You’ve heard the expression before: “everything is for sale at the right price!” But is it that actually true? No, it’s not. It’s close, but not quite accurate—and the distinction is an important one for Thoughtful Real Estate Entrepreneurs to understand, if they are to get the ‘yes’ they need from their Sellers. In this episode, Jeff explains why it’s not true that “everything is for sale at the right price,” and explains the more accurate statement: “everything is for sale when you can give the Seller something they’d prefer to have more.”
Stop me if you’ve heard this one before. Everything’s for sale at the right price. Maybe you’ve had a seller say that to you. Maybe you’ve just heard other investors talk about that. Maybe you’ve heard that expression in a totally different context. But I want to ask you to is that statement true? Everything for sale at the right price? Well, I mean, I’m the guy who tells you that you can buy properties that aren’t listed for sale. So is that true? Well, in today’s episode, we’re going to break this down because I think there’s some really important distinctions. In this statement that we need to wrap our heads around if we want to develop the skills to get as many yeses from our sellers as we want to. So let’s jump into that in just a second. But first, the theme song. Welcome to racking up rentals, a show about how regular people, those of us without huge war chests of capital or insider connections, can build lasting wealth acquiring a portfolio of buy and hold real estate. But we don’t just go mainstream looking at what’s on the market and asking banks for loans, nor are we posting WE BUY HOUSES signs, we’re just looking for quote, motivated sellers to make lowball offers to. You see, we are people oriented dealmakers, we sit down directly with sellers to work out Win Win deals without agents or any other obstacles, and buy properties nobody else even knows are for sale. I’m Jeff from the thoughtful real estate entrepreneur. If you’re the kind of real estate investor who wants long term wealth, not get rich quick gimmicks or pictures of yourself holding fat checks on social media, this show is for you. Join me and quietly become the wealthiest person on your block. Now let’s go rack up a rental portfolio. Hey, hey, thanks for joining me for another episode of racking up rentals. This is episode number 152. Which means that you could find show notes for this at thoughtful rt e.com/e, one five to please do us a big favor by hitting that subscribe button and your podcast app. And that really helps. Obviously, you make sure that you don’t miss any upcoming shows. But it does send a message back to the podcast platforms and says, hey, guess what real estate investors are listening to this thing you should tell everybody else about it too. And that’s what we want the platforms to do. So thank you very much for doing that. And onward with today’s episode. So in this episode, I want to talk with you about this concept of of whether everything is for sale at the right price. And just as a little bit of a teaser. Our next episode is when to sort of pair with this one, I wouldn’t call it a part one part two kind of situation. But it’s more like a pairing, you know, like a great wine and just the right food. Two topics that go together. So this idea of you know, everything’s for sale at the right price. It’s very common. I’m sure you’ve heard that before. Right in the intro. I asked you if you had I bet you have. It’s kind of a common idea. It’s kind of a common expression. But is it really true? And I’m gonna just tell you, let me just give you the punchline right now. No, it’s actually not true. Now it’s close. It’s close. But it’s not quite true. And in the distinction between it being close and being not quite right, it lies some very important little nuances that we need to discuss and understand. So here, let me give you the more accurate way of putting this. It’s not that everything is for sale at the right price. Rather, it is that everything is for sale, when you can give the seller something they would prefer to have more. Okay, let me say that, again. Everything is for sale when you can give the seller something that they would rather and prefer to have more. So let’s just take a moment and break this kind of the statement down in this idea down. And I want to talk with you about the idea of trading, trading, trading trading. Now, if you have seen before, a PDF guide, kind of a mini ebook that I wrote called, How to use the other four currencies. What it talks about is the five different currencies that exist in the world. And those currencies are financial currency, time, energy, expertise, and relationship. And really all we ever do. All of us all the time every day, are basically just trading one currency that we have for something else that we want, right? If you were on your way to work right now, you are simply trading a combination of your time, your energy and your expertise for financial currency. And then later you’ll take that financial currency and you’ll go down to the grocery store, and you’ll trade $5 of financial currency for you know, the sandwich that you want to have for lunch or whatever it is. All we do all the time, is just trade what we have for what we want. So let’s talk about that concept of trade as it relates to this topic today of of is everything for sale at the right price. Trade is an important way to think about this because the seller has something right Right now they have something could be the property, the something could be a certain amount of equity, this something could be a certain amount of cash flow each month, it could be a just a situation, right, they might have $100,000 of equity and a pain in the butt tenant, they might have $4,000 a month of cash flow, and no problems at all. They might have a free and clear property with $700,000 of equity, but no cash flow at all. Because it’s vacant right now. It doesn’t matter what exactly we’re talking about. This, the seller has something right now it’s a situation it’s a thing. It’s a state of being. And there’s always a possibility that they might prefer something else that they would like to trade for. So does your seller right now, whoever you’re talking to have something that they would like to trade for? Probably so and I would argue that they wouldn’t have returned your you know, it would have called you back from your letter or however, you might have met this particular seller letters, the way that we do it in most cases, they wouldn’t have called you back unless it was at least conceivable in their mind that there might be a better situation for them something they would prefer to have more than their current situation status or belongings or whatever. They wouldn’t have called you back if they didn’t think there was at least a modicum of possibility that there’s that they could get their hands on something that they would like more than the thing they have. So what is that, that they would want more than what they have now? Well, the answer is we don’t know. We don’t know. And the art of seller relations. That’s a big topic on this podcast, right? The art of seller relations is really all about figuring that out. It’s all about finding out what their current situation is. And secondarily what situation they might prefer to have. And doing so in a very relational manner. without