Ep 496: educating your seller

The discussion highlights the detrimental impact of not educating sellers in real estate transactions, particularly for wholesalers and agents focused solely on profit. It stresses the importance of understanding a seller's needs and providing them with various options beyond low cash offers, which not only limits the agent's strategies but also the potential profit and rapport with the seller. By presenting multiple scenarios and honest valuations, agents can create win-win situations that yield higher profits and sustainable business relationships. The conversation also emphasizes ethical business practices and the long-term benefits of fostering trust and transparency with clients. Understanding Seller Needs (0:21-0:53): Emphasizes the importance of educating the seller about the true value of their property and exploring various selling strategies beyond just a low cash offer. This approach can significantly increase profit potential and offer better outcomes for both parties. Ethical Profit Making (1:24-1:57): Discusses how an ethical approach in negotiations, by being upfront about property values and possible deals, not only helps the seller but also ensures more profitable and sustainable deals for the agent or wholesaler. Building Trust and Rapport (2:00-3:09): Highlights the significance of building rapport and truly understanding the seller's financial goals and personal situation, which can lead to deals that are more beneficial for all involved, fostering long-term relationships and trust. Impact of Good Karma in Business (5:01-7:18): Reflects on the positive impact of treating early investors or sellers well, describing how good business practices can return substantial benefits and contribute to a reputation of reliability and fairness in the industry. Text 📱 210-972-1842 Text 📔 "Course" to learn how to make 6 figures on one land deal. Text ✴️ "Hive" to get added to weekly meetings. Text 🍎 "Apple" to schedule a 1-on-1 call with Anthony & Daniel. Text 🛬 "Land" to join The Million Dollar Land Mastermind Submit📃 deals at https://submitbigland.com/ 🔍 Need Inbound Real Estate Leads. https://www.hiveleads.io/ 🔍 Follow Us on YouTube https://www.youtube.com/channel/UCbulcrC4WbOy5Fzu0eWzNVQ/?sub_confirmation=1 🔍 Follow Us on Instagram https://www.instagram.com/hivemindcrm/ 🔍 Check Out https://www.hivemindcrm.io/ 🔍 Check Out Our Land Mastermind https://www.milliondollarlandmastermind.com/landmastermind 🔍 Pick Up All Event Recordings here. https://thehiveislive.com/recording 🔍 Follow Us on TikTok https://www.tiktok.com/@hivemindcrm?lang=en 📍Join the FB Group https://www.facebook.com/groups/137799891494707 📍 Check us at Join Us! https://thehiveislive.com/ Help support the show. https://anchor.fm/hivmindcrm/support

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Transcript

okay I want to go deep

on um why does it hurt the person that's

not educating the seller right so let's

say you're a wholesaler or an agent and

you're just trying to get the listing

you're just trying to get the profit

understandable which some we all get in

the gem

[Music]

