Problem SolversPosted on February 27, 2015 by
Over the years I have learned many sales techniques to get the deal done and closed. Although all those techniques have assisted in closing numerous transactions, they are not the reason I close so many deals. The number one contributing factor for my success and many other investors’ success is being the go to problem solver. Whether you are trying to get a property under contract or sell an investment property to an investor you must identify their problem and solve it.
Many investors and wholesalers approach a potential seller of a property and assume that the only thing that is going to matter in their conversation/negotiation is the price. This is a factor but it is usually not the defining factor. For instance, recently a property was under contract for nearly $20,000 below list price. Yes, this was a property on MLS. What was it that separated my offer from all the others? Experience! After having an extensive conversation with the listing agent, I discovered that the previous buyer backed out of the contract because the title was clouded. I asked about the issue and it turned out that it was an heirship issue with about 4-5 generations of siblings. After explaining how I have successfully closed many other transactions with this similar issue she decided it was in her client’s best interest to accept the offer. After I had an executed contract, I explained the process I had gone through in the past to get a similar situation closed. We used a title company that was accustomed to handling these types of transactions and we are now days from closing. While we have not yet closed on the property, I have now become this listing agent’s go to buyer for similar deals, as she has stated that she runs across this situation often. In addition, I explained to her from the beginning that as a buyer we are willing to wait as long as it takes to close. This was important because many buyers move on after only a month or two of waiting for a closing to happen. We are now at 3.5 months with 4 different extensions signed. As long as the value remains the same in the area we are sticking it out until it closes.
When selling to an investor, being a problem solver is the same as overcoming objections. The most common objection when selling an investment property is that there is not enough money to renovate the property. Due to the fact that I always have a project in the pipeline I am always up-to-date on today’s renovation costs. This grants me the luxury of providing a scope of work that has been quoted by quality contractors that have been tested. If a buyer brings this up as an issue, I simply present the bid I have from the contractor to complete the required renovations for the stated price. Problem solved!! Now if the issue is finance related you may have to dig a bit deeper. Once, a buyer said he did not have enough funds to close on an investment we both knew he would normally purchase. I asked why he did not have sufficient funds and he explained that it was tied up with other projects. At this point most people accept the objection and move on. I, however, asked how those projects were going and when were their completion dates. Well, it turned out that the completion date for one of the projects was only a week away. I asked to visit the site to see for myself if this was true and he was more than excited to show me his latest creation. Sure enough the home was nearly finished and punch-out was being completed. I explained that the home I was selling was not scheduled to close for about 2 months because the sellers needed time to move. This was great news because it turned out there were already two offers on his current project closing within a month. He assumed I needed him to close within a week or two as I usually do. In the end he closed his project and three weeks later closed on my deal.
Keep in mind that you may even have the opportunity to solve problems for a seller by advising them on how to potentially keep their home or by saving an investor from purchasing a terrible investment. While this will not put money in your pocket now, it will create plenty of referrals later. Be a problem solver and you will be more successful in both acquiring deals and selling them.