Let’s talk about exactly HOW to have a conversation with a seller, when you are not certain of the actual value of the property…

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First of all, there’s a lot to unpack that could take this in a bunch of different ways. So that the actual underlying questions How do you renegotiate with the seller?
Yeah, based fundamentally, yeah. So what’s your best practices in going about facilitating that conversation successfully?
But I don’t let’s let’s write down we need to talk about your buyers and how to approach them on specific deals.
Yeah, on the back end, and I think part of that is reflecting on one really auditing the quality of buyer pool that I have in my buyers list and making sure this is a list of people worth sending deals to, they’re not a bunch of, the more deals I send, the more radio sounds he get. I’m finding there’s just more and more on the fence newbies that are on this list. And maybe aren’t the type of buyers that you’re, you know, when you send them an opportunity, they’re genuinely going into entertainment, right? Or try. They’re not just like, oh, give me on your mailer. And then every time you send them something, they’re like, Oh, I’m not ready right now. I’m not ready. Yeah,
yeah. So let’s talk about that in a second. But, so one of the ways, the best way to kind of go back to a seller is first of all, you need to start by leaving it hanging, when you contract the deal, right? If you give over certainty, Oh, I got this, I’m going to close it this price, this is great, Done deal, and then you don’t wholesale it, then you’re going to really be climbing uphill. So I’m always leaving the Hey, my money guy approved it. Here’s what ultimately happens. We have kind of a, you know, cross check verification all the way through the process. I have a money partner and I have a contractor partner and in while the contractor partner believes he’s going to be able to get this done, he didn’t have you know, everything he needed to greenlight the con construction bid here. So, money, guys, good. We’re good here. But I’m going to need my team and you know, several people probably to have to go through this and to figure out if we’re on budget based around the budget I gave him in the budget that he confirmed without walking the property. Fair enough. Mr. seller, great, great, let’s contractors, but just be aware, I still have to work with my contractor to make sure that we stay on budget. Okay, so I leave that like cliffhanger. Because ultimately, when you go back, you’re gonna have to blame the construction side. Yeah. Right. And so this works really well, for everything except for like new homes, like if you were going in and buying a 2014 home. Yeah. Really hard to get away with that one, right. Yeah. And so now I have this out every time now you have an out to back out of the deal, hey, I couldn’t you know, based around, you know, everything I’ve seen, whatever, whatever we can afford, but you also have an out to renegotiate. And you say Hey, mister seller, man, my construction guy, regardless of whether he seen it or not, just took on a property right down the road from you guys. And we went over budget, big. And it was a very similar home, blah, blah, blah, blah. He’s uncomfortable at this scope of work. And it’s out of budget. And now my money guide is basically saying, well, we’re out of budget, and we can’t move forward. Can we sharpen our pencils here? Like, I’m close. But we went so far out of budget, that he just is not confident that we’re going to hit the budget that I gave him? You know, I know we agreed at 200. Where can we be? I mean, is there any room at all? And that by the way, Mr. seller, it’s okay. If there’s not, it was out of my control. Ultimately, I’m not the end all be all decision maker, it really comes down to my construction team and my money partner to have confidence to do it. They don’t right now. So this is not going to work for you all good. We don’t have to move forward. But if it can work for you, you know, where can we be? You know? And then I shut up right after I say that. But let me tell you the psychology of why I framed it this way. I don’t want the pressure on them. So I’m playing in different I call it a boomerang effect, right? Like, hey, it’s okay. If I’m, if we can’t move forward, if you need that. 200. And that’s where you need to be. It’s all good. I’m not the right buyer for you. I couldn’t get there. It’s going to take a lot more work. So I’m super sorry. And kind of going negative. I’m so sorry. I’m the bad guy. Me, me. Me. Right. But also like, I’m just not the right buyer. Yeah, the psychology of you pushing them away. And I know you’re married and all that. But the same thing when you’re dating. Like when you’re indifferent with girls, they seem to want you it’s the same reason why like, my wife joke around all the time. She’s like, oh, now you’re married, you’re going to get even more girls, right? Like, why do you mean because marriage girls love marry guys, right? Like they’re unattainable. They’re safe or whatever. And then they don’t want the single girl. So when the single girl can can’t have it, they want it. Same idea. Right? Like when you aren’t the right buyer for their home. They homeowners almost get defensive. Like, what do you mean? My home is great? Yeah, you got to do a rehab. But like, why don’t we want it? So they almost want to come at you more Well, can you get to 190? Can you get to 195 and you they’ll start negotiating against themselves. So that’s the psychology is playing on indifference and using a boomerang effect, that which I just created as a name because the Hardy dog Boomerang, the faster it comes back, right? And so you better trademark that shit right now. Better? No, I already have sales trainers like john and Steve fraying, and just people that are like, using the terms. So
yeah, I like I like that. Because it doesn’t it you’re not giving them an ultimatum. You’re not you’re not saying like, Listen, we can’t make this deal. So we don’t want it anymore. It’s more you’re more sustained. Like I’m going to give you you know, we’re good either way, but it the decisions on you rather than us come to you say, hey, seller, this deals dead, we can’t deal with it. Right? We can’t make it work. or whenever it’s Yeah,