Yep this is how not educating the seller

hurts you is because you limit your own

exit strategies and your own profit

potential right

so let's say that you're going to pitch

a creative finance a seller finance a

sub two a low cash offer like if let's

say you only say hey my only strategy

here is a low cash offer because this is

what I'm going to make I'm going to make

100 Grand and the man doesn't know what

it's worth ha damn I got them that that

strategy sucks all right you're going to

make a lot of profit but that strategy

sucks for one two if you say look sir

here's what it's worth retail it's worth

100 grand if I'm going to give you cash

out of my family's bank account and then

now my kids don't have that money I'm

going to give you like 50,000 maybe

55,000 and then I'm going to try to sell

it for like 80 or 90 so that way I can

make me like 10 or 20 grand and then uh

the seller's like man I just really need

the 100 that's the last money I've ever

saved in my life I need this to pay at

least the bills I have and then I could

live for the rest of my life and I'm

happy oh damn you should have told me

that I'll give you the 10,000 tomorrow

and now you'll make 1,000 bucks a month

for the rest rest of your life and and

then if you die if I hope you never die

but when you die um if you die you give

it to your kids and now they make a

th000 bucks for the next 27 years and

then he's like yeah that sounds amazing

and then now with that deal you have a

crazy cash flow crazy upside badass note

you gave the seller everything he needed

but since you were uneducated and you

failed to educate him you took a hit and

he took a hit you just did a major

disservice yep 100% And this is one

things that you have to while you're

building Rapport and having that

conversation you need to understand what

their goals are agents are terrible at

this terrible at this we love agents

they're terrible at this they don't

understand all the options that a seller

has the only way they know how to get

listings is by overpricing stuff and

then they got to drop drop drop forever

and they think they only cash buyers are

going to pay and people with financing

they think somebody's going to come from

California or Dubai and pay double or

1031 by I have a 1031 buyer interested

in this property me

too he's going to come in cash and close

in a week this guy from California say

he's going to sell his $3 million house

he's going to be here no less than 29

days and then he's going to look at it

yeah no he's not no he's not no he's not

we'll buy it tomorrow or we try so and

this is I I really want to dig in the

that fact if you understand why the

seller needs a sell and you extract that

during your Rapport building you can

create an a win-win solution that where

you're not and a better deal than you

would have got by L and a better deal

than you exactly and you can sleep at

night yeah you can sleep at night

knowing you didn't nobody got screwed

over the dude got more than he was

thinking you fixed the legal problem

with the ex ant you know in Mexico like

man damn everybody wins you win they win

better more money like oh damn the best

possible scenario here was also the most

profitable you don't say yeah um you

want to do an example on this one we had

we want to do the one with the lady DET

the proper over I don't know if you told

the story but I mean it's a good

opportunity for which one is it the lady

d it over the property she W $10,000 and

he just sold another B yeah fantastic

yeah the lady had a wrench she needed to

get rid of it um it needed a lot of

clean up barb wire in the grass Vehicles

it was it was a mess it was a real mess

nobody took care of it it was going to

be like $20,000 out of the country right

out of the country she it was going to

be like $20,000 to cut the grass on 46

Acres it was bad and and of course pick

up the bar wi all this crap

um so I was like listen ma'am I'm not

buying it for that I don't trust the

market right now I don't know what we're

going to do um so uh let me think about

it and then I just said hey look wait a

minute how much do you need to put in

your pocket right now so that you're

Square for a long time she's like if I

just had $10,000 right now I'm good

forever I gave her 10,000 bucks she

dided me over the property and then we

brought in a buyer boom 80 grand oh damn

that was amazing and people want to buy

cash yeah yeah yeah they bought it cash

and we closed super super fast I was

like damn I didn't know what was going

to happen so instead of me promising all

these empty promises like I'm going to

buy it in 3 months or 6 months I need to

due diligence like hey can we help each

other I don't know how much money do you

actually need 10 grand boom 10 grand

happiest person that ever lived I was

able to give her her money super super

fast boom we both did good and then we

did so well 80ish Grand we're going to

give her a note tell them about that so

um we we believe in Good Karma if you

watch our videos maybe Karma because

karma has like some kind of like

religious non-religious connotation but

I think everybody generally knows what

it means like the general population

what we refer to as karma again I'm

religious so karma is not a thing in My

Religion but it's like the good whatever

you put in and something comes back yeah

so that lady that was one of our early

deals where it helped us Kickstart what

we have now what we're doing now and now

things are getting so beautiful it's

crazy we consider her an early investor

yes she get so what do you do with early

investors they get returns they get

returns that's so cool because like she

was like she text us and she was like

hey um what's my balance or whatever

because we're giving her um some money

plus more money and I was like I think

we owe you three grand or what she was

like I think it's three grand or

whatever and I'm like I think it's like

2,000 I was like but we're actually

