do you find yourself struggling to talk to sellers when you're on the phone and you think seller I hardly even know her well we're going to be covering that today in this video that I talked to a seller that's basically handing the keys to his house over to me saying just take the house please just take the house anything in fact he's encouraging us to go around his real estate agent to buy the piece of real estate from him and just saying take the keys to my 3% interest rate home so we're going to give
you a master class on how to talk to sellers how build rapport what does that entire flow look like you guys have been asking for more seller calls so here you go hello hey is this Peter yes it is hey Peter my name's Pace I'm partners with Mark I'm the guy that finances all of his purchases I'm just kind of like the money guy Hi how are you I'm good man how how's that house how's selling the house going I mean it's been slow I don't know if you told you any of my backstory but
we've got I've got like 20 deals I'm funding for him this week so um I don't know all your backstory I'd love to hear more about it so I can differentiate between this deal and some of the other deals I'm doing for him so I actually um so I got re I work for the Campell Soup company sweet and I was living out there I actually moved out there to be closer to my family uh a couple years after we moved out there and I mean we the house that we that I'm trying to sell
is literally we bought it in what was it September 2021 like brand new construction the paint was still wet when we moved in it's a DR Horton property oh that's a great that's a great company they they do a good job yeah I think so I mean mean always people are always sniveling in but it's always those people you can never satisfy them so that it is what it is yeah those are the people on yel complaining about you know good food you know you guys will notice the more calls that I make the more
calls that you watch you will see that it doesn't matter if it's a real estate agent or a seller I choose to have as little information as humanly possible as I walk into that conversation when somebody else that's a brand new person in fact this was a brand new person in our community markk that brought me this lead and Mark had all these notes all these notes all these notes that he had all about the seller and the agent and the whole story about the house and he said do you want to hear the story
and he go no I want to just have the phone call with the seller so give me the phone number and the name that's all I need he goes that's all you need yes why because that way I can walk into the conversation asking genuine questions with genuine curiosity and it comes across genuinely the seller can pick up on that tone and go wow this guy's really interested he's really getting into the deep parts of the story in fact what happens is every time I get off one of these calls the student who brought me
the lead goes you found out things I did not know and I'm like this is why I don't want to hear the story before I get into the call the less information I have the better off I am now when you're brand new that's the opposite of what you feel you feel I have to know everything about everything about everything but as you get experience you go actually it's better when I don't know anything because then I can be genuine genuinely curious and ask questions out of genuine curiosity yeah exactly a year after that the
the company did a reorg and they they reload me back over here if you you know if you can't get anything done with the house we'll we'll we'll assume it for you and we'll sell it you know we'll just take it under our wing and we'll we'll sell it off you know after the reorg um you know all of a sudden just seemed like the money dried up and they weren't able to do that for me so I just started renting it and now I just don't even want to rent it anymore because you know
the way the insurance is gone up the HOA is through the roof and I just you know to rent it I was barely breaking even all right one of the most amazing strategies that I Implement is obviously finding the bunnies right this is where the sub two logo comes from is the bunny ears how am I finding the pain that is in so you can see as how I extract and gather all the pain points all in one place and then when I go into start talking about negotiating I want to start now putting landmines
in the pathway that I know going to explode later on down the road like for example it's in an HOA if I don't point out that it's in an HOA and get him to acknowledge that it's in an HOA by saying I don't know what I can do with this house and I don't know if I want this house and I don't know if I this that and the other I'm essentially lining out that I'm not motivated to buy the house which gets him chasing me and he's helping me bury the landmine so one of
those landmines is well it's in in nature way I can't do this and this well it's this is going on with such and such and such the roof thing this that and the other repairs issues da d d and I get him to put all the landmines in place and you will see very quickly he starts chasing me to convince me that this is a good deal instead of the other way around when you're using the proper sales techniques you can get the prospect to sell you on buying their property with no money out of
your pocket this is what was the most mindboggling thing for me when I first started I was like is sub2 legal why would would somebody sell their house to you subject to and now here you go somebody's almost going to be basically begging me to take their house over subject to and cut their entire real estate agent out of the deal because of the proper sales technique I think that's the worst part about um renting is the negative cash flow but also this month I wrote a check I wrote a check this month for like
