#joshuasmith grantcardone ryanstewman calebjones

[chaveldiaz-blog]

Closing for Real Estate Investors- If you can’t Close it’s all just CONVERSATION. Can You Close? @grantcardone @joshuasmith @ryanstewman @calebjones

In my experience the process for successfully completing a Real Estate Deal is Marketing, Sales, Analysis, Contract Close, Final Close, and Follow-Up. These closings I am going to share with you come from the framework of Wholesale Deals and PreForeclosure Sub2′s. But they can be applied to closing any Real Estate Deal, whether a Sub2, Rent to own, Owner Finance, Retail Real Estate Deal,  a deal involving apartments, notes, etc. Heck, they can even be used to get your child to do what they’re told, your girlfriend into deciding to spend her life with you, your husband or bf to committing to a better relationship or permanent relationship, your boss to give you a raise, give you a promotion. 

Understand of all the process I mentioned above or maybe you yourself have a different methology which is fine. Either way you have to Close. If you don’t, everything else is  just conversation.  

Some of the Pillars of a Close are Agreement, Believe in your Service (What you’re asking for. If you don’t believe it they won’t and you won’t close), Know the Value of what you have to offer, Know your pitch/closings down pat, have Courage, be Ethical and Honest, and always ask for the deal, the close at the end. Use more than one close with your prospect. I give you ten, use them in combination and make up more, but DON’T depend on 1, 2, 3, 4, or just 5 closes.  

Tools: Your brain and imagination in knowing your closes and making up new one (before the close NOT on the spot), a good pen visible to the seller/buyer, a writing pad (preferrably white in color legal pad), your agreement, know your service, know your exit strategies or have access with those that can show you alternatives to making the deal, know your numbers, and know the value of the deal. 

Conceptual Tools: No particular order

Truth - being honest as this is the best way to get an agreement, a close. Seller/Buyers/The Public are too sophisticated, to technical, and to online savy to fall for your scams. They can smell you coming a mile away.

Courage - You can’t have a close unless you have the courage to go for it.

Speed - Some closes require you to respond quickly and within the flow of the moment, the complaint (this doesn’t mean speak quickly as to hide information or confuse your client).

Attitude - be positive and think of a positive outcome even if in the end you don’t get the close.  This applies to your bf/gf you’re trying to close, your boss, your child, the bank who you need a hard money loan from, etc.

Enthuasiasm - Believe in your service, deal, be ethuasiastic about it because you know as an ethical and honest person this is the best deal for you client. Not, your wallet, but you know this is a great deal and will satisfy your clients needs and inadvertently satisfy yours as well as all other parties involved.

Always look for a solution - there is a close out there for you if you use the closes and other ones you come up with. Also, there’s a close if you use or work with someone who can come up with different solutions to your problem.

You can’t build real value until you Close - rapport is not the deal, marketing, demonstrating, promoting, presenting, making a buddy, is not the deal, you want to, HAVE to Close or their is no value to your client/seller/buyer, you, your family, the community. 

Smile - Work on smiling (One of my problems). Being happy inside is not enough, show people you’re happy, let them see you shine and especially when presenting a close you know is the best for them and their problem.

Here are Ten that I use. I expect based on what you know, learned, and have experienced, you will translate them into your field of expertise, your areas where you want to get more closings.  I could offer you many more but, you have to come up with your own. In coming up with your own you make them your OWN, and crash the barriers keeping you from making for yourself a better life, a successful life in any endeavor. 

NOTE: Before you begin.  If you’re working with PreForeclosures, Families in distress, who are getting ready to lose their house, get foreclosed on, work with them to save their house and if you can’t and the only option is to find an investor to buy their house, then that’s great, you solve their problem as best as you and the seller could. DO NOT use these closes to take advantage of their situation.  Me and My partner get as much from helping a family save their houses as we do getting the house under an agreement. Using these closes to trick, swindle, defraud a struggling family out of their house is Unethical and Dishonest, and as for me and my partner will insure you will never interact with us, our business partners and associates, and most especially, you will not work with us. 

