Blitz Sales
Module 5 -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ Blitz Selling Selling A Lot Of Deals Fast -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐
Blitz Wholesaling System, Module 5 | by Rob Swanson
Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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DISCLAIMER This publication is indented to provide accurate and authoritative information with regard to the subject matter covered. The Blitz Wholesaling System is not legal advice and nothing herein should be taken as legal, tax or any professional advice. Neither the publisher, trainers, employees, owners, contractors, distributors, affiliates, nor anyone associated with this publication and/or presentation are offering legal, tax nor any professional advice or advice requiring a license. You must seek the professional council of your legal and/or tax advisor and/or the professional services of someone duly licensed to provide such advice. This information product is intended for instructional purposes only. Every effort has been made to reflect the applicable laws as of the date of the publication of this book. However, this is a dynamic field of endeavor in which new laws are enacted; old laws are revised and/or reinterpreted on a continuing basis and where statutes, rulings and case laws are constantly changing. Purchasers are advised to proceed with the techniques described herein with caution. The author, printers, licensees nor distributors make no warrantees, express or implied about the merchantability or fitness for any particular use of this product. All rights are reserved under State and Federal Copyright Law. No part of this product may be reprinted, reproduced, paraphrased or quoted in whole or in part by any means without the express written permission of the publisher and author.
Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
http://www.reiEducationProducts.com
NOTE: Before you get started, I want you to know that I’ve added 5 minutes markers for you throughout this module transcription. Each 5 minute marker, which you will see once you start reading below, is denoted by [xx:xx] and represents the location of the training on the corresponding module .MP3 audio or video training which is available online. That way, if you have a question or aren’t exactly sure what I’m teaching in a certain segment just by reading this module, you can go to either the .MP3 audio or video training and you’ll know where to look for the live training demonstration. I did this to help you so hopefully you think this is really great and very helpful.
Module 5 Blitz Sales: Non-‐techy Kick-‐butt Selling Strategies That ALWAYS Work Hey everybody it is Rob and I am back here with…another module in the Blitz Wholesaling system. This is module number 5 and today we’re going to be going through Blitz Selling. Now what you’re going to like about this particular module is that we get back to the basics. This is all about, the entire Blitz Wholesaling system is all about just getting results. See I’m not here to try to…impress you with a whole bunch of new technology and all sorts of s…you know, crazy stuff and websites and all-‐ You know, what I want to do is I want to just give you in the real world what flat out gets results. And the key here is you’ve got to find buyers that want to buy the houses that you have. And if you followed…the Blitz Wholesaling system…Blitz acquisitions, you know that you’re going after properties in area where there are plenty of cash buyers. You already know that. So the key here is to just match the two up, mesh it up, make the connection. And so I’m going to be going through the Blitz selling system. We’re going to be covering…the best, easiest, fastest ways to find cash buyers and build a buyers list. I’m going to show you some of my simple…system things that you can put in place to help your business grow without you having to do a bunch of extra work. I’m going to…teach you and share with you my negotiating and closing strategies on how to get buyers to actually buy your houses. And finally I’m going to take you through the entire transaction process of actually getting a deal done and how it works with the title companies and all that stuff. So Blitz Selling, let’s just go ahead and dive in. Rule number 1, this is rule number 1 for the entire Blitz Wholesaling system: Keep it simple. There’s no reason to complicate something as easy as selling a house. Now you’ve got a great price on the house, it’s a significantly discounted price. All you’re doing is selling your property to a cash buyer that…already knows the want to buy a house. So this couldn’t be easier in the big picture concept, right. But there’s a couple of caveats with this as we go through this. People tend to over complicate it and want to do so many extra things because so many of the training and the courses and the gurus out there want to impress you and, and blow you away by all the stuff they know that they forget that-‐ You know, 10 years ago, 12 years ago when I started in this business…we didn’t have most of the te, we didn’t have any of the technology that we had back then. We had a cell phone! And I barely had a cell phone back then. And so-‐ And I was able to still flip houses and make money. And so what we’re going
Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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to do is we’re going to keep things really simple, back to the basics and only focus on the things that get results and are going to make you money. So rule number 1, keep it simple. Here’s a little list of what you don’t need. You don’t need tens of thousands of buyers from all over the country. I know from time to time that that’s a nice…selling point. And people say, you know you need to get your social media…in place. And you need to get your website and you need to do all this internet marketing and you need to do all this stuff because that’s how you’re going to build…a basic wholesaling business and be able to flip houses. Well, guess what? We’re not going to be talking about social media at all in the Blitz selling system. We’re not going, we’re not going to do any of that stuff. We’re going to just focus on building a handful of cash buyers that buy multiple properties a month that when you call them with your cell phone or send them a text message they buy. That’s it. Simple. Rule number 1. You don’t need a huge buyers list of mostly people that will never buy your properties, okay. Most of the people that end up on buyers lists are never really in a position to buy they’re just kind of curious. Or maybe they’re interested in buying but they don’t have cash, they can’t be a cash buyer. And so, this is the key, when you’re selling properties wholesale, you are selling-‐ When you’re following the Blitz Selling system you are selling to cash buyers only. That means they have cash in their bank account…can get cash from…a friend or an acquaintance or…have a hard money loan ready to go, and that hard money loan is as good as cash. Or they have a line of credit that they can draw off of and pay cash at closing. So, a couple of key things. They have cash in their bank account, they have a line of credit they can draw that’s theirs, they have private money or an acquaintance or a private lender that is as good as cash or a hard money lender that’s as good as cash, okay. A traditional [5:00] bank, a traditional lender will not work. So you’re not selling to the real estate investors that want to go out and get a loan for a property, a bank loan okay. That’s just not who your audience is and that’s okay. There are…plenty of all cash buyers all over the place…that in every city that you’re going to be doing business in that you just need to build that list and find them. Remember just going through the, the research process. One of the searches that you did was you looked for cash solds, not investor solds cash solds. And so all of those solds that you got out of that list are where the cash buyers are buying. That’s why we started this many modules ago with getting that cash buyers list. Because you want to know where the cash investors are buying and you’re going to only focus in those areas. You don’t need a bunch of tech skills, a website or fancy computer skills to do this business, okay. I’m going to show you a few little simple systems as we go through this over the next few minutes. But at the end of the day it’s a whole lot easier than what you might be thinking. So, we don’t have to have any of the fancy big stuff…to, to make this work. Rule number 2, you gotta sell it okay. Rule number 2 is you gotta sell it. People…don’t just naturally decide to do something. There has to be persuasion, many times in people’s lives to persuade them to…jump over that next hurdle, to make that next decision. And so rule number 2 as a Blitz seller, as a Blitz Wholesaling system, following this system and selling a lot of properties is you gotta sell it. And in Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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order to sell it you’ve gotta believe in what you’re selling. You have to believe that the deal you’ve got is a good deal that’s going to help this real estate investor that wants to buy properties and doesn’t have all of the acquisitions and buying systems in place that you have. You gotta believe that that’s a good deal for them, okay. So how do you believe that? You, you change your mindset right now. And you begin to tell yourself…because I’m following this system I know what other cash buyers are paying for properties in certain areas therefore the price that I’m putting these properties under contract is a good deal. Right there by simply following the system that I’ve taught you and laid out for you step by step you have a good deal so just believe it, okay. This is what you need to do, okay. You actually have to desire…to sell a property, all right. Now that’s, may sound a little bit weird but here’s what I’m trying to say. You have to have the desire to sell a property because if you don’t have the desire to sell a property you’re never going to sell a property. And there’s a lot of people that learn the mechanics of…wholesaling real estate that don’t want to take those next steps and actually put things into play. Now one of the beautiful things about the Blitz wholesaling system is that in module 6 I’m going to show you how even if you personally don’t want to sell a property, even if you personally don’t want to be that sales person, I’m going to show you how to get somebody on your team that does all of that for you. Guys I’m going to be straight with you. I haven’t personally sold a property…wholesale for a long time. Because I, you know I’ve moved on to other areas of the business. I run my overall business, I manage my business rather than doing those task oriented things. Now some of you right out of the gates are going to say hey but I want to get my feet wet, I want to do one or 2, I want to know how all this works, that’s great. I want you to do it. I did it for years. I’ve sold a lot of properties…wholesale personally. That’s how I’ve developed these systems and I know what works and what kind of conversations you’re going to get into. And we’re going to talk about that through this particular module. But you’ve got have, you’ve got to have a desire to actually want to do this. So that means you want to actually do it. Or you have to have enough of a desire to want to sell properties that in module 6 when I show you team integration you’re going to take that next step and you’re going to put somebody on our team that is a fantastic salesperson. They’ll go out and close the deal. Okay. You need simple marketing strategies that work really fast, okay. We don’t need a lot of, a lot of complicated stuff. We’re going to keep it simple and we’re going to look for sped. Simple and speed. 2 things that I absolutely love. Now you need a phone…that you or someone is either going to answer or at least that captures incoming phone numbers. If you’re not going to answer it you’ve got to at least be able to capture incoming phone numbers so that you can call them back, okay. So you need to have a phone and I recommend a cell phone and we’re going to talk about a Google voice number and those types of things because a Google voice number does all this stuff. A Google voice number for you… [10:00] allows you or someone else to answer the phone and it captures incoming phone numbers…right in the Google voice system. So you can go call back anybody that you miss. It’s a great little things and it’s free.
Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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So…These are the little things that you need. And you need a basic transactional knowledge and some confidence, okay. And we’re going to give you all of that through the…Blitz selling system today. You need some basic transactional knowledge and some confidence. Now I can’t stress that enough. Confidence is really big because-‐ Listen people want to do business with people that…they know they can trust…and people that are confident about what they’re doing. So…in order for you to gotta sell it, right. You’ve gotta believe that what you have is good. That will give you the confidence. So you’ve gotta exude…that confidence whether you’re hiring a sales guy…to go sell your properties. Or whether you’re talking to your cash buyers directly yourself; you have to have confidence to go sell…those properties. Or exude confidence so that your team gets on board. Confidence is absolutely huge. So, let’s talk about the set up. Here’s what you’ve got. You’ve got a property under contract right, so you followed the Blitz acquisition system, you’ve made a bunch of offers, you’ve gone through the process of…having offers rejected, having offers countered, having offers accepted, okay. So you’ve got something now under contract. And you feel good that the price that you have, that particular property under contract at is…a little bit cheaper than what our research is showing you cash buyers in the area are paying, right. So you’ve made your offers, you’ve accepted, either a seller has accepted your offer or you’ve accepted a counter now you’re under contract. And you feel good about it. And the reason you feel good about it is because you are looking at this property which is a 3 bedroom 1 bathroom house in a particular area and you’re saying hey I got this under contract for $19,000 and you go look and you go see all of the cash solds, in and around your little area have been selling from between 25 and $30,000. So you feel pretty good because your research shows you that you’re on the right track, okay. Now you know the basics about the house. So this is the set up. You’ve got it under contract, you’re feeling good about it which makes you confident. And you know some basics about the house. This is the basic information that you want to know about these properties in order to sell them. How many bedrooms and bathrooms…what’s the square footage, is it a 1 or a 2 story or a bi-‐level? Does it have a basement or not? Does it have a garage? Is that garage attached or detached? Is the house a brick house or a frame house, you know a wood frame house with siding? And what’s the age, you know general age of the house? Is it a…you know a 1930s house, is it a 1950s, 60s house? Is it a 1980s, 90s house or is it a newer house, okay? Obviously we’re going to be dealing with older homes in most cases…19 I would say 70s and older in most cases, even 50s and older in a lot of cases, okay. But you, you know the basics of the house so now you’re confident because you know what’s going on. You it under contract that’s good, okay. And when-‐ Let me say this. When you put a property under contract and when you have an agreement that’s signed between both you and the seller. For you as a, as a cash buyer to buy the property what that means is you now have the right to remarket that property and go resell it, okay. As soon as you have what’s call equitable interest in a property, you can resell that property, you can remarket that property perfectly legally, okay. It’s perfectly legal for you to have a property under contract turn around and go remarket it and sell it to another…cash buyer. That’s perfectly fine.
Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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And I want you to know that because you’re going to hear a lot of the times people…you know, you’re going to hear, hey you can’t do that, hey you can’t, you can’t…you can’t sell a property that you don’t own. You’re going to hear this so I want you to hear it from me. I’ve been doing it for a long, well over 10 years…well over a decade…It’s perfectly okay. You can, you can do this, okay. You’re going to hear that you can’t. I want you to be warned with that and I want you to have the confidence. You might even hear that you can’t do it from an attorney. Well understand that attorneys are…many times like fast food restaurants. Some sell chickens, some sell burgers and some sell tacos okay. And at the end of the day you might be talking to an attorney that has no idea about contract or real estate law that’s telling you something, okay. Maybe he’s a [15:00] probate lawyer. Maybe he’s a bankruptcy lawyer maybe something else that has no idea about contract real estate law. And…yeah, you somehow through a real estate agent, through a seller, through a buyer somehow you’re having this conversation and you hear, oh you can’t do that. Well, you can. I’m not an attorney right but here’s the deal, you can. So I want you to have confidence to know that it’s perfectly fine to put a property under contract and then turn around remarket it to another buyer at a higher price, okay. Think I’ve said enough about that. So how do you price these properties now that you have it under contract? Well, in general what I try to do is I try to create as much profit as possible right. But following the Blitz Wholesaling system in general you’re going to be between a 6 and a $10,000 profit spread. Okay now that’s your gross profit spread. And you’re going to have some costs many times associated with that. So, you know, you’re going to net a little but less than what margin spread you get. So if you put it under contract for 15,000 and sell it for 22,000 that’s a $7,000…profit spread right. But you’re going to make a little bit less than that because you’re probably going to have a little bit of closing costs on top of the 15 and you’re probably going to have a little bit of a closing cost, you know that’s going to eat away at the 22 and so you’re going to land somewhere in that middle. So in general I try to create a $10,000 spread when I’m making my offers. And so, I just simply look at what are the cash buyers paying for a certain type of house in a certain type of area and I make my offers…you know 6 7 $8,000 in general less than that. Now I’ve gone through this whole thing in the who, Blitz…acquisitions system so I’m not going to recreate that right here but I want to just set up, you know for you mentally to get back on page here how we got to where we are, okay. So price the properties about a thousand dollars higher than what you want to sell them for because when you got find a cash buyer they are going to negotiate you down. It’s just the way they do it, I can just tell you right now, they’re going to beat you up on price. And usually…usually, you’re gonna ha, you’re gonna give or take a little bit…around a thousand bucks, okay. So if, if I go put that property under contract for 15 and sell it for 22 and…I just, I know that, I know that…you know if I sold it for 22 I probably marketed it for 23 7 or 23 9 or something like that. Or actually 22 7 or 22 9. Probably 7 $800 higher than what I ended up selling it for. So I marketed the property just below 23 grand knowing that I wanted to take around 22 give or take because everybody wants the best deal they can, so just know
Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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that every cash buyer is going to negotiate you down. It’s just part of the game and actually you can use it to your advantage many times to make a deal happen. And I’m going to show you that and how I use that to my advantage when we get into the negotiating and conversation part of this. So your selling price should be close to the cash sold prices that are in the area. And so the price that you have the property under contract for needs to be 6 7 $8,000 lower…And you’re going to sell it for about what everything else is selling for in the general area. That’s how you know that you have a good deal and that’s how you know you can build up that confidence, okay. Guys, when I go into a new city I am absolutely just like you. I’m going blind as far as what’s a good deal, what makes this work? So I’m doing the exact same things as you. I’m looking at my city grid, my price sheet city grid and I’m saying here’s my subject property, what are the prices that are selling in my area. That’s how I’m getting my confidence. So, I’m no different than you in that respect. I’ve just done it many many more times than you so I have the confidence immediately to say…my numbers are correct, okay. I want you to just have that confidence and that belief system moving forward. That you can say my numbers are correct and just move forward. Now the truth is, here’s what’s great about wholesaling and I, and I want to point this out. If you find out, if you being to get feedback from your potential cash buyers that your price is too high well guess what, you can always get out of the contract or you can renegotiate along a lower price with the seller, okay. So you’re not ever stuck. And a lot of times in the first 2 to 3 weeks maybe a month of working in a new city, it’s what I call reconnaissance time, okay. It’s when you do things to start to [20:00] learn the market, figure out the areas, figure out the prices and, and gain that market intelligence that’s going to help you blow that business up. So out of the first 30 days…you need to be okay if you put a property under contract that doesn’t sell. Because you use that as an opportunity to learn. It’s not a failure, its…market intelligence that now you can use to learn to your advantage to adjust to your acquisitions systems okay. Very very big very important. I want to point out that the information that you gain out of Blitz Selling…and the communication that you have with your buyers and that interaction is the information that you take back and you use to fine tune hone in on and tweak your acquisitions. So what you learn from our buyers in the selling process and having you know being on the ground and doing, working deals…you take that information. Whether our prices are too high, whether your prices are too low, whether there’s a certain area of town that just…you know, isn’t isn’t happening. You know, you take the information and use it to adjust your acquisition side. Now in generally, I generally price…in random numbers like this. $19,700 or 22 6 or 37 6 because a couple of things. If I just went in and I just put you know 19 9 everybody does 19 9, if I put $20,000 everybody does $20,000. So I do something a little bit off because it draws attention. And you want your marketing, you want the stuff that we’re going to do to draw somebody’s attention. You want them to see a number…that they’re not used to seeing. You’re used to seeing numbers like 19 9 or 19 9 95 or you know you’re used to seeing round even, you