The property that my Student acquired was being fought over by at least a dozen other investors at the same time he got the deal.  This is a case of giving the seller what he wanted with the result the price the seller received didn’t matter to him.  I tell Students that investors are problem solvers and we provide solutions to homeowners’ worst problems and for this service we get paid very well – this is an example:

The homeowner had not paid his property taxes and he was scheduled for a tax deed sale in two weeks.  Tax deed sales are a prime prospecting niche as the homeowners are motivated to find the money to pay off the outstanding tax certificates or lose their home.  The tax-deed sale also wipes out the majority of liens against the property including bank mortgages and judgments but not IRS and city liens (which can be reinstated).  So typically banks are buying the tax certificates each year or they pay off all the outstanding ones once they are in foreclosure.

The homeowner was deluged by investors sending him letters and postcards and showing up at his door.  As is typical, he wanted to stay in his home and was trying desperately to raise the $8,000 needed to save his home but had been unable to do so.  He had been estranged from his adult children and even they and his personal friends wouldn’t give him the money.  The property was free and clear and worth $150,000 but still his children wouldn’t help even when they understood his entire equity would be lost.

When the Student spoke to him he said he wanted to say in his home until he died.  He told the Student he was dying and wasn’t sure how long he had but that he planned on being around for a few years at least.  He said he had three cash offers of $120,000, $125,000 and $130,000 dollars.  The problem with these offers was the investors wanted him out of the property immediately and would help him move to an apartment or condo.

The Student wisely spent more time focused on his personal problems and a solution that fit his needs.  The Student called me and related the situation and I suggested buying the property from him and renting it back to him until he, in fact, died.  This put the Student in the situation of carrying the property possibly for years so we factored this ongoing cost into our offer.

We structured the deal with a one-year renewable lease for $1.00 a month rent and a purchase price of $65,000.  If these terms sound ridiculous remember the Student was simply giving the homeowner what he wanted and needed.   He did not want the much higher cash offers– he wanted to stay in his home.  One of these investors was so tenacious he kept coming by and was even there the day when the tax deed sale should have happened.

To do the deal with little or no money, I further suggested he have the seller do owner financing but with a twist.  The Student’s monthly mortgage payment would be 5% of the mortgage balance but with no interest so the seller would be getting his principal back each month.  When he died the Student would return the remaining mortgage balance to his only relatives, his estranged children.  There was a title issue because a former girlfriend was on title and was also estranged from him.  The Student worked through this issue also and got the former girlfriend to take $15,000 for her part of the property – she, “Just wanted out!” in her words.  If one of the other investors had purchased the property from the homeowner, he would have been buying only ½ of the house – be careful of who’s on title and know you’ll eventually have to deal with the other person(s).

The Student became the caretaker of the now tenant and had to hospitalize him a couple of times and even tried to get him into rehab.  One problem was that the tenant had squatters move in with him and they were arrogant and boisterous that they weren’t leaving.   As time went on, the tenant refused all help from the Student and died about eight months later.

The Student was forced to start eviction of the squatters but I suggested he approach them and offer them cash to leave and say this, “I can spend the $300 on a Sheriff’s Officer to be here as we throw out your belongings or I’ll give you the $300 if you are out by tomorrow evening.”  The squatters took the $300 and the Student got the property back with one tenant who was paying rent and was very cooperative.

The former owner/tenant had set the house on fire years before by smoking in bed.  He survived and his insurance company completely rebuilt the property including impact windows.  The Student now had the option of patch and paint (lipstick on a pig) and retailing it to an end buyer for $150,000 or wholesaling it for $120,000.

change your life mentoring click button j 300x236 1

This is one of the best examples of how an investor can compete with cash offers that are much higher.  If you try to be the highest offer on deals you will likely not be in the business very long.  Find motivated sellers, listen more than you talk (especially about yourself) and make offers based on a solution to the seller’s specific problem.  If the seller doesn’t have a problem, you won’t have a motivated seller and all they will talk about is price.

