Your Acquisitions department is one of the key elements of Building a Successful Real Estate Investment Team. An acquisitions manager is generally responsible for sourcing deals, analyzing comps, and building strong relationships with potential sellers. The ability tois crucial to your success in the industry.
It’s important to have the right tools in your toolbox in order to pursue off-market deals and buy them at a deep discount. So, what is the best way to Structure your Acquisitions Department in order to run like a well-oiled machine? The answer is SOP’s (Standard Operating Procedures), every company should have them. Standard operating procedures create a road map for your team to follow which ultimately leads to closing on more deals.
This short video below walks you through our Acquisitions Process Map which explains exactly how to vet each lead, do your pre-appointment research, and walk into every appointment with confidence.
Mind Mapping Your Acquisitions Process
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Having the proper mindset towards Real Estate Acquisitions is somewhat of a science. However, once you gain the knowledge and confidence in your sales ability, you will become greatly successful in the Wholesale Real Estate Industry.
General responsibilities for Real Estate Acquisitions include efficiently running comps, performing market research, screening potential investments, communicating with sellers and building great relationships, and of course, locking up contracts!
Your primary focus as an acquisitions manager is to TALK TO PEOPLE. This is the number one money making activity that you should focus on. Seek to have quality conversations with every single seller that you come into contact with. As a result, you will build great rapport and ultimately earn their trust. Remember that people like to do business switch people that they like and trust.
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Wholesale Appointment Process
- Review the motivation of each lead and get a feel for the average price range for comparable home sales in the area. Determine your MAO (maximum allowable offer) for the property before going any further.
- Prepare your deal presentation with 3 lower comps to present before your appointment.
- Familiarize yourself with each seller’s unique situation so that you can effectively serve them. It’s best to have a plan in place before you meet with the seller in person. This will give you an advantage to work with when stepping into negotiations.
1. Rapport Stage
- Walk into every appointment with confidence. The first 5 seconds upon meeting someone will likely determine the level of rapport that is built. This is one of the most crucial stages in the negotiations process. Seek to have a warm friendly greeting: let people know that you are confident in your ability to serve their Real Estate needs.
Ice Breaker Examples:
- Introduction Stage: Greeting/ who you are & how you serve
- Relationship Stage: How can you best connect/relate to this individual? Ask about family, occupation, hobbies etc.
2. Situation Stage:
In this stage, you are seeking to uncover any pain points that may exist. Remember, Real Estate Wholesale Deals are situational (meaning that there is likely a problem or pain point that they are facing).
Example: Tell me a little bit more about what you are hoping to accomplish in the sale of your home… Our goal is to identify how we can best serve you. (Ways we serve: Cash Offer, Lease Option, Owner Finance, Listing with an Agent) Determine what their ideal appointment outcome. Let them know that we are here to help them reach their goals.
3. Property Assessment Stage:
Condition of the property:
This stage falls immediately after rapport has been built. The relationship is established and the seller is has put their guard down to let you walk the property. (In many cases Step 1 + 2 may happen simultaneously)
Example: “Let’s take a walk around the property.” “Feel free to point out any additions that have been done.” “Is there any issues that I should be aware of?”
In this stage: Make sure to take pictures of the property as you are walking through. (If you walk out with a contract, this will help when it comes to marketing the property to potential buyers.
Simply ask “Are you okay with me taking some pictures of the condition for the property for our acquisitions department?”
Questions to ask: You can use these as negotiation tools when closing the deal.
- Age of Roof, AC Unit (5,000 for each item)
- Have they made any upgrades within the past 5 years or so (7K kitchen remodel, 5k bathroom remodel)
- Do windows need replaced? ($300 per window)
Qualifying Questions: these will take place as you are walking through the property
- How fast are you looking to sell?
- What will you do if you are unable to sell within this timeline?
The most important step in this stage is to– Truly listen to their situation. Listen to understand, don’t just listen to hear: This will leads to more conversions.
3. Negotiation Stage:
>> ALWAYS ASK FOR THE SALE!
In this stage, it’s best to direct them to sit down at a table for the close. The puts both parties and the same level and brings a sense of calm – which is important factor in decision making.
“We talked about what you were hoping to accomplish in the sale of this property. Did you have a price in mind that were you hoping to sell for?” — (Wait in silence until they give a response)
NUMBER GIVEN—>If they give a number- always ask,”is that the best price that you are able to sell for?” Remind them that “you will not have to pay any real estate commissions (6%) of the sale- PLUS we are offering to pay all closing costs.”
If the seller is firm on price and not willing to sell at a deep enough discount, remember there are always other ways to make money on the deal. ie:
“If you are looking to maximize your equity position, we work with some of the best real estate agents in the area who can list your property on the MLS and sell for maximum market value.”
who is willing to work with you!
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