I give them the I give them the ball again. And by the way, by me giving them the ball again, what am I doing? I’m keeping control of the conversation. Right? When I give someone control, that means I’m really in control. Follow me. So when you do that, and you have to go back to them and then the key like always is just be quiet. Once you say that, hey, I might not be the right buyer for you. That’s totally okay. It’s ultimately the decision is going to be around the construction crew, making sure my money partner feels good about the the all money in
like using that my contractor like kind of out, it’s allegedly a little good cop, bad cop to a degree, like as you as the face to face person, you’re like, you know, hey, you know, I really, you know, really trying to make this work, I want to be the person. But unfortunately, there’s other components in this
approved novembro. And that’s that’s literally how you put that framing should really be throughout all conversations. It’s really, you know, hey, I think we’re good at 200 just to let you know, you know, I’m a money guy. I’m one of those guys, I’d exactly what you think, you know, small little glasses in the back room. he approves everything in and out. Ultimately all is his call on whether he feels comfortable. But how he feels comfortable is based around the bid I give him in our contracting partner agreeing with that bid that that we’re in the right ballpark. It’s a really, it’s kind of like, yeah, I can make the decision. But these guys are really kind of pulling the real strings. So we just need to make sure I wasn’t too far off. I don’t think I am I’m usually not, you know, and so we’ll be able to move forward. And that 14 days and we’ll go from there. But now I’ve layered that in already. So now when I go back, Hey, remember I was telling you about this contracting partner? Well, shoot, we just did a property right down the street from you guys. Same square footage. We just went way over budget, there was just so much unforeseen stuff that we didn’t account for. He does not feel comfortable at the budget I gave him anymore. Now it’s not crazy. It’s not like it’s a double the budget, but it’s enough that it scared off my money partner to say he’s not comfortable. So with that said, I might not be the right buyer for you. I’m totally Sorry about that. I feel awful. I always try to do good business and help out. And you know, if I’m not the right buyer, that’s okay. It’s totally okay. It’s my fault. I’m so sorry. I feel awful. Where would you like to take the conversation? Yeah, and then put it on that. And I have to shut up at that moment. And I literally just wait. And there’s times where stellar said, Well, alright, we’re done here. That’s it, you pissed me off, like, Okay, and then I try to let them cool off and come back to it and all that kind of other stuff. And then there’s other times where they just immediately start negotiating against themselves. Yeah, and then keep it alive. That’s right, because they’re already 30 bought into selling. They’re like, contracted it. It’s done. Their psychology is like, Oh, I’m moving out March 20. Right. And so now they start to negotiate. Well, I mean, a couple grand may be like, 195 195. Like, you know, like I said, it was a pretty big oversight on this last deal down the street. I don’t think that’s gonna fly by in maybe I’m just not the right buyer. I didn’t ask okay. I just I feel bad. But I think it’s got to be more than just a 5000. And maybe you can’t do that. And, you know, that’s okay. If you can’t, and it’s my fault. I’m sorry. And then be quiet again. I didn’t renegotiate yet. I didn’t give them a number yet. Yeah. Then they might say something into effect. Where do you need to be? And then if you kind of know but this is so let’s go back to the buyer now. Now when you are getting crickets or you’re getting buyers that say based around that budget, I keep like get a number out of them. Yeah, every time. So one thing I’ll do if I’m uncertain about a property and where someone’s like I did this yesterday on a deal. It was a newer home and because it didn’t Need a big old rehab? You kind of like shoot? Where would someone pay for this? Right? So we pinged a couple buyers literally three, and said, Hey, where would you be on this property? Right? And they all gave us a number. I’d buy it this. And now I know how to either renegotiate specifically yesterday was negotiate. But now I know how to renegotiate or not. And so I leveraged kind of going back to this buyers, you really need to have a good buyer’s group, like I have roughly was 110 on the list, but there’s 47 people that buy from me consistently meetings. I will ping a handful of them anytime that I’m the man, before negotiate. Before I even get into negotiating with the seller. I’m like, Hey, dude, where do you need to be on this? Yeah, I’m like, and then I use, I’m negotiating with them. They’re tough. It’s a hard negotiation. I’m trying to get to a reasonable number, where would you need to be? And then they’ll say, hey, if you can get it at, you know, 180 I’m in. So I know there’s always a little depth there. Perfect World. So if I go back to them, say, Hey, can you get to 190? Most times, they’ll be like, yeah, I could do 190. Because they’re wanting to win maybe, right? Yeah. But they’ll do that a lot. I mean, a lot. And that’s kind of goes back to even what we talked about for like, my sphere of influence. Like, you know, why sell so many freakin deals is because I’m so good with people. I’m so good with my buyers. Yeah, yeah. I shop for them essentially. Do but then I go and say, Hey, what do you want it for? Let me go try to get it for you at that number.
Right, which is a great way to do it. And that’s and so one thing I’m over the next 60 days that I need to really put an emphasis emphasis on is, is not not expanding, necessarily in a volume standpoint, but expanding in depth of quality standpoint, my buyers are so that I can have those 5678 guys wherever that I know I can pay with any deal. And they’re going to be there. They’re looking for an opportunity. They’re looking for the next right because like I told you, the buyers I have right now. There’s maybe three guys on there that are that way and that’s not a deep enough buyers pool to like to know you have somebody a walk in buyer or single time and unfortunately the fall off between that first year and the rest of it is they’re just they’re all bunch of radio statuses. So the more I kind of monitor and audit that I’m just realizing how many of these guys are just like you know the guys in the local investor Facebook page like Oh, I’d love wholesale list and then buy one house a year maybe know better. You got to keep working on your buyers list.