$60,000 just to repair roofs and pools on a bunch of houses and I'm like oh my gosh I freaking hate my life I mean in Florida is like ridiculous like that worth five times higher than the national average on home insurance home owners insurance so you are you neg would you negative cash flow right now if you rented it out um yeah okay got it so you got a negative cash flow the I think the other thing that kind of sucks is I like living in an HOA but I don't love having renters that are
in an HOA because then you have HOA problems on top of it is that something you're worried about as well no I mean like I said it's just one of those things where you know this company loves to you know promote people move people and I'm on a promotion list I mean it looks like I'm going to be set on this East Coast of Florida longer okay which is fine but still it's seven eight hours away from that property my sister passed away who lived over there so she was always kind of like safety net
if there was ever issues that she could take care of so now I just got a house over there that I'm trusting in it you know I'm trusting that the leasing company the rental companies doing their job and you know there's no you know what I mean it's it's like a out of sight out of mind thing except for the fact that once a month I see the money get pulled out of my account for the mortgage and every quarter that money gets pulled out of my account too and it's just it's just I don't
want to deal with it yeah I mean what would it mean to you if somebody just took over the payments and took over all that BS I would love it I'd love it even more if the place was going on fire my insurance policies awesome love yeah I love that you will see in a lot of my calls that I make the seller believe they are in charge of the phone call I know exactly where I'm going why I'm doing it you can even see me call out right here in the upcoming clip that says
I'm about to do this because I'm feeling the current of the conversation because I'm the one guiding the conversation I'm putting him exactly where I want him to go and then I say what I need to say to get him to say what he has to say for me to get this deal so it's also known as the common enemy strategy so I can attack the agent without attacking him I'm not saying oh your agent's horrible that's this and the other but simply asking the question of why hasn't the agent been able to sell the
house is planting a seed in his mind of the agent has been hasn't been able to sell the house he then has to reply to that and either defend his agent or go yeah you're right the agent this that and the other there's only two ways for him to go and if he defends the agent then I take it a whole other route but with this one this guy goes well yeah you know he's kind of a buddy he's doing me a favor he doesn't really want to deal with it it's not really up his
it is exactly what I needed him to say and so I love real estate agents I do deals with agents but in the situation where I'm talking to the seller directly you better believe I'm going after the common enemy strategy what does that mean the enemy of my enemy is my friend and that means that if the seller is not having a good time with the agent and the agent isn't able to sell the house then my job is to align with the seller and kind of put a wedge between him and the agent in
order for me to get his commissions dropped down because last thing I'm going to do is pay an agent full commission on a house he couldn't sell without creative Finance why would I do that this the agent doesn't deserve it so I'm going to make sure that I plant the seeds appropriately to get them to where I need him to go your house is it moving ready now or does it need to be a little bit cleaned up yeah it's vacant it's AB like you said like when we had after the runners they were actually
really good Runners they didn't smoke they didn't have any pets it just two got two um a husband and wife wife that were in their late 50s that really enjoyed watch me attack the agent now and I just you know not that I pushed them out but I was going to have to raise the rent on him and it was it made him uncomfortable I mean I couldn't keep it the same as much as I would have liked to butan the math wasn't math yeah I had to raise it yeah totally and um but I
mean like I said all the appliances are in brand new what brand new washer dryer brand new stove brand new refrigerator the flooring is perfect we got a plantation shutters and every window in the house I mean it's I mean we really did a nice job getting everything decorated then we had to turn our back on it why hasn't your agent been able to sell the house well I I mean he there's a um so DR Horton actually built the same tow houses right across the street okay but they were only supposed to be for
renting and now I guess the person that was originally supposed to buy it to do that backed out and now they're just selling all those houses all those town houses got it and so they're flooding the market right the exact same townhouse exact same size everything else and basically brand new and they're buying down people's mortgages to get people in there have you had to lower your price a couple times yeah and you're at a point now where if you lower any lower you got to come out of pocket to sell it yeah exactly got
it okay the thing I worry about here is like it's not necessarily a neighborhood that we normally Buy in I'm open to it for sure but I worry about paying a full agent their Commission because I don't think you want to pay your commission out of pocket just to hand me the keys to your house you know what I'm saying right yeah do you think your agent would be agreeable to like lowering their commission since they really didn't yeah yeah R yeah R's definitely would yeah I yeah he would definitely do that okay you think
