Jorge is one of our rockstar students in our accelerator program who just closed his first deal in 2 weeks, and deal number 2 is on the way. He joined our beta program in the beginning, which is more do-it-yourself, but he was struggling to get that first deal. That’s why he upgraded to the accelerator program.
With the accelerator program he was able to have his doubts and questions addressed directly by us and by other accelerator program students. For example, he was hitting this roadblock where he was trying to apply everything he learned but just wasn’t getting the leads. The accelerator program helped him figure his way out of that.
When we got on this call with Jorge he had just closed his first deal and we were getting his feedback on how his journey has been so far. We even coached him a little bit on the next deal he has in the pipeline. So in this blog you’re going to get a breakdown of that first deal, plus a sneak peek on the type of guidance we give in our coaching sessions.
Getting the guidance he needed from our
Speaking to Jorge on the call we could see the confidence change, it was like we were talking to a whole different type of investor. He’s been getting out there, serving first and all of those great things that we talk about. And so we asked him to tell us more about that first deal.
“I remember every single phone call from this seller. Her mother passed away and they couldn’t afford the Lot Rent because they have their own house.
And she was like, ‘George, can you please help me out? I saw your ad. And I have this situation, my mother passed away and can you help me?’
I was like,’Yeah, sure. Could you describe your home? What year? How many bedrooms? how many baths?’ So she said it’s a double wide, 2 bed, 2 bath from 1969.
When she said 1969, I was thinking it was more of a beat up home and I told her, ‘Can I go see it?’ She was cool with that.
So I went. It was around the corner, so it wasn’t that bad for me. I saw the home and I was surprised that it was in really great condition. The only things that I saw was the furnace wasn’t working and the AC wasn’t working. Other than that, it was nice, because it was just the older lady, her mother, who lived in it.
Then I spoke to her and in a few days I took her with me to go to Riverside for HCV. We did the paperwork and I paid her the money.
But before all of that I already did the test ads. So I already had a list of like 30 interested buyers that I had to shorten down because they would all keep calling me.
So, I went through all of them. Then a few said they’re willing to pay cash. And I offered it for $18,000.”
So by the time Jorge had got the title in his hands from the seller he had already vetted some buyers who were willing to accept his price. The final buyer paid him $18,000 in cash and they completed all the paperwork in 2 days. He made a profit of $6000 on that deal.
What we like about Jorge right now is that he’s already hitting us up in the accelerator group about the next deal he’s working on. He’s already thinking about his next 90 day goal.
There’s a reason why we encourage setting yourself a 30 day, 60 day or a 90 day goal. It’s because the only way you can take serious action is when you’re serious about a deadline. If you give yourself too much time, like 180 days, there’s a chance that you’ll fall off and not take your goals too seriously.
Coaching advice for Jorge that you can also learn from
Jorge is on to the next deal which is a 4 bed, 2 bath, huge mobile home. So we were giving him some advice on how to move forward from here.
One thing we told him about dealing with the seller was, ‘Just like you’re having a conversation with us. You need to take that same energy and focus that to her. And just let her know how you’re bringing her value.’
We added that the slowest part of the sale process is getting the buyer approved by the park because you can’t close the deal until the buyer is approved to live there. And that’s the part where some deals fall through. So he needed to be aware of that.
Pricing is something we guided him on as well. Jorge needs to price the rent at the right point where people are jumping at the opportunity and willing to put in an application tomorrow like ‘It doesn’t matter. I just want to get into this home.’
The seller needs $20,000 and she needs to sell it before her next Lot Rent payment is due. And it seemed like she’s looking for some peace of mind. The home itself isn’t in the most ideal place, it’s not near a metro area.
It looks like she needs all the help she can get. So Jorge needs to go to her and act like an ally versus going in there with an investor cap on. That way he wins her over on his team and gets a really great testimonial from her for the future.
That’s another thing. We advised Jorge to also start collecting those testimonials. The more testimonials he can get the better because that’s going to help him build trust with other people. Especially when you put that online. Those help a ton. People will trust you just by hearing it from somebody else.
After speaking to him in more detail about this particular deal we highlighted 4 key steps Jorge needs to take before making the sale.
One is to get the seller back on the phone and build more rapport. Two is to sell her on a non-exclusive listing agreement. Three is to get some comp data on what homes sell for in the park – fixed up condition versus average condition. And four is to test, and test, and run more test ads to find those buyers.
And lastly, like we tell everybody, we reminded Jorge to just lead with serving and this will be deal number 2 in the bag. Leading with serving. Seeing where they are at. Seeing how you can help them.
Just because you don’t get a home for the low offer that you gave doesn’t mean you can’t help the seller and still win. Everybody can win. It just might not be the right first option for them. So try and bring it back together and save the deal because that’s what will put a smile on everybody’s face at the end of the day. That’s what we try to do.
It’s not always about looking for those under $5,000 deals. It’s about looking for ways you can serve and being in the service mindset like ‘Who can I serve? You need help? Or you need help?’ That’s what you should be asking yourself. Because when you do that, the clients can feel it in the way you approach and speak to them. They feel you’ve got your servant cap on versus the investor cap.
At that point Jorge said something interesting.
“That makes sense. And sometimes I feel bad, obviously. ‘Cause I know they need help and to lower their price down? I feel bad.
I feel like I have to… I don’t really care about the money, it’s helping them and I’ll get something out of it. That’s it. I’m not really looking for big gains.
I mean yes I am, but not all the time. It’s just more serving.”
This is a great attitude to have. But we explained to him why he shouldn’t feel bad about giving them a lower offer because at the end of the day, this is a business. This is the price you need in order to do what you need to do.
Sometimes taking the lower offer might make more sense once the seller thinks about it for a minute. What you want to do is instead of just throwing out the number, try to educate your seller on why this is your number.
You tend to feel bad in your conscience when you throw a lower offer because you’re not being transparent with the seller on your ‘Why’. Help both the buyer and seller understand what’s in it for you, be as transparent as possible, and you won’t really feel bad.
It’s just good honest business. It builds trust. And people will like dealing with you.
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