Taiden and Jayda are two students who want to succeed at mobile home investing so that they can pay for their wedding and clear their debts.
They recently closed their first deal. It was a 1983 home, 2 bedrooms and 2 bathrooms that had just been halfway remodelled.
They tried to buy it at an auction and ended up losing the auction. But the auction winner introduced himself to them and said if they can find someone to buy the home from him for above $2500, they can keep the difference.
They did manage to find someone to buy the home for $4000 but then the seller decided to increase the price to $3000. Taiden and Jayda felt slighted, but they agreed and took the $1000 profit.
This highlights the main challenge Taiden and Jayda are facing, which is how to negotiate between buyers and sellers and how to be taken seriously. So, in this blog post you’re going to read some of the coaching advice we gave them when they discussed their difficulties with us.
Being upfront and managing the client’s expectations
While we were on the call with Taiden and Jayda we asked them what questions they have in relation to their mobile home journey. Taiden told us he was having difficulty and finding it stressful to be the middleman for two people.
He says he’s struggling to build rapport with the people he’s talking to and gain their confidence. Of course it doesn’t help that both Taiden and Jayda look very young. So what’s happening is a lot of people judge them as being inexperienced, or as people that can be taken advantage of.
So to help them we needed to find out what their process was. We needed to understand how they were building relationships with these people.
”So mainly, it depends on the type of deal. I would say with deals like this one where it’s like a rapid deal, where we just need to bring a buyer, I find it difficult to build that rapport.
Because it’s like the seller isn’t giving me enough time to be able to build that rapport. ‘Cause they’re just like, ‘I want it gone yesterday.’
And so when you’re trying to get a deal to go that fast, the buyer senses the urgency too. But then it doesn’t come off like the urgency is from the seller.. It seems like WE are the ones that want your money fast.”
That’s a very real issue mobile home investors face.
What we like to do is set the expectation, and make our goals and processes clear, starting with the seller. We let them know ‘Hey, I’m going to need X amount of time to do a few things. I might want to go look at the home myself. I might want to take 72 hours just to test it out, see what our buyers are saying.’
And then of course we also let them know that we’re going to need some time, maybe a few days just to get some walk-throughs.
So sharing your system or process with the client gets them to have a discussion with you and come to a mutual agreement as far as that expectation of time. Raise awareness about what you’re doing and be transparent.
They were confused about what metrics they need to track
Taiden and Jayda mentioned they were having some trouble figuring out how to keep metrics. Obviously, when we start off as entrepreneurs being organized is not necessarily our strongest suit. But this is easily learned along the way and there’s plenty of information and tools to help you.
We’ve put together a metric sheet that we share with our accelerator students. But basically the main things you want to track are things like your marketing output, the number of people you’re talking to, and the number of homes you’ve inspected – per week.
We advised Taiden and Jayda to keep it as simple as possible right now, even if they’re writing on a piece of paper and just tracking it. And have some sort of check-in with each other once a week to see where you’re at.
The tracking of the work you did in the week is important for you to understand where you time is going. Because your time is your wealth right now. You’re leveraging your time to find deals and make money. And sometimes you can get discouraged just because maybe your time is going to the wrong place.
So a weekly check-in between them to review the metrics and revise the plan for the next week. And line everything up with their 30 day goal, 60 day goal or quarterly goal. Then these short-term goals are what will eventually line up with their big ‘Why’, their reason for wanting to succeed in mobile home investing.
Their difficulty with winning the trust of 55+ clients
Jayda spoke up about a problem they keep running into when they’re trying to work with older buyers and sellers.
”So I’ve been going with him to look at places. And I’ve also been there when somebody has called. And I think a problem that we keep running into is trying to make deals with people who are older. Or even like selling to someone who’s older.
A lot of the time they start to like throw rapid fire questions at him. Like, ‘What about this? What about that? What about this? What about that?’ And just be really stubborn.
So how do you recommend we deal with older folks who are giving us a hard time essentially?”
It’s a great question. When we started out, we had some difficulty dealing with older clients as well. Initially we thought it was all their fault but then we concluded that we need to figure out a better way to approach them.
How are we presenting our information? Are we even talking to the right kinds of people? We learned that it’s important to identify who a motivated client is, by learning more about their story. The conversations and negotiations go a lot better when you’re dealing with a motivated seller or motivated buyer.
Taiden and Jayda confirmed that they were focusing on motivated clients. They also confirmed that they’re dressing appropriately when they visit these homes for appointments – clothes that you might wear to work, not what you’d wear to go to Walmart.
Then we asked them what their pitch was, and if they were making clients aware of the value they’re bringing to them. From Taiden and Jayda’s answer it didn’t seem like they had a good grip on that part of their pitch yet.
”I just say that I work locally with people who are interested in selling or purchasing a home. And then just ask them a little bit of questions. And most people are like, ‘Oh, okay. That’s cool.’
I also make a note to tell them before I even go there that I’m not a realtor or anything. That’s usually done on the phone. So, by the time I get there they already know what to expect. That I’m not necessarily someone who’s trying to buy it myself.”
One thing that might be missing here is specifying how they can actually help. What do you specialize in? There’s a lot of ways that you can present yourself, but nonetheless you have to show them how you’re going to bring value to them.
You can explain, ‘I don’t want to come and low ball you. My main job is to help you get what you want for your home, as long as it’s realistic and what the market will bear. And I want to take all of that work away from you. I want to partner with you and help you get this deal done.’
You can say, ’So we specialize in partnering with our clients to make sure that you get what you want for your home and not a penny less.’
Saying something like that makes it clear to them what your process is and what value you’re trying to add to their lives.
And then when you start asking maybe some follow-up questions to build that rapport, it’s easier because now they understand your purpose and what your intentions are a little bit more.
Maybe they won’t trust you all the way, but nonetheless, they are at least a little bit more open to sharing some details with you.
So Taiden and Jayda need to make sure they have those few points scripted out in their minds. Even if they say the same thing with each and every client.
With the 55+ sellers you want to keep it minimal. As far as the questions that you’re asking them, be straight to the point. Let them talk and make sure you listen. Then repeat what you’ve understood back to them.
And with the older buyers the approach is slightly different because we’re not necessarily inquiring about their life and why they’re selling the property.
It’s more about letting them know that, ‘Hey, we have this home. We need to sell it. This is the price we have from other buyers.’
There’s a different type of relationship we have with them. It’s more about streamlining their acquisition process. Making the process of buying the home as easy as possible.
Saying things like ‘Okay, what do we need to do to get you through this process? We’d like you to walk through the property. We want you to be able to put your application in at the park and get your new home. So how can we get you to that goal the fastest?’
And you can also ask the buyers different types of questions like ‘Hey, are you looking at other homes in the park or are you looking at other homes right now in other parks? When are you looking to move by? If this home does not fit your needs we might have something else that comes up in the near future. Would you be interested in that?’
So doing the same type of thing that you’re doing with your seller, doing that discovery portion with them. You’ve got to have your unique selling proposition for the buyer, just like you would with the seller.
But remember you don’t have to spend too much time chasing buyers, trying to discover their perfect home then going out and finding it. Because buyers are flaky. That’s just the way it is. We chase sellers instead.
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