know. And so people just tend to…ignore the things that Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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they’re used to seeing. But if you do something a little bit off or odd then…guess what? You’re going to draw attention. Somebody’s going to say hey that’s a different number than what I’m used to seeing what’s up with that. It draws the attention and then you’re going to have the rest of the opportunity to get the rest of your message into their brain. I generally price in random numbers like I’m showing you here. And I generally price at the number that I want to sell at plus 6 7 $800. So I, I price a little bit high…if I want to sell it for 22, I’m going to price it 22 6, 22 7, 22 8 something like that. So that I have a little bit of room to negotiate down and play the game a little bit because you know it’s going to happen. Okay. So here’s a text that I just got from…one of my sales guys yesterday. Guys this is just following the Blitz Wholesaling system I’m not doing anything different. This is right off my IPhone. And…one of my property wholesalers sent me a text last night…you can see it, it is 5:12 p.m. From Ryan to me in the grey at the top there. Just sold and he gave…property address for 22 9 with us paying closing costs. And my response in green, sweet buddy nice work. And he replied thanks, momentum rocks. So let’s point a couple of things out here, okay. He just sold a property for 22 9, okay. And…with us paying all the closing costs. So he followed my negotiating techniques and he gave a little bit to get a little bit. So he got the price. He might have even bumped the price up, I’m not sure, from what we might have listed at, bumped the price up a hundred bucks or 2 in order to, for us then to pay all the closing costs. So he used a negotiating technique that I’m going to be talking about. That hey, I’m okay with us paying the closing cost, not a big deal right. Because we got it, we got it pieced into the price of the deal-‐ Because I know that I’ve priced, you know a thousand dollars higher than I would like to sell it for anyway. So…let’s take a look. I took them by another property too but no interest because they said, and I don’t know this is, I don’t know what this meant, time rate significantly higher. I think, I think the auto…the auto writer on the IPhone changed that, I don’t know what he was trying to say. And p.s. I stink like vacant houses. Lindsey must be loving my new fragrance. So, this was...this was just last night. We sold another one. Now here are the numbers okay. This subject property is 1, is…a 2 bedroom 1 bath and it’s a beater house. [25:00] Now we put it under contract for 17 5, we sold it for 22 9 so our gross spread is only 54 hundred dollars. This isn’t a huge profit deal but guess what I’ll take it. It, it’s a simple deal, okay. We followed exactly the Blitz acquisition system to put this property under contract and exactly what I’m about to show you to, to find our buyer and sell it. And Ryan hooked it up and sold this one last night. So you can see that our approximate net, when we figure it all out, we’ll, we’ll net about 43 hundred dollars cash. Now…in the coaching session I did just two days ago I showed you the settlement statement and the property that we just closed where we netted 54 hundred dollars. Well here’s another one for 43 hundred dollars. So, I mean that’s about 10 grand just this week, right. And I want you to see something else. Look back on that text because he says thanks momentum rocks. Well guess what, this was the second one that he sold this week. And there’s a reason that he’s talking about momentum. Because the acquisition system is feeding him deals, he’s selling them passing it back, Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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we’re scheduling them, getting them all closed and everybody’s making money. So he’s absolutely loving this. And I want to tell you something this guy actually had some interest in real estate, I had no idea, he didn’t know who I was and I didn’t know who he was until I followed the team integration and I ran the ads and I went through the 4…interview sequence cycle that I’m going to show you in module number 6. I didn’t know this guy from Adam, he didn’t know me from Adam. I want, I want this to be clear. He didn’t know me as a real estate guru when we went through the interview process and I hired him. It has nothing to do with me being a, a…a real estate educator, it has nothing to do with me having a website presence on the internet and selling products, okay. This was me going through my interview and hiring process, him applying for the job, us going through the interview and then me hiring him and then helping train him on what to go do. And…in the last month he sold a bunch of properties and things are starting to rock. So he’s loving the momentum. And where I was going with that was in the year prior to this he had been trying to break into real estate. He wanted to do this, he just wasn’t sure how to go about it. And so over a year he had been trying…to no avail and within the first 30 days of working with me he’s getting paid, he’s closing deals and it’s finally ticking. And so that’s the thing that I want you to realize, if you’ve tried this before and it, maybe its worked a little bit but it hasn’t worked great maybe you want to take it to a new level of scale. Maybe you want to diversify into new cities. You just want to go make your first deal happen. That’s exactly what you can do with this system. So I show you this because I wanted to give you this story and I hope this motivates you to take action move forward and make it happen. So congratulations to Ryan on this deal…Rocking it out again. And…let’s get into what he did. So let’s tart talking about finding buyers. And guys this is just going to go old school simple, okay. Yellow corrugated plastic signs hand written. That is the flat out best marketing thing that you can use. I know, I know. Somebody’s going to tell me that…in your city or in whatever city the people…don’t like the, don’t like signs to be posted. They don’t like signs…stuck in the corners of intersections, they don’t like signs on…you know telephones or light poles, I get it. You know I, I know. There’s whole associations out there that their whole job and their whole mission in life is to…cut down these little street signs but I can tell you if you want to make money, they’re, they’re a gold mine. And I’m going to show you a picture of it here in a minute but I’m just going to go through the list of things that I do first. And we’re just going to talk about them because nothing that I’m about to show you is rocket science. It’s all so easy that you’re just going to, its just going to blow your mind when you see how easy it is. Yellow corrugated plastic signs. And we’re going to talk about where to put them and what to write on them and that sort of thing so hang with me. Driving your target neighborhoods. Now here’s the other thing that you’re going to realize. Some of this, if you’re running your business remotely you can’t do if you’re not in the city. But that’s why we’re going to go through the Blitz Wholesaling team integration module 6 and show you how to get people on board to [30:00] Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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do all of this. People who, you’re only going to pay them when you get paid, okay. You’re only going to pay them when you get paid. You’re going to collect, collect money, okay. So they’re going to go out and work but it’s because you’re doing the right things that they’re going to get paid and they’re going to stick around and you can confidently hire them in this way. So driving target neighborhoods. You know what neighborhoods are full of cash buyers because you’ve dine the research. You’ve followed Blitz Wholesaling system module 1 and module 2 for city selection and then creating your city grid. So inside that city grid you know exactly where all the cash deals are happening. One of the best things that you can do personally if you go to the city, or you can have your, your selling, your property wholesaler sales team do, is to go and drive every street-‐ We call it farming. Every street and look for…properties that are under construction. Look for properties that are being rehabbed. If you go get into those neighborhoods and drive those streets up and down, okay. And look every street up and down in the your hot all cash lots of deals closing high activity…high inventory neighborhoods, you’re going to find the rehabbers out there that are doing multiple deals. Now many times you’re going to just park and you’re going to walk up to the house and you’re going to talk to the contractors, okay. Here’s what’s really cool about this, the contractors going to be in there. You’re just going to walk up in there and say, hey guys, is this your house you’re working on. So this is how you intro. Hey guys is this your house you’re working on? No, you know we’re just doing the, we’re just doing the rehab. Ah man is the, is the owner around? And they say, no the owner’s not around right now…And then I’ll ask them, so listen do you have their phone number because we’ve got some more houses just like this one that are beat up that we’re interested in selling really cheap. And you know, maybe we could get you know the owner’s phone number from you we’ll give them a call and maybe they want to buy another house and have you do another project. You see what I did? I dangled the carrot of more work in order to get the phone number for the owner of the house. Guys this is so simple. People are motivated by wanting more stuff and you know a contractor is motivated by making more money, by getting another project. So don’t just go up and ask for the phone number of the owner, give something. Give them a reason to give you the phone number. Okay this is the stuff that you’re going to teach your property wholesaler. When we get into team integration, this is the stuff you’re going to teach your property wholesaler to do. I will tell you this. Ryan, one of my property wholesalers last week did this exact thing, got not only the pro, the phone number for the owner of the house that was under construction that was paying cash, buying properties in the neighborhood but then the, the contractor actually said you know I work for another guy that buys about 20 houses…to 30 houses every year. Would you be interested in talking to him as well? Absolutely. So we got 2 phone numbers out of that. We picked up the phone and we called both of them, guess what? Huge huge huge…part of our buyers list. 2 people. I’m not talking about 2,000 people. I’m talking about 2 people. Bu these are 2 people that so what? These are 2 people that buy houses in the neighborhoods that you’re putting properties under contract in. That is the best buyer and it’s the only buyer you care about.
