I have a VERY special surprise for you today!
What you’re about to receive here will give you an extremely powerful negotiating tool you’ll want to add to your arsenal. Immediately.
Keep reading to see WHY and HOW to use this tool properly…
Let me ask you a question: Have you ever talked to a seller who’s asking TOO MUCH for their property?
(Gee, that never happens, right?)
Or have you talked with a seller who OWES (for example) $200,000 on their underlying loan, and the property is worth (for example) $250,000, so they THINK that they have $50,000 in equity, so that’s what they think they’re going to get at the closing table? (NOT!)
HOW do we deal with these people? How do we ‘educate’ them to the reality of a realistic real estate transaction.
First, the WRONG way to deal with them is to take an antagonistic approach and just directly tell them something like “No! You’re wrong! Your property isn’t worth that much!” or “Haha! You think you’re going to get that much at closing? Are you really that stupid??”
While it may be ok to THINK those thoughts in your head, you definitely don’t want to say that stuff out loud, or I can practically guarantee you’ll get shown to the door before you can blink.
So what IS the RIGHT way to handle this situation, without
pissing them off? making them angry?
How can we show them the truth about what they’ll realistically walk away from the closing table?
Well, I’ve got you covered! Introducing…
The ‘Cost To Sell’ Worksheet!
WHAT IT IS: This is a TOOL that you’ll use to help a seller recognize – with his/her own eyes – the real numbers that factor into a typical real estate transaction. Used properly, this will help you help the seller come to the shocking reality of how much they can expect to walk away from at closing, AFTER all the typical fees, costs, etc. are factored into the equation.
HOW TO USE: It’s quite simple. The first thing you’ll want to do is download the files I’m providing for you below.
I’ve taken great pain to make them both visually appealing AND highly functional for you. I’ve also included several versions of this form, which are explained below.
Next, you’ll want to open each one up & examine them so that you can get a feel for how they should be used properly.
After that, you’ll want to edit the forms to match YOUR identity – your name, company name, website, and phone number, then save the document or spreadsheet.
Then you’ll print out a few of these and put them in to your ‘Buying’ packs. These are the packs that you should always have available to take with you when you go on an appointment to meet with a seller. The other docs you should have in there are: 2 copies of each of the following: 1. Purchase & Sales Agreement; 2. Lease Purchase Agreement (the one WITHOUT the Table Of Contents); 3. Authorization to Release Information.
When you’re in front of a seller, and the opportunity presents itself, you’ll whip out your handy Cost to Sell Worksheet, and hand it to the seller, saying something like “Mr. Seller, can you help me out with something? Have you ever sold a house before? So I’m sure you’re aware of several factors that influence how much you’ll actually walk away from at closing when you sell a house. Can you help me go through these, so that you can know what to expect from your house at the closing table? Great, thank you…”
“So, as you’ll see here, this is a simple Cost To Sell Worksheet, which will help us figure out what the costs are for a typical, traditional sale of a house. So the first thing we need to start out with is what your asking price for the house is. How much do you think this house is worth again? Ok… Could you please write that down in the right blank at the top of the page there? Thank you….”
“Next, do you remember when you bought this house? Did you just automatically offer the full asking price? Probably not, right? Like most people, you probably asked for a discount, didn’t you? So do you think it’s reasonable that any potential buyer would ask you for a discount, too? We have a national average of about 3%. Do you think that’s a fair number to use? Ok, please write that down there. Do you need a calculator to figure that amount?”
…and keep working through the sheet, all the way down. The KEY here is to get the seller to write down the numbers himself.
The last significant number here is going to be the loan payoff amount.
So have them figure out all the numbers, then subtract the amount that is owed on the house, and BAM!!
That bottom line number will be a slap across the face on a cold day!
Sometimes, the number that is figured is a NEGATIVE number! This means that the seller would have to come out of pocket and PAY in order to sell his house! This is when it gets fun, because you can occasionally get the SELLER to pay YOU to buy his house from him! Think I’m kidding? I’m not. How do I know? Because I’ve personally done this at least 5 times! Would you like the magic words to get this result? Ok, I’ll give them to you. Just show them the shocking negative number and ask them, “So how much would you be willing to pay me to take this property off your hands?”
And then shut up! Let them talk.
Good stuff, right?
Wouldn’t it be awesome if there was an easier, alternative way of doing this? What if you could use an electronic version of this form… maybe even one that would automatically fill in the appropriate values, calculate percentages, and figure out the numbers as they’re typed in? All you would need to do is whip out your smartphone, tablet, or laptop computer, bring up the spreadsheet, and hand it to the seller for THEM to type in the values as YOU direct them. It doesn’t get any better than this!
