In today's show, Larry and Kandas tackled in detail the different things you can discuss with the seller. They also gave an overview of the right way to talk to the seller on the phone, what needs to be asked over phone conversations, and how to get sellers to give you a call back.
In addition, they also talked about building rapport with prospects and taking a tour and figuring out how much to pay for the property.
It’s time to BRAG, Be Rich and Generous. BRAG radio is cohosted by bestselling real estate investing author Larry Goins and co-host Kandas. For the next hour they will show you proven and effective ways you can be successful in real estate. From the WBT studios the flagship station of the Brag Radio Network, here are your hosts, the rock stars of real estate, Larry and Kandas.
Kandas: Kandas. He does such a good job with that.
Larry: What’s happening? How are you doing? Good to see you.
Kandas: I’m good. Are you talking to Chad or to me?
Kandas: Yeah, whoever answered.
Larry: Yes, whoever responds.
Kandas: We just get lumped together Chad, doesn’t matter.
Chad: I’m just happy somebody is talking to me.
Larry: There you go, that’s awesome.
Kandas: Oh we’re going to engage you more in this show. That’s what you’re looking for so we can make that happen.
Larry: He’s really a great producer. It’s like the three of us, right.
Kandas: Do you feel like part of the show?
Chad: Three is company.
Kandas: You should introduce yourself then, and produced by and there I said.
Chad: No that’s okay.
Kandas: Then we really need to get the camera up in the air where you can see all three of us.
Larry: Yeah we got to put it up here in the corner somewhere somehow. As soon as I can figure out how to hang it from the ceiling or something.
Kandas: How can you balance from these wires there?
Chad: There’s a reason I’m on the radio and not TV.
Kandas: He’s so funny.
Larry: And we’re saying that because if you’re listening on WBT, we also videotape this live, right.
Larry: And you can watch the archives if you like.
Kandas: Yes on bragradio.com.
Larry: There you go, that’s good.
Kandas: That’s where they go.
Larry: Each and every week.
Kandas: Every week.
Larry: Like every day.
Kandas: Every day, every week.
Larry: There you go. So this show is all about being rich and generous. We are real estate investors, we also teach real estate investing. We hold seminars, boot camps, we write books, have courses, coaching, mentoring, all that good stuff, right.
Chad: Blood drives.
Kandas: Blood drives. The blood drive is coming up.
Larry: Of June.
Larry: That’s awesome.
Kandas: You finally let me talk about it, it’s awesome. Thank you Chad for throwing that in there.
Larry: Well you tried to talk about it back in January or something.
Kandas: No it was March and people need to get ready because just like you it’s taking you a little bit of time to come around to the idea that you are going to be giving blood.
Larry: That I’m going to get stuck in the arm.
Kandas: Yes. And you’re going to give the chance to somebody else to have life.
Larry: I’ll be there, come by the office, right.
Kandas: You’ll be there.
Larry: Come by the office, do they know how to get there? Do they know where it is?
Kandas: Well you can call 877-LARRY-GO and I can give you our address. But we’re in Lake Wylie, right, near the bridge.
Larry: Yeah, we’re on Highway 49, right.
Larry: Charlotte Highway 4607.
Kandas: Well you don’t even need to call me then there you go. He just backed into it we’re in Lake Wylie out on Charlotte Highway 4607.
Larry: That’s it, we’re there. So we do teach real estate on this show and last week we talked a little bit about off market properties and a little bit about how to find them. And you want to look for people with motivation, you also have to look for deal killers in those deals. And this week what I wanted to do is kind of follow up with that go through specifics that you’re going to talk to people about and questions-
Kandas: It was like a Part Two.
Larry: Kind of like a part two like we did a two part on the realtor thing.
Kandas: You’re starting to like these two-parters.
Larry: Well, maybe I don’t know, we’ll see. I mean hopefully the people listening will get a lot out of it. If you’re wanting to invest in real estate you need to know how to deal with sellers, you need to know how sell a little bit, you have to sell the seller, right.
Larry: Does that make sense?
Kandas: It does to me.
Larry: You got to have some sell skills, right. And you want to make the phone ring. You got to make the phone ring with motivated sellers whether it be direct mail, Craigslist ads, bandit signs or birddogs or whatever. But when the phone rings you want to make sure you ask people questions and get to know them and build a little rapport with them.
Kandas: Little rapture.
Larry: A little rapture. That’s what a kid used to work with me called it, “You got to get your rapture down,” I’m like, “What?” “Rapture, rapping back and forth.” I’m like, “No that’s not rapture.” But one of the first things you say to people, when somebody calls up and quite frankly I would much rather have the phone ring and they’re calling me.
