| Some months ago I purchased a house with no | | | | conversation that (insert your title company's name) is |
| money down as a wholesale house deal from the | | | | the title company which my partner and "I have used |
| wife who lived in Nevada but whose husband lived | | | | for over seven years." Encourage the seller to call title |
| over seas in Venezuela. In investor slang we call it | | | | and give them their contact info so they can get |
| missing or absentee seller. I have been in real estate | | | | acquainted with title. "Call Ms. Green and she will |
| investing for years but this was a new twist for even | | | | explain that we close with all cash on all of our deals |
| me. However, It turned out to be similar to working with | | | | within 5-7 business days." I do not say she will verify |
| a standard out of state seller in the U.S. | | | | who we (the investors) are. You don't need |
| In order to close on the deal the documents were | | | | verification, so avoid planting that seed! |
| notarized by a notary who would be recognized in the | | | | Then I ask if the seller has had a chance to visit our |
| U.S. Therefore the husband had to travel to the U.S. | | | | real estate investor website and read the testimonials |
| Embassy in Venezuela. This absentee seller traveled | | | | from other happy sellers. I leave it at that. One must be |
| some 250 miles over rugged terrain which took him, a | | | | careful to not make it a game of convincing the seller |
| full day and a half. Unfortunately for him, he failed to | | | | of your credibility. |
| get one document signed and thus had to travel back | | | | Here is a word about the sellers attorney. I have dealt |
| to the same U.S. Embassy over there to get the | | | | with out-of-town attorneys who were managing the |
| missing document notarized. And if that were not | | | | seller's transaction who require time to study the deal; |
| enough, the notary was only available two days a | | | | allow them this time. They will typically go with the |
| week. Prolonging the closing and the seller from getting | | | | investor they feel most comfortable with. Attorneys |
| there much needed monies. | | | | are skeptical professionals when working with |
| If that was not enough Venezuela of course is on a | | | | investors who are flipping houses. They likely can tell |
| different time zone than the U.S. These obstacles | | | | by our level of education as an investor if we are |
| made the wholesale flipping house deal a bit difficult to | | | | qualified buyers or not. As an investor, it is extremely |
| close in my advertised 48 hour closing time frame. | | | | important to speak with confidence about all of the |
| Now a day's I tell folks it will take 5-7 business days to | | | | transactions being dealt with. |
| close, just for that reason. I think it took about 30 days | | | | Then fax the completed agreement to the seller. The |
| to close that particular one wholesale flip or ugly house | | | | cardinal rule is never to sign the contract first. Allow |
| deal if you will. | | | | the seller to sign, then he can fax it back to you and |
| With out-of-town and motivated sellers, I go through | | | | then you can sign and fax or mail him a copy. Simply |
| the same basic line of questioning and listening as if the | | | | remember that trust takes time. If the seller says he |
| seller were local. The difference is that I take more | | | | will get back to you, thus putting me off I am very |
| time on the phone to develop a more in-depth rapport. | | | | casual and reply "Sounds fine." |
| Rapport is important because the motivated seller | | | | Once the contract is faxed I call the seller immediately |
| may be unaware of what repairs are needed, what | | | | to ensure he received the faxed agreement. I say: |
| the possible ugly house looks like, the current market | | | | Question: "John calling to see if you got the fax?" Yes I |
| conditions in your (the investor's) area. Often these | | | | did. "Fine, (calmly) I wanted to make sure it did not go |
| sellers do not know what a real estate investor | | | | to the same place as the other sock does that always |
| actually does. Therefore, trust is the main ingredient in | | | | gets lost in the dryer!" |
| getting a signed contract for a wholesale house deal. | | | | Humor and a jovial tone can go a long way in |
| Typically I like to wait 48-72 hours before I fax the | | | | establishing trust and closing your wholesale deal. Then |
| agreement to the motivated seller, in which time I | | | | usually within two to three days a signed contract |
| negotiate and discuss the property on two or three | | | | should come over your fax. Wait until the third day and |
| separate occasions. If as an investor you are in a | | | | if you have not received the fax then call the seller |
| hurry, the seller may interpret this to mean, "He is going | | | | and inquire to its status. The reason the seller may |
| too quickly, something must be wrong." and back off | | | | wait to call you is that usually he needs to talk it over |
| from the deal. Remember, they are out-of-town sellers, | | | | with the spouse and also to check your website |
| and thus may be leery of the process. You will | | | | testimonials and title company out. |
| become the seller's eyes and ears while rapport | | | | If you have stayed in touch and kept a great report |
| increases. He, unconsciously, needs this time to | | | | with him, he typically will not entertain another investor's |
| establish trust in you and your title company. | | | | phone calls. Because being out of state he is at the |
| References and testimonials of your title company and | | | | mercy of the investor, thus sellers need to have total |
| a list of former sellers in which you have purchased | | | | trust in the investor, and you have already established |
| houses add credibility to your person. What is great | | | | that trust with well thought out and placed questions. |
| about having a solid real estate investor's website is | | | | I hope this helps you in clearing up some |
| the ability to put testimonials on it. | | | | misconceptions of working with out of state and out |
| I usually tell the seller at some point during the | | | | of town sellers. |