Questions to ask the Sellers

These are GREAT questions to get an idea of where the seller is...

I see so many times a beginning investor trying to ram a deal through on a NON-motivated seller. Doesn't work.

A seller is going to open up more to someone that seems generally interested in them and their home. You might open by just talking in general asking about the nieghborhood, what they enjoyed about the area, what are the highlights of the nieghborhood. The more you can build a relationship with the seller the more willing they will be to give you information.

I've learned this first hand, you have to build raport and trust to get the owner to deal with you over and above every other interested party.
Good stuff coaches and thanks for that info!

and I agree as well. I would not have gotten any of the deals that I have if I had not listened and taken an interest in not only the property but the seller as well.

Lads & Lassies,

While I am totally clueless how to do this REI (and can't wait to get Dean's book in the mail!), you guys/gals have just blown me away with your insights into people (and life!)...

First of all, I haven't been involved with as supportive of a collective group in a LONG time (well, maybe never) so it is so encouraging and uplifting to read the insights, questions, hopes, and dreams of so many...and the "esprit de corps" that is clearly part of this organization...kudos to Dean and company!!!

Here is my stab at the 5 "W's" I have used as a coach, admin, and prof (with my "1st shot" at applying it to REI)...Would LOVE to hear how it resonates with this crowd as I dip my toe in the water during the next 90 days...

Who = Discovering who your seller is (and is not) is fundamental in any field
What = What do they really want to do (fast cash, escape, etc.)
Why = Critical "bottom line" because knowing this determines their motivation
Where = Are there job/location changes going on in their lives?
When = Is this a NOW decision or a 2-3 or longer month process from their point of view...

The 5W's, I like it. Well put together. Good Luck

Al

If the price is not want you want, always follow with "Is that the best you can do? or say something like "So you're saying that if i don't give you ___ (the price seller's asking for) you won't sell the house? If the answer is yes, then ask another quesiton, "What's your second choice? or "what can we do to make the deal go through? You have to negotiate and ask questions and get as much info about the seller as much as possible.

There's a lot of great feedback and information provided above, but you have to be resillient and get the answer you want. Be bold but not overbearing!

One thing i like to point out is never name the price first. He who named the price first is already lost! Let the seller name the price. If the seller is still not willing to name his price or come up with an agreement with both of you can agree on, then the seller is not a motivated and we must move on. Otherwise, if the seller provide you with the info that will benefit for both of you and the seller, then you got yourself a deal. Good luck and happy investing!

LL

>Locate motivated flexible sellers.
Only deal with them if they HAVE to sell.
Do not deal with sellers if they WANT to sell - Walk away unless they NEED (have) to sell.
I know nstreet (above) covered this beautifully and here is a very similar approach regarding 'asking a seller why they are selling?' --
Ask them to tell you about their house. Let them talk on and on and on about the house. Then say, "That's a lovely home! How could you depart with it?"
BAMM!! Now you find out why they are selling! They must NEED to sell otherwise forget them.
>Prescreen the sellers.
>Make written offers. The number of rejected offers will tell you who the millionaies are going to be.
>Organize the Financing
>Follow up. If they refuse your offer, get back to them in a couple of weeks or so and find out how they are doing. Did they sell the house? Let them know that you are still interested. Sometimes they are so glad that you called back, they were looking for your number ...etc. You've got to call them.
>Exit Strategy. You must have an exit strategy BEFORE you write your offer. The exit strategy should be the first thing you come up with. It will stop you from buying bad deals. The exit strategy is extremely important.

I hope you find this information useful.
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Michael B

For a new member you sure have learned alot!! Or did you already know all this stuff? I must say I'm impressed and very happy to have you contributing already! By the way, welcome to the DG family, we're glad you joined us and look forward to hearing more from you!
God bless you,

Thank you for your kind thoughts. I read many of your posts.
I think you (and many others on this site) are absolutely fantastic!
The post I just wrote was from notes I've gathered from other sources and I thought this may be the perfect place to share them.
I, like many others here, am brand new to real estate investing and I just read Dean's book this year (and I am currently re-reading it) and I have about a million questions regarding real estate investing. (So watch out)
This website is Gold. And I am glad that you are here. You (and others on this site) are extremely appreciated for all of the information, advice and answers you freely give us out of the goodness of your heart.
Thank you so much.
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Michael B

I appreciate your words of wisdom and the approach you present in talking with the sellers. Thank you for your contribution, and like Elena said, it's good to have you here.

God bless,

Rina

I'm glad to contribute when I can. Thank you Rina. I appreciate it.

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Michael B

I like this thread too..very helpful..my confidence is building!! So excited!!

GREAT INFO!