Because if I pick up the phone and I’m calling out or I’m reaching out to somebody I’m the one reaching out to them and they are in control. If I can make my phone ring where they call me, now I’m in control. It’s like, “Hello this is Larry, how can I help you?” right. “Yeah I just got your post card in the mail about you buy houses.” “Great. Hey listen I’m in the middle of something right now, do you mind if I get your phone number so in case we get disconnected I can call you right back?”
Kandas: That’s good.
Larry: So nowadays most of them have caller ID. If you don’t have their number, if it shows up as private or whatever, that’s when you will ask that but most of the time now, you’re going to say if their number doesn’t show up you’re going to say, “Hey do you mind if I get your number in case we get disconnected?”
All that is, is a strategy and I’m sure it’s been used on you before. If you’re listening to this I’m sure you’ve heard that before and it’s been used on you. And that’s just a ploy- I don’t like the word ploy- it’s just a strategy to be able to get your phone number, right if it doesn’t show up.
Kandas: And we doing this as a business we’re not the only people to use the strategy either. It happens to me whenever I’m calling hotels to get quotes for us to come out and host with a certain venue. That’s one of the very first things they say is, “In case it sounds like you’re driving,” Which I usually am, “Can I get your phone number in case we get disconnected?”
Or they’ll say something like, “We seem to be having a little bit of trouble with our phone lines lately, just want to make sure I have your number to reach back in case we get disconnected.”
Kandas: And that’s with the hotel.
Kandas: Yeah. It happens with everybody.
Larry: And that’s really good so they’ve been trained well.
Larry: So the first thing you want to do is, “Hey my name is Larry, who am I speaking with?” “Well Larry this is Bob.” “Okay Bob it’s good to meet you but you spell it backwards.”
Kandas: No, we’ve had somebody now on the lines of because you talked last week about having a little bit of sales training. I know that we’ve had some people come in and talk to some of our guys. And one of the questions that they have them-it’s not really scripted but that they have them ask is, “What do your friends call you?” or “Is that what your friends call you?”
Larry: That’s a really good point Kandas. I like that, you learn something here. You pay attention don’t you?
Larry: That’s really good. So what do your friends call you?
Larry: Dr. Bob. Okay Dr. Bob.
Kandas: They will tell you too what they like to. Generally even if their friends don’t call them anything other than their name they’ll tell you what they want to be called.
Larry: Right and also you want to say, “The number that came up ends in 1234, is this the best number to reach you on if we get disconnected?” right you can even confirm that that’s the best number, right.
Larry: Or is there a better number, “By the way I’ve got some information I want to send you before we get off the phone, do you mind if I grab your email address right quick?” now see how I said that, “Do you mind if I grab your email address right quick?” I just made it very nonchalant, “I want to send you some information that might help you sell your house.” You could even say that.
Kandas: Doesn’t even matter if it’s to you or not.
Kandas: I mean obviously it would be you but still.
Larry: Right, “I’ve got some information I want to email you that might help you sell your house if I can’t help you. So do you mind if I grab your email address right quick?”
Kandas: Now I see this as having a two-fold benefit, right. One is you are building rapture with them. Two, it kind of enforces the-I know and I said rapture because that’s what Larry calls it. But you’re building rapport with them-thanks Chad for slapping your head when I said it. But it also kind of sets up or enforces the first law of reciprocation. You’re giving them something off the bat.
Larry: That’s true I’m giving them something free to help them.
Kandas: So even if they just sit there and give you their time to go through the rest of the phone call, with you giving them something initially, they almost feel obligated too to let you talk to them a little bit more.
Larry: That’s exactly right.
Kandas: Without even realizing it.
Kandas: And this is some of the stuff that we talk about at our three day events.
Larry: At our three day events and in my books and in our courses and at our coaching and mentoring at our office, right.
Kandas: That’s right.
Larry: We go into much more detail. But the first thing is you want to break the ice a little bit, get them to like you and trust you, “Hey Bob what do you do for a living? Oh man how do you like that, that’s awesome, that’s great. I love that I always wanted to do that.” Unless it’s some kind of a menial job that you don’t want to do.
Kandas: Or something gross because Larry is a germaphobe.
Larry: That’s true. That’s exactly right. Now when we come back I’m going to go through all the different things you want to say to the seller and find out about the house before you ever make the offer. And how to build that rapport and get them to like you and trust you.
Kandas: That rapture, building that rapture up. You guys give me a call 877-LARRY-GO we’ll get the investors’ kit out to your email address. 877-LARRY-GO or text the word BRAG to 803-897-6063.
