The #1 Script I Used to Scale My Real Estate Investing Business To 7 Figures And Beyond
Whether you’re a Realtor or an investor who is meeting with a motivated seller, most miss the mark when it comes to building rapport with the homeowner and separating themselves from the competition. Often times, they use a familiar old script that talks about how great they are, why they should work with them, and then they give them one option that may or may not work for the homeowner.
While it is important for the seller to know that you have a great track record and what you’re company can do for them, this is the same conversation that pretty much every person who walks in their house is having with them. When I was a Realtor, I always looked for ways to separate my team from that old generic conversation, while still covering our strengths and accomplishments. For me, my goal is to differentiate us from the other Realtors and investors who were sitting down with the same sellers that we were. So, how did I do that?
I used a script I call “The three-prong approach”. Using this script over the past 5 years first helped me to get more listings in my real estate business and close on more investment properties in my real estate investment business. This script alone helped me scale my real estate team to the Wall St Journal Top 1000 teams in the nation and eventually transition to working as a full-time investor. In fact, this one script has made me 7 figures, and it is something I use in every single conversation I have with a motivated seller. What the heck is the secret behind this script? I am going to share that with you right now or you can watch me talk more about it in detail in this video:
The Secret Sauce
The secret sauce…OPTIONS! Give the seller options. The main focus is to offer your seller more than one choice when they are thinking about selling their property. Think about it. If you’ve ever been to a buffet, do you like the buffet that has 50 options to choose from for your dining pleasure, or the one that has 5? It’s a no brainer, right?! Everyone loves having more options to choose from instead of less. So based on the sellers goals and their individual situation, giving them more options to do business with you in a capacity that will still help them achieve their goals gives you a better chance at securing the opportunity.
The mistake most investors and Realtors make when going in to sit down with a seller is only giving them one option to take either take their cash offer (investor) or list their house with them (realtor). Well, what if that one option doesn’t work for the seller? You know the answer to that. So, because I was losing out as a realtor and investor too many time by just being a one trick pony, I decided I need to come up with more tricks to offer the seller. While there are many options we can discuss, these are the three main one’s I used in every appointment with a motivated seller and my conversion numbers began to skyrocket.
First Option: The retail option is the traditional choice for many sellers and a most common pitch if you’re a Realtor. If the seller just wants to get the property on the market and try and sell it as is, plus expose it to as many people as possible, going on the MLS is going to be a great option. If your sellers make this choice after you have presented them with all of their options, and you are a Realtor, grab that listing, sell it for top dollar and collect your commission after a job well done. As an Investor, I send it over to my real estate team who will sell the property for its highest and best, and I will receive a great referral fee without any involvement or headache to go with it.
Second Option: “Well Mr/Mrs Seller, I have the ability to purchase your home, and I will pay you all cash. I can close in 7 to 10 days, or in your preferred time frame. I’ll buy it as-is so you don’t have to make any repairs, you won’t have to pay any closing costs or real estate commissions, and you’ll have much less hassle when it comes to dealing with buyers and people coming in and out of your home all the time”. Based on the condition of the home, the sellers hardship, their motivation and timing, this may end up being the best option even though they will make less than what it could sell for on the MLS. Again, don’t assume you know whats best for them. Give them the option and let them make the decision for themselves.
Third Option: “I can be a consultant for you and help you get your property in a condition where you can get top dollar on the MLS after you fix it up and sell it”. I have the experience to offer suggestions on ways for a seller to maximize their listing price when they make improvements. If their goal is to make as much money as possible, and they have a little cash and time to spend on repairs and upgrades, I can offer suggestions on how to get there. I will compare their home to the houses in the surrounding neighborhood to identify how they differ from those homes in the level of quality and available features.
From there I will suggest what improvements will increase their property value. I will also calculate the expected equity increase verses the cost of those improvements, so they will know the return on their investment. By offering this service we have given those sellers the value of informed decision making and once they finish the remodel and maximize the value of the property, they will list the property with my team for a higher price (making me more money in the long run) and it ends up being a win-win for everyone.
Bonus Option: This is more of an advanced investing strategy and you must know how to perform it, but you can offer them a creative option in selling their home. They can carry paper and become the bank (when applicable), you can offer a subject-to purchase or mortgage wrap, or many other creative options that could be a fit for the homeowner and help them meet their goals.
There they are! I can’t tell you how many times a seller has said that they didn’t know they even had any options when selling their property. No other realtor or investor had ever had the conversation with them. This always gives me a huge advantage and a much greater chance at getting their business, and if you start using the 3 prong approach I know it will do the same for you too.
Using this approach, you will benefit either as a Realtor or a Real Estate Investor. The bottom line is you need to lay out multiple ways to help a seller meet their goals. If you are coming from a place of service and value, your seller is going to see you as the ultimate problem solver and the best person to help them. That will lead to more business and greater income for you, which lets be honest, that’s the goal at the end of the day…to make more money and help more people!
Hopefully this script is helpful and if you want to hear me go through it in more detail, be sure to watch this video on my YouTube Channel. If you have any final questions or comments, be sure to fire them at me and Ill be happy to respond.
See you on the flipside,