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Penny saver classified ads. Next, okay. Out in these little areas, okay. Out in the cities that you’re flipping in, they have the cheap little…newspapers. The penny savers the…Ugh gosh…the nickel, the nickel…I forget what they’re called the nickel…papers. Whatever that is called. But it’s basically the penny saver. And they, they have these little cheap classified and what you find are landlords…okay. In these cheap little cash high activity high inventory areas you’re going to find the guy that just bought, rehabbed a house and now he’s renting it, going to rent it out. You’re going to find his ad in that cheap little penny saver newspaper for his house for rent. House for rent. You’re going to go buy that little penny saver newspaper, you’re going to call every single one of those phone numbers and you’re going to reverse your way into the [35:00] cash buyers that are already doing business in those neighborhoods and in those areas. Absolutely killer strategy. Simple, effective, profitable, okay. I can’t tell you guys how powerful that is and guess what it’s not as sexy as social media and running facebook ads and using Google and everything else. But it’s cheap, it’s almost free. If you can just spend 99 cents to buy the penny saver and pick up the phone and call people, you will get better buyers faster doing these 3 things than anything, than just about anything else, okay. Super super solid these top 3. Public records research. Okay, now. Let’s talk about public record research. I could have also added in here public records research…and also MLS research. Listen if you went through the modules on…module 2 and module 3 the research modules and if you got your cash buyers list you already know…all of the, you know, all of the cash buyers over the last 3 to 6 months that are buying in a particular area that at least, that are listed in the MLS right. So, now what if you were to take and go address by address by address and just look up the owners of all of those properties, okay. Get the address of the owner. See when you go to a public records, there’s a property address and there’s a tax mailing address. And so if those don’t match then what you have is an investor that paid cash or you know, if you’ve got a cash list, you have an investor that bought a house. Really really super solid strategy. You’ve already got the list, you’ve already got all the cash buyers. You know, just go do the research and find out who these people are. Rock solid. Post cards. Then what I do is once I have their tax mailing address, this is typically where they live or where their business’ location, I send them a post card. And what I do is I, I send them a post card that either gets them to go to my website-‐ And folks, I do set up websites, in all of my Blitz Wholesaling cities, okay. I, I’m not opposed to technology I’m just going to show you the stuff that actually gets results super fast and doesn’t require it. I send a post card either to my website or I have them pick up, I tell them to call a phone number. One of those 2 things. If you don’t have the website you get them to call the phone number. Now, like I said before. Make sure that phone number is either being answered by somebody or has the ability to capture incoming phone calls, so that you can see who called and then call them back. Public records research is, is really solid. We’re going to dive a little bit more into that one…in a, in a little bit here.
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Then a website with a lead capture form. And what you want to capture is just first name email and their best phone number. Now this is really key…guys. You know as you begin to take our business to newer, to the next level. You’re going to want to get a website that helps you do all of that stuff and helps you…build this buyers list automatically. Out of the gates it’s not necessary. I wholesaled for years without a website but as you develop and progress in our business, you’re going to want to get a website. Website is for 1 thing and for 1 thing only. And that is for capture leads. Yes sure, it’s going to help you present the properties and show the properties and look professional and stuff but it is for one thing. And that 1 thing is to capture leads. That’s it. Because if you don’t capture leads, you don’t have the ability to follow up with those leads and get on the phone with them and say hey Joe, I got one that I think is going to be perfect for you. Why don’t you drive by 123 Main Street. Give me a call back in the nest 60 minutes and tell me if you want it. You’ve got to capture leads. First name, email and phone number okay. That’s what you want. Now we’re going to, I’m going to show you this as well so. We’re going to dive into each one of these. Or the ones I, I guess I can show you a little bit deeper. You know…driving the target neighborhoods…If you don’t understand what that means that’s a, that’s a tough one for me to explain right. It’s driving the target neighborhoods and looking for the houses that are under construction and then using that little script I just gave you to talk to the contractors, to get the phone number to the owners and get referrals to the other cash buyers that are doing business with that contractor. [40:00] Guys gals, super super solid strategy. The Penny saver, rock solid. Those two I’m not really going to get into any deeper because at the end of the day I don’t know what else to tell you. It’s just a matter of going and doing it and either driving the neighborhood or picking up the phone and calling them. You know when you call the landlord it’s the same kind of thing. It’s hey Mr. Landlord, it’s Rob with…you know whatever the name of your company is. And I’m a wholesaler in the area, had noticed that you own a property out in the…whatever area you’re, you’re working in. I got your number out of the penny saver ad. I’ve got a couple properties right now at 40, 50 cents on the dollar. Would you be interested in, in buying anymore properties right now. Simple. That’s as simple as it is. You have something at 40, 50 cents on the dollar…somebody’s going to perk their ear. And it’s a matter of finding the right person at the right time that’s buying multiple properties. And if you do that on a regular basis you’re going to find those people. Driving the neighborhoods and reverse…phone calling those landlords, super solid strategy. Okay, bandit signs. So here’s that yellow corrugated plastic signs that you can throw out into…the neighborhoods. And they’re just, they’re 18 by 24 yellow signs. They’ve got vertical, vertical corrugated slits…going, going through them, so you can stick those metal stake, you know going down in the ground and then up in the sign. It’s kind of like a…a, I mean you’ve all seen them. It’s kind of like political signs. Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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This is what we’re talking about. But I prefer yellow, they draw attention. And I also prefer to simple write on them, hand written okay. Don’t go have them printed. People ignore commercialized stuff. People ignore stuff that looks too commercialized and too slick. They see it and they’re just-‐ Their eye is trained to ignore average advertising. But our eyes, our minds are, are trained to be attracted to something different. So what you want to do is you want to write a cross the top of this yellow sign, house for sale. 3 bed 1 bath 22 9 OBO. That stands for our best offer. Now you can put 22 6, 22 7 right, something different something odd. Now what you’re doing here is…By hand writing it on a yellow corp glass sign, you’re already standing out being different. You’re not being commercialized, you’re not being real slick, okay. So you’re going to get calls, okay. And people’s minds and their eyes are attracted to it. So, house for sale. Now, many trainers. I’ve seen this for years, I used to do it. Teach, put investor special…put investor deal, you know you put whatever. You know you put investor special at the top and then 3 bed 1 bath. Well guess what guys? Let me ask you this question. How many people know what an investor special is? Not, maybe maybe some. Maybe they can figure it out. But how many people will now what house for sale is? Everybody. Very few people know what investor special means. A lot of people knows what house for sale means. So you do things that attract and make sense to the masses. So put house for sale, don’t put investor special, okay. Just something that you might not have thought about but is absolutely huge for our success and for the results you’re going to get. Okay, 22 9 OBO call and then put in your phone number. Now, where do you put these signs? You put these signs out at all of the major intersections that are leading into the little neighborhood where you’re at. You put them at the corners up the block, down the street from the house that you have available. If you can get away with it put it in the front yard of the house, right. If you can get away with it put it in the front yard of the house. Many times guys, we just go drop this yellow sign right in the same front yard. If the house is listed with a real estate agent…because it’s a bank owned or something else, there ends up being 2 signs in the front yard. The real estate agent’s and ours, okay. Not a big deal. And then go, you know, if there’s an area off the inters, off of an interstate or a highway or something around. Where there’s major intersections you just want to put these everywhere, okay. Put these everywhere. You want to get a big black, big fat [45:00] black permanent market and you want to write it so everybody can read it as they’re driving by. And you want to make sure your phone number is big and readable. Because you’re going to get calls so. Intersections, entrances to the area, canvas the entire area. Now what I do is I give my sales team, my property wholesaler in the cities that I’m working a Google voice number. For that local city. So obviously I don’t go and set up. You know, I live in Denver. So I don’t go and set up a 303 or a 720 area code for my phones when I’m selling houses in other cities. I set up a Google voice number with that area code, okay. But I create it. And I’ll usually set it up…and it’ll be the name of... You know, whatever my website is. Say my website is…investor…investor deals Atlanta, I might set up…sales dot investor deals Atlanta at Gmail.com. So I’ll set up an new Gmail account Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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[email protected] right. And that’s not my website I just made it up. And now I’m going to set up my Google voice number. And so that I can have access to that Google voice number and manage my business. That way if my property wholesaler quits or leaves or something else happens to them then all of the advertising that I have out there is on my Google voice number and I have access to it. So if I need to go hire somebody else or do it myself I maintain control. So I don’t let my property wholesalers use their own cell numbers in the marketing. I make sure they’re using the Google voice number that I give them. That’s a very important thing for you to be protecting your business, okay. Just want you to understand that. Now buying a list for direct mail. Let’s take a look at this. List source dot com. You know…Get those signs out there in the streets where you got that property, start working that buyer’s