[09:53] [Break] [10:08]
Kandas: Welcome back to BRAG Radio, investing in real estate to be rich and generous. And this month we are asking you to be generous with your blood. I’m going to talk about it almost every segment then.
Larry: Go ahead.
Kandas: On all of our shows.
Larry: Get on with your bad sale.
Kandas: To the 26th. We’re having a blood drive at the office in Lake Wylie.
Kandas: Charlotte Highway. They’re asking the Red Cross is helping us with it, they’re going to have the blood mobile out there. and they want us to kind of set up appointments ahead of time, I don’t think they’re going to turn anybody away if you show up to give blood. Lynn what time are you coming out?
Larry: Yeah 8pm.
Kandas: Lynn has a bit of an issue with the needle and giving blood. We’re going to try to get her over that before the 26th but we’ll see how that works out. But it is going to be I think it’s three to seven or 3:30 to seven at our office. We’ll have the American Red Cross out there with the blood mobile taking donations for your blood. So come and be generous with that. It just takes a few minutes they’ve told me, we’re going to find out.
Kandas: You’re doing it, I’m doing it.
Larry: I’m going to.
Kandas: You are.
Larry: Do they sedate you before they do it?
Kandas: No they don’t. There’s no sedation involved with giving blood.
Larry: Wait a minute you can go to the dentist and get sedated.
Kandas: You can pass out.
Larry: You can go to the dentist and get sedated, why can’t you give blood and get sedated?
Kandas: Just pass out, just look at it and pass out.
Larry: I don’t want to look at it. I’m not going to, you can’t make me.
Kandas: If you glance over there at it and you pass out, then there’s your sedation.
Larry: If I glance at blood coming out of your arm I’m going to pass out.
Kandas: We’ll make sure we have a table ready there where they can go ahead and do you.
Lynn: Get both arms.
Kandas: There you go yeah.
Larry: Alright. That’s funny.
Kandas: And they’ve said we’ll have little snacks and things.
Larry: Free food, alright I’ll be there.
Kandas: And now you’ve told everybody that we’ll have investor kits, so we’ll have those too for pick up if anybody wants them.
Larry: Yeah, free books. We’re going to give away free books, anyone who donates blood or comes by, right.
Kandas: If you want them.
Larry: There you go.
Kandas: We’re not bribing you to come give blood though.
Larry: We kind of are.
Kandas: No, this is generous. I was not bribing anybody to do it. I was imploring them because it is something generous to do.
Larry: Good, that’s good.
Kandas: You threw the bribe.
Larry: Is that, that with that?
Kandas: That’s that with that.
Larry: Okay good.
Kandas: The 26th 877-LARRY-GO and I can let you know the appointment times that are available if you want to do that. But I guess I don’t think they’ll turn anybody away.
Larry: Yeah, that’s good.
Larry: Alright cool. So we’re talking on this show about this particular show about working with for sale by owners with unadvertised properties. Your goal is to make the phone ring, right.
Larry: You want to make the phone ring, you want a live answer if you can. I understand some people work a fulltime job and you can’t do that. Have somebody live answer it, right. A Pat Live or there are services out there that will do that for you. So have someone live answer you can find them on upwork.com or patlive.com.
But have somebody answer that call live for you, okay. So you get them on the phone and you want to get their email address as I mentioned, “Hey I got something to send out that might help you sell your house even if I can’t buy it. So I want to get that out to you, what’s your best email address?” and always ask for what’s your best email address because they might give you one that’s-
Kandas: You don’t want the junk one.
Larry: No I don’t want the one for junk mail, right.
Kandas: And people have them.
Larry: Yeah they do.
Kandas: They tell me when they call in to the 877-LARRY-GO number because I ask that question, “What’s the best email address where we can make sure that you’re going to get this.” “Oh let me see,” and they’ll start, “No, no let me give one I’m actually going to check.” That’s the way that conversation goes.
Larry: That’s funny. So one of the first things you want to as a person that calls is, “How did you find out about us?” because you want to be able to track your marketing, right.
Kandas: Oh that’s good.
Larry: If you’re running Craigslist ads, or bandit signs, or you’ve birddogs or you’re doing direct mail you’re mailing out post cards to absentee owners that sort of thing. Owners of vacant houses, out-of-state owners of if you’re doing Facebook ads or Pay-Per-Click advertising, right.
Now the next thing you want to ask is, “What’s the address of the property that you want to sell?” Because if you can unless you’re driving, if you’re sitting at your desk or your laptop or whatever you want to pull up and look at the property online. You want to pull up the address, right just Google the address.
