If you're serious about real estate investing, one of the most important skills you need to master is the ability to set and conduct effective appointments. Whether you're meeting with potential sellers or buyers, a face-to-face meeting can make all the difference in securing a great deal. In this blog post, we'll walk you through the process of setting appointments, what to look for during your visit, and how to build trust and rapport with the other party. So grab a notebook and get ready to learn!
The Importance of In-Person Meetings
In the world of real estate investing, there's no substitute for seeing a property with your own eyes. As Ryan Haywood, co-host of the Deal Machine REI Podcast, explains, "there are so many things that you're not going to see unless you're there." This is why he strongly advises against relying solely on phone calls or remote viewings to evaluate a property. By physically visiting the property, you can get a true sense of its condition, identify any major issues, and build a relationship with the seller.
When you meet someone in person and see their face, the guard comes down, and you can establish a deeper connection. This is invaluable when it comes to negotiating prices and terms because people are more likely to trust and work with someone they have a personal connection with. As David Leko, co-host of the podcast, points out, "transparency and authenticity are crucial in building trust."
Setting Up the Appointment
The first step in setting an appointment is usually a phone call with the potential seller or buyer. During this call, it's important to gather as much information as possible about the property and their motivation for selling or buying. Ask questions about the condition of the house, their plans for it, and why they want to sell or buy now. Understanding their needs and goals will help you tailor your approach during the appointment.
Once you have the basic details, it's time to schedule the appointment. Make sure to confirm the date, time, and location with the seller or buyer. Ryan Haywood recommends asking for the address upfront to have an idea of the property's location and condition before the meeting. This allows you to do some research and come prepared with relevant information.
What to Do and Look for During the Appointment
When you arrive at the property, your primary goals should be to build rapport with the other party and evaluate the property's condition. Remember, you're not just there to make an offer or negotiate a price. You're there to understand the seller or buyer's situation and find a way to meet their needs while also achieving your own investment goals.
Here are some key things to do and look for during the appointment:
- Take Pictures: As Ryan Haywood suggests, take pictures of each room and any areas of concern. Good quality pictures are not only useful for your own evaluation but also for marketing the property to potential buyers if you're wholesaling it.
- Evaluate Major Structural Issues: Pay attention to any major structural issues such as a crumbling foundation or significant water damage. These issues can greatly impact the property's value and the cost of repairs.
- Assess Big Ticket Items: Check the condition of essential systems like the HVAC, electrical, plumbing, and water heater. These are important factors that can influence the property's value and your repair costs.
- Ask Questions: Engage the seller or buyer in conversation and ask questions about the property's history, any improvements made, and the reasons for selling or buying. This information can help you understand their motivation and negotiate more effectively.
- Listen Carefully: Be a good listener and show empathy towards the other party. Sometimes, real estate transactions are driven by personal distress or life events. Take the time to hear their story and understand their needs. As David Leko mentions, "sometimes, people just need someone to talk to."
- Look for Red Flags: Keep an eye out for any signs of hidden issues or deceptive information. Trust your instincts if something doesn't seem right or if the property's condition doesn't match what you were told. It's crucial to be cautious and thorough in your evaluation.
Remember, every appointment is an opportunity to learn and gain experience. The more appointments you go on, the more comfortable and confident you'll become in assessing properties and negotiating deals.
Making an Offer
When it comes to making an offer, there are different approaches. Some investors prefer to calculate the offer on the spot, while others prefer to go back and analyze the deal before presenting an offer. Whether you choose to make a verbal offer during the appointment or submit one later, make sure you're prepared to explain your reasoning and the factors that influenced your offer price.
Ryan Haywood prefers making an offer in person, as it allows him to gauge the seller's reaction and address any concerns or objections immediately. He usually keeps a blank purchase agreement form with him, ready to fill in the necessary details if the seller accepts the offer.
David Leko, on the other hand, likes to go back, analyze the deal, and present the offer through a digital platform like DocuSign. This gives him time to carefully consider the numbers and ensure he's making an informed and reasonable offer.
Ultimately, the method you choose will depend on your personal preference and the dynamics of the specific situation. The key is to be prepared and ready to negotiate, keeping in mind the seller or buyer's needs and your investment objectives.
Conclusion
Setting and conducting real estate appointments is a crucial skill for any investor. By going the extra mile and meeting with potential sellers or buyers in person, you can build trust, gather accurate information, and negotiate more effectively. Use this guide as a starting point to hone your appointment-setting skills and enhance your real estate investing journey. Remember, practice makes perfect, so don't hesitate to go out and schedule those appointments. Good luck!