To your limitless success,

Dave Dinkel

Visit davedinkel.com for full privacy policy, terms of use, etc.  Be sure to contact us through the website at davedinkel.com if you have questions or concerns ([email protected]).  Results mentioned in this presentation and any video, article, and/or material related to Dave Dinkel and his associated businesses are not typical nor are a guarantee of any earning potential.  No advice is to be construed as legal, accounting, or professional advice EVER.  Please consult related licensed and qualified professionals before taking any action.  No person(s) mentioned in the articles and /or shown on videos received compensation in any form for their opinions.

The property that my Student acquired was being fought over by at least a dozen other investors at the same time he got the deal.  This is a case of giving the seller what he wanted with the result the price the seller received didn’t matter to him.  I tell Students that investors are problem solvers and we provide solutions to homeowners’ worst problems and for this service we get paid very well – this is an example:

The homeowner had not paid his property taxes and he was scheduled for a tax deed sale in two weeks.  Tax deed sales are a prime prospecting niche as the homeowners are motivated to find the money to pay off the outstanding tax certificates or lose their home.  The tax-deed sale also wipes out the majority of liens against the property including bank mortgages and judgments but not IRS and city liens (which can be reinstated).  So typically banks are buying the tax certificates each year or they pay off all the outstanding ones once they are in foreclosure.

The homeowner was deluged by investors sending him letters and postcards and showing up at his door.  As is typical, he wanted to stay in his home and was trying desperately to raise the $8,000 needed to save his home but had been unable to do so.  He had been estranged from his adult children and even they and his personal friends wouldn’t give him the money.  The property was free and clear and worth $150,000 but still his children wouldn’t help even when they understood his entire equity would be lost.

When the Student spoke to him he said he wanted to say in his home until he died.  He told the Student he was dying and wasn’t sure how long he had but that he planned on being around for a few years at least.  He said he had three cash offers of $120,000, $125,000 and $130,000 dollars.  The problem with these offers was the investors wanted him out of the property immediately and would help him move to an apartment or condo.

The Student wisely spent more time focused on his personal problems and a solution that fit his needs.  The Student called me and related the situation and I suggested buying the property from him and renting it back to him until he, in fact, died.  This put the Student in the situation of carrying the property possibly for years so we factored this ongoing cost into our offer.

We structured the deal with a one-year renewable lease for $1.00 a month rent and a purchase price of $65,000.  If these terms sound ridiculous remember the Student was simply giving the homeowner what he wanted and needed.   He did not want the much higher cash offers– he wanted to stay in his home.  One of these investors was so tenacious he kept coming by and was even there the day when the tax deed sale should have happened.

To do the deal with little or no money, I further suggested he have the seller do owner financing but with a twist.  The Student’s monthly mortgage payment would be 5% of the mortgage balance but with no interest so the seller would be getting his principal back each month.  When he died the Student would return the remaining mortgage balance to his only relatives, his estranged children.  There was a title issue because a former girlfriend was on title and was also estranged from him.  The Student worked through this issue also and got the former girlfriend to take $15,000 for her part of the property – she, “Just wanted out!” in her words.  If one of the other investors had purchased the property from the homeowner, he would have been buying only ½ of the house – be careful of who’s on title and know you’ll eventually have to deal with the other person(s).

The Student became the caretaker of the now tenant and had to hospitalize him a couple of times and even tried to get him into rehab.  One problem was that the tenant had squatters move in with him and they were arrogant and boisterous that they weren’t leaving.   As time went on, the tenant refused all help from the Student and died about eight months later.

The Student was forced to start eviction of the squatters but I suggested he approach them and offer them cash to leave and say this, “I can spend the $300 on a Sheriff’s Officer to be here as we throw out your belongings or I’ll give you the $300 if you are out by tomorrow evening.”  The squatters took the $300 and the Student got the property back with one tenant who was paying rent and was very cooperative.