they do like maybe 1% versus 3% I mean that would be a conversation for him there's a couple things in my mind and I think the solution is maybe getting rail to lower his commissions so we can have a serious conversation number one thing that comes to mind is you ever heard that phrase don't catch a falling knife yeah okay so like your the neighborhood's getting flooded with new inventory that is now reducing my ability to do stuff with the house as you understand y the cash flow doesn't work out for a regular rental so
the way I would make money I take the house over it's basically a falling knife I wait for the market to come back you know might be two years might be 3 years whatever and I start making money on by year three or maybe year four cuz like it's an HOA so I can't do airbnbs I can't do like a bunch of stuff in right so I'm limited on what I can do and I got to wait to make money um what do you think what do you think is the right way to approach raill
regarding commissions to see if we can get that down to like a 1% I mean he's just one of those easygoing guys that you know you don't have to beat around the bush with him okay cool that's you know you just say Hey listen you know we're had we had a conversation and we'd like to move forward on something but it might involve you uh taking less on this deal is that going to be an issue okay cool and I mean it's not like he's really done mean it's he's he's not had to show the
property like it's got like one of those digital code key key locks out you know what I mean like he's not doing open houses he he's not doing anything that he'd have to worry about I almost feel like my contract with him is almost up for the from when I showed it from the lising I love it okay so there's a couple there's a couple ways I usually do this either a because I I love working with agents I don't have anything against them but again he's had the property for six months he hasn't been
able to sell it you're you're almost at the end of that six months right and if I pay him 1% I still feel like he's getting paid handsomely for you and I working out a deal right well yeah of course because he already knows because I'm already I've already talked to the people at the rental company to rent it again and they already have people they were going to go have people uh view it on Monday to rent it okay how much money would you how much would you lose monthly I mean I was so
I put the number at 2,000 a month okay so with the mortgage HOA I'll probably break even actually no I won't because they take their their fee so I'll probably lose like 200 bucks maybe 100 yeah 100 I think it's like 150 a month okay got it which is you know better than what I'm losing right now for yeah cuz you're losing two grand a month right now um what do you think is our next step do you do you want to talk to him about it and say hey I've got this guy my name's
Pace by the way um yeah yeah no no no I mean yeah so I he we've been texting back and forth about it so okay if you want if you want to chat with him and go hey these guys would take over my payments and get me out of this hemorrhaging but they and they offered to pay the closing cost and they offered to pay your iions but they're wondering if we can get down to 1% if we could do that I bet I bet you we get to the next chapter of the conversation and
talk about like more nitty-gritty details right um yeah I mean I I mean I'll give him a shot see what he says of course I'd like to just be done with it and never have to worry about it again yeah I just because I mean obviously I want to buy another place or have you know you know having having that still stuck on me means I got to go 20% down to any other new mortgage and that's kind of like oh man that's a lot of money I have to throw out there just to get
a house another house but I think a lot of people a lot of people think that but I've done this like 400 times where I've helped other people buy their next house and they don't have to put 20% down I can show you how to do that okay cool perfect yeah happy to do that and I've got other sellers you can chat with about it too we actually just had one last week that bought their second home and they're like they were blown away they didn't need to put 20% down but like cool but like
all the other all the other things that you'll run into like keeping the mortgage in your name honestly it's really funny how people believe when we're doing these deals they believe that's the biggest issue but 99% of the time the biggest issue is their agent getting in the way and wanting too much commission for not even doing any work and it kills the whole entire deal I walk away yeah the seller calls me two weeks later saying hey can we keep it going and I'm like I've already moved on to other houses I'm so sorry
yeah well I mean like I said like we're at the end of our like agreement and I mean I've known him for I mean he sold us the house I mean how much more money does he want off of it that's what I'm saying bro but I'm happy to pay him 1% and figure out all the details and we can get into the nitty-gritty um once he says 1% is good for him and we can go into all the other stuff if you're cool with that yeah I'm fine with that guys let's review everything that
we covered in this call my gosh this was a master class on everything you should do the problem is I'm so good at doing it that you got to get broken down and go what did you do why' you do it etc etc etc it's easily missed on the fact that one we started out by building Rapport right we built Rapport we talked about hey I understand how it is to run these properties man they're really hard I had to fix this roof oh my gosh you're so right you're so right you're so right you're
