You are about to know exactly how to get a property under contract step by step.
Before we jump into it let me warn you…that although this seems simple enough. It takes hard work and persistence. That is the real secret.
So shall we…
Get your list of prospects who you are going to reach out to in the hope’s of getting their property under contract
Contact a title rep to help you put your “FARM” together, or you can check some online list providers like propertyradar.com or yellowletters.com.
The trick here is that you want to choose a motivated seller list. You want these people on your list to all have a reason they need to sell. This can range from having a mortgage default, to tax defaults, an auction on the horizon, a death in the family, a divorce, and more…
All of these leads come with their own set of problems that you need to help them solve…so be prepared for the type of person you want to deal with.
Just make sure you get a list of a minimum of 100 homes, and in an area or zip code where you want to re-sell a property or become known as the go-to investor in the area.
Once you get your list you are going to want to start your marketing funnel. You may have seen other posts on this topic but typically I recommend going:
Mailer->door knock->mailer-> door knock–> post card–> Repeat.
Each time you door knock if they don’t answer you leave a note on the door. The idea here is get them to reach out to you, and then collect their contact information:
CLICK HERE for an in depth lesson on marketing funnels
Set the appointment.
At some point if you stay persistent you will have sellers reach out to you. When they call you/email you/text you/ or if you talk to them in person it is your chance to get them to the next step.
You want to set an appointment with them. It’s important in the conversation you have with them, to listen to their needs and see how you can help. Maybe this person isn’t a good fit for you, but you can refer them to someone else who can help them.
Your main focus needs to be on helping them and at the same time you want them to know you are interested in purchasing their house (or listing it if you are an agent).
No beating around the bush here.
A simple “Hi, I noticed your property was on the notice of default list and I was wondering if you had any interest in selling” can open up a huge conversation.
If you get a no, say “oh no problem. What are you planning on doing, maybe I can connect you with someone who can help”.
Just keep the conversation going. It’s key here to stay in-front of them and just wait until you get the “yes I am interested in selling”.
At that point you either have the appointment (if you are there in person), or set the appointment and say “ok perfect… when is a good time for me to swing by to check out your property inside and out?”
At the appointment you want to control the situation as you walk through the property taking notes. You should already know the ARV (after repair value) of the home and you are just looking to see how much repairs you may need to cover.
When you get better at estimating repairs you can usually make your offer right on the spot, or you can tell them you will get back with them after you run some numbers.
If you are part of the Better Tomorrow Group we give you a deal analyzer which will tell you exactly how much to offer on a property after you plug in some numbers.
Make your offer
When you make your offer, throw in some things that will help you stand out from the crowd. You may not be the only person they are talking with. Offer to help with moving, finding them a new home to live, helping get rid of some stuff, having a garage sale with them, finding a place to live for their animals, helping evict tenants etc…
When you make your offer, show them the reasons you came up with your number if needed. Tell them repair costs and everything.
Transparency is key to building a solid relationship with the seller. Don’t feel bad because you are making a profit. You are running a business and as long as you are direct and upfront about it a seller will understand.
Remember you are providing a much needed service by solving a BIG problem that most people can’t solve and getting paid for it.
Get it under contact.
Once the seller’s sign it’s under contract and you are on your way. There are many more steps in between and before close of escrow but this is bare bones all you need to do to convert your leads.
Those are the main steps to getting a property under contract.
Just remember that you need to get in front of a lot of people. You may have to refer some people out to listing agents, but the more people you talk to who have motivation…the closer you will get to landing a deal.
It’s really that simple.
For a more in depth look at each of these steps and to find out what to do after the property is under contract check out the Better Tomorrow Group by CLICKING HERE.
Chris M Cordova
CFO Better Tomorrow Group
Chris is an active investor, Realtor, Broker, marketer, serial entrepreneur, and co-founder of Better Tomorrow Group. Follow Better Tomorrow Group on Instagram@bettertomorrowgroup on Twitter/Periscope @TheBTgroup and Facebook at Better Tomorrow Group. If you would like a FREE copy of Flipping Your Thoughts On Flipping Follow this LINK.