The former owner/tenant had set the house on fire years before by smoking in bed.  He survived and his insurance company completely rebuilt the property including impact windows.  The Student now had the option of patch and paint (lipstick on a pig) and retailing it to an end buyer for $150,000 or wholesaling it for $120,000.

change your life mentoring click button j 300x236 1

This is one of the best examples of how an investor can compete with cash offers that are much higher.  If you try to be the highest offer on deals you will likely not be in the business very long.  Find motivated sellers, listen more than you talk (especially about yourself) and make offers based on a solution to the seller’s specific problem.  If the seller doesn’t have a problem, you won’t have a motivated seller and all they will talk about is price.

To your limitless success,

Dave Dinkel

Frequently Asked Questions

1. What Should I Do If a Seller Ghosts Me?

If you feel you have been ghosted, act decisively and quickly. If you have tried texting and calling, it’s time to drive by the seller’s location. I always take the recorded Notice of Interest or Memorandum of Contract to leave, so the seller knows it exists. Go by at a time when you know they will be there and don’t be confrontational, just get the facts.

In our experience with new investors, the chances of losing a deal with no contract is likely over 85%. Verbal commitments do not apply in contract law; get everything in writing, especially contract changes.

Different ‘gurus’ have different opinions, but our experience is finding motivated sellers and then a buyer for your deal. Ideally, you should be finding motivated buyers from day one, so you are ready when you find a seller. Buyers are easier to find as you can see at https://davedinkel.com/products/

Prevention only comes about by thinking a Black Hat wholesaler will be coming after your deal. First, educate the seller that an unscrupulous investor may come by and illegally offer more money, have the seller sign your “Notice to Homeowner,” stating that he understands he cannot accept another offer.

There is nothing illegal about changing their mind, it is called seller remorse and occurs about 25% of the time. However, if they have signed your contract, it can’t be cancelled for any reason unless acceptable to the investor/buyer.

If price is an objection, you need to find out how important it is to sell fast and for cash. If the seller isn’t under a time constraint, has a money issue, or has a personal dilemma, he may not agree to the price you need. Offer to help move and build it into your price before you make your offer. However, never give the seller money; only pay the moving company, and only after closing (escrow with a closing agent). If fear is the seller’s issue, break it down into what the real problem is and answer their objections one at a time.

You can get to the root of motivation for a seller by asking a few questions. First, “Why are you selling?”, “How soon can you close?”, and Are you ready to sign an AGREEMENT today, if not, what do I have to do to make you comfortable?’. The answers to these questions will determine the truth about your seller’s motivations.

The best times to involve your attorney in your deals are to have him review your contracting, review the signed contracts from the seller and end buyer, have him open escrow and start the title work, negotiate with city or counties for lien reductions or mortgage payoffs with lenders, and to close the transactions.” Your attorney is not the adversary; it’s the opposing party’s attorney who is a deal killer, and having your attorney allows him to help overcome this obstacle.

The key to successful prospecting and bringing back deals that didn’t close is to follow up until the property is transferred in the public record. Some of our deals have been where the seller came back to us months and years later because they felt comfortable with us and not the other “pushy” investors who contacted them.

Your contract’s most important clauses are inspection period (as long as possible), when the EMD must be deposited if at all, your ability to access the property, any added clauses specific to the property that will protect you against seller claims later that were verbal only.

Visit davedinkel.com for full privacy policy, terms of use, etc.  Be sure to contact us through the website at davedinkel.com if you have questions or concerns ([email protected]).  Results mentioned in this presentation and any video, article, and/or material related to Dave Dinkel and his associated businesses are not typical nor are a guarantee of any earning potential.  No advice is to be construed as legal, accounting, or professional advice EVER.  Please consult related licensed and qualified professionals before taking any action.  No person(s) mentioned in the articles and /or shown on videos received compensation in any form for their opinions.