so right you're so right getting him on the same page second thing that I did is I aligned with him where he and the agent are not having a great outcome on the property now he's homies with the agent so he's going to kind of protect him a little bit and that's fine but I got him aligned on the agent conversation so I could get him to get the agent to either get rid of his commission or lower his commission to almost nothing another thing that I did is I talked about how limited I was
in my outcomes guys here's the cool thing about creative Finance it doesn't matter if the property has an HOA or the property doesn't cash flow I can wrap the property okay if you guys want to know what a wrap is go type in Pace Mor [Music] wrap or my team will put some sort of video on the screen right now so you can learn what app is this is what I would do with this property I limit and get him on the same page with me on my limited option so that the seller is like
oh man I don't know why anybody would even buy this house I'm lucky that this guy would take over my payments I'm lucky this guy would take I'm lucky this guy would take over the payments and not make me pay him money okay so I gave him all my limited option the HOA the this that and the other then the next thing I do is I give him homework and I line out the next steps this is what a lot of people fail to do actually I mean most people fail to do all of these
things but one of the biggest things they fail to do is give the seller homework because when the seller's been given homework who's in charge classes in session I'm the teacher giving him homework he now has to report back to me not the other way around and I've set the tone of the entire conversation now the seller has to come back to me and tell me what his his report card is and what he did and what his project looked like and teacher Pace the teacher gets to now grade him on how good of a
job he did now I don't want to manipulate people but I also want to be in full control of all my conversations because I want to make money and more importantly sales is a service I'm actually serving the guy because I understand all of his entire situation and I understand that the things that he's going through are not solving his problem including the real estate agent so it's time for me to line these things out and give him that homework so I can be in control get this property under contract via subject two and turn
this thing into a wrap that will cash flow for the next 30 freaking years okay so what did we learn into this call these are my this is my ammunition these are all individual bullets okay these are I will use all of these at some point in the conversation so the first thing I wrote down was Insurance 7 hours away his sister passed away I then talked about why insurance is such a big problem and how I'm affected by it too and it sucks and I I he's also the other thing you probably don't understand
is that he's also similar to my age so I can say sucks I can say bro I can say brother I can say that stuff right I mirror the prospect I then started asking a question why hasn't your agent sold it and he was very nice in the very beginning about his agent but the more I let him talk about it he started saying stuff like my agent has sold what does he need more money for okay nobody likes a real estate agent I'm sorry if you're an agent out there nobody likes you I'm so
sorry that you're just a necessary evil for 99% of people on the planet and the guy and the thing is like well why hasn't he sold it oh well because somebody's flooding the market no your agent hasn't sold the property because he took a listing he shouldn't have taken and he hasn't He's listed he's dropped the price multiple times that's the answer but I can't say that to the seller because it will confuse him I let the seller tell me why and I let him talk so I use the words is it moving ready now
or do I have to do a for him to tell me the property is vacant oh how long has it been vacant okay great so how much is it costing oh dude you've lost like $10,000 right you want to remind the client of their pain because what do we do we solve problems if you don't have a problem I don't have a solution even if I have the solution and you have a problem if you don't think the problem is this then why would you accept my solution and do you notice I never ask well
here's what we should do I said so what do you think is our next step right I said do you want to talk to him or should I try and talk to him and I knew his I already knew his answer because the energy that I was feeling I was like he's going to take responsibility because this guy's his friend I don't even know if it's a deal I will not underwrite or look at a deal until I've eliminated the majority of the objections because what happens is if I am like wow this is a
great deal I then get emotionally charged to make sure this deal works and then my energy on the phone is very different versus I don't even know do I know the address no no I don't even know the address and I'm eliminating his objections then when we get to the agent saying 1% I go then tell me the address and now I have the ability to say no so again people are like why would a seller let you take over their mortgage could we count the ways of why this guy would just say please take
the keys to my brand new home the biggest objection I have to overcome here I think I got two or three killed in this one agent commissions two well I can't go buy another house with this being in my name I killed that um do you have enough pain there's no reason for me to do this I should sell this with an agent you know I have like 10 or 15 things in here probably accomplish a lot the one thing I did not touch base on is what what do we have what's top five objections
a seller is always going to have you want to know what those top five sellers objections are and how to solve for it click right here to watch the next video it's going to help you solve that exact problem and prepare for the next seller call you have
