The Mindset of BuyersThe Mindset of Buyers

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How do I get more Buyers to buy my deals?◦ Think like them!

But how do I do that?◦ That is the subject of tonight

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You get a deal under contract for a ‘good’ price You have added your fee on top of your contract price You blast it out to your Buyers list. Or maybe you call some

Buyers You patiently wait for someone to say yes and move

forward If you did your homework right, this can happen very easily Problem is…

◦ Far too often it doesn’t◦ Why?

A simple surprise…it is quite likely that not all of your deals will fly off the shelf. Always plan for that!

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Landlord Buyers (Buy and Hold)◦ Interested in Cash Flow!◦ Tend to prefer properties with not too much work◦ Tend to want stable areas where long term cash flow is assured

even with bumps in the road Fix and Flip Buyers

◦ Interested in Making Money!◦ Tend to not want to be in projects more than 4-12 months

depending on the size of the project. Builders

◦ Interested in Making Money!◦ They understand that the project will take time and could easily

be 1-2 years. Historical Fix and Flip or Builder

◦ Special mention made because these projects tend to take 1-2 years and require a lot of extra effort than a typical rehab or build

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Several common reasons that generally fall into price, location or ‘you’:◦ Price issues

Too much work needed vs what the ad says More expensive project than what the ad says More time to complete the project than what the wholesaler thinks

◦ Location issues ‘Hot’ area is usually more specialized than most wholesalers realize Street is nowhere near strong enough to support the ARV The clientele of the street, whether people or properties, may not be conducive

to safe chance of project success The lack of understanding on historical impact to a project

◦ ‘You’ issues You didn’t e-mail them back You didn’t call back You tried to do the deal only over text – hint, most people spending tens or

hundreds of thousands need better than a text message When you talked to the Buyer, you handled it poorly…the subject of tonight.

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Bonus theme 1: The vast majority of what we will discuss tonight can also be used when working with Sellers and Agents!

Bonus theme 2: Quality communication requires real EFFORT. If you have a deal that goes easy, don’t get spoiled. Most deals require a focused effort to put together. Especially in a Sellers or balanced market.

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Step 1 – Rapport Step 2 – Know what you are talking about to the best of your

ability Step 3 – Know who you are talking to

Step 1: Rapport◦ ‘Rapport is the ability to enter someone else’s world, to make

him feel that you understand him, that you have a strong common bond.’ --Tony Robbins

◦ People do business with people they know, like and trust.◦ No rapport, tough to get a deal done.

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A sure fire way to not get deals done is to act like you have it all figured out…experienced Buyers know you rarely do. ◦ Buyers generally don’t have it all figured out either. However…◦ They recognize this and learn constantly◦ They are looking to work with someone who loves to learn with them

How to create this positive atmosphere?◦ If you don’t know something, don’t act like you do

Common example: if you have never done a rehab like the one you are selling, don’t act like you have and ‘get it’. Buyers see through that

◦ Share with the Buyer what you do know to the best of your ability◦ When you get feedback, LISTEN. An experienced Buyer almost always

will have some educational tips for you to learn◦ Agree up front there is more than one way to do a deal. As a result,

recognize: Your vision of the deal and your Buyers may not line up. It is YOUR

job to account for that Your job is to align your goals with your Buyers to negotiate a deal

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NEVER and I mean NEVER tell a Buyer they are ‘wrong’.

That is a deathblow to your relationship.

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There are four general types of people. Many are a combination of two of these:◦ Analytical People◦ Drivers◦ Social People ◦ Social Conscious

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These Buyers know their numbers Motivated by facts Like things in writing Can be non-responsive (they are busy analyzing) Can be non-assertive (they are still analyzing, triple and

quadruple checking before they respond) Like rigid rules and timelines – gives feeling of control Can be slow to make decisions (they oftentimes have to

second guess a couple of time before they decide) Never debate renovation or construction costs with them.

They know ‘their’ way and ‘their’ numbers! Make them feel important by having detailed conversations

with them (a.k.a. don’t be lazy)

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These people are usually movers and shakers They can be very assertive They can also be non-responsive They are usually ready to ‘speed it up/get to the point’ They can be poor listeners (they are in a hurry) They can be firm, stubborn and tough They are usually decisive and loves making decisions

quickly These Buyers know what they want so persuading them to

look at new avenues tends to be difficult They usually have already thought through the exit

strategy and know their expectations on the Buy side as a result

Can be bigger risk takers

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These Buyers love to talk They might even love to hear themselves talk…leverage

this to your advantage by being a great listener! Usually assertive AND responsive (opportunity to talk more) Like building relationships Enthusiastic and optimistic Flexible and spontaneous Fast to make decisions, implusive NEVER rush this type of person. They get significance and

joy from being heard. LISTEN your way to profit! Do not be surprised if they take more time than some of

the other types of Buyers. It is more opportunity for you to align with them. Alignment equals profit!

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These Buyers also love to talk Not assertive but responsive They tend to be agreeable, willing and respectful They tend to want to make a difference. They see a bigger

picture than the project Are generally low risk takers Tend to be soft hearted and supportive of everyone

involved to get a deal done If you are patient with them, they are decisive. Just a little

slower getting to that point. Give them their space These Buyers tend to be a nice balance of facts with

emotion. Very even-keeled, sometimes these are some of your best Buyers for the long term because they balance risk and circumstances constantly

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Important to know the four general types of people When you meet someone, identify their tendency and

MIRROR them◦ People do business with people they know, like and trust…◦ You build like and trust by mirroring them

In summary:◦ Rapport◦ Know what you are talking about as best you can ◦ Know who you are talking to

These are people skills. They are a lifetime of practice. The better you are at them, the more money you make

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