by James Gage
People sell their homes for various reasons. Some of which include, but are not limited to:
1. Job transfer. 2. Making two mortgage payments. 3. Trade up to a bigger home or better neighborhood. 4. Tired of managing properties. 5. Moving in with a significant other. 6. Divorce. 7. Lost job or income and can not make the payments. 8. Physical problems with the property that they do not have the ability or time to repair. 9. Etc...
MOTIVATION is the key when dealing with Landlords/Sellers. If you can find out what motivates people, you can strike a great deal with them. Your goal is to find out what needs they have and satisfy them.
If they are a landlord and are sick of renting out that house and fixing leaking toilets at two in the morning, you can offer them something that will fill their needs. You can offer them a friendly way of selling that property over time for a price they can live with and with none of the landlord hassles. I spent the last nine years as a landlord and to be honest, there were plenty of times that if one of you called me up and offered to take all of my properties off my hands I would have jumped at the chance.
Landlords are a key source of deals. Many landlords are not as sophisticated as you might think. Many of them inherited their properties or just have homes that they had trouble selling so they decided to rent them out. The key when dealing with landlords is to let them know from the beginning that you just want to help them solve their problems and make some money in the process. Make them understand that it is a one-sided partnership. You are agreeing to do their work and still give them the money that they want for the property. If it doesn’t work out in a year or two, they can have their property back plus keep the option money. If they rent it out, they will still have to worry about replacing the carpeting and painting when it turns over. They really are in control of the process.
Let them know the advantages available to them. The reality is that what you are doing is limiting the landlord's risk and at the same time accomplishing what a real estate broker and property manager would. You are taking a small part of the monthly rent and making a small percentage of the total sales price at the end of the deal. If the house doesn't sell, they get to keep what you have into it. No real estate broker in the country would do for them what you can.
I define selling as the art of fitting a persons needs to a product or service and educating them on its utility. I suggest that when you approach a Landlord/Seller that you project a sense of confidence that you know that this is what will work for both them and for you and that you explain the benefits. I find that in order to build trust between the person I am selling to and myself, I need to discuss the drawbacks. If you do not talk about the drawbacks, the Landlord/Seller will spend hours trying to find out how this deal might be bad for him. You want him to know right up front what the drawbacks are and then you can discuss these issues together and work out solutions.
We are all in this business to make money, but you will find that if you come off as trying to make a buck, you will look like a cheat. I like to think of myself as a creative problem solver. . When people call me I immediately go into a mode of discovery. What does this person need? What do they have? What is keeping them from getting what they need? What do I have that can help in this situation. Sometimes I talk to someone and find out that their best answer does not involve me. . I know that I probably lose deals that way, but I know that I have built some good relationships and will get referrals down the line from some of these people. Remember no today doesn’t mean no tomorrow- always keep your options open along with lines of communication.