list getting those phone calls…that sort of thing…If you want to go and do some direct mail and go to public records, you’ve already got your MLS list of cash buyers so you can do all of that public records research manually or you can go to a site called list source dot com and you can actually buy a list of…investors. And it works really good. Then what I want you to do is, you send them a post card. So you buy your list of, of you know real people. It’s called the NOO list, non owner occupied list, okay. It’s the non owner occupied investor list and you buy it in the city or the county that you’re doing business in. You buy, you know investors that have bought properties over the next 3 6 9 12 months however big of a list you want. And then you download that whole list. Now you have their property address, you have their mailing address you have their name, you have everything. And you can do that right at list source dot com. Then what you do is you send them a post card. And you go to a site called click 2 mail dot com. That’s a US postal services website. And you can send a postcard right from your computer, right from click 2 mail. So you’re going to upload that list you bought at list source. I’ll give you a postcard that I’ve used very successfully and then you’re going to send it out. And here’s what you do. You drive those leads, okay let me go back. You drive these leads, all of these people with a post card either to a website or to a phone number. Remember I said that a minute ago. Now I prefer to drive them to a website and here’s why. I want them to go to my website, give me their name, their email address and their phone number and then be able to log in to my website and see properties, okay. So here’s where I send them. When I do direct mail, and I do do direct mail. I will tell you this I do direct mail because it has long term residual benefit, okay. In this city that I have been telling you about that I just launched a little over a month ago, my Blitz Wholesaling system that I’ve been building right along with you guys, I have not used my website in that city to sell a house yet. Everything has been done by street signs…by reverse engineering the penny savers [50:00]
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and everything has been done by driving the neighborhoods and getting referrals from contractors. Those 3 things. Signs to a Google voice number which my property wholesaler answers the phone. Penny saver and driving the neighborhoods. Those 3 things. Now I have launched 1 series of postcards. I spent about $200 sending out a series of postcards to begin building my buyers list of other investors in that area. Because I know that I want to have a long term growth and value in this business so I’ve started to do that. So here’s where they go. They go right to this page on the left. Let me, let me grab my pen here and come over and show you this. They’re going to go to, here’s my Colorado website, rehabdealsColorado.com. And when they get my post card they’re sent, you know right here to this page. And what do I ask them for, I ask for first name their phone number and their email address. Those 3 things. Now when they put that in and then click this button they’re redirected to that second page on my site that shows properties available. Now look I get it, right out of the gate you might not have any properties available. Well that’s okay don’t work about it. The key is they’re not going to know there’s no properties until you give them right here and here’s the key. They’re going to give you their first name their number and their email address that’s going to automatically send you a notification, okay. And you’re going to know that somebody visited your website and, and logged in. Send all notifications to instantly email a Gmail account that you or your sales team has access to. Now for me I have, I have all these leads go right to my sales team , okay. And what’s their job, their job is to just pick up the phone and call them back. Because they just opted in here and whether you have a property there or not it doesn’t matter because your sales team is going to pick up the phone and call them and say oh yeah you know what we haven’t posted a property on the site you know in a little bit right now because you know what we’re doing is we’re working with our VIP buyers. And you know basically we’re just picking up the phone and calling folks. And…there’s your, there’s your reason if you don’t really have anything posted on our site right out of the gates. Not a big deal, okay. Don’t, don’t let fear of, well I don’t have any properties hold you back. Just go do this. Now, what this is doing is it’s building an email list and a phone number list for me, okay. And we follow up with these emails and we follow up with these leads of people on a regular basis but this is big. Just send all notifications so that they get emailed. And that way your sales team or you can just pick up the phone and just talk to them. Really really huge. You don’t have to be complicated. I have website with auto responder. Yeah you know what I actually get up and email, auto responder. I send out automated emails and that sort of thing to my, to my buyers. You don’t have to do that. The biggest thing is to make sure when somebody hits your website you get notified. You pick up the phone and call them or have your sales team called, okay. Really really huge thing for the website. Alright, let’s…let’s keep going here. Now the other reason to have a website and I’m just going to how you this because…you know, down field you’re going to want this. Somebody goes to Google, okay, this is, this is Google search and they type in wholesale housing in Denver, as an example. Or whatever search phrase they’re looking for. Maybe its cash flow or properties in Denver or whatever city you’re in right. Look at the top 2 rankings okay. These are paid rankings okay. So guys are paying here. Like we Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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have…here looks like a wholesaler, here looks like an info marketer and here looks like credential, a real estate agency. These are paid ads, okay. Why these ads because they’re paying to be there. Well let’s look right here. These top 2 ads or these top 2 listings right below the paid spots, these are me. And if somebody clicks on one of these ads…or I mean on one of these listings. And I mean, this is rehab deals Colorado, this is one of, a page right on my site. I’ve got the top 2 spots because of my website. When they click on that spot they’re redirected right over here. So they land on this page. Now guess what. The key here is what I have in the circle. The key to this page is… [55:00] capturing name phone number and email address again. So I’ve got a lead capture form right here. So now what happens is I can send people to that mail page and I can squeeze in their contact information. Or I can get help out of Google and actually get site ranked and actually get some Google love here as well. Guys this is long term strategy stuff for your business. Not necessary to go make money. But I wanted you to see this because in your Blitz Wholesaling business you’re going to scale this up. And you’re going to start going and you’re going to start closing 20, 30, 50, 100 deals in a year in a city, okay. If you want to do that that’s what you can do. And you’re going to want to put some of these things in play just because they are going to make your life easier and your sales guys lives easier long term. And that’s probably the most important, is to make your sales guys lives easier. Help them be successful and you will be successful. Well we’ll get into that in module 6 team integration. Okay. Getting people to your houses, we’ve talked about some fantastic ways to start building your buyers list. Simple ways. Just takes a little bit of action and effort but nothing rocket science. The website’s a bonus but the other things are rock solid. So getting people to your houses. You have to close. Tell people what you want them to do. People are not naturally going to do…what you want them to do when you want them to do it. People don’t make decisions, okay. You have to tell people what to do. In an initial conversation here’s what I’d typically say. We’ll have that initial intro and then I’ll say so listen I’ve got a couple houses that I…you know, might be right up your alley. Or I got a house. You know, listen Joe, I’ve got a house that would be right up your alley. In fact why don’t you drive by have a look and call back within the hour and tell me if you want it. The address is 123 Main Street. Okay that’s my initial conversation. I want to see, I want to gauge people for where they’re at or here’s almost an even better on. I’ll be out in that area this afternoon at 5:30, can you meet me there. The property that I think is right up your alley is on 123 Main street. Okay. I’ll be out in that area at 5:30 in the afternoon can you met me there? Now what happens if you just tell him to drive by and take a look. Maybe they will, maybe they won’t. There’s no set meeting point. There’s not a conclusion that has to happen from that. But if you say you’re going to be there at 5:30 and they say yes, guess what now you actually have a confirmed appointment to go meet them and actually show them the property and show them the house. Really really solid, okay. And if you use this little closing line, or if you teach your salesmen to use this little closing line you will sell a lot more houses. I guarantee it. You will, you will sell a lot more houses. Because leaving people to Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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make the decision to do what you want them to do does not work. You have to help them along the decision making process and move them in the right direction. Now let’s talk about this. Negotiating and closing. As I said before people are just going to flat on hag along price with you. So just know that this is the case. I want you to add a little phrase to your vocabulary and it’s going to help you tremendously. Would that work for you? It’s a great way to close a little snippet of conversation that you’re having with potential buyers or…you know in a lot of areas in fact. This phrase would that work for you, okay. So let’s talk about 3 negotiating and closing strategies and…and actually giving you some tools to make this successful. Because driving the streets, reverse engineering the penny saver and…you know just getting busy with the street signs, getting that phone ringing is going to give you the opportunity to have these conversations. Let’s talk about the give get strategy okay. If you give a little bit on price I want you to get something in return. So you can get your buyer to pay all the closing costs. I don’t ever want you to just give without getting something in return because if, by using the give get it becomes a [1:00:00] win win and you get to work together to solve the problem. If you’re just giving…it’s a one sided deal and you’re not on the same team, okay. So you want to use a give get strategy. So here’s how this might work. You’ve got a property available for sale and you’re asking $22,900, okay. Let’s just use the math and the, the example that I’ve used through the entire presentation. You’ve got it available for $22,900. You have the initial conversation and you say hey listen, you know Joe, I’ve got a little property that I think might work for