Just type in 123 Main Street Charlotte North Carolina whatever it is, just Google the address. And the first thing you want to do is click on the street map, right. And it’s going to show you a picture of the house and it’ll tell you on that page when that picture was taken.
Kandas: Now this goes into the basic, when you’re talking about starting these steps. This is basically how we analyze any property, right. Pulling up the address, Googling it, driving the street, doing all that stuff.
Larry: Right. And we go into detail in my book about how to analyze deals and pull comps, comparable sales of other houses and that sort of thing, right. So you want to find out a little bit about the house and we ask is it brick or wood frame, is it a double wide or single wide whatever? But when you pull up the picture of the house you can see that.
Kandas: Now do you still- let’s say you’re willing to condition them a little bit though. So would you ask those questions still instead of just looking at the pictures and knowing what you see, would you still go into that with them?
Larry: No what you like to do now because of the internet and I remember I was buying houses back in the 80s and 90s before Al Gore invented the internet. But anyway, so-
Kandas: You get a kick out of your sale don’t you?
Larry: I do. Anyway so what I’ll is I’ll say something about the house, “Oh that’s a nice little brick ranch house.” And they say, “Well how do you know?” or something like that. “Well I’m looking at a picture of it online, I just pulled it up from public records or from street information.
And I’m able to pull up online and see what other similar houses have sold for and that sort of thing.” It lets people know you didn’t just fall off the tomato truck, right. I mean you know what you’re talking about.
Kandas: The tomato truck.
Larry: Or what is it, the turnip truck?
Kandas: How old are you?
Chad: Turnip truck.
Larry: Turnip truck okay, see Chad knows.
Chad: Yes, you see those all over the place.
Kandas: When do people ride turnip trucks?
Chad: I see them every day when I go to work, don’t you?
Kandas: No Chad, I do not.
Larry: I can’t get no learning in here with you guys giving me a hard time. I’m trying to get some learning out anyway.
Kandas: Alright. So we’re on the turnip truck or off the turnip truck?
Larry: Right, I don’t know. Is that like you fell off the wagon or on the wagon? I’m not sure.
Kandas: What do you want to be?
Larry: There was a Seinfeld episode about that; is it on the wagon or on the wagon? Anyway, how about this?
Kandas: Do you want to be when you’re having this conversation, are you on the truck or off of the truck?
Larry: I don’t know. How about this, I was born at night but it wasn’t last night. So I’m going to look it up online, okay. So anyway you’re looking up the property and you’re driving the street on Google Maps, right. You’re driving the street you see what the other houses look like, if it’s across the street from a cemetery, or a school or whatever, right.
Kandas: What’s wrong with being across from a cemetery?
Larry: I didn’t say it was anything wrong with it, I just said if there is, you know about it.
Kandas: The school I can understand because I am, so that I get.
Larry: There you go. So then you want to ask them a few questions like how many bedrooms how many baths. Now a lot of time that’s going to show up on tax records or on Zillow, a lot of times. But you still want to ask that question, how many bedrooms, how many baths, how long have you had the house? Right, that’s important. How long have you had the house?
And have you had any recent improvements done to the house? What kind of repairs are needed? Just let them talk, right. What kind of repairs are needed?
Kandas: So that means that you are not talking? It’s very important that you don’t keep talking over top of them whenever they’re answering their questions.
Larry: Okay I think that goes without saying.
Kandas: Well I think that sometimes people get a little antsy when they’re trying to buy property. And they also kind of trying to sell themselves on the property while they’re on the phone with the seller. I’ve heard that happen.
Larry: Well the key is you want the seller to be selling you. You want them to be more anxious and excited than you are.
Kandas: That’s what I’m saying, that’s what I mean by just ask your question and be quiet and let them talk.
Larry: Yeah it’s kind of like when you go to the doctor and the doctor says, “Do you feel anything when I push here?” “No, hmm, yes, hmm.”
Kandas: What is that hmm about?
Larry: Well it’s like you don’t really know what that means, right. So if they say-
Kandas: Oh it’s the doctor saying, hmm.
Kandas: Not you saying hmm as you’re poked in the side.
Larry: Come on Kandas, get with the program. Did you understand that Chad?
Larry: Oh good.
Kandas: Stop it, you did not. No you did not.
Larry: Oh my gosh, so there’s a lot more questions you need to ask them. And when we come back we’re going to talk about a few of those questions and also some things you need to do when you get in the house as well. Right Kandas?
