Transcription
So, you want to be a closer? What is up, guys? Zack in here. And in today's video, I'm going to share with you my ultimate acquisitions closing guide for wholesaling real estate. And so, if you want to be somebody who can talk to a seller on the phone and get a signed contract closed, this is the video for you. And more importantly, I'm not here just to get contracts signed. We're not here to push paper. We're not paper pushers. I'm going to show you how to get him signed for the lowest possible deal. You ain't watching this channel to go and make five, six thousand on a deal. I'm going to show you actually how to make the real moola. You know, you can make $40,000 up to 100 grand on a wholesaling deal because we know how to close sellers the right way.
So, let's get all the wholesaling stuff out of the way. Let's say you want to be the greatest basketball player of all time. More specifically, Steph Curry; you want to have the best shooting in the basketball game. Well, again, if you want to be the best baller out here in the game, this is it's very similar to be really good at shooting a basketball than it is to be really good at closing. Because the thing about knowing how to be awesome at shooting a basketball is everyone knows how to properly shoot a basketball, right? So 2% of the actual skill set of being the greatest shooter of all time in basketball is the information. Everybody knows the information of how to properly shoot. Make sure your elbow it's squared right there to the hoop and boom, you do a follow-through rate. Like everybody knows the 2%. But the 98% why Steph Curry better than 99.99% of the NBA when it comes to three-point shooting? It's because of one thing: It is the reps. It is the practice. It is the actual effort you put into the information. And this is the same exact methods for closing wholesaling deals.
Guys, I'm going to show you exactly how to close sellers. But the thing about it is the information what I'm showing you is 2% of the entire equation. The real effort, the real skill set, the real difference between you closing sellers and actually making a ton of money is going to be the practice and the reps you put in. Talking to sellers, practicing when you are not on the phones, going over this video multiple times and going over it with other people, practicing, guys. You know, at zackdiscord.com, you can hang out with 10, 15 guys or gals closing hundreds of thousands of dollars every single month and you can practice with them, too. There is so much skill sets you can have here. But again, if you want to be a really good basketball player, 2% of it is knowing how to actually be a good basketball player. 98% of it is practicing.
Guys, I was talking about Kobe Bryant a lot, but I think he's one of the best people to look up to when it comes to being good at basketball because he literally told everyone how he became so good at basketball. He spent six hours a day in the gym as a little kid and then high school kept doing it. Six hours a day, six days a week. He he told everybody how he was going to become successful and what he did. Steal it. No, nobody wants to work that hard to become successful though, right? Well, I'm not going to tell you have to work six hours a day learning how to close because most of the skill sets of being good at closing come from getting enough good leads in and the marketing. But again, it is important to know this, right? And so, we got to talk about this too. You know, we are not salesmen. You know, a lot of people want to talk about sales training and this stuff for wholesaling. And I mean, it is sales to a point, but we're not salesmen, if that makes sense, right? We are actually real estate cash buyers. Now, we are buyers because we have partners, right? Our cash buyers are partners. So, us together, we're looking to buy the house. You're not selling a good or service. Now, life is sales to a point. And I will say that is a true thing. Remember, in wholesaling, if you are trying to close somebody, there is sales involved because you are selling yourself of why this person should sign a contract with us maybe versus another wholesaler or a realtor.
And so, when it comes to being the ultimate closer, I like to think of the acronym CLOSER, right? So, a lot of people in the sales space have the acronym CLOSER and they kind of use it towards whatever industry they're in. Uh, this is going to be my reasoning of how to be a good closer. So, think of CLOSER and think of this acronym. C stands for confidence. This is truly what I think is the core fundamental reason why you are going to be skilled or not skilled when it comes to closing a seller. If you do not have confidence, you ain't closing sellers. You ain't doing deals. And what have I always said about what is confidence? Confidence is a belief in the words you say and the things you do. So if we have somebody who has the information of how to close sellers and somebody who has the same information but they've practiced it and the other person didn't practice when I talk to a seller and say, "Hey, Mr. Seller, are you uh looking to sell the property?" versus "Hey, Mr. seller, how are you? Are you interested in selling the property?" Do you see how I believe in myself? Well, how do you actually build confidence? Like, how do I build this belief? How do I actually gain confidence? Is there a magic fairy that will give me confidence from the from the from the air? No. So, if confidence is a belief, how do we form a belief? A belief can be formed by our thoughts, our observations, and most importantly, our experiences. So if you have gone on and closed 30 or 40 wholesale deals, you now can form a belief that it can happen.