it feeling like an interrogation. without it feeling like you’ve just got a worksheet clipboard in front of you that you have to check off all the boxes, the art of solar relations, about having that conversation in a very natural normal way where you can glean those insights, you can gather information, and you can glean the insights from that seller about exactly what their current situation is, and what they might prefer to have, instead of their current situation. Now, you may have heard me talk about this, or write about it recently. But every person is usually doing one of two things as they look to make a change, they’re moving towards something that they want more, where they’re moving away from something that they want less and either is totally fine, right. But in our business, we tend to think about sellers, as people who are moving away from something right. Oh, I like frustrated landlords or going after, you know, properties that have code violations and tax lien problems. Because those people have a problem. They’re trying to get away from the problem. And in parentheses, and I can exploit that for my own benefit. But the other side of this is that people can be moving towards something right, you can have the the seller who’s got $10,000 A month of cash flow off this property. But still, they would rather live in a different part of the country because their family’s closer there and the weather’s better. So them selling this property that has $10,000 a month of cash flow, isn’t them escaping something so much as it is the moving towards something that they might want. Even more, right. So our seller relations goes back to these two questions, understanding exactly what they have now, which is usually a more straightforward thing to understand, because people are more forthcoming about that, because it seems like a natural thing for them to say, Well, yeah, I mean, obviously, if you want to buy this property, I should tell you what the rents are. And, you know, last time the roof was redone, and all that kind of stuff. But the real art comes in asking questions and navigating a conversation where you get to learn what they might prefer to have, instead of their current situation. So I told you at the beginning here, that it’s not that everything is for sale at the right price, but rather, everything is for sale, when you can give the seller something that they would prefer to have more. So why is this distinction so important? I mean, why would I take the time to create a podcast episode specifically about this? Maybe you’re thinking yourself out kind of sounds like Jeff is splitting hairs here. Is it really that different? Well, here’s my answer. I think it’s it’s important to discuss simply because we in this industry, tend to be so so so focused on price, and the thing is, it is never about price. It is never about price. It’s never about money. It’s about the things that price or money represent to them to a seller who is insistent upon getting a certain price. It’s not about money, it could be about, for instance, there was a comp down the street owned by somebody that they don’t like. And that property just sold for 345. So by golly, we are not taking a dime less than 345. Because we can’t be bettered by those people. Right? Those people are not going to get a better sale price than we are. That’s an ego issue. That is a relationship issue. That is an issue of mentality, not about price is what price represents. Or if somebody says I want to get the highest price, because I obviously want the most cash, well, nobody wants cash, cashes paper with green ink on it. Big deal. Nobody wants cash. People want what the cash will do for them. They want the feeling of logging into online banking and see the balance, say $600,000, they want to buy a yacht that they’re going to spend nine months of the year on, they want to pay off this other debt. And they have the feeling of peace of mind. Nobody wants green ink and paper, right? They want what the green ink in the paper is going to give them. So we focus a lot in this industry on price. And it’s almost never about price. And even if it were about price, there’s always so many other factors that go into a deal structure, right? If I offered somebody $400,000 for their property, and they say I want 450 I’ll tell you what, there are definitely other elements to our deal that I can adjust that will make it completely worthwhile for me to quote overpay, at 450 for this property, especially if it’s a seller financing deal, there’s a million other things that I can adjust, that could make and totally justify paying $50,000 more and make it completely worthwhile. So not to digress too much on my soapbox of those topics. But we focus too much on price. And we would be better served to instead focus much more understanding what the seller would consider to be a better situation for themselves. What would the seller prefer to have? What would the seller trade for? And if we ask ourselves the question, what would the seller trade for and the only answer we come up with is a higher price or more cash, we are missing the boat completely. And we are not going to have the insights we need to be able to craft a proposal that’s really going to resonate with that person. This my friends, this is the art of seller relations. This is exactly the primary emphasis of what we do in the deals workshop where we teach people the process of marketing for negotiating and buying an off market property with seller financing. It is really a course. It’s really a workshop. It is really an undertaking, a movement of seller relations more than anything else. So I want you to take this message away, as you sign off from today’s episode and in advance of the next episode, which as I mentioned, is going to pair nicely with this one. It’s not true that everything is for sale at the right price. Instead, everything is for sale, when you can give the seller something that they would prefer to have. And in order to do that, you need to be able to have the skills it takes to figure out and uncover glean the insights about what they would consider to be a better situation than the one they currently have. And that is it for today’s episode of racking up rental. So show notes for this one can be found at thoughtful art e.com/e 152 Please do us a big favor by hitting the subscribe button in your podcast app and rating and reviewing the show. Did you know that we have a Facebook group for thoughtful real estate entrepreneurs to well, if you didn’t know that you need to be in there. It’s called rental portfolio wealth builders. We’d love to have you join us and hang out over there. You can just go to Facebook obviously and look up rental portfolio wealth builders or here’s the shortcut. Just type the words group dot thoughtful rt.com into your browser and it will redirect you right to that page. If you liked this episode, please take a screenshot of it and post it to Instagram. On your phone. Tag us we’re at thoughtful real estate. So I’ll see you the next episode, which as I mentioned will pair nicely with this one. Until then this is Jeff from the thoughtful real estate entrepreneur signing off. Thanks for listening to racking up rentals where we build long term wealth by being a win win deal makers. Remember solve the person to unlock the deal and solve the financing to unlock the profits.