Kandas: Yeah, 877-LARRY-GO, text the word BRAG to 803-897-6063 or give me a call 877-LARRY-GO for the digital investor’s kit. I can get it out to your email. Copies of the books, our training models, links, everything like that. We’ll be right back.
[19:54] [Break] [Inaudible] [020:10]
Kandas: Welcome back to BRAG Radio. These guys get so entertained by the songs that come back on with each segment.
Larry: There you go.
Kandas: Air keyboards, guitars, bongo drums over there the last segment is that what was happening Chad.
Larry: Air triangle. Chad plays the air triangle.
Kandas: He plays a bunch of different instruments in the air.
Chad: I’m a multi-instrumentalist.
Kandas: Is that a word?
Chad: It is.
Larry: Instrumentalist, yes.
Kandas: Well you guys usually tell me if they’re real words or not. So I’m just clarifying.
Larry: As far as you know yes.
Kandas: I’m just clarifying here.
Larry: As far as you know. So we’re talking about dealing with motivated sellers, right and when they call in. and you want them to call in, you want to generate some marketing so they call in, right.
Kandas: And you don’t want to sound like you fell off a turnip truck.
Kandas: Yeah apparently or a tomato one.
Larry: You want to let them know what you’re doing but you also want to build some rapport with them, right.
Larry: Or as you call it, rapture.
Kandas: It’s not just me. That is not on my-
Larry: Well you’re the one who said it.
Kandas: I said it earlier in the show but that’s not from my-isms list. That’s not a Kandasism.
Larry: So to get back, let’s say you’re on the phone with the seller, you’ve gotten the contact information, you got a good email for them, do you mind if I get your phone number in case we get disconnected if their number didn’t show up on caller ID.
You pull up their house online, if you can just Google the address of the house while you’re talking to them unless you’re driving, right. So you ask them about the repairs and how long they’ve owned it. And you also want to ask them how they acquired it. Now why would you even care how they acquired the house? What if they say, “I inherited it.” what does that tell you?
Kandas: They got nothing in it.
Larry: They got nothing in the house, right. Anything they get out of it is pure profit. It also makes them much more flexible in their sale price.
Kandas: Yeah knowing that how quickly somebody could close or whatnot.
Larry: That’s exactly right.
Kandas: So long as they haven’t spent the money in their head.
Larry: That’s exactly right. Another thing you want to ask them is approximately how much do you owe on the property? Are you behind on the payments? If so, how much? Now we used to ask, how far behind are you?
Kandas: That raffled some feathers.
Larry: Well it does and you got to be prepared. If you say, how far behind are you? I mean you got to be prepared for the little old lady says, “I have never missed a payment in my life, I have perfect credit. How dare you ask me that?”
Kandas: Got to be ready for them, it’s going to happen.
Larry: You got to be ready, you got to know what to say, right. If you don’t know how to handle that and don’t know what to say, get my book.
Kandas: You’ve lost them.
Larry: It will tell you.
Kandas: Yeah if you don’t have the book and you do that, you’ve lost that lead.
Larry: That’s right. You got to know what to say.
Kandas: Because she’s going to be so mad.
Larry: So I just tell people now especially if you’re brand new, just say, “Are you current on the payments or are you behind on the payments? If so, how far behind? When is the foreclosure date? Are there any other links? What about the taxes, is ther anybody else involved in making decisions?” That’s a good one right there, right?
Is there anybody else involved in making the decisions?
Kandas: It’s gold that’s awesome.
Larry: “Let me tell you about Uncle Bob. Grandma gave me the house but Uncle Bob lives in the house and I can’t get him out.”
Kandas: That’s going to be a problem.
Larry: That’s right. And that’s an answer that I got one time by asking this question; is there anything else I should be asking you? Think about that, you could stay up all night and not think of that question. But I came up with that question, is there anything else I need to be asking you, right. “Let me tell you about Uncle Bob. Grandma gave me the house but he lives in it he won’t pay rent I don’t have a lease and I can’t get him out.”
Kandas: Can’t make this stuff.
Larry: Is that good to know?
Kandas: Yeah it’s good to know.
Larry: That’s exactly right, that is good to know. Another thing you want to ask, why are you selling? And here’s a great one; what do you plan on doing if you can’t sell the house?
Kandas: That’s profound.
Larry: I talked to a lady just yesterday. She said, “If I can’t sell it in the next couple of weeks I’m just going to let the bank have it back.”
Kandas: That’s a terrible decision. Don’t do that.
Larry: But you know what, I said, “But you’re not even behind on the payments. You’re current on all the payments, you’re not even behind.” She’s going to ruin her credit, right, and let the bank get her house so I can pick it up at half price, right.