going to give you a note and you're

going to make like5 or $600 for until

you die what

what she thought it was a

typo but we're just going to give her a

note you know like damn you help us come

up and now we can just give you a free

ass note and then here like hold on to

this until you die okay and then we

don't want it back when she dies like

give it to your kids and she has a

grandbaby she's super happy with her

grandbaby so it's like what what what we

literally so some of your early

investors might be your sellers because

they help Kickstart your career to what

you're doing now and when you're coming

up when you're a wholesal you really

need the money really really bad you're

spending tens of thousands hundreds of

thousands in marketing dollars tires

bandit signs getting tickets pay your

rent getting tickets for bandit signs

getting thrown out by your signif

significant other so yeah yeah you need

to make 10 grand or 20 grand for the

grand whatever it is they know the game

like he I'll help you sell it fast but I

want to get paid to um but yeah if if

things aren't going good for you someday

like man help those people too if they

really needed it if they really needed

it just help them too what does it cost

us let's say we bu a ranch right and we

make 180 notes 243 Acres 180 notes and

um we give away

one is that are we going to have to turn

the lights off I think we'll be all

right things will be fine someday

someday it'll happen yeah so that's what

we're talking about man it's not about

like we're all running for profit

businesses and corporations but if you

do really well on a deal and then you do

really well on a lot of deals in a row

and then there's a lot more in the

pipeline like 100 million worth then um

if you can afford to give back give back

man it really is it's part of the

solution it's part of the growth

solution so we have another story with

this too so uh our first big subdivide

we did that was over 100 acres that

seller we got twoe timeline to sell the

property we sold into nine months um he

came back to us and he's like I need you

to sell this other I need you to buy

this other property I tried to get out

of it

he's like I don't like I don't like this

deal I don't like this deal he's like no

no you can handle it I was like hey my

investor said he's out too that's okay

you can do it no I've never done this

without my mentor so uh uh I I'm out bro

I appreciate it though always like no no

you can you're going to do it you can do

it yep mhm you can have you can do half

a percent earnest money half a percent

earnest

money um it's going to take me a year

that's fine don't worry about it that's

totally fine that's fine don't worry

about it yep that's fine half a perc

down and then 12 months

close man dude honestly if things don't

go right it's going to take two years

it's going to take two yeah yeah send

the contract for one year and then if it

go is going to two years then um you

send me another extension and we'll just

close in two

years

why why

sir now I'm trying to make sell him on

why

I don't think I don't know if people

ever had a sellers sell them on buying a

property you're going to do it like no

I'm not nope for sure not yeah yeah yeah

yeah you're all good you're going to do

okay first time for everything you guess

I think that was that's been our biggest

contract to date 4 and a half million no

is it that's our biggest contract on the

on the buy side okay on the bu side on

the buy side biggest contractor date and

the dude's like you have to sign it oh

yeah that was the biggest one that at

that time at that time yeah okay all

right yeah biggest contract signed up

yeah dude and and then um so there's

somebody trying to help us Market it

right we have a broker Michael Suarez

Christa they're doing really good um we

we hired a broker they know and we're

all like moving the deal and

uh I forgot I was going with that oh

that's just there there there's a lot

there's a lot of good things and I think

I think educate educating the educating

the

seller on what you need what what needs

to be done what what their needs are

help the seller help the seller help the

seller it always helps you say Sir look

if you need do you have something is

that is your barn on fire right now is

it barn on fire like are you calling the

ambulance and the fire truck no did you

lose all your

cows are you having a divorce are you

leaving the country no no that's

ridiculous I've been live here my whole

life

why do you need $3

million I don't need it but I know my

property is

worth I know you're it's worth 3 million

that's all you're concerned with r

you're going to get the whole three

million yes okay oh damn okay okay so as

long as I can give you three full

million let's say it takes me like uh

six like three months or six months or a

year to give it to you um would that be

okay I don't know like what what what

what do you mean I'll give you 100

200,000 down and then we'll give you the

rest like in three months or six months

or in a year two years three years five

years whatever you want yeah what is

help wa I mean bam done so like he

doesn't need a discount he doesn't need

to be slapped in the face with like hey

I know it's worth 3 million but I'm

giving you five man I'm not a dummy I'd

rather just die with it than just give

it to you you

yepy so help him out educate him say

here here's how I can give you more than

you were thinking you know you wanted 3

million I'll give you 35 but here's how

I got to do it and then he's like yeah

that sounds good

actually oh damn he said

yes lock it up that's it no man uh do

good do good do good with do good with

good people educate them and you might

get a better deal than you ever took

that you

get mhm better deal than you wanted by

being honest and doing the right thing

yep

English (auto-generated)

Ep 496: educating your seller

Daniel Esteban Martinez

Anthony Gaona