During this session, we will talk about Transaction Management | Fulfilling your commitments is the bedrock of long-term success. The video is below and the notes are underneath the video. This is Week 8 of 10 from the Wholesale Real Estate Training Program. Make sure you bookmark the Wholesale Training Resource Center.
VIDEO
NOTES
WEEK EIGHT NOTES AND ACTION ITEMS
Welcome back to Week 8 of the Wholesaling in Real Estate series! This session is all about the checklist. Tim walks through a detailed step-by-step that unwinds the entire transaction cycle for executing a successful contract. His tips and explanations take you from the very first inkling of a lead through the handshake and request for future business after the deal is complete. When it comes to transaction management, the takeaway here is a road map that leaves nothing to chance!
- (12: 12) INTRO: The Checklist Concept.
- ([12:49]) STEP A: Receive a lead. (Salesperson)
- There are multiple ways to receive that first contact from an interested party.
- Query via chat from someone in search of help selling a home.
- Query via a web form, which comes in via email and text. Follow up immediately!
- Call Rail: A great tool for tracking flow of communications traffic.
- Calls routed to multiple team members so rarely go unanswered.
- Almost never defaults to VM, which is good since most prospects just hang up.
- The tool charts traffic, dropped calls, etc.
- There are multiple ways to receive that first contact from an interested party.
- ([17:07]) STEP B: Set your appointment. (Salesperson/Appointment Setter/Buyer)
- ([24:38]) STEP C: Attend the appointment. (Salesperson/Buyer)
- Do your homework to be prepared.
- Make an offer in person.
- Facial cues are hugely important.
- You double your conversion rate when face to face because it’s possible to read body language and facial cues.
- ([26:16]) STEP D: Send Follow-up (Buyer)
- Video: You can send a personalized video to individual sellers walking them through the process, thanking them for their time and confirming your offer.
- Email: You can follow-up (Tim will share his template among the resources he posts at the end of the course).
- People respond well to seeing everything restated, such as the nature of a cash offer, no need for financing, an offer to pay closing costs.
- Hub Spot is a great tool for tracking the progress/response to email.
- Snail Mail: You can go traditional and send a hand-addressed letter on resume stationery, along with a business card. It shows professionalism and respect.
- ([29:52]) STEP E.1: Add to follow-up list for every appointment. (Admin/Buyer)
- Inquire as to whether the seller is considering your offer.
- Ask if there are any issues with price or timing that might be holding them back.
- Determine when you can circle back to check in on progress.
- You can be polite but persistent.
- Understand the decision cycle and determine level of seriousness.
- Create follow-up lists for contact at different intervals depending on readiness.
- Hub Spot is a great place to manage reminders and tasks.
- (34.03) STEP E 2: Write the contract. (Admin/Buyer)
- ([34:40]) STEP F: Turn in contract and earnest money to title company. (Admin/Owner)
- There is a finite window after which the contract is nullified unless earnest money is received.
- Be timely!
- ([41:58]) STEP G: File a memorandum. (Title Company)
- Record every single contract.
- It may cost a little money upfront, but it locks down the deal.
- Forming a good relationship with a title company is helpful.
- ([37:50]) STEP H: Get all sellers’ disclosures and addendums. (Admin/Owner)
- Anything in writing must be confirmed in a timely manner.
- Read carefully and digest all the materials. It’s worth the time!
- Get a list of anything that the seller did to the home.
- ([44:12]) STEP I: Get excellent video and photos. (Buyer)
- You’re no longer a buyer at this point.
- Think like a seller. This is your listing.
- Marketing starts right out of the gate and visuals are critical.
- ([45:44]) STEP J: Post on InstantEquity and Facebook groups/Marketplace. (Salesperson)
- ([47:32]) STEP K: Answer calls and screen buyers. (Salesperson)
- Inquire as to whether the prospect has watched the video?
- Can they send proof of funds?
- If not, who is their lender?
- Don’t waste time on someone who doesn’t have the ability to complete the transaction.
- ([52:45]) STEP L: Set a showing. (Salesperson)
- Tim discourages group showings.
- The serious buyers will not attend group showings and, more importantly, it’s hard to control/engage with everyone when you’re working with multiple prospects.
- Showing to individuals offers the opportunity to connect and determine what the prospect desires – for use later if not now.
- It’s also an opportunity to collect data points about what they saw and didn’t like.
- ([53:19]) STEP M: Execute the Assignment. (Owner)
- ([54:35]) STEP N: Collect the deposit. (Owner)
- Non-refundable earnest money must be delivered within 24 hours.
- If they give excuses of any kind, find another buyer.
- ([54:42]) STEP O: Turn in assignment and introduce to title. (Salesperson)
- ([56:00]) STEP P1 – Get lender started. (Salesperson)
- Start the process of getting the transaction completed by facilitating all parties and processes.
- Get in control as quickly as possible so you can influence the timeline and get things moving quickly in the right direction.
- ([56:40]) STEP P2: Re-verify cash.
- Is your buyer still planning to pay cash?
- Let the title company know the status.
- ([58:35]) STEP Q: Title commitment. (Admin/Salesperson)
- Follow up weekly to make sure title documents are proceeding.
- Confirm title commitment and track it to make sure the buyer has reviewed.
- ([59:45]) STEP Q.1: Closing instructions from lender. (Admin/Salesperson)
- Until you get closing instructions from the buyer, you are in limbo.
- ([1:01:08]) STEP R: Clear lender stipulations. (Admin/Salesperson)
- If the buyer is missing items that are stalling the transaction, work with buyers to get them on track.
- Follow up to get items such as appraisals scheduled and executed.
- ([1:02:22]) STEP S: Close assignee BEFORE seller. (Owner)
- Ensure that your seller is clear about every lending fee and closing cost.
- You don’t want any surprises at closing!
- ([1:03:50]) STEP T: Follow up on closing and funding. (Salesperson)
- Get a letter from the lender demonstrating that the loan funding is complete.
- Let the seller know of the status.
- ([1:04:19]) STEP U: Deliver possession. (Salesperson)
- Get the keys to the buyer.
- Treat them as a prospective repeat customer.
- ([1:05:09]) STEP V: Final step with seller. (Owner)
- Make sure they received their money and the total is correct.
- Let them know, “It was a pleasure doing business with you. If you ever need any help with real estate, please give me a call. And if you ever meet anyone else who needs help in the future, please send them to me.”
- Offer a referral fee. They will send you business if you’ve established a trusted relationship – and they’ll rarely expect a referral fee.
Resources
Online Sales Training https://www.sandler.com/
http://i-rei.com/ (Comp provider)
tim@timherriage.com https://twitter.com/timherriage https://www.instagram.com/timherriage/
https://www.youtube.com/c/TimHerriage
https://www.facebook.com/timherriage/
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