Kandas: And her get nothing out of it.
Larry: That’s the way it’s going to work. She owed about $80,000 and that’s the way it’s going to work. Because the bank gets it back and they’re going to move out and then the bank is going to end up selling it for probably half that, right.
Kandas: Just to get it off their books.
Larry: Just to get it off their books.
Kandas: And she gets nothing.
Larry: Yeah zero, zip, nada, right. So that is a good question to ask, right.
Kandas: It’s profound.
Larry: What are you going to do if you don’t sell? Now some people might say, “Well I might just rent it out.” If they say they’re going to rent it out, the first thought that comes to my mind is seller financing. Maybe they’ll finance it for them so I don’t have to pay them cash, right. Another good question to ask is what do you plan on doing with the money?
If they say, “I’m just going to put it in the bank,” then I’m going to say, “Hmm how much are the banks paying these days in interest?” “About 1%.” “By the way, do you know about the rule of 72?”
Kandas: They not going to know about that rule.
Larry: The rule of 72 says, you can take any yield, any rate of return and divide it by 72 and it’ll tell you how many years it takes to double your money. That’s the rule of 72.
Kandas: Repeat that.
Larry: You can take any yield or interest rate and divide it by 72 and that’ll tell you exactly how many years it will take you to double your money. For example if you put your money in the bank at 1%, it’s going to take 72 years to double your money. If you can earn a 10% return it takes you 7.2 years to double your money, right. Does that make sense Kandas?
Larry: And you can Google it and go online and find it and there’s charts out there that will tell you every single interest rate and how many years it takes to double your money based on the rate of return, right. So what I might say if they say, “I’m just going to put it in the bank,” I might say, “Well I might have to pay the bank probably three or four maybe 5% interest.”
“I would just assume and pay that to you if you’re interested in seller financing it, you can get a monthly cheque and a month income and you’re making four times what the bank is paying you. How does that sound? Is that something you’d like to hear more about?” I wouldn’t say, “Is that something you could do,” but is that something you’d like to hear more about? Does that make sense?
Kandas: Yeah. I like that.
Larry: Yeah exactly. So there’s a lot of questions; are there any other problems with the house? Have you had any offers? If so why didn’t you take it? Those are really good questions.
Kandas: I like the, if so why didn’t you take it because it gives you a little bit of insight into deeper what’s going on with them, what they want.
Larry: Exactly. And then if it’s a deal that you think you might be able to work out, you just set an appointment. You go over there, you got a clipboard in hand, you got notepad that you can take some notes on. You knock on the door, build a little rapport. If they live there you look around at pictures, “Oh wow your kids are in softball,” or whatever. You’re talking about that, you’re building a little rapport.
Kandas: What if they’re out of state?
Larry: If they’re out of state, the house is typically vacant unless it’s tenant occupied. Then you have them contact and let them know that you’re coming over to take a look at the house, right,
Kandas: No, what if the house you’re looking at is out of state? Out of your state, you’re not able to go to it.
Larry: Well you’re not marketing to out-of-state properties. I might be marketing to out-of-state owners but not out-of-state properties. The properties are local.
Kandas: That’s what I wanted to make sure we clarified. That’s all.
Larry: Yeah. So then you want to ask them for the nickel tour. “Do you mind if you give the nickel tour of the house? Are there any dogs or naked I need to be careful of?”
Kandas: That’s going to break the ice right away, dogs or naked people.
Larry: I’m not going to run into any dogs or naked people, am I?
Kandas: That’s priceless.
Larry: Exactly. And then you want to let them know, “Hey by the time we’re done, it’s not going to take very long but by the time we’re done I might be able to buy your property, I might not. But before if it looks like I can, I promise you I’ll make you an offer before we leave. Are you able to give me a yes or no before we leave?” and that way you set that tone right there. And guys I got to tell you, it’s not that difficult.
All you got to do is build rapport, get people to like you and trust you and ask the right questions. We’ve got these forms and documents and questions checklists in my training, in my courses and they will help you. And you can get a free copy of the book that has all this stuff in it, right. It even has scripts and it helps you to be able to know what to say and how to say to build that rapport, right Kandas?
Kandas: That’s right. the HUD Homes Half Off book and the Real Estate Day Trading Book and links to our training models are all in the investor’s kit that I can get out to your email. You can give me a call, 877-LARRY-GO or text the word BRAG to 803-897-6063. Again that’s for the digital investor’s kit, we can talk about what else in the kit, or schedule you for an office tour to come out and pick up the physical version, 877-LARRY-GO.
