Default Thinking
It seems like so many of my students and followers of my podcast have been falling into the default thinking, which is giving the seller all cash or borrowing money to finish the deal because that’s what the seller wanted. However, they didn’t ask all the questions that I give in my training materials to find out what the seller really wanted.
While I’m not sure why so many are falling back on the default thinking that every seller wants cash, it may be because that’s just the mentality that they’ve had throughout the years. Whatever the reason, it’s so important to ask the seller questions to find out what other options they would be open to besides cash.
The seller might say they want cash to put into the bank to gain interest or they think it’s safer than you paying them every month. But a lot of times this is because they don’t know you yet. Show them receipts of anything you’ve bought that you’ve paid off to prove to them you are stable and reliable.
Buying properties that owners don’t live in is key to make it possible for you to make monthly payments. However, many sellers have heard horror stories about people who didn’t do what they agree to. You have to overcome this. One way to do this is to pre-sign a deed back to the seller, held by a third party attorney, that states if you are 90 days behind in payments, the attorney takes the deed to court and the original seller takes back ownership.
In the end, it’s much harder to ask questions if you don’t meet face to face with the seller. Follow my cheat sheet to know what to say to all the objections that might arise. Study that information and you have the confidence to make a deal without having to pay a seller cash.
To get tips on how to become a better real estate investor, visit www.larryharbolt.com/register. Just for signing up, you’ll get access to my free phone script on how to close a deal.
Happy Investing
Larry
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