you…You know I’m asking 22 9 right now. It’s a 3 bedroom 1 bath and it’s right out in the area where you’ve got some other properties. I tell you what, I’m going to be out…by this property, kind of in that area about 5:30 or so this afternoon. Do you want to meet me out there? Would that work for you? See how I did that? This is from a phone conversation. Boom, okay. Now we confirm the meeting. We go out there and we meet at 5:30 and…I, we meet at the, at the front, you know the sidewalk and we look up at the house and I say, hey man we’ve got a great little deal here for you…I don’t know if you’ve got a chance to run any of your numbers but we got, we got solid numbers on this thing. So I’m setting it up right out of the gates because I have confidence that my numbers are good. Hey we got solid numbers on this thing, let’s go in and take a look. So, you obviously need to have the lock box code or a HUD key or some way to get into the property right. So you…you know, you’ve got to have that for your sales guys and for yourself ahead of time, let me just make that point. So now you’re walking up you get inside and the buyer starts looking around and everything else. And…so you let them look around, you point some things out…And you say, so listen Joe what do you think? I mean pretty solid numbers don’t you think? I mean at 22 9 cash…its not a bad deal…Is, is this a house that…that you’d like to purchase? You know, would 22 9 work for you? Okay. So you’re closing him every step of the way. You’re closing him to the meeting, you’re closing him to the price. Now, now they say well, you know what I really like the price man, it’s nice. I, I do want it…But I, I just don’t know if Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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I can do 22 9 I mean that’s a, that’s a little steep. It, it is a good price but you know I’m in this to make money too and I, I just don’t know if I can do 22 9. So the give get strategy goes right here. And you say well, you know…typically Joe…what, what happens is, you know when we sell properties…our, our buyers pay all of the closing costs. And so what we normally do here is have a 22 9 price, you pay all the closing costs…I tell you what I can do. I can probably split the closing cost with you and…that’ll make the, that’ll make your price a little bit more attractive, that way you don’t have so many costs to close this deal with. That work for you? So you just gave in order to get your price. You gave half the closing costs…in order to get your price right. And they come back and they say well, I don’t know, I’ll tell you what. Maybe they come back and say I tell you what, you pay all the closing costs and…I can do 22 9. You pay all the closing costs and I can do 22 9. OR they say I tell you what, the best I can do…would be…I can do 22,000. I can do 22,000 cash and we split the closing cost. Okay. I can do 22,000 cash and we split the closing cost. So what just happened? You know your closing cost is going to be a couple hundred bucks and you just dropped from 22 9 down to 20…2. So you have up 900 bucks there, so about a thousand dollars in negotiating. But you gave something, you gave them half the closing costs that you’ll pay in order to get…your price and then they negotiated our price down a little bit more but they committed, okay. They realized that you were good to work with so they committed and gave a price. That’s the give get strategy. So always give something in order to get something. Always get something in order to give, okay. That’s how it works. Now, let’s talk next about the us against them strategy. What this is going to do is this is going to get you or your sales guys on the same team with the buyer in order to close the commitment. So…It’s a similar kind of concept where-‐ You know really the things that you have to negotiate, it’s not all that complicated. You can give up on closing costs and offer to pay closing costs…And you can come down on price, okay. So…those are the two biggie deals that you have to play with in most cases. So the question then is [1:05:00] how do you position this whole thing to get a buyer to commit. Well maybe you’re talking to a buyer on the phone and…they’re really close to doing something but they’re not quite committing. And, so you can say something like this. You could say, hey listen I tell you what, I’m probably not really supposed to say this because you’re, you’re still at 22 9, they haven’t come back with any…they like the deal but there’s a few little hang ups, whatever. But they haven’t really said anything thing about price. But you want to close the deal, so you actually give first. So you say something like, hey listen, you know I probably shouldn’t be…outright saying this, but I’d like to build a relationship with you and do business long term…Just between you me and the fence post I know I can get us to cover half the closing costs. If, if I can get it approved, now I’m, I’m not, I’m not telling you this, you did not hear this from me right, okay. But if I can get us to cover half the closing costs do we have a deal, would that work for you? Okay, see what you’re doing? You’re giving and you’re getting on the same team. And you’re saying hey, I think I can get it approved that we’ll cover half the closing costs or even throw in all of the closing Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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costs. If they’re right there and they’re just not committing, going over the, over the hurdle. You or your sales team say something like this, hey listen, I know you really like this house, I know you want it. I’m not supposed to come out and say this but I’m pretty sure that I can get it approved to…to pay all of the closing costs for you. You know we know 22 9 is a good price and I’d really like to build a relationship with you…I’m not supposed to tell you that we can make the closing costs but between you me and the fence post…I’m pretty sure I can get it approved. But I don’t want to go to bat on this deal un, unless you’re really on board. If I can get the closing costs approved and we’ll pay that does 22 9 work for you? Now you get them to say yes. Okay. So, this is just sales 101 it’s simple stuff. It’s us against them. You just jump to the same team as the buyer and now it’s you and the buyer against…your company, right. It’s you and the buyer or your sales guy and the buyer against your company. Well that’s how we want to frame this and position it. Because now you’ve got you and the buyer working together. So boom, you get the approval on…the closing costs…we’ll take care of all the closing costs, they’ve committed to the 22 9, you’ve just closed the stra, you’ve closed the sale. Awesome strategy, works really good. The meet me strategy. This is that next step decision. If you’re standing there with your buyer and they’re hemming and hawing. Maybe they’re not comfortable, maybe they’ve never worked with you, maybe they’ve never done a deal like this…okay. Meet me strategy works well. I gave you a little indication of how the meet me strategy works. When your, when you’re getting a buyer from the phone out to the property. But now this is from at the property to closing the deal. If they’re just not budging and just not comfortable what you do is you use the meet me strategy and you say listen, I know you like the deal, I know you want to do this, this deal. And truthfully, I only want you to do this when you’re 100% comfortable with doing business with us, so why don’t you meet me tomorrow morning at the title company. We can do all the paperwork there. That way you’re totally comfortable, you’re totally on board and you know that everything is, is the up and up. I want to build a relationship with you, I want you to be comfortable. So why don’t you meet me tomorrow at the title company at, you know I think they open at about 9 o’clock. Why don’t we meet at 9:30 tomorrow morning at the title company? Would that work for you? See how you close that out? Would that work for you? You close that out all the time. So, the give get strategy, the us against them strategy, the meet me strategy, you’re getting your buyer to move closer to the decision. Well guess what? When you meet them at the title company that next morning at 9:30 you’re going to say…Hey great awesome. Hey Joe thanks for being here. You’re going to go to the receptionist, hey Mrs. Receptionist do you have a little conference room that we can use real quick. We just need to sit down and do some paperwork before we open Escro and close out this deal with you. So you get a little conference room, call the title company ahead right. This is your investor friendly title company that your, you’ve already talked to, you already know you’re going to do business with. You maybe even haven’t closed a deal with them yet but you’re about to and you go sit down with the buyer and boom you do up the paperwork and you’re all good to go. Three awesome negotiating and closing strategies. The key here is you or your sales guy has to Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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[1:10:00] close the sale because people won’t do it for you. Use the givegat, use the us against them, use the meet me strategy. Guys I use every single one of these all the time and I teach my sales guys to do them as well too. Super super solid. Okay, let’s talk about the paperwork. So now you’re in the closing or, or you’re in the…little conference room at the title company. Now look, if your buyer’s comfortable enough you’re going to do this right out on the hood of the truck, right. You don’t have to get them to the title company. It’s just that if they’re not committing and s, and ready to sign the paperwork and get you earnest money…you know, you’re going to meet them at the title company. But if they’re ready to do business right there at the hood of the truck, you can fill out all the paperwork and you can go follow them to their bank, get a cashier’s cheque for the earnest money, okay. Really simple straightforward process. So here’s the paperwork, now that you’re going to fill out either on the hoo, you know…front of the, front of the car. Hood of the truck…In the beat up vacant house pull out your clipboard and boom, there-‐ You do it there or at the title company. Paperwork number 1 is the purchase agreement, okay. Purchase agreement is real simple. And…I’m going to give you a copy of the purchase agreement that I use and I’m going to kind of walk you through how we fill it out and make it happen. It’s, it’s pretty darn simple, okay. I’ll show you…I will show you a, a, an image of a purchase agreement that I have filled out that sold a house. So you can see how it gets filled out. And we just, I just filled this thing out by hand okay. What you see here is what you get…Simple one page purchase agreement. Paperwork piece number 2 is a buyer’s earnest money Escrow agreement. Now, you’re going to get this from your…investor friendly title company, okay. This isn’t typically something you have to create. A lot of times the title company will have a, an, a buyer’s Escrow earnest money agreement. What that says is, hey, your buyer’s going to write their earnest money check out not to you, you never have your buyer write the earnest money check out to you…it always goes to your investor friendly title company, okay. And so this second document, you may not have right out of the gates, you may not have this second document until you