But gosh, wouldn’t it be awesome if that was available? (shameless hook there, I know)
Well, you’re in luck, my friend. Because I’ve already created that FOR you!
Yes, it’s below. Go get it now (look for the last 2 docs that have ‘AUTO-COMPLETE Formula’ in the title)…
Download/Access Your ‘Cost to Sell’ Worksheet Below:
This will SHOW you an idea of what it should look like & how to run the numbers.
This is for YOUR learning use only.
Cost to Sell Worksheet, (WORD Version)
This is a simple version you can use. You’ll need to use some math here.
Cost to Sell Worksheet, (PDF Version)
In case you wanted to have this, here it is as a pdf.
You’ll need to alter this to match your information first, though.
This is a nice but simple Spreadsheet you can use.
Ok, I heard you! I know you wanted to have a simple, fillable excel spreadsheet that you can use to automatically calculate the amounts FOR you!
That’s what you’ll use THIS one for. Enjoy. And put it to good use.
By now, you should know how much I love using Google Drive. This is a very convenient Google Sheet I’ve set up for your use. It’s the same as the above Excel version.
WHAT TO DO: Be sure you’re logged into your Google (Gmail) account. Click on the link above. When you get to the next page, click on ‘File–>Make a Copy‘ then save it to your Google Drive. YOU WILL NOT BE ABLE TO EDIT THE SPREADSHEET UNLESS YOU FOLLOW THOSE INSTRUCTIONS! But if you make a copy, you’ll be fine. If you even think of ‘requesting access’ to my spreadsheet via Google Drive, I’ll know that you haven’t read these instructions, and I’ll have to pull your card. 🙂
If you want to get fancy or convenient, you can even put this in front of your prospect when you’re at the house – either on your phone, laptop, or tablet.
So there you have it! I hope you have much success using these forms and sheets in your investing business.
***Do not underestimate the POWER of this tool. I’ve used it many times to validate and justify MASSIVE discounts on equity spreads in deals. I highly recommend that you practice using this a few times before you go out and put it in front of a seller’s face. Plain and simple: This spreadsheet will make you more money with less hassle.
You’re welcome. 🙂
Now go out there and MAKE SOME OFFERS!
P.S. UPDATE: If you’ve read this far, I have a SUPER treat for you!
I recently created a powerful new TOOL you can use to easily get to the bottom line, right on the phone, with a seller. It’s a Cost to Sell Net Sheet Script Form, and you can have access to it for FREE, right HERE. Go check that out now!
Have you ever talked to a seller and heard them say something like this…
“I might be interested in that, but I need to see some more information before I do anything.”
“How does that work? I don’t understand. Can you send me something to look at or read?”
“Can you just send me some information?”
If you’ve ever heard a seller tell you something like that, you’re not alone. Many homeowners will say something similar to this when they don’t understand your creative real estate buying proposal.
Why? Because it’s something new. Something different. A departure from the “Normal” way of buying/selling a house.
As I’m sure you already know by now, the real estate industry, led by agents, mortgage brokers, appraisers, etc. has most folks brainwashed to believe that the only way to sell a house is for the buyer to either pay all cash or get a loan.
They’ve been conditioned to believe that selling your house with owner financing or a lease purchase (aka ‘rent to own’) are ‘bad,’ ‘risky,’ ‘confusing,’ ‘not for me,’ etc.
And that’s for people who have at least heard of these concepts. Believe it or not, most people haven’t. They need to be a little ‘educated’ about these strategies first.
So… what to do?
Well, you have a few options. You could:
This is RON’s Script When They Want More Info…
Seller – “Can you send me something in writing?”
You – “There’s nothing I can put into writing until we have an agreement and we can’t agree until I see the house and we come to terms. When I visit the house I’ll bring an agreement and answer your questions and then if it’s a go I’ll know what to put in the paperwork. All I need to know now to set an appointment is your confirmation you will consider……. (a lease purchase) – (taking payments for your equity).
Should I come look?”
BUT… Before we go any further, I MUST say this:If you’re getting this type of reaction from a seller, it probably means that they’re just not motivated enough to entertain a solution like what you’re proposing OR you just really haven’t done a good job presenting your solution.
Sorry. Just being real.
But it doesn’t mean that they wouldn’t be open to selling their house with a creative solution. It just means that you’re going to need to work a bit harder through your follow up methods.
The NEXT thing I have to say is that the solution you’re about to learn here is NOT for people who ARE motivated, flexible, and ready to do business. For those people, you should definitely get yourself out to meet them at the house and negotiate a deal!
…Unless that’s just not possible because they’re either out of town or you’re working a market virtually.
Ok! Enough talk. Ready for the Solution??