Complaints and Closings: In no particular order or order of importance

Complaint #1: You guys are just trying to rip me off. You’re vultures swooping in to steal my house just because our house is getting ready to be foreclosed on. My house is worth more than the money you’re offering me ($1,000).

Close: I agree with you, the money is not much but what we’re offering you is of tremendous value. We pay for your reinstatement, $32,000, we’ll be paying all closing costs $4000, our buyer will rehab the house at her expense without you having to do any of the $20,000 needed in rehab. You will be receiving a Total of $57,000 for the house on your behalf and most importantly the removal of this stress that has been caused by this Foreclosure. You’ll be able to move on with your life and start over without a foreclosure hanging over you and keeping you from buying a new house, renting a nice apartment, or buying a new car. The $1,000 doesn’t compare to the value we’re giving you. Turn the agreement towards them, hand them the pen and let them know where you need their signature and intitials.

Complaint #2: I got to think about it. 

Close: I agree with you, how many days do you think is appropriate, 3 days, 3 weeks, how many? Whether they say 3 days or 3 weeks, your immediately respond with, “ Thinking it over 2 days, 3 days, 2 weeks, 3 weeks more won’t change that you need to sell right now before you get foreclosed on (or if your working a Wholesale deal or trying to get a RE listing) you need to sell as the house has been on the market for over X months/yrs, or whatever reason you found that they want and need to sell. Thinking it over won’t stop the clock as the foreclosure is next week and any more time won’t allow us to get the documents necessary to stop the foreclosure.” You’re making the right decision, you know it, I know it. Turn the agreement to them, hand them a pen, and ask them to please sign here and here, and intial here and here and let’s stop this foreclosure/let’s do this.

Complaint #3: I don’t make rash decisions.

Close: I agree with you. I myself don’t make rash decisions. The difference here is that this is a rational and ultimately, right decision. The RE market is going into a recession, you’ve been holding this house for X months/yrs costing  you money all that time without a renter, and everyday that goes by you’re paying money out and the property value is dropping, and if not dropping making even the price the house is valued at unattainable.  Rash? No, a rash decision by you would be not to sell. This is not a rash decision on your part, this is the right decision, turn the agreement to them, hand them a pen, and ask them to please sign here and here, initial here and here. 

Complaint #4: The Righteous Man/Woman Close Difficult dilemma

Close: I can understand and agree with you this is a difficult decision. But I can also see that in you’re life you’ve been a responsible, accountable person, especially to your family and your home. A person who always has done the right thing for herself and her family. Now, with this foreclosure pending in less than 5 days you need, your family needs you to solve this problem, We need to be able to solve this problem right now and get it behind you. You need to make the right decision now as you’ve always done in the past. Slide the agreement towards them, hand them a pen, and ask them to please, sign here and here, and intial here and here. 

Complaint #5: Not enough Money (Variation of Closing #1 but geared towards a straight Wholesale deal or some other deal)

Close: The market says my house is worth $220k and you’re telling me you want to give me only $165k?? You’re crazy (you’re a ripoff, you’re full of #&#(, no F#*#& way). 

I agree with you John, $165 would not seem not enough but keep in mind our Investor will do all the repairs which come to $20,000, you’re selling “as is” to her. She is paying all the closing costs, $4,000, giving you $30,000, and incurring other selling closes of $16,000. The comps I printed out for you and showed you show the house values for your area and shows your house and similar houses like yours sell for only $110k. It’s a fair deal, it’s the right deal, you know it so let’s get this as the market value for your house won’t change.  Hand them the agreement and a pen, ask them to sign here and here, and initial here and here.

Complaint #6: Checklist Close

Close: John, would there be any other changes or additions you’d like to make before we come to an complete this agreement? Yes? (Isolate change/addition, make it happen for them if possible and within the value and framework you’re providing them). No? Great....Yes or No, once you respond, turn the agreement towards them, hand them a pen, ask them to please sign here and here, initial here and here.

Complaint #7: I need to talk to my Spouse

Close: Joan, what if your spouse says no? Chavel, he won’t say no, I know my husband he won’t tell me no.  Great...Turn the agreement towards them, hand them a pen, ask them to please sign here and here and initial here and here.

