually buy for nothing down. Ok?”
The KEY here is to ask that question with a vocal tonality of… you just expect them to agree & say “ok.”
I believe I’ve already covered the rest of the questions in that other “5 Points” article, so if you want more, just check that out.
A Killer Tool To Use For This
Remember that you already have access to my “Closing Call” Script & Form to use whenever you like (as long as you’re logged in to the site, of course). That’s a POWERFUL way of using exactly what we’re talking about here.
PRO TIP: Use that tool for your first 10-20 live seller prospects (and to submit your closing call leads to me for joint evaluation). It shouldn’t take you long to get comfortable with this process. THIS is a killer short-cut you can take now to help you get early success in this business.
Another Killer Tool To Use
So now that we have the NEW way of making a Hard Offer understood, let me share something else with you. This part is optional, but you’ll definitely want to check it out.
As we’ve already discussed, we want to use the techniques discussed in this article here for TRUE prospects – the ones with whom we may be able to do business TODAY. If you’ve read my article “The Art of Prescreening,” you remember that we have THREE types of sellers: Suspects, Prospects,andProjects. If you’re dealing with a true Prospect or Project, you’ll definitely want to use the techniques discussed right here. However, if you’re dealing with a Suspect – someone who’s NOT ready to do business today or any time soon (the ones that want full price, all cash now), you have absolutely nothing to lose by still getting something in front of them and making a few “test” offers. You’d then follow up with these people later on to see if time & circumstance have changed their minds yet. And you’d be surprised how often they do!
For those people, what if there was a way you could get them some powerful information that will help give you ‘another turn at bat’ for when you follow up later? What if you could give them not ONE, but THREE offers for them to consider? Do you think that might help open the doors for you to possibly do business with more people? Your answer should definitely be ‘Yes!’
So, if that sounds good to you & you’d like more information on this killer tool that I’ve personally developed, feel free to check that out by clicking on this link:
Wrapping This Up
Now you know the two types of offers that will help make your real estate business life a LOT easier:
Soft Offers to set up Hard Offers. Step One sets up Step Two. That’s why I used the picture of the footsteps for this article. Remember to use the idea of introducing a CONCEPT to your prospect, then see how they react to that, and act accordingly. If they don’t like it, move on. If they do like it, continue in that direction.
And if they DO like it, then you do the best you can to transition from the Soft Offer to the Hard Offer, where you negotiate the numbers of the deal.
Finally, we use the idea of ASKING the prospect to name the numbers so that THEY make US the offer. This makes OUR job a LOT easier – and a LOT more FUN! (Promise made – promise kept)
Hey, I’m giving you the main ingredient of my ‘secret sauce’ recipe here, so please give it the consideration it deserves. 🙂
If you’ve read all the way to here, you should have ideas bouncing around in your head right now! That’s a beautiful thing.
NEW Feature: I’m opening up these articles to let YOU share your thoughts & ideas right here! Look below – there should be a place for you to share your feedback on this article. What do you think? What was the biggest idea or takeaway you got from reading this article? HOW will you put what you’ve learned here into place? How many more offers do you think this will help YOU make? Share below! Thanks for reading, and I truly look forward to hearing from you on how these techniques work for you because of all the easy offers you’ll now be able to make!
Until Next Time, Here’s To YOUR Success!
–>Be Sure to ‘Leave a Comment’ Below!<–
So you’re a new investor. Congratulations! One of the essential TOOLS you’ll need to quickly master in this business is the PAPERWORK you’ll use to control and leverage real estate. As they say, “You’re only as good as the CONTRACTS you use!”
Well, the good news is that we’ve got some great contracts. They’re powerfully written in your favor. Not only that, we’ve done all we can to make them as simple as possible – for both you and the people with whom you’ll be doing business (sellers, etc.).
Read this quick report to understand WHAT agreement you’ll need to use WHEN. I’ve written this so that it’s as simple & easy to learn and use as possible.
There are really only TWO situations for which you’ll need to be prepared:
1. When you’re BUYING a house;
2. When you’re going to LEASE PURCHASE a house.
With that in mind, there are only THREE documents you’ll need:
1. A Purchase & Sales Agreement (for when you’re BUYING)
–>How To Be Prepared For Anything (What To Do):<–
This way, you’re ready to buy OR fall back to a lease purchase!
Where to Get These Documents:
–You may get all these docs as PDF Files when you Click HERE (Should be logged into your Google/Gmail account)
Or get the FULL INSTRUCTIONS, DOCS, and everything you need Here:
Contracts For BUYING Page
THE REST OF THE DOCUMENTS WILL BE PREPARED BY YOUR TITLE COMPANY OR REAL ESTATE ATTORNEY!!