For those times that a seller just tries to blow you off and ‘request more information,’ here’s what you do IF YOU FEEL IT’S WORTH IT:
1. Send them a simple package. 2. Set an appointment to follow up with them on the phone.3. Use the package you sent as a CONVERSATION STARTER!
What’s In The Package?
Keep it simple. Don’t stress yourself.
Just send a simple package that has:
1. A simple cover letter that thanks them for their time, acknowledges that you may have a solution/proposal that might seem a bit “different,” but is quite real & legitimate.
2. 2-3 offer examples of how you can buy their house.These offers, also called a “Letter of Intent with Multiple Offers” can include: a. An all-cash offer (you don’t have to put in a number, but you’d definitely want to say that it would have to be a low number because it’s an investment) b. An owner-financing offer. c. A Lease Purchase offer.
Make sure you add the benefits for each offer type.
If you have any testimonials, you’ll definitely want to add those.
Close your package by saying that these are some of the more typical offers you can make, but if they have any questions, thoughts, or suggestions, to give you a call or email you.
This entire package can either be emailed to the seller or mailed out to them. Be sure to get both their email and physical address.
The next KEY for success: FOLLOWING UP!
Remember: The Fortune is in the Follow-up!So you’ll want to set up an appointment to follow up on the package you send out. This could be in a day, a week, or a month. You’ll need to gauge this from person to person.
Obviously, you’d want to set up an appointment for a time soon if there’s some motivation & flexibility. If they’re just trying to blow you off or are the typical “I’ll just sell it when the perfect Jesus-like buyer comes along,” then you could tell them that you’ll just give them a call in a few weeks to see how things are going and answer any questions they might have about the information you’re sending them.
So Here’s the Deal:
I’ll be super-nice & give you an example of what an initial 3-Option Letter of Intent looks like (below), but I’m NOT going to write this full package for you. Sorry. It’s enough that I’m giving you this advice on what to do for this situation because it’s beyond the scope of this mentoring program.
In fact, I don’t think that Ron really wants you to do this.
So this advice is on me. These are my ideas & suggestions.
What does Ron want you to do? Only deal with the low-hanging fruit. Only meet up with sellers who are ready to go and/or only send contracts that have been filled out to these sellers.
But finding those motivated sellers who are ready to go NOW (the low-hanging fruit) is getting harder and harder these days…and in this market. There seem to be more sellers who MIGHT want to do business with us, but just need a bit more info, time, and follow-up.
Sending them SOMETHING rather than nothing might just mean the difference between success and failure for a lot of investors.
Remember – most people will do business with you AFTER the 5th or 6th “touch.”
Ok, so here’s what to do next…
Like Ron, I don’t want you to waste your time. I want you to create & develop a simple system that works for you to follow up with these people.
So for those times when you may get stuck, but think you’d like to keep things moving, I’m going to suggest that you create a simple package and make it your standard TEMPLATE to send out to these sellers.
You’ll occasionally need to tweak a tiny bit, but I also suggest that you set it up so that it works for a wide variety of people.
However! Make absolutely SURE that you do ONE thing that’s essential for every “Package” you send out:
Make sure that the each individual seller’s name & property address appears on the cover page that you send out. That’s a requirement.
Everything else after that can be pretty much standard.
So that’s pretty much it!
I hope this helps you with your investing, makes you a TON of money, and gets you a LOT more deals!
It will – if you use this tactic.
So now you’ll feel more confident when a seller tries to blow you off or request more information.
Oh – and one more thing… You get to say that you’ve made an offer in your Weekly Report for every package you send out! 🙂
Now Get to Work!
P.S. Ok, I couldn’t help myself. Here’s an example LOI you can use as a template for yourself below….
IMPORTANT DISCLAIMER NOTE: Ron doesn’t like to use these LOIs, so please know that this package is being provided by me as an additional option and resource for you to use. Please disregard this package if you wish to stick to the program as it’s designed.
Here’s an example of a decent Letter of Intent to Purchase real estate. This can be sent to SUSPECTS/Sellers you’re NOT going to meet soon.
Use this as A MODEL for crafting your own letter. You don’t have to name a downpayment.Keep this as simple as possible. Remember: This is a TOOL that is to be used to keep things going, educate the seller on other possibilities, and to START ANOTHER CONVERSATION with them later.FOLLOW UP IS THE BIG KEY HERE!!!
Date: TODAY’S DATE
Name: <<SELLER’S NAME>> Address: <<PROPERTY ADDRESS>><<CITY, STATE, ZIP>>
Thank you for the opportunity to review and consider your property. Based on the information that you shared with me and what I was able to gather on my own from the local market conditions, I am prepared to purchase your property in one of the following ways:
Purchase Price: $52,500.00, All Cash. Close within 30 days.