Now I'm not going to get religious, right? But a lot of people have a belief in a higher power. Not because they've physically met or seen this higher power, but they've observed from the universe that hey, there has to be something better or they might have even experienced a miracle or just thought how beautiful life is. I'm not getting the religious thing, but these people have formed a belief. And most religious people I know, they do not change their beliefs. It's not like some some really hardcore Christian guy is just going to automatically say, "Yeah, I'm an atheist now." No, like they're they're hardcore. They believe it. So confidence is all a belief in the things we do and the things we say. And most importantly, believing in ourselves when we talk to a seller. That's probably a very important thing. There's one sentence to get off of today is how can a seller believe in you to sign with you believing that you will buy their house if you don't even believe in yourself. So, it's very important to believe yourself. So, a lot of people don't believe they're the actual buyer. They they think they're screwing a seller. Uh they're stripping the equity. A lot of people think that they're lying to the seller. Guys, you're buying the house with your partner. And every single type of closing method and closing script that I teach is all completely true. There's no imaginary uh fairy person in the other end that we're using as an excuse. I always say use an actual real partner. If they ever call you out, have a name, right? Because if somebody says, "Oh, well, who's your partner's name?" I'm going to tell them who my cash buyer's name is. I'm not scared to do it. That's an actual truth. Because when you don't lie, because when you say the truth, a belief can be formed. When you're lying, you can't really connect any beliefs. When I used to use the good cop bad cop method, I always was super confident. And every and everyone's like, "Well, how are you confident?" Well, because I actually do have a partner. His name is Rick. And if you want to go call him right here, it's on my phone. So, you have to have a belief and always say the truth. Don't lie. Don't use imaginary fake people. Don't do the underwriting thing. Just have confidence.
L stands for listen, guys. 80 to 90% of the conversation when it comes to just talking to a seller over the phone is going to be listening, right? It's always called the 8020 rule, but if you have a conversation with a seller and most likely at the appointment or if you're doing it over the phone, 80% of the conversation is going to be you listening and 20% is you speaking. Now, you might ask, "Zack, what do I say during the 20%?" Well, what you say are questions to get the other person to talk. So 8020, that is a very common rule when it comes to acquisitions, but always listen. Remember, Rick says this a lot, but God gave you two ears and one mouth, so use it accordingly. And so always listen what the seller has to say and make them feel heard and understood.
O stands for outline the problem. So you want to make sure the seller knows that you know the problem and you have outlined what the problem is. Then we're going to hit with the S, which is solving the problem. You got to remember a seller will choose to go with you and sign the contract because you are solving the problem. If you listen to them, you sound like you have a belief. You know, you have confidence. You let them know you know the problem. You've outlined the problem. You have solved the problem. You're good to go. A seller goes with you because you are going to solve their issue or their problem, which is getting rid of their house. A seller won't choose me over another guy because I'm super tall and handsome or that I have such a beautiful voice. It's because I have shown with confidence I believe I can solve their problem and they believe that I can do it too by buying their property for cash.
