The big challenge is this: How are investors like us who are not backed by a billion hedge fund who are investing money from our own pockets? How do we buy, sell, and invest in the properties we believe in, yet still make a profit without risking all of our own money? That is the challenge. In this podcast, we'll give you the answers. My name is Nate Armstrong and welcome to the social media blueprint.
What's going on? What's going on? Hey, welcome, welcome. We're kicking this party off. We're going through the two things that you need to have on every single call you do with sellers and they're the two things you probably wouldn't think of and these are the two things that actually gets you the most conversions and most people would not think of these things. Okay, so here's how it goes. I'm going to actually break this down for you.
(00:52): I've got three phases so that you grab this stuff and you're really early and can grasp it. But first and foremost, I want you to know that there's two surprising things that you have to have on every single call you do with a seller, whether it be the first call, whether it be like the offer phone call, or a followup phone call. There's two things that you have to see the most conversions, and I got some interesting stats to go along with this too. Okay, so first and foremost, you probably know this man named Michael Jordan. Michael Jordan said, you have to expect things of yourself before you can do them. You have to expect things of yourself before you can do them, okay? This is leading into something that Michael, Mr MJ was really, really big on and that was confidence and confidence is important in real estate investing.
(01:41): It's why confidence is the first thing that we're going to cover, okay? Confidence is the number one thing that you have to have when you're working with sellers, whether it be the first call, the last call, the middle call, the followup call. It doesn't matter. If you don't have confidence in explaining what you do to help them, then you're not going to win the seller over. You're not going to be able to build enough rapport with them to advance the next stage. Think about this. If the seller chooses you, this is probably the sellers most significant assets, the biggest financial move they've ever made in their entire life, maybe the biggest that they've ever made. Who knows? But if they're going to trust you with it, they've got to feel that you're confident in what you're doing and confident with what you're talking about. I've seen too many people make the mistake of they just jump in and they don't really get coaching or mentoring around how to say things when to say it, how to say it, and they burn a lot of leads because they don't have confidence.
(02:38): They can't explain to the seller with confidence how the entire process goes. Okay, so let me break this down for you. Okay. There's an article and I'm going to link it down below this. Okay? I'll link it after I'm done this article. It's on Zeti, zeti.com Zeti says this, surprise me. They said the most successful sales closers use confidence boosting lingo, like definitely. Certainly, absolutely. And they did a study on all the closers that they studied. Anyone that's doing any kind of sales, and guess how many times more did they use those terms than not? How many times more would you guess? Okay, well the answer is five times more. They use those terms five times more then other performers on the team and therefore by using terms like definitely, certainly, absolutely five times more. They got way more deals. So what does that mean for you and I and this whole real estate world?
(03:39): Well, it means that we've got to carry ourselves with a calm confidence. I don't mean a cocky confidence. Don't mistake that at all. I made a mistake on a property once where I went in with a little bit too much of cocky confidence in the seller, ended up choosing somebody else. I shot myself in the foot. Like there's a point in which you're overly confident and it shows and you don't want that. You want a calm confidence. Someone that really understands their business, they understand how to help the seller, they understand all the different angles in which they can help the seller. That's the kind of confidence that you want to carry. Now I had that. Fortunately I was blessed on a property. It was an apartment building that I picked up. This is 1416 sixth Avenue up in st, cloud, Minnesota, and I pick up this apartment building somewhere around like 600 maybe $630,000 and we were able to do a renovation and get at least up and all that kind of stuff and we later sold it for one point $8 million.
(04:31): So imagine buying for in the sixes and selling for 1.8 like that's pretty good. All the way around. Of course we had to do a renovation and took a lot of effort to make all that stuff happen. But the backing up to the original seller on this, the seller, they were a little bit frantic. They had more than one person chasing the steel. And the reason that we got this deal is because I held a calm confidence with them. I simply said, her name was Diana. I said, Diana, Hey listen, we're going to make sure that we get this thing to the finish line. And she had other interests. You had other people that were looking at it and I said, we're going to be the ones to take this to the finish line with absolute certainty. We'll get this closed, we'll take it off your hands, we'll be able to let you move on.