Purchase Price: $82,500.00 Down Payment: $2,475.00 (OPTIONAL! YOU COULD JUST LEAVE THIS PART BLANK)
Terms for Remaining Balance: Seller to carry back balance @ 3% APR. Interest-Only monthly payments of $200 with full balance of $80,025.00 due in 10 years.
Purchase Price: $92,500.00 Down Payment: $ 4,625.00 (OPTIONAL! YOU COULD JUST LEAVE THIS PART BLANK)
Terms for Remaining Balance: 300 monthly payments of $ 292.92.
To close in 14 days or less, all we need to confirm is the current status of any encumbrances and repairs. Please let me know which of the offers above looks best to you.
Seller(s) Acceptance: ___________________________________________________________
Seller(s) Acceptance: ___________________________________________________________
Upon acceptance, or if you have any questions, Call YOUR NAME (OR Your Company Name) at YOUR PHONE #
UPDATE!! Ok, due to popular demand and lots of arm-twisting, I’ve changed my mind and made Another, More Complete sample Letter Of Intent Package for you to use as an option.
Use the link below to get access, and Be Sure To Read The Full Instructions!
Letter Of Intent To Purchase Package (access via Google Docs):
Here is a handy list of websites to use when searching for
For Sale By Owner listings!
In this Post, I have a PHENOMENAL set of resources to share with you. Here, you’ll have a TON of places you can quickly go to find all the For Sale By Owner houses you can handle. I’m also giving you some great Pro Tips you can use to get you going FAST.
One of the things I always advocate for my students is for you to start off by gathering all the leads of FSBO houses you can for FREE or for CHEAP. Use these to practice and develop the essential skills you need in this business. Take the profits from the first deal(s) you do to begin to pay for the tools that will make your life easier. And invest in the marketing to help you scale your business up. In other words, I suggest that you bootstrap your business – have it pay for itself so that you can grow as it does. This will help you avoid throwing good money after bad at things & wondering where all your money went. Just trying to look out for you. Sound good? Ok…
Here’s How to Use all This Info:
First, you’ll check out the list of websites I provide for you below.
You’ll want to open up the Lead Tracking Spreadsheet to stay organized & track all the leads you gather here.
If you have a VA, you can forward these FSBO house leads to your VA for them to contact.
If you don’t have a VA, or if you want to get a JUMP-START on things, then you’ll want to open the PI Lead Script in another tab in your browser and be ready to contact the homeowners of the houses you’ll easily find on this list.
If they look decent, you’ll conduct a Closing Call and seek to make an appointment to go buy their house. If not, you can either “Whack ’em” or follow up later (sending materials/offers is optional).
Ok, are you ready for the list? Great! Here we go…
THIS LIST WAS RECENTLY UPDATED AS OF OCTOBER 2019!
Old, outdated sites were removed/replaced.
The List of FSBO Websites:
That list should keep you busy for a while. Remember to use the proper search features that most of the websites on this list have.
Target the area, the number of bedrooms & bathrooms, and you can play around with the price ranges if you like.
We’re looking for at least 3+ bedrooms & 2+ bathrooms… and I suggest at least 1,000 square feet.
Be sure to TRACK your leads somehow. I suggest just using the Lead Tracking Sheet I provide.
Good luck & have fun!
PRO TIP: Ok, you COULD work yourself silly & go to all those sites to manually search for everything…OR you could take a shortcut…
Wait…What If There Was An EASIER Way?
There is! And here’s your shortcut (use this): https://yourrealestatecourse.com/secret
That site will hand-feed you leads every single day.
AND you’ll be able to go back as far as 3 months to find all the possible FSBO leads in your chosen area.
AND you can target the specifics of what you’re looking for (beds, baths, sq. ft., price, etc.)
AND there’s a FREE 14 Day Trial just to check it out.
So why are you still reading this? Go to this link now & get started!
PRO TIP: I Can’t Resist sharing the Good Stuff with you! So here’s another KILLER TIP I have for you…
Be sure to take a look at the FOR RENT listings on sites. And when you’re driving around.
Why rentals? Because many times, these people would rather SELL their house, but they just haven’t been able to do so yet for whatever reason. PLUS, they’re not living in the house, so they’re not as inclined to be as emotionally attached or have the same circumstances as most home sellers.
These could be the perfect fit for them to sell on terms. Or Lease Purchase the property to you.
With that in mind, I have another GREAT RESOURCE to find these rentals automatically every day!
Click HERE to go to another Secret Site for For RENT By Owner listings!
And with that, you now have more than enough to keep you busy and have your machine fed for a WHILE.
Go check these resources out, and let’s do some deals!