Now on top of this too I like to do something called establishing commitment. Now this can mean a lot of things, but what I like to mean it as is having a conditioning statement or making sure before we give an offer to a seller that they are ready to make a yes or no decision. Now this is very very prevalent when we are dealing with off-market direct to seller leads, which means if we're calling, texting, doing any type of direct mail blasting, digital bandit signs, I mean the whole gamut that we teach at frson.com, right, you want to be able to establish a commitment. Now if we're doing an MLS deal, right, that's on market. If I'm doing some Facebook or SEO leads, then yeah, you you can probably skip the conditioning. But I've always made it a rule to always condition my seller because the worst worst worst possible scenario that you could ever get when trying to be a closer is when you go and hit them with the offer, say, "Hey, Mr. Seller, would you take 150 grand? That's my offer," and they say, "Maybe." And then you just sit there, you put your little clown makeup on, and you say, "Yes, sir. I will wait on you to give me a decision in the next day, hour, week. I'm just going to be on my knees begging you to finally make a decision one day." You're just guys, you're being friend-zoned. Okay? Yeah. They would want to go on a date with you to prom, but they're going to see if there's any better options, and if there's not, then they'll go with you, and you just got to wait like a little baby. Like, no. And no, and I'm not making fun of follow-ups here. Follow-ups are very important, but you follow up when there are after the offer and they didn't accept your offer, then you can follow up. But the whole maybe scenario is one of the worst things you can possibly do. I do believe in follow-ups and a ton of money is made on the follow-ups, technically most of them. But not establishing a commitment before you give an offer is going to kill the speed part of this business. And this how I destroy a lot of my competition in virtual and local wholesaling.
And then R right here last for CLOSER stands for requesting the signature. Basically being firm, getting that agreement signed, that contract signed. So a lot of people will not request a signature. They'll just be kind of weird, especially in virtual wholesaling, which are like, "Okay, I'm going to send you over the contract via email." And then they just do it and then they just basically say, "Okay, bye." They get off the phone and they never close the deal. It's very important you stay on the phone with the seller, especially in virtual wholesaling, to make sure they get the contract signed. So, a line that I like to use is, "Hey, Mr. Seller, what I'm going to do is send you over the agreement over emails. Let me know when you get the email, and I'll wait right here to make sure you read it over and let me know when you're ready to go." Boom. Done. Request the signature. Make it speedy. Make it efficient. See, so many people close a deal, they just send the email of the contract, and nothing gets done; one of the worst possible things you can do.
Now, there are five fundamental skills every great closer in wholesaling real estate has. And let me go over exactly what these skills are and kind of a translation of how you can start building them. So, again, number one is going to be negotiation skills. Guys, negotiations are pretty simple. If you really want the best ones, you need to lowball your sellers and you need to learn when to walk away. I know so many wholesalers that will go out here and think that they suck at negotiating. But if you're trying to negotiate with somebody who wants maybe like right here on the price, like super super high and then you offer like right here and there's not much wiggle room. But if they want this and then you hit them with a low ball here, there's a lot more negotiations where you can kind of meet in the middle versus here where you actually make more money on the bottom. So the best example again is if a seller wants 200 grand and the MAO is 150 grand and you offer 100 grand. So a quick visual visualization seller is at 200 grand, MAO is 150k. How do you get them down in price? Do you say, "Oh, you want 200? Uh yes I'll do 200." Or do you say, "Oh, you want 200? Seller you're wrong. You're an idiot. You don't know anything. Let me show you what comps are. Let me show ARV. Let me give you a repair estimate." Guys, calling a seller stupid is a very, very bad situation. What I like to do is just say, "Hey, I'm going have to be at 100K for this based off the rents and the numbers and where I have to be on repairs." That's where I have to be. Doing a whole full-blown seminar on why they are wrong and you are right is just an egoomaniac's dream. Do not be doing that stuff. Okay? You just say you're at this price, they're at this price. So, what do you do? Well, I'm at 100K. You're at 200 grand. Like, what would work for you? And then you negotiate from there. They might say, uh, "I can't do 100 grand. Could you do 140?" You say, uh, "maybe 130." Negotiate from there. The problem is, if I start at 140 and at 200, then we're probably going to meet somewhere at 160. But if I start so low, there's a lot more wiggle room in negotiations. I I personally have zero fear of lowballing a seller because I actually don't like renegotiating with sellers after we get it locked up. I think it's very disingenuous and not usually the right thing to do if you can just lowball in the beginning and let everyone know what the situation is. And most importantly with lowballing, you have to be comfortable with walking away from a bad deal. If the seller wants 60 grand above the MAO and they will not budge at all, no big deal. They can use a realtor. They can use other methods or even go to somebody else, but I'm not here to be the person to lock up a deal for way above what it's worth and then ruin my cash buyer's list or be disingenuous and lie to a seller thinking that that's going to be a great deal. So many wholesalers sometimes will lock up a deal just so they can renegotiate at the end. I think that's an absolutely terrible thing to do.