This is what we’ve found to be the absolute simplest solution. You focus on doing what you need to be doing: Finding & negotiating deals.
Let the other professionals who will be working for you do their jobs.
After you get your agreements signed, you’ll send them to the title company for them to check the title and begin processing your deal.
That’s it! Hope this helps.
Good luck & good fortune!
For Today’s Tip, you’re going to learn a really simple yet powerful strategy for influencing people.
Used correctly, this ‘secret strategy’ will help you set more appointments, get faster decisions out of people, and avoid a ton of frustration & headaches…while keeping things moving in your life and business.
Ready? Let’s Go…
If you’ve ever done anything in sales, you’ll probably recognize this technique. It’s called the “Choice of Two” close.
You can use this in just about any situation where you need someone to make a decision for everyone’s benefit.
It basically works like this:
You simply give your prospect a choice of two options to choose from for making a decision.
For example, let’s say that you’re ready to make an appointment to go meet a seller at the house they’re selling…
Most people usually like to ask something like “When can we meet?”
But if you do that, there’s no telling what kind of reply you’ll get.
They might just say something like, “Oooohhhh… I don’t know… when’s good for you?” or “Next week.”
And that’s just very, very WEAK!!
A MUCH better way to handle it would be like this:
“Mr. Seller, let’s go ahead & set up a time when I can come out to the house, meet with you, take a look around, and get things worked out between us so that I can buy your house!
Now, today is Monday…I can either come out later today, or would tomorrow be better for you?”
Do you see how professional, authoritative, and still respectful that is?
You’re taking charge of the situation, yet still helping them to feel like it’s their decision to make!
From a psychological standpoint, this is HUGE.
The next part of this is to continue doing it until you have something definite nailed down.
Continuing this example, let’s say the prospect replied with “Tomorrow would be fine.”
Then you would say, “Great! Now, would your prefer to meet in the morning or the afternoon?
They say, “Afternoon sounds better”
You say, “No problem. I have either 2:00 or 5:00. Which fits your schedule?”
They say, “I think 5:00 is good.”
You say, “Perfect! I’ll be there by 5:00 tomorrow afternoon, ok?”
They say, “Ok!”
And you have an appointment set.
As I mentioned, this is very simple…yet powerful.
Another beautiful aspect of this technique is that it establishes YOU as the authority, and that raises your status in the interaction.
Something very important to know is that in sales, status is everything! If you have low status, you’re not going to sell anything. You’re just not going to have any success at all, because people will be looking down on you – sometimes with pity. If you’re coming across as begging or supplicating in any way, you’re done before you’ve even begun!
So you’ve got to be the professional. You’ve got to take control of the situation and guide people through the process.
Even when you don’t really know what you’re doing. Yes, you may have to “fake it ’till you make it” for a little while!
But guess what? The more you do that, the more something truly interesting happens…
Your confidence will grow. You’ll feel better about yourself. And more people will treat you with the respect you deserve.
So it won’t be long before you don’t have to ‘fake it’ anymore!
Excellent! Let’s continue with another example…
Imagine that you’re talking with a seller about which way you can do business – either rent with a lease purchase or buy with owner financing.
They’ve been going on a while about this or that, and you feel like they’re about to just give up because they’re so confused.
So you can ask them a choice of two close question, such as this…
“Mr. Seller, let me ask you something. Would you rather I rent your house out from you or just buy it?”
Many times, they’ll come back with, “Well, I’d rather just sell it!”
So you’d reply with, “Great, because I’d rather buy it!” Then you continue the discussion based on buying with owner financing, and go from there.
Another Powerful Benefit
Another very important and powerful reason why this works so well is this:
The more you give them a simple choice of two to choose from, they’ll be so focused on making a choice, they’ll totally lose sight of the fact that they don’t have to choose either one of them in the first place! They’ll often fail to realize that one of their choices is to not do business at all…because that choice is not on the menu!
Want an example of how to use this in your personal life? Ok, I’ve got you covered.
Let’s say you want to take your spouse, child, or even a friend out for dinner. Most people might ask something like, “What do you feel like eating for dinner tonight?”
How often does someone actually come back with a prepared response? VERY rarely, right?
So then what happens? They’ll say, “Oh, I don’t care. What do you want?”
And away we go…and not in a good way!
So rather than do that, why not just take control of the situation by asking this instead:
“Hey, would you like Chinese or Italian for dinner tonight?”
Your dinner companion will usually either pick one of those or possibly propose something different…which is fine, because you avoided the dance of indecision.