(05:10): Here's the cash. And she ended up doing the deal with us because of that. And that deal was created in large part because of the calm confidence. Okay? Same thing with the other sellers. You've got to be able to carry that calm confidence with you with every conversation. There's a second element to it as well. So there's two things that surprise me. It's confidence. And there's one more thing and we're going to get to that in just a minute or here. Okay. So the next thing I want to cover is, this one's actually from HubSpot. Hubspot talks about using words like we us in review, we us collaboratively. We'll work on this together and their words were, they said top performing salespeople use words 10 times more on collaboration like we us our together versus the U I things like that. Okay, 10 times more.
(06:07): They use the words we us hour in together we us our ind together. So Hey mr. Seller, we're going to get through this together. We're going to work on this together. We're going to come up with the numbers together. When it comes time for closing, you and I together, we will go do this. Phrases like that, okay? That's what you want to think about when you're sitting down with seller. You want to talk in a collaborative manner, okay? Your job is to help them. That's why they called you to come to their property. They didn't call you to come and like be a bully and try to get them for a low ball price. They called for your help, so you're going to go there and you collaborate with them. You lay out all the options, you talk about all of the options. If you missed the episode prior to this, make sure you go back and listen to it.
(06:55): It's the 17 different ways to make offers so that you don't get rejected by sellers coming in with the low ball cash offers. Kind of like coming in with a punch in the gut. In some cases it's not the best way to make friends, that's for sure and sellers. If you know, if you get yourself educated with the 17 different ways to make offers, then for sellers that's easier for them to like you and want to do business with you and it's easier for you to collaborate with them, so you want to collaborate with them. Collaborate. I was able to get a property 33 15 Bryant Avenue North in Minneapolis, the seller on it, I use a lot of those sames terms. It was we, Hey, we're going to do this together. He ended up doing a seller financed deal to me, so we did seller financing on the property to me, so I said, Hey, together, I'm going to clean this one up.
(07:40): I'm going to finish the renovation on it. He had started the renovation. I finished it and then I said, Hey, together on this thing, we're going to be able to knock it out of the park. Okay, I'll get you paid off after I finished the renovation and then were able to sell the property and that's exactly what we were able to do. So by using those collaboration terms, it helped. It helped bring the deal together, so to speak. Okay. Now for those of you that are like, Hey, I want to be able to get more of this confidence, this calm confidence, my team and I can help you with that. I put together a training for you. It's over@socialmediablueprint.com slash podcast you can jump into it. You can see it. If you like what you see, then we'll actually jump on the line with you too and we'll help you in your real estate investing business.
(08:28): Some people ask me, well, Nate, why do you do calls like that? It's simple because just like when you're sitting down with the seller and you show them the entire process and you add value to their life, there's a certain percentage of sellers that say, wow, I really like you guys. I want to work with you guys. So we do these calls with real estate investors under the same pretense. There's no expectations, no obligations, and when we lay out this marketing plan and this plan to help them with their confidence in their real estate business, a lot of people end up coming back to us at some point and want to work with us. So take me up on that while you've got it. It said social media, blueprint.com/podcast okay. The next thing, and this is the second thing, the second surprising thing that you have to give to sellers on every single call or every single conversation that you have with them.
(09:15): So the first one was confidence. The second one is re assurance. Okay? Reassurance. And the reassurance is around this specifically. The reassurance is around the entire process. You've got to map out that process for the seller every step of the way. So give me an example on a property that my wife and I bought 46 32 Brook street, Medina, Minnesota, this property, it was direct from a seller and we bought it on subject to financing. Essentially, it wasn't technically subject to, it was we paid their mortgage, but then we also had to pay them a little bit. So it's kind of like a wrap. But on this one, the sellers, they were very nervous about the whole process. They were, because they did it some kind of seller financing in the past and it didn't go as expected. So for us, we had to reassure them with the process.
(10:06): So we explained it step by step. So we explained to the first time, Hey, when we come out to meet you and walk the property, here's what the process is going to look like. We're going to come out, we're going to do pictures after we do pictures. And the reason we do pictures is because we want to make sure that if in case we need to reference them again without bothering you, we don't have to come back and take more pictures or anything like that. Second thing that we're going to do together is that we're going to go through the numbers together. We're going to go through the entire process together of what it would look like if we decided to work together, what closing looks like, what the future looks like of payments to you and things like that. We're going to go through all that together while we're together.