submit everything to the title company and with the earnest money and then you have this earnest money Escrow agreement filled out. It just protects you, protects the title company and everybody. It makes it a legit deal. The paperwork number 3 is…You’re going to see this later. If you need to do an amendment to your purchase and sale agreement with your buyer-‐ Like maybe you need to extend our closing, maybe you’re buying the property from a bank and reselling it to your cash buyer and the bank is dragging their feet. And you thought it was going to close in 14 days but now it doesn’t look like it is so you need to bump your buyer’s closing out a little bit. I’m going to give you a copy of this simple little amendment to purchase and sale agreement that just allows you to extend the, the closing date with your buyer, okay. Now the deal that I showed you in the, in the coaching session the other day, we filled out two of these amendments in order to get the deal closed with our buyer, okay. We filled out 2 of these amendments, Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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okay. So it’s very common to extend the closing with your buyer, so I just let my buyers know that upfront. That hey, this might happen, we may have to delay closing a little bit. That’s typically not a result of anything we’re doing but you know, we’ve got to get the title companies all on board. We buy properties a lot from banks and banks drag their feet. And so until the bank gets all the paperwork to the title company that they need-‐ Sometimes the title company, and I blame the title company, just isn’t able to resell the property. So we may have a situation where we have to extend a little bit, if that happens we’ll let you know. We’ll be in very good communication with you. And, you just, you just tell them that upfront and then boom here’s the paperwork. If it happens…now you’ve got the paperwork that you can send them, they’ll sign and everything is good. That just keeps you in contract because if your, if your paperwork says that you’re going to close in 14 days and you get out to the 13th day and you’re not going to close the following day well if they, if you don’t, if you can’t close then your buyer’s out of contract and they can essentially get their earnest money back even if it’s non-‐refundable. So you want to extend that closing date if necessary. That way it just keeps your buyer…with a signature, in contract that whole deal. Make sense? Real simple. When you read the paperwork , you’ll be able to see how it works and, and nothing complicated about it. Let me pull…this over and just, I’ll kind of go through this purchase agreement with you real quick [1:15:00] so you can see how it works. But it’s super simple. This is the one that I just had up on the screen shot there. Be it known the undersigned buyer. So this is your cash buyer, their name get hand written right here. Offers to purchase from…this is your name or the name of your company as seller, okay. You’re the wholesaler but you’re the seller of the property when you’re reselling it to your buyer. Real estate known as, and you put in the purchase…the subject property address right here. Located in the city of… whatever, in the county of whatever and the state of whatever, okay. More particularly described, as in this is typically where you would put the legal description. The forms that I use just have this written in there already. To be determined by closing agent at closing. Real simple right. Because I don’t know what the legal description is, so I’m going to screw it up if I try to add that in there. So I just say the closing agents are going to give me the…the legal description, okay. The purchase price offered is, you put in your purchase price of-‐ Hand write it in. $22,900…point 00. The deposit…here with paid non-‐refundable is how much earnest money are you going to get from your buyer, okay. So let’s say you’re dealing with a HUD buyer and your earnest money that you have…submitted to HUD is $500, okay. Let’s turn that around and let’s go collect $2000 from, from your cash buyer, okay. You’re going to collect $2000 non-‐refundable or you’re going to collect-‐ Here’s what, here’s what I do, okay. I’ll say to my buyer, I’ll say listen, we’re accustomed to receiving…$2000 non-‐refundable earnest money. About 10% of our purchase price here you know, purchase price is 22 9. We’re accustomed to receiving about $2000 in…non-‐refundable earnest money, Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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would that work for you? And if the buyer-‐ See, would that work for you again. And if the buyer has a problem with that you say well, you know I tell you what. I, I want to build a relationship with you, I want to work with you long term. I can work with you in this particular case. We can cut that in half. I’m going to, I’m going to go to bat for you, I’m going to cut that in half, we can do a thousand bucks. Would that work for you? Okay. Now at a minimum you’ve got 500 going out to HUD. At a minimum you’ve got to get 500 from your buyer to at least cover, okay. I like to get more, that way if my buyer doesn’t close and I lose my earnest money I at least get their earnest money, okay. If they don’t close. If the reason they don’t close is they decided not to close then they’re going to lose their earnest money and I’m still going to make a little bit. Now I’m also going to go then and resell the property to another buyer, okay. But this is how, this is how this deal works. Okay. So, so that’s what I do. So a non-‐refundable earnest money then balance at closing is the purchase price, minus their deposit and that gets payable to the title company. Your investor friendly title company. Balance at closing and then the total. This line and this line are the same price right. Very, very simple. Now let me talk about a little of a caveat. It’s possible here if…you need to get the earnest money to submit on the buying side from your cash buyer you can get it from them and have them make their earnest money payable to the title company. The bank’s title company or HUD’s title company, right. The others, the other title company not your investor friendly title company. Now this is a little bit of an advance deal so just…listen to what I’m saying. If you want to get your earnest money and I am going to tell you that it’s possible, I don’t do it that often but it’s possible, you can get the earnest money from your buyer payable to the other title company. That you’re going to submit basically on your behalf. Now if you do that you want to disclose it to your buyer and get them to sign off on it, okay. Because the minute they do that…their earnest money is going to an, to another title company that they’re not even a part of. Because remember there’s 2 title companies. The bank’s title company and then there’s your investor friendly title company. And your buyer is only working with our investor friendly title company. But if you’re going to get our buyer to submit the earnest money for you then their earnest money is going to go to the, to the bank’s title company, okay. And so, you need to disclose that and you need to write that into your purchase agreement that’s…that tells them what’s going on with their earnest…money. And, you know, you can add a handwritten note down here that says…and have the buyer sign it, that says, [1:20:00] buyer understands that their earnest money is being made payable to a title company that will not be closing this purchase agreement. And…Let’s see I’m trying to think of how I, how I word that. Buyers earnest money will be going to…XYZ title company…closing for a different closing transaction on this subject property, on the same…property address, okay. So you’re just going to disclose to them what’s going on. I hope that makes sense. It’s a little complicated to sort of explain. Now here’s the paperwork that you fill out. Now, this offer is conditioned upon the following terms. This offer is subject to buyer obtaining a real estate mortgage for no less than blah, you know blank payable.
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Okay what you’re going to do is you’re going to take a pen…like this and you’re just going to cross this out. Whoops, let’s go grab my red pen. And you’re just going to, you’re going to take your black pen or blue pen and you’re just going to cross this one out, okay. And you’re going to initial over here, okay. And you’re going to have the buyer initial. And…because it’s not subject to the buyer obtaining a mortgage. They’re going to pay cash, so you’re going to cross this out. This offer is further subject to buyer obtaining a satisfactory inspection home inspection. No. They’ve already inspected it. By the time they’re going to make you this offer and do the deal they’ve already gone through the property. So you’re going to, you’re going to initial that you crossed it out and you’re going to have your buyer initial. Owner shall pay broker a commission of X. Nope, you’re going to cross this one out as well too. And you’re going to initial over here and you’re going to have you buyer initial. Now number 4 is the first one that we circle. And I circle, said property is to be sold free and clear by all encumbrances by good and marketable title with full possession to said property available to buyer at the time of closing. Yup, we’re going to give you good clear and marketable title Mr. Buyer. And you don’t need to know how that happens, the title company does this for you. Your investor friendly title company takes care of this for you. Circle number 5. In the event that buyer does not perform on said agreement the seller shall retain…earnest money deposit as their sole remedy in this agreement. Yup, that’s fine because the buyer is making you a non-‐refundable earnest money deposit. Number 6, the closing shall occur on or before, you write in your date, at, you write in our investor friendly title company, okay. Date and time and investor friendly title company, yup. Then you circle number 7. So the first 3 you cross out and initial, the next ones you circle and…and you have, you initial again and have your buyer initial next to each one. So you initial and, and your buyer initials. Okay, just like that. Now let’s scroll down here and look at number 7. Really pretty darn simple. And it just goes through some of the terms, okay. No real estate commissions are paid as part of this transaction and seller is not acting as a licensed real estate agent. These are just your disclosure little things, right. Property is being sold as is where is and how is. Guys I really want to point out that no matter whether you use my paperwork or not…as a wholesaler, boy you want to have that in there. You want that in there. Property is being sold as is where is and how is, okay. Number 3, the buyer will pay all closing costs and title insurance, that’s passing all of the cost unto your buyer. You can cross that out and write in anything you want, if you want to change it or edit it. Just you and the buyer then initial it. Taxes shall be prorated till the date of closing. Buyer shall provide proof of funds acceptable to seller within 24 hours of acceptance. Now usually you’re going to have your proof of funds, you’re going to feel confident with your buyer ahead of time…especially since they’re putting non-‐refundable earnest money. And I make my buyers give me a, you know do a cashier’s check to the title company, okay.