And you won’t go hungry. 🙂
More Examples of WHEN To Use This Strategy
Here’s a few more examples of when you can offer a choice of two options:
As you can see, the “Either…or” concept or language pattern is such a great and simple strategy to use for so many things. You’re only truly limited by your imagination.
So this concludes Today’s Tip! What did you think about this? Can you see yourself using this simple strategy for both business and your personal life? Can you see how this will help you avoid indecision on the part of other people, and help keep things moving forward a lot easier?
I can tell you from personal experience that this WORKS. Not only that, but it’s FUN!
So now it’s YOUR turn. Give this a go & let me know your success.
Last Tip: Practice and USE this EVERY DAY, and you’ll be an extremely effective (and pleasant) persuader & influencer!
In closing, let me ask you a question: Since you ARE going to use this strategy, would you rather start practicing TODAY… or would TOMORROW be better for you? 😉
Until Next Time,
All Rights Reserved | Copyright 2018 Tony Pearl | YourRealEstateCourse.com
Today, you’re going to learn something SO important and powerful, so make sure you pay close attention…
One of the biggest challenges a lot of students or new investors face is how to build their dream teams. And one of the most CRUCIAL members of a real estate dream team is the right Real Estate Attorney or Title Company!
Let’s face it, if you don’t have the right legal representation on your side to help not only watch your back but also help you get your deals done properly, you’re screwed! But if you DO have the right one(s) on your side, you’re going to make a lot of money a LOT easier.
I thought this point was so important that I took the time to make a full TUTORIAL VIDEO for you!
Not only that, but I used a Mind Map to create it.
And you’re going to get it right now! Here you go…
Here’s a link to the Mind Map I used:
Watch this video! Take notes. Enjoy…and TAKE ACTION on what you learn here.
The RIGHT Real Estate Attorney (or Title Company) will MAKE your business.
The WRONG on will BREAK your business.
Ask me how I know this! 🙂
When It’s Time to Involve an Attorney:
It’s recommended that every deal should be closed with a real estate closing attorney – especially the ones that you’re staying in, because you’ll have an ongoing relationship with the seller…or the buyer.
So with all that in mind… why not use one?
When Specifically Do You Bring Them In?
When you’re Buying:
Lease Option: Right after you get the property under agreement, have them check the title.
When you’re ready to close the buyer.
Owner Financing or Option Deal: First, order the title to be checked immediately after getting the P&S Agreement (or the Option Agreement) signed.
ACTS: When you’ve found your buyer and are ready to do your simultaneous closing.
When You’re Selling:
Sandwich Lease or ACTS: Send your completed lease option agreement with the buyer & the signed agreement with the seller to them.
Option: Send the P&S Agreement from the buyer & Option agreement from the seller right after the buyer has given their deposit.
Pro TIP: Either Before or right as you’re closing your first deal, your attorney should look over your agreements & add any documents or make any minor alterations the feel are needed. Be patient, but insist on pushing through the deals in the way you want to do them. Remember that THEY work for YOU, but are there to help protect you AS you get your deals closed.
Summary: Simple Questions to Ask:
“Are you a real estate closing law firm?” (If yes, continue)
“I sometimes buy properties subject to the debt. Sometimes, I buy them with owner financing. And I usually lease purchase them to tenant buyers. I’ll need an attorney to close all these transactions. Will that be a problem for your firm?”
If it’s a problem, find someone else.
If it’s not a problem, keep it moving with them. 🙂
BONUS! I just found this great video created by Ron LeGrand. This will nicely supplement what I’ve taught you here:
Thanks for watching & reading.
I hope this helps!
How to Get Help With the Contracts & Paperwork
Are you scared to death of filling out contracts?
Not sure what to put where?
Or maybe you just want to make sure you’re doing it correctly?
Hey, it’s ok… We’ve all been there!
And that’s why I’m here – to help you out and make sure you’re filling things out correctly.
Because if you don’t, you’ll go to jail, someone will come in the night & burn your house down, and the boogeyman will personally come get you! Just kidding! But seriously…
Here’s how to collaborate with me on your contracts:
Here’s What to do Now:
Hope that all makes sense.
Listen, I know that all of this might seem difficult (for some more than others), but this is the BEST way I’ve found to collaborate on contracts with my students. The old way: You download, print out, and write everything on the contract, then scan or take a picture & email to me. Who has time for all that?
Doing it this way is only hard to do it the first time… Like most things in business (or life).
Thanks for your cooperation. Let’s Make It Happen!!
Reminder: Under ‘People’, type in my email address: [email protected], then click ‘Done’