A LETTER TO ADAM

By Bill J. Gatten

One of our newer network members, Adam Albright, posed the following scenario. My response to him follows his question.

Dear Bill,

I've been visiting a lot of homeowners lately following my telling them that I'd be willing to buy their home from them if they would be willing to leave their equity in the property and stay on the loan for a year or so while I take over the burden of ownership.

However, when I get to the appointment, after explaining everything about the PACTrust, they invariably end up wanting to "Think it Over," or they get greedy and want more of the deal!

Please help me with a way to get them to "cut to the chase" and make the deal with me.

Regards

Adam

-0-

Adam,

First of all, cutting to the chase is not their job…it’s yours. You’re the one in charge of your sale call.

Secondly, NEVER, NEVER sell the NARS PACTrust™ to anyone! It’s taken you weeks to understand it “pretty good”: how is a seller going to get it in 15 minutes? The PT is the WAY you do it all, not WHAT it is. All you ever have to sell is the idea of the prospect’s keeping their loan in place, agreeing on a value, and letting you take over all the responsibilities.

The PT is the way you protect the seller and the property’s title. It’s not at all something you can, or need to, sell. Say I’m a frankfurter salesman, and I tell you what’s in my hot dogs, I’ll bet you’ll have to “think it over.” Chances are, however, that you will still have a hankering for that dog, but now you’ll go over to my competitor who has inferior meat, and you’ll buy his hot dog…“BECAUSE” he doesn’t tell you what’s in it.

Here's the deal, Adam. When these prospects don’t' end up doing what you think they should, it's because they are playing a different game than you are, and they simply don't know the rules of your game or that its you who is running it. They always think they are, but their rules don’t involve you: so that has to change, and you’re the one who has to change it.

The most important part of acquiring properties is setting out the buy-sell rules at the start and not playing the game at all until all players are in agreement about the game to be played and by whose rules it will be played. Think about, if you set down to play Poker with me and I sit down to Play ‘Hearts’ with you at the same time, the fact that the cards look the same doesn't mean anything. Neither of us will ever get what we want, and chances are good that within ten minutes we’ll each think the other is clearly stupid.

Here's the solution to your enigma in a nutshell…remember never to vary from the following…ever again…(it’s solid gold). When you make the initial call:

1. ESTABLISH RAPPORT: "Hi, ‘saw your ad. ‘How are ya? Nice Day. Got any warts? Is that a booger on your lip? Can you tell me a little about the house; etc.”?

2. DETERMINE THAT THE PROSPECT HAS WHAT YOU WANT. I.E., DON’T PLAY TIN-CAN TELEPHONES WITH A STUMP: I.e., YOU set out the rules (YOUR rules) early. That is: “What I'm looking for is someone who for X would be willing to do Y. Or, “What I'm looking for is someone who, for a faster sale and better selling price, might be willing to keep the existing financing in place for a while, and be able to carry it for a few years, while I cover all the costs and responsibilities of the property in exchange for some tax benefits and the option to refinance it in 3 or 4 years."

If the answer you get is not what you want to hear, you merely say: “I see, and why IS that?” If that doesn’t draw out an easily solvable objection, and the prospect insists on being obstinate, or is totally nonplussed with you, just offer your ‘thanks’ and move on the next call (they’re free and there’s an endless supply).

3. LOCATE THE PAIN (YOU CAN’T CURE ‘EM IF THEY AIN’T SICK): E.g., “How long have you had the property? How long has it been on the market? What condition is it in? Are you getting many calls on it? Yeah there are lots of those in the newspaper these days. I'm hoping the economy holds for a while, but it's looking little bleak out there for some. Is the property listed with a broker? No? May I ask why not? Aren't the payments and upkeep starting to be a real burden for you? Do you have any idea why it hasn't sold? Was that ASKING PRICE determined by an Appraisal, or is it pretty much a PFA? (*Plucked From you’re A..).

4. CLOSE THE DEAL BY MAKING AN APPOINTMENT: I’m open to take a look this evening if you are. How does 6:30 sound?

5. SET THE PARAMETERS OF YOUR MEETING: "Mr. Jones if you'd bear with me for a minute more, I need to verify some of the issues re. our meeting at the property. Assuming everything I’ve said so far and everything we’ll discuss in detail this evening works out to your satisfaction, is there any reason you can think of that we can't come to a firm conclusion tonight? (No? why is that?) Let me also ask if I may...Are you the sole decision maker re. the property, or will there be someone else we'll need to get involved? (There is? Well, let's be certain that they're a part of this evenings meeting…because when you’re ready I want to move very quickly). Also, please assure me that when we do agree on all the terms, assuming we can, I‘m not going to be told that someone else has to be consulted or that someone will "Have To Think it Over…as there’ll never be a time you can’t change your mind…fair enough?" (You say I ‘might’ be told that? Well, that’s no problem then: what more do you need from me for you to be able to make the decision? And for what day should we reschedule our meeting?”

6. OK, now you’re at the property with Mr. and Mrs. Jones. You’ve arrived with your Option Agreement completed; your Purchase Offer completed but not signed; and your Real Estate Authorization (to talk to the lender) is completed as far as it can be...you now go over your favorite parts of 1 and 3 again, and you let them see you take notes on ever single little flaw in the property (more Pain)...

7. After the signing, give them a chance to back out. This further solidifies your deal, affirms your character, and prevents an attack of ‘Seller's Remorse’ later on. Without giving them the opportunity to back out should they change their minds…you’d lose anyway, and find it virtually impossible or imprudent to force them to proceed. It is therefore a good idea to give them the chance early on. I.e., once the deal is signed and the hands are shook, pause and ask in all sincerity: “Does our arrangement feel good to you? It’s not to late to change your mind. I just want to make sure you’re as absolutely comfortable with everything as I am.” If we've missed anything or left anything out, it’s not too late to discuss it."

Adam, remember that the key in all of this is to make sure than you don't go out on an appointment (ever again) without knowing exactly what you’re going to get when you get there and exactly what your going to bring home.

Good Salesmanship is no longer smoke and mirrors and hidden persuasion: Salesmanship today is simply showing up, paying attention, being honest and staying unassociated with the end result to the very end. That’s all there is to it. If a prospect honestly doesn’t want what you’re selling and you’ve presented your proposal clearly, why push? Merely ask: "Is it over then? (Use that exact term)." If it is over (though it probably won't be yet) they'll tell you. If they just want to negotiate further they'll say, something like, “Well, that depends on you." Then you simply ask what they need from you to make it work for both of you.

Hope this helps Adam. Sure works for me.

Bill Gatten

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