Coffin skills. Again, we've talked about this so many times, but again, this is a belief. When you give an offer, believe that your offer can help solve their issue. I don't know what else I can tell you. If you don't believe that you can actually close a seller, that's completely up to you. And that's a belief that you formed. You got to remember the wholesaler that believes they can close the deal and the wholesaler that believes they can't close a deal are technically both correct. It's what you believe is going to determine the outcome of the negotiation and if closing a seller. What I'd tell you to do if you want to form the best belief possible, experience is going to be the best builder of beliefs. Just having so much observation that you can close sellers because you have before will make you feel better. That's why when I deal with haters or hate comments talking smack like, "Zack actually sucks at wholesaling," I always go back and say, "Well, I've done 3,000 wholesaling deals." I believe the evidence that is backing me showing that I'm actually good at wholesaling pretty much confirms this. So, if I've done 3,000 wholesaling deals by 25 years old, if only eight years in the wholesaling game, and I also have the largest wholesaling community and I've helped more people get their first deal and their millionth dollar wholesaling than anybody else in the game. When I get a little hate comment on YouTube, I don't go and cry about it. My evidence is overwhelming that yes, I'm good at wholesaling. And so, that's what I believe in. Most people when they have to deal with hate or something like that, right, and you actually get offended from it, most likely it's because you actually believe some portion of that hate comment is true. So if somebody made a hate comment said, "Hey, Zach, you're short, bald, and ugly." Well, I ain't short. I don't think I'm bald. And the ugly part, eh, it's up to you. But the evidence shows the contrary. But if I'm very insecure that I'm short and bald, then I'm going to be really offended at that hate comment. So, when you hear somebody in a negotiations or over the phone with cold calling motivated sellers and someone says, "You're a complete jerk. You're the worst person in the world." And then I go back and think, hm, am I really the worst person in the world? You see how I don't get offended at that? Because I think there's a lot more people that have done way more heinous and disgusting things than me. So, I don't believe I'm a terrible person compared to those people. But if you get offended at that, maybe you actually deep down think you're a bad person. So I deal with hate comments the same way I deal with bad or mean sellers. If they scream at me during a negotiations, well, your belief is completely off of what I believe.
Next here, tonality. Tonality is going to be more about the cadence and the way that you speak words. And it's almost more important how you say something versus what you say. So, if I'm talking to a motivated seller and using some of our scripts and I'm talking really fast and I'm sounding like I'm really nervous, the tonality doesn't show the confidence. So, tonality can also be talking to the right person. So, a lot of it's going to be mirroring your seller and your cadence, which is just how fast you're speaking. So, if you're talking to an older grandma and she talks a lot slower, maybe she just wants to take things a little easier, she doesn't want a hyper crazy, stressed out, like sales type guy going in and trying to buy their house, they're going to want to speak to somebody who is more like them. Now, you don't have to pretend to be a different person, but do you see how I'm talking here? I'm talking as if I'm talking to somebody who talks a little slower. They want to move a little easier, right? Like that's how I'm going to talk. But if I'm talking to someone who's super hyper and they're excited and oh yeah, that's great. I can go definitely buy your house, right? It's definitely a lot of mirroring and cadence, I'm still still the same person. But you got to remember that some people just speak a little different, right? If you're dealing with someone who's a little...