[29:45] [Break] [30:08]
Kandas: Welcome back to BRAG Radio. Nobody got the cue.
Larry: I saw Lynn over there going like this, shaking her finger at both of us.
Kandas: And Chad he’s got the arms and fingers out.
Larry: There you go.
Kandas: That hurts my shoulder I’m going to have to have my shoulder looked at.
Larry: And I was just playing keyboards. So there you have it. So welcome back to BRAG Radio leading the world to be rich and generous. Be sure and follow us on Facebook, facebook.com/larryhgoins, G-O-I-N-S.
Kandas: How about PearScope, how about Twitter, how about LinkedIn?
Larry: Yeah Facebook is the best place. If you’re going to do one, do Facebook. You can’t follow us on all the others but we post mostly to Facebook.
Kandas: You talk to people mostly through the student group in Facebook.
Larry: I do. We have a student group Facebook, the Larry Goins Official Student Group. So if you have any of our trainings, if you get our book, if you call Kandas, 877-LARRY-GO and get a copy of our book, you are a student even though you might be a prospect and not a customer yet. You’re still a student.
Kandas: Doesn’t matter yeah.
Larry: It’s okay. So yeah there you have it. So we’re talking about working with sellers, right. You can work with realtors or buy HUD houses, but you need to know how to deal with sellers. And we’ve been talk a lot about over the phone, what to do, how to build that rapport, how to ask questions, right. To get them to like you and trust you.
And we’re up to you’re going in the home, right. You’re going in the home you knock on the door.
Kandas: Well we’re there, we’re at home.
Larry: There you go and then you back up.
Kandas: We’re going in, what’s your knock sound?
Larry: Yeah I didn’t hear that.
Kandas: You didn’t hear that, I could hear that.
Larry: You knock on the door and then you back up like three or four feet.
Kandas: Sound effects through the whole process.
Larry: That’s funny.
Kandas: Back up three or four feet so you’re not in somebody’s face.
Larry: But you want to back up I mean if you’re standing at the door like I am here to this mic and there’s a peephole right there and you’re about six inches from the peephole, and you look out and all they see is a nose and one eye, you’re going to freak them out, right.
Kandas: You would freak them out.
Larry: So you want to back up about three or four feet but just don’t fall off the steps, right.
Kandas: Yeah that would be bad too, right.
Larry: Also here’s another trick, I’ve been to many houses where you set the appointment and for some reason they won’t answer the door, right. So here’s what I do.
Kandas: Oh because it’s real now.
Kandas: Somebody is there.
Larry: So here’s what I do.
Kandas: It just got real.
Larry: No, check it out. You know if they’re there, if they’re not answering the phone they’re looking out a window. Looking around, so here’s what you do. This is good stuff right here. Here’s what you do, you back up those three feet and you smile and look at every window and wave like that.
Kandas: You look so creepy.
Larry: Like you see them. You just got your hand up like this and you’re looking at all the different windows.
Kandas: What if you just show up holding a box of crispy cream? I would do that over backing up and like waving at the windows.
Larry: Yeah they don’t care about that. What about if you show up with a briefcase full of cash, right?
Kandas: Crispy Creams I mean people around me love Crispy cream.
Larry: I hear you. I don’t know if it’s going to get the door open or not, right. Who knows? Alright anyway, so you’re at the door you get the door open, “Hey how are you doing?” and listen guys I don’t care if you’re dead broke or if you’re a millionaire, don’t wear the Rolex to the house, don’t pull up in your Lexus or in your Mercedes.
Kandas: So what do you drive?
Larry: I don’t go to houses anymore.
Kandas: How do you tell Tom?
Larry: I don’t go to houses anymore?
Kandas: That’s what you got, that’s funny.
Larry: Here’s what I used to do, Uber. I used to put the Rolex in my pocket. Before I would go to a house I would take my Rolex off and I’d put it in my pocket. Right, because you don’t want people, “Oh this guy’s got money,” you know what I mean.
Kandas: They wouldn’t be envious of your 2002 Lexus now so I think you’re alright driving to them.
Larry: Yeah that is true. So guys I drive a car until it falls apart. It might be a Lexus but it’s 15 years old. Now it’s, how old is it?
Kandas: Well you also can get another one- it’s more than 15 years.
Larry: It’s 16 years old.
Kandas: You can’t get one with a cassette player anymore so I think that’s your hang up.
Larry: Alright Kandas.
Kandas: That’s your hang up.
Larry: See my Lexus, I have LX470, it’s the last year they made a cassette player and the first year they had the GPS, right.
Kandas: He’s a very specific diva.
Larry: So I get the best of both worlds.