(10:39): Okay, and then once we got to their property, then we started laying out the process for the next steps. Okay. If we decided to work together, this is what this looks like, here's how monthly payments would work. Here's the title company. What they do, here's what you do. You show up the closing, you sign documents. We laid out the entire process for them and just what that does when you do it multiple times is it keeps building reassurance. You want to lay out the first phone call with them, Hey, on this phone call, this is what we're going to do together. Do you want to lay out the inspection conversation? Hey, on the inspection, this is what we're going to do together. I'm looking for major things. I'm not looking for minor things. If you're wholesaling the property and you need to do showings, you got to lay that out for them.
(11:20): Hey, I'm going to have some of my clients come through the property, some of my money partners, some of my buyers, and here's what that looks like. I'm going to be here. I'm going to meet them. They're not going to walk by themselves, lay out the whole process for them, and then they feel confidence. They're not afraid. Okay. The other thing about giving them that reassurance of the process is if there's something that they object to, like they don't like a certain part of the process, then they'll tell you while you're laying it out for them. With that reassurance, if you fail to do that, then happens is sellers will sometimes back out on you. That's right. Even if they've got a signed contract. Okay. I had one happen to me. I did a live cast on it. I'm the seller in Florida, Sarasota County, Florida.
(12:06): We worked together for a couple months getting the whole thing structured seller finance deal and got him everything he wanted and then there was something in the process about the title company in the how the documents were going to be, the documents were going to be, he was in a deed, the property to me and then have a mortgage on the property afterwards and in that lingo I lost him. I didn't do my job of giving him reassurance and then when it came time to actually sign that final piece of paper, we had purchase agreements and everything signed prior to, but when it came, signed it time to close and sign on the actual documents, transferring the deed and then taking the mortgage on the property. Then he panicked and he basically explained that that's not what he thought and then he just whipped silence and disappeared.
(12:54): Okay. I made a mistake. I didn't give them the reassurance that he needed. I didn't walk them through all of the paperwork in advance to give them the reassurance so that he would be ready for it. And so I don't want you to make that mistake. I want you to constantly give your seller's reassurance. I probably, with my sellers nowadays, I probably map out the whole sequence to them, start to finish between five and seven times over and over and over again a couple of times on each phone call when I'm in person with them. Sometimes through email, I'm APOE part of the process, but I always be sure to map out the entire process. That way they're, if they're going to have a concern or objection, they'll do it while they're with me. If they do it while they're at home or while they're talking to their neighbor or whatever, then their neighbor might say, Oh, I don't like that.
(13:38): You better go and call Bob. Bob also buys houses or whatever it might be. And I would much rather that if they've got some concern, they talk about it with me. So what are two things? It's confidence and reassurance. Okay. What are the big bullet points that we've got to take away from this? Well, we've got confidence and reassurance, but we have to use some specific terms. The most successful folks that do any kind of sales, they use these terms five times more often. They use definitely, certainly absolutely. Okay. And then a HubSpot found that it's 10 times more likely to get a deal close. If you use collaboration terms like our together we instead of you or I. Okay. So you use the collaboration terms and then you use the certainty terms, collaboration in certainty. Okay. That's the key to pulling the sellers together.
(14:33): I mean you've got to know the bullet points in between, but those are the keys that you have to carry into every single conversation that you have with the seller. Okay. Next time we come together, I got a pretty sweet topic that we're going to go through and I want to do this one. It's coming from the heart because I don't want people to go through the same that I went through to get here. I'm trying to give you guys real knowledge, real wisdoms, that you can skip. The school that I came through originally, I went through the school that I want you to avoid called the real estate investing school of hard knocks and the hard knocks are much, much more expensive than some of the other schools that are out there. So we're going to be talking about that on the next episode. And until then, if you've got questions or comments, make sure you drop them below or leave us a comment below. Leave us a review below. I'd much appreciate it. And until the next round, I look forward to seeing me out there on the field. Go get some done. Go get some deals. Okay.
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