More drawn out the way they speak, like you might want to do that a little better. Someone's more hyper and excited, you might want to do the same thing, right? Because there's certain guy guys and gals have different personalities. I deal with a lot of sellers that are super happy and uppidity and everything's amazing. And if you bring if you bring that same energy, you're going to build a lot more rapport. Not saying to be somebody who aren't. So, if you're a depressed email boy, still do your depressed email boy thing. I don't know. But mirroring and cadence is very important here.
Next skill that I found every good closer has is situational awareness. You know when to adjust on the fly. So, this could be going from a wholesale offer to a creative finance offer, knowing that maybe this isn't actually the right person. I might have to go change this up and maybe not even give an offer today to, oh wow, I know I have, you know, six steps on how to close a seller, but I just need to get the offer out right now. I need to skip the other steps. Maybe I just got to skip conditioning and get something locked up right now. Situation awareness is important, guys. We have step-by-step guides on how to close sellers, but you don't have to follow it to a perfect rigid tea. I prefer you condition sellers, but there are plenty of situations sometimes where you can skip that and just give an offer if you have to do it. Situations do arise and you have to know when to pivot and adjust in the game. Kind of like being able to be good at shooting a basket. Maybe if there's 1 second on the clock, maybe you can't do your two seconds getting set perfectly. Sometimes you just got to shoot the ball.
And then lastly is seller filtering. Guys, you do not want to try and get a deal from somebody that is not the right type of fit. So, you got to know when to not give an offer. So, a lot of this is wasting your time. So, when I talk about like inerson acquisitions, right? You don't want to go drive 2 hours to meet with somebody that is not even close to being a good deal. You're just wasting time. You could probably do marketing. What I would prefer you to do is learn when to filter out a good seller versus a bad seller and only give offers to someone who is actually ready and interested to sell a property. It's important to know this. So again, the skills you need to have are negotiation skills, confidence skills, tonality skills, situational awareness skills, and seller filtering skills. Good thing is we teach all these skills in freeh wholesaling.com so you know how to close sellers the actual correct way. And remember to follow the closer blueprint for wholesaling real estate. I mean, whatever trademark pending term makes it sound sexy, but remember, you must have confidence, listen to sellers, outline their issue, solve their issue with your cash offer, establish that commitment, and then request the signature to get the deal done.
Now, kind of going back out here and really pulling this all together, you got to remember when it comes to actually getting a deal done, there are three scripts we should know. The first script is the offer script. What type of offers do we need to go out here and make to sellers? Well, this is all up to you, right? I really teach this in freeling.com and every other method. Rick kind of teaches a little more than me here of different types of approaches. But if I could really sum it up into four simple offers we give to motivated sellers, these would be them. Offer script number one, the standard lowball. Just going out here, the seller says, "What's your offer?" And you just give a low offer and you hit it off the bow. That's classic. That's always worked. There's all different ways to say it like, "Hey, Mr. Seller, in the ideal scenario, what would you sell the property for?" or "What price will work for you?" "Hey, Mr. Seller, in the ideal world, what price would work for you?" Oh, I don't know. Give me a price. Then you give them a price. Seller first method is what Rick prefers, and it really does work really well, too. Hey, Mr. Seller, what price would work for you for you to get rid of the property? They say 100 grand. Maybe it's like, well, I mean, you can use 60. Negotiate from there. That works pretty well. Number three, my good cop, bad cop method. So, what I basically say is, "Hey, I was talking to my partner Rick the other day, and he was telling me he was looking to buy the property for around $150,000." Now, you might have a Rick near you, or if you don't, you can throw them in, but you just go silent after that. Now, you don't give a name or a person if they're actually not real. Now, you could always use my name, I guess, if you want. Use the Xleads offer we give at xle.com and say, "That was Zach's personal offer. I don't get offended at that." But usually have a cash buyer or someone that you can deal with. Maybe you say, "I was talking to them and they said they're looking to buy for around this price, which any cash buyer would love to do it at your mao. Would love to do it at wherever you like the deal." And they might say, "Oh my gosh, that's way too high." Hey, hey, I get it. Rick's crazy. He always wants to buy it for the most. That's why I'm here. I'm the decision maker. What price works for you? Now, if you're not comfortable with that, just do the seller first. No big deal. And number four is the dollar bill method. and definitely one that works better in person. But sometimes the seller just will not give you a price. And so one of my favorite ways to do say, "Hey, Mr. Seller, what price do you need to get rid of the property for?" or sell it for say, "Well, you're here. You give me the offer." Or you might say, "Well, I mean, we'll just sell the house for a dollar." They might be like, "No, I would you sell it for $2?" "No." I'm like, "So, we've already established you won't take a dollar for the house, and you'd probably love to take millions of dollars for it. what price in between that works for you? And you kind of get the seller in a gotcha situation and they get frustrated say I'll take 40 grand. Then you go from there and get a deal locked up.