Kandas: He’s a very specific diva.
Larry: Anyway you’re at the house, okay.
Kandas: You’re in the house, the door’s open.
Larry: You’re in the house, you walk in and give me the nickel tour. And like I said before, “Are there any dogs or naked people I need to be careful of seeing?” so you’re pointing things out as you go through the house, “How long has it been since the carpet’s been replaced? Is that a leak right there? Is that a current leak or an old leak?” Hmm like the doctor.
Kandas: Like the doctor.
Larry: Like the Seinfeld episode Elaine going to the doctor, “Let me make a note of that, it’s in your chart now,” right. So you’re making a note of all this stuff and even when you got in the home, you want to tell them, “I believe we agreed to set aside 30 minutes or whatever. I was hoping you could show me around the property.” And I’d like to ask you a few questions about your situation so I completely understand what you need. Will that be okay?” right, is that good or what?
Kandas: That’s great.
Kandas: And it’s honest that you really are trying to help them.
Larry: Exactly and you also want to say something along the lines of, “Do you have anything else that you were hoping that could talk about or you could ask me while I’m here today?” That’s also a good one, right.
Kandas: It’s gold.
Larry: It’s gold. So as you move forward you could say, “If there’s anything that I see that’ll be a deal breaker for me, I’ll let you know right away. Would you mind doing the same for me? If there’s anything you see that will be a deal killer, just let me know. Is that fair enough?”
Kandas: Hopefully they’d say yes.
Larry: Well I don’t see any reason why they wouldn’t because you said you would do it first, right.
Kandas: Well everything works till you challenge Larry.
Larry: Everything works until you’re challenged. So if we don’t discover anything that’ll stand in the way of me being able to make you an offer, you’ll have an offer before I leave.” Right, “And if you feel good about everything after we talk about it, will you be able to give me a yes or no today? I don’t buy every house that I walk through, I don’t buy every house that I look at.”
“So if after we talk you decide not to sell, hey it’s no big deal, it’s not going to hurt my feelings. I only want to buy this property if you want to sell it. Is that fair enough?” See that’s what’s called a disarming, right. That’s a disarming phrase I guess I should say, a disarming sentence. You’re disarming them, right.
So you also want to have when you go to the home you want to have comps pulled as well. Right you want to have pulled up their house, their house and pulled it up and looked at what other similar houses have sold for, from the low to the high.
So you can show them, “Here’s a house right down the street this house sold for $30,000. Here’s another house that sold for $35,000 here’s one that sold for $40,000. Unfortunately you’re asking $80,000 for your house, I don’t really see any way I can make that work, the market has spoken.
This is what people are willing to pay for a house similar to yours in the area. Now I know your house, it’s your house and it’s worth a lot more to you. But unfortunately it looks like in the low to mid 30s is about all the market will bear.” Does that make sense? Right I’m asking.
Kandas: Are you asking me? Yes that makes sense.
Larry: I’m asking you too yeah.
Kandas: Yes that makes sense.
Larry: Exactly. So guys those are some of the things that you need to ask when you go into the house. But the main thing is get them to like you and trust you and build up some rapport and talk to them. Right, build up some rapport and talk to them right.
Larry: Somebody is trying to get in here right.
Kandas: There’s been like three people come near the door trying to see what we’re done I guess.
Larry: They’re checking the schedule.
Kandas: I don’t know.
Larry: So anyway guys that’s kind of an overview of how you’re going to talk to them on the phone, what you’re going to ask them on the phone how you’re going to get them to call you back or how you’re going to talk to them. And then all the way up to going in the house, building a rapport with them, taking a tour of the property and then asking them all kinds of questions.
And you want to figure out the numbers of exactly how much you can pay for that property and have comps ready. So that’ll get you to the door. Call Kandas and get a free copy of my book, it’s going to have scripts, it’s going to have checklists and everything. Ain’t it right, Kandas?
Kandas: It will and we go into a lot deeper detail with this at our three day events. So we can get you registered for one of our upcoming three days too if that would be of interest to you. Give me a call 877-LARRY-GO or text the word BRAG to 803-897-6063. We can get the digital investor’s kit out to your email, schedule you for an office tour to pick up the physical kit. Like I said talk about the three days and our mentoring options. And remember to follow us on Facebook.
Thank you Kandas and make sure to tune in again next Saturday for BRAG Radio as bestselling real estate investing author Larry Goins and co-host Kandas teach you the latest techniques the pros use to make money in real estate.
It’s BRAG Radio, be rich and generous on News Talk 1110993WBT.
[End of Recording] [40:07]