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And then this one. This contract is not assignable without seller’s written permission. So the buyer here can’t go and resell this contract to somebody else…unless you approve of it, okay. And number 8. Offer shall remain open until. Basically I fill in the time when I’m signing it. Or I do 5 o’clock. By the end of the day if I, if I’m faxing or emailing this over to my buyer to fill out. Then you sign it…buyer signs it, seller you sign it and, and you’re good [1:25:00] to go. That’s it. That’s how simple this is. And I’ve used this for, this simple one page cash purchase agreement…for over 10 years, okay. Super, super simple. Let me just show you this other agreement real quick so you…see what the amendment is. If you need to extend your closing date. Remember on the one I just showed you there’s a closing date. Well this amendment to purchase and sale agreement amends the closing date of the purchase and sale agreement dated whatever your date was on the…agreement I just showed you, by and between the seller which is you and the buyer which is your cash buyer as follows. Closing date shall occur on-‐ And you just bump it out a few days or whatever, however long you need…to keep your buyer in contract. Now-‐ And then both you and the, you as the seller and your buyer sign this okay. Now you’ve extended the closing date. And that keeps your buyers…earnest money as non-‐refundable. So it’s a super simple little deal. Now we actually on that one that I showed you in the coaching agreement in the other day acquisitions, we actually extended that one twice because…we extended it once, thinking that we had plenty of time. Well we ended up not. So we ended up having to go back to our buyer a second time and extend the deal again. So folks, these are just the things that you’re just going to deal with…in this business. Not a big deal. You just have to know they’re normal and you just have to go extend it and make it happen. Okay. Let’s talk about then the closing transaction. So here’s what we’ve got right, and this is really pretty simple. We’ve got you as the wholesaler right here. And what you hear a lot of times with investor friendly title companies, other investors, is you’re going to hear the phrase the AB closing and then the BC closing, okay. All that means is the, the closing between the seller which might be the bank or whatever, between the seller and you. That’s known as the AB, you’re basically B, okay. The seller is A and your buyer is C. So, the agreement and the closing between the seller and you is the AB and between you and your cash buyer is the BC. Real simple. So you have an agreement to buy…between you and the seller, right. And, this often time closes at the seller’s title company. So, what this is, is as you follow the Blitz acquisitions system this is the paperwork that you get…through that process. You’re making either a HUD agreement or an REO purchase agreement, okay. So this is the paperwork there, okay. This is on the buying side, this is when you’re buying. The A to B is the buy. And you’re oftentimes using the seller’s title company to do this. This is not your investor friendly title company. Then the BC is the sale. So the buy and the sell. Now this agreement to sell is…the paperwork that I just showed you on the last screen. The one that I just filled out. And this B to C sale happens at your investor friendly title company. Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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Now here’s what happens. I want to use this down here as the timeline, okay. This long line. So let’s say that you go under contract right here in you’re a to B transaction. So you and the bank or you and HUD or you and the seller have just agreed on the terms and now you have signed agreements, okay boom. You are under contract right here. And in your purchase and sale agreement it says that you have…let’s say that you have 10 days…for inspections. Okay with HUD you have 14 days but let’s just say you have 10 days. Between the day you-‐ This is also known as MEC, okay. M under contract or MEC which is mutually executed contract. So whatever that date is from there…to the day that your inspection period is up is when you want to be marketing the property and finding your cash buyer and selling it, okay. So this is your safety period, in here. Between…going under contract and your inspection deadline. Because you can cancel the contract here and get your earnest money back. If you cancel your contract over here..they’re going to keep your earnest money. So what you want to do is you want to find your buyer…inside this inspection [1:30:00] period. Now you know that you don’t have to close until here. Let’s call this 30 days, all right. Let’s say that your purchase agreement back here, you’re A B purchase agreement says 30 days to close. Well inside of 10 days then, what you want to do is you want to find your cash buyer and right here, let’s say this is on day 6, you go to contra, you sign the paperwork between…B and C. You find your cash buyer and they say yep I want in. So they submit their earnest money to your investor friendly title company on day 6. Now guess what, you don’t have to worry about…your inspection deadline anymore. You know why? Because, if you’ve got $500 earnest money out here you just collected 2000 earnest money right here. So even if your buyer now doesn’t close…yeah you’ll lose your 2 thou, you’ll lose your 500…but you’ll keep their 2000 so you’ll still make 15 hundred bucks, okay. But now here’s how this works. You’re A to B closing is scheduled out here…for 30 days. What I always do is I-‐ Whoops, that’s A to B not A to C. What I always do is I always get my…buyer to close a little bit early. So if I know the date of this closing out here I always schedule the date for my B to C closing a little bit earlier than that. Why do I want to do that? So, I want to maybe set them up for day 27…okay. So, so from here, from day 6 to day 27 is how many days? It’s 21 days from the date that I went under contract. So it’s 30 days with the bank and its 21 days with my cash buyer, okay. I want them to be scheduled to close right here. And what I want to try to do is get the bank to move the closing date up and meet me on this day. If it doesn’t work that’s when I have to go with that amend extend and extend my buyer out…a little bit and, and go meet the bank somewhere out here, okay. If I have to. But what I’m trying to do, I’m always trying to get my buyer to close sooner and I’m trying to get my seller to then come up and close quicker with me. And these are vacant…distressed, foreclosed houses in most cases. Or abandoned houses from probate or some distressed seller, so it’s often okay, you know. It’s no problem. The seller doesn’t have to move or anything in order to sell to you. So if you can get the title work all done you, you can many times bump that closing up. So, you always try to get your buyer to close early…earlier than your seller and then you try to bump this one up to meet. And…it’s a, Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
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it’s an exercise in management to get these two closings. Let me, let me clear this out. It’s an exercise in management to get this…A B closing right here and this B C closing right here to land on the same day. Because that’s the key. They have to close on the same day. So you’re just going to work it out between this title company, hey can we close early and this title company, hey I’m working with my buyer to get us moved around, you know, can we close on this day. So you’re just working the relationships between these and getting everybody to line up on the same day. Because here’s what happens. You get to the same day…and you’re going to close with your cash buyer at say 10 o’clock in the morning. And then you’re going to close with your seller, let’s say at 2 o’clock in the afternoon. Now this is critical. This is important, listen to this. When you close with your cash buyer at 10 a.m., they have closed in Escrow only, okay. You haven’t transferred title yet because you don’t have the right to transfer title yet. So they’ve closed only in Escrow. It’s important that you let them know that and say hey, make sure Mr. Cash Buyer, you know that you’ve only closed in Escrow so until the title company can get the paperwork finalized don’t go out to the property, don’t start demolition, don’t change the locks [1:35:00] don’t do anything until the title company calls you this afternoon. So in theory let them know that the closing is not complete yet. This is very important. Because here’s what happens, at noon…the listing agent over here goes out to the property and finds the buyer…with a hammer and a…sawsall ripping the house apart, okay. They think they close at 10, at noon they’re out there ripping the house apart, the listing agent for the seller shows up at noon…to pick up the lock box and pick up the keys…so that they can go to the 2 p.m. closing and give you all the stuff and they find your buyer out there ripping the house apart it will kill the hole deal, okay. So I’m giving you-‐ How do you think I know that, okay? It’s happened, okay. I, I, and I-‐ No, it’s happened, I’ve been able to sell legit. You’ve got to be able to think quick and you got to smooze talk really fast when that happens…And if it does happen and then the listing agent calls…you or your agent, you say, ‘Ah man, I told my guys not to go out there’. Make it sound like it’s your guys. Well it is your guys, it’s your cash buyer, your guys. ‘I told my guys not to go out there until after our closing at 2 o’clock and I’m sorry, I will call them right now. And tell them to stop everything. I’m actually on my way over to the closing and blah blah blah’. So smooze it over…But you can prevent it by making sure that your buyer knows that they are closed in Escrow and they cannot go to the house or do anything until the title company or you calls them later this afternoon, much later this afternoon, and lets them know that everything is clear and good to go. Hoped that makes sense, hope that saves you…some frustration. That’s like one of those…little secret ninja wholesale-‐ Hey I’ve wholesaled a lot of houses so I know what’s going to happen kind of tips. Use that to your advantage…and, and make it happen.
Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
http://www.reiEducationProducts.com
Alright, let’s see. With that your next steps, I mean we have covered the Blitz Selling system, gave you a ton of information. It’s now time for you to go out and start making stuff happen with this stuff. Don’t worry we’re going to follow it up. Any questions you have with our Blitz Selling coaching call. So any questions after going through this training you’re going to still going to have the opportunity to hit me live and get all of that…get all of that stuff answered. So…your next steps: continue submitting bids, continue making offers, following the Blitz acquisitions techniques okay. That’s step 1. Next, put your first property under contract. Once you put your first property under contract you’re going to go into Blitz selling mode. And while you’re doing this simultaneously…set up a Google voice number in the local city that you’re going to…wholesale properties in. This is the Google voice number that your sales guys…or you locally are going to use to sell your properties, right. Then find your investor friendly title company…okay. Start doing a little bit of…shmoose and referrals. Talk to other wholesalers…buyers, as you start building your buyers list. The local RIO group, real estate investors association groups…if they have one. Find that investor friendly title company that everybody is, is using to close deals and then get ready for team integration. So as your working the Blitz Wholesaling, the Blitz acquisitions process and getting ready to put your first property under contract I want you to set up your Google voice number…find your investor friendly title company and start reverse engineering to find those buyers. Penny saver, drive the streets…and, and all of the things that we’ve gone through, right. The, the stuff that is going to help you build this buyers list super fast, super easy. Get ready for team integration in module 6 because…this is what is going to explode your business. Everything we’ve given you to date makes this business simple, makes it easy, makes it workable, repeatable, doable. And guys I’m telling you and gals it works. Module 6 is what’s going to take your business to a whole new level. It’s what’s going to explode your wholesaling business. It’s what’s going to allow you to scale your business locally and across the country if you want to, believe me. Module 6 team integration is probably the most exciting module in the entire Blitz Wholesaling system. So with that this is Rob Swanson for Blitz Wholesaling. This has been module number 5, Blitz Selling. Go get your deal [1:40:00] build your buyers list make it happen keep it simple folks. We’ll talk to you next time. Thanks for being here and…See you soon.
Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved.
http://www.reiEducationProducts.com