Now, when it comes to talking to a seller over the phone or just in person, I prefer this over the phone, but if you're trying to go out here and actually talk to a seller and you like freeze and this person randomly says they're interested in selling the property, I would ask them these four questions. And this really helps you in a buy. Maybe if you're new and you're stress stressed out like, "Oh my gosh, what do I say?" I would use MCTP. So M stands for motivation, C stands for condition, T stands for time frame, and P stands for price. Hey, Mr. Seller, why are you looking to sell the property? C condition. Hey, Mr. Seller, can you tell me a little bit more about the property? Roof, AC, any repairs need to be done? T is time frame, when are you looking to sell the house? And P price, what price works for you to get rid of the house for? and then you have the right scripts to get deals done.
Now, if you really want to give a simple step by step on my average deal that I can lock up in dispo and get done and closed in virtual wholesaling or in regular wholesaling, these are going to be the six steps usually. Now, remember, you technically only need one step. Get an offer and get it signed. Boom. But if you want a flow of how a appointment or a conversation over the phone goes, this is the best one I can give to you. So step one, you want to confirm interest. So you want to make sure that the seller is actually interested in selling the property and they want to sell. Obviously, this is like the first thing. Then you want to qualify the seller cuz not every single person that wants to sell is actually a good wholesaling deal. Maybe they're better just going with a realtor. Maybe they want way too much to see if they're actually a motivated seller. We love to use MCTP for that. Three, obviously you want to condition them. Now, I'm going make it a little tiny here, but remember, hey, Mr. seller, before we go any forward, I just want to make sure, are you ready to make a decision on selling your property today? Because you don't want to get that dreaded maybe. And then number four, you give the seller the offer right there. Especially if it's virtual. But if you're doing it in person, maybe you just set the appointment right there, too. No big deal. I prefer local in person. You make way more. Or if you're doing virtual, that works, too. Five, after they accept the offer, you stay on the phone and get the contract signed. And six, once they get the contract signed, you're going to inform the seller of the access and closing. So, you let them know the steps going forward. Hey, what's going to happen is my partner and I, Rick, which they already know who Rick is, right? From good cop, bad cop or from a initial cold call or something that they're going to come by with me next week to go look at the property. Remember, this is the walkthrough with the cash buyer. And you're going to let them know that we're going to use this title company. They're going to be reaching out to you and just getting some information about the property to set up the closing so you can get paid at the date of your choosing. Her name is Sarah. She's at Gin Title. She's absolutely amazing. This is her information and let them know the process going forward and boom, you'll be ready to start closing deals and sellers.
Guys, if you want to learn more about closing and actually look at live seller calls and all the things I can't share completely on YouTube, do me a favor. Make sure you smash the like button, subscribe, go to freeholson.com, my free wholesaling course and community, and join my Discord community, zackdiscord.com. And I'll see you soon on the next one. Zack in signing out. Have a blasttor.