Chavel, if my husband says no, we won’t buy? Joan, then let me ask you this question? Will he say no to the service or the money you’re getting for the house? If it’s money, isolate what exactly is the objection to the money (money for the wholesale home, downpayment for the new house, monthly payments, what?). This objection is using the spouse as a invisible third party and the objection is really from Joan who is sitting in front of you. Go back, explain to her the figures, justify them, and show her the value of the figures. If neccessary inject other closes and once the barrier is dropped, turn the agreement to her, hand her your pen, ask her to please sign here and here and initial here and here. 

Complaint #8: Dealing with a 2nd party who has no financial stake in the deal but the seller brought them along, and the 2nd party is injecting themselves into the negotiation/close.

Close: Juan, the deal we are offering your mother to save her house, your house from foreclosure, what advise would you give her about the service we’re giving her, knowing her and the foreclosure situation, and knowing the foreclosure can’t be stopped unless she makes this deal, and that it’s 5 days away, what advise would you give your mother?

Any advise her gives, acknowledge it, and provide information to him that will cover his concerns while highlighting the positives of the deal. Once satisfied, turn the agreement to his mother, hand her a pen, and ask her to please sign here and here and initial here and here.

Complaint #9: Agreement Close

Close: Denise, Aaron, I agree this new home it’s alot of money for a 1st home. I agree the mortgage payment is too high, I agree it’s not exactly the house you wanted, but you knew we’d get close and a perfection house will keep you shopping and wasting time for another year. You knew when you asked me to bring you to this neighborhood that house were overpriced. I’ll need both of you to sign here and here and initial here and here.  

Why is this a good close? Most folks know if they want to buy in this neighborhood with the great schools, parks, and the prestige it will give them with friends and family, know it requires alot of money to buy a house here. They knew this coming in and they knew this when they told you they wanted to buy a house in this neighborhood. 

Complaint #10: Change the terms of the deal Close

Close: The obtacle with the seller in a wholesale deal is still price? The numbers on the house don’t allow you to provide them their asking price. Instead, provide them value with different terms that will meet their asking price or come close to it without costing you your price.

So, Adam, if you won’t sell the house at X dollars (ARV x 70%) would you consider X deal? X deal and the terms will get you close to the price you want, will do this and that, and will overall take X amount of days, etc....So, now that we have the new terms hashed out Adam I’ll need you to sign here and here and initial here and here.

Bonus Close

Complaint #11: Above my budget close

Close: Sonia, I agree this house is way above your budget and that of your husband. But I expect this house, once you move in will have alot of company and won’t be lonely. I don’t understand Chavel. What do you mean? What I mean is this won’t be the 1st purchase you make that is too much money and over your budget. Turn the agreement towards her and her husband, ask them to please sign here and here, and initial here and here. 

Final thoughts on some of the things you shouldn’t do or closes you might want to stay away from and over use.

Don’t ask open ended questions - The other investor is offering me X dollars for my vacant house? You - Really, how much? The seller might lie to you and once they do they can’t come back to your offers or they might feel they will lose face.

 Don’t be Smart Dude/Smart Chick - don’t correct the seller/buyer on knowledge that you know that is wrong or obsolete. They don’t care how smart you are and you’ll only create resentment which will be an unspoken barrier to the close from that point on.

 Know when to Shut Up - many times when you finish your close, SHUT UP and at time, just slide over the agreement, pen, ask them to sign here and here, initial here and here.

 Don’t show anyone up/embarrass them (in particular 2nd parties/Close #7) 

Now or Never - try to stay away from this close

If I could do this, change that, would you do the deal close - Over used

This offer is only good for now, it won’t be available later/tonight/tomorrow - So over used, tired, and transparent. If you’re using it the 1960′s are calling and they want their close back. Yeah, Yeah, Yeah, the successful RE Investor’s teach this, it’s their mantra for creating urgency. So Transparent.

Hope this works for you and improves your ability to close deals and jump start your mind to create some more closes geared towards your particular niche in RE Investing. 

Bump me if you’d like some help closing a deal. 

GL,

Chavel