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Adam King (MI)

Sellers Always Want Cash. What to do?

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Hey all,

Just thowing some more quick stuff out there.

 

I continue to hear that people are worrying about getting a seller that "just want's to be cashed out". This seems to inevitably kill the phone call since most of us are broke when we start and can only afford to take over on terms etc. (Which I don't really think most of us can do anyway) This also seems to push us into "selling" because we know we can't buy cash and can only do terms. Selling then turns into sweaty palms, rapid heartbeat and occasional fainting. :P

 

Well, I have news for you. Sometimes I'll go crazy with some new toy or, (Paying off all of my credit cards. YES!) once in a while and regain my "broke status". This doesn't stop me from calling people to get more deals. Has anyone thought that maybe "I" don't like to do cold calls? Hum.....

 

Think about this. If you were to have all of the money in the world, how would that effect your cold calls? Hum....got ya'all thinking now don't I? :D

 

I would love to see some answers here. Seriously think about it, what would you say when you called? How would you feel? How do you think a seller would react if they KNEW you had the cash to buy their house?

And yes, I'm getting to something. :)

Regards,

Adam

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If I were to have all the money in the world I would make the call see what the deal looks like then simply say I'm soory dear or sir I was trying to reach my maid she is swimming nude in my pool on the east side of my estate over looking the atlantic. Then hang up and get up from the floor cause I've must have been drunk out of my mind when I made that call while fishing on my 65'foot fishing boat. lol

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"When do you need it by?" ... and pay close attention to their reaction. If they're excited, they might be motivated to accept a price that works for cash, if they aren't excited, they might be motivated to accept a price that works for cash!

 

Bottom line: I'd make an offer (feeling no need to explain myself) that works for ME.

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Well,

 

After having every motivated person want to be cashed out immediately or sooner, I have decided to partner with some investors in my area to offer all cash deals. My new approach will be "how would you like to be cashed out in 2 days?" ... I just need to get a few more investors on board to make sure i can go after the real high end homes.

 

I think markets that are high end are much easier to work this way. I know everyone tells me that if all the houses in your area are $500k that makes them average and not high end. I am finding the sellers consider them high end and of course the customer is always right. ;-) even when they couldn't be any further from the truth.

 

Mike

:ph34r:

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Theoretically, I DO "have the cash" to buy most houses. I'm working on it to "get" the cash to buy the rest. That has helped. Unfortunately, since what I really have is access to investors anyone can have access to as opposed to my own private stable of investors, I still need to get the option signed first. In other words: IF I have a buyer, I can get an investor to buy the house or get the buyer qualified for a loan to buy the house.

 

IF I really had the cash sitting in on the kitchen table, I'd probably offer them less than asking price, get my offer accepted, and turn around and advertise the house for sale... holding off as long as possible on giving the seller any cash. Just for the hell of it.

 

The game would be exactly as it is: to buy and sell without investing any real cash.

 

I'm still working to get around how I talk to sellers, as I don't even have the cash to put down earnest money. I've thought of lying to them. :ph34r: "Hi! I have cash to buy your house." And then taking my own sweet time to close while getting my own buyer. But I don't lie.

 

I just had another one put me off.... She was really interested....she said. She was in area (one of the three FSBO folks around here). I had contacted her before. She wasn't interested in refi or L/O... Like everyone else, she wants full cash and is discounting to get it. So I offered a straight option.

 

Somewhere, obviously, I bombed. Probably in not getting a physical appointment to meet with the seller. However, though she was enthusiastic, she said she wanted to think about it overnight. I sent her a straight option form, non-exclusive.

 

Now I call her back and email her and get no response. The last time that happened, it turned out the guy had sold his house.

 

 

Alice

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Adam, to help your thread along, I'll say:

 

I'd say "I'll buy your home for all cash as long as it qualifies. Can you meet this afternoon to inspect the home and sign papers?"

 

The seller would knock me down getting to where he could sign the papers.

 

It would take no time at all.

 

 

Alice

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Mike, it sounds like you're pooling the cash/resources from several investors for each deal, is that right?

 

Alice, you don't have to say "I have the cash", you could say "I'll pay cash" or "I'll close fast, all cash". That way you can get the cash (or flip to someone with the cash), without saying it's YOUR own money.

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NO WAY!

 

I am looking for investors that can cover deals on there own. I plan to secure each deal with an individual mortgage. In rare cases I may do 2nd mortgages.

 

Mike

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Hey all,

So far, you're all right. I especially like the post about "swimming nude". lol

 

My point was simple. All of your answers had one thing in common. Confidence.

Once you have the leverage (As the buyer), you are in control. When we cold call people and we don't have any leverage, we get scared. And fear ain't fun.

 

Just thought I'd do a reality check on the board and see who passed. So far I see nothing but flying colors!

Regards,

Adam

PS I hope I get the opportunity on the teleconference tomorrow to share with everyone how to get all the money/leverage you need to take over properties and never be afraid of another cold call.

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Alice,

Hey, no problem. After dealing with dead bodies and the Patriot act today, this is the only place that seems to keep me sane! :lol::lol:

See ya on the teleconference.

Adam

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After dealing with dead bodies and the Patriot act today, this is the only place that seems to keep me sane! 

Just heard on the radio that Ted Kennedy has been having trouble getting on planes. Apparently, he'd been added to the terrorist watch list. He wasn't able to get off the list on his own, he had to request assistance from Tom Ridge, Head of Homeland Security!

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well I have been busy so I wasn't able to reply but here goes....

 

I have all the money in the world so, I would not even make an offer cause think about it. He would be the only one that had cash to buy it..... B) . talk about a small buyers pool

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Adam:

 

PS I hope I get the opportunity on the teleconference tomorrow to share with everyone how to get all the money/leverage you need to take over properties and never be afraid of another cold call.

 

So what were you going to share in the teleconference re: above quote?

 

 

Alice

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