Absolutely right! These objections are commonly coming from the seller's side. Brilliant tips on how to skirt your way into this and successfully close a deal, gents!
I didn't include due on sale because I've already discussed this a lot in my channel. Here's a video where I broke down how to overcome it. ruclips.net/video/StqBkQZ-BJI/видео.html
The reason why that doesn’t happen to Pace is because he utilizes an intricate framework when talking to people which is amazing. He does it subconsciously because he likes doing it. I digress, going back to why you will probably never hear an agent straight up saying “no” to Pace, and or his team is because of their methodology. First when you they call the agent or seller, he formulates a brief introduction of himself. “Hello, my name is Pace, is Paul there?” Second, briefly describe who you are: “Hey Paul, again, my name is Pace, and I’m a local investor, looking to expand my portfolio. I’m calling about your property at 123 Main Street in Anywhere, is it still available?” The third step is where people mess up the most… {After the seller/agent say it’s still available go to the third frame below}: The third frame sets you up to ask questions: “Great! So what can you tell me about it?” NOTE: Motivation: Why are they selling anyway? Timeline: “If we are to agree upon a price today, how quickly would you/they want to sell? Property Condition: “Would the home pass FHA?” Price point: “Ok, in a perfect world, what would the seller want to walk away with?” NOTE: During asking the above questions listen attentively to their 1) Motivation 2) Timeline preferred 3) Condition, and 4h Price. You may get most of these answered by asking simply “what can you tell me about it?” Still on step three, make sure you give them time to answer your questions on each of the four topics above. Don’t ask two questions that one time. Use active listening such as “ohh boy!” “Ooooo wow”, ughhhhh”, pssst” mmmmhmmm I see I see”. Really empathize on what they are telling you. If they get off-topic with any of their answers, wait until they finish their entire thought. After talking about a trip, they took with their wife last week, let them finish the last sentence of that subject. Answer back quickly with an acknowledgment such as “omg that sounds amazing “ or “ohhhh wow that must of been rough?” Then transition back to the subject, “Im sorry Paul, I forgot to write down the notes on the condition of the roof?“ You may already have that information right in front of you, but just say this to get them back to the subject at hand. Four: Explain how you can help them by inflating their pain (little equity, preforclosure etc ) and deflating their action threshold.) “Ok Paul, if I were to give you your (requested dollar amount), and cover closing costs, would you sell me your property on terms?” Fifth Then for each objection, pile on their pain, spread out the benefits you can bring, leverage a higher authority, and deflate their action threshold” For example: Objection # 1 I’m not too sure they would want to do that, they would be paranoid you wouldn’t pay.” Response Loop # 1 I can definitely see why your client maybe weary about this method of selling their home. Do they really want to sell or are just shopping the market? (whatever question you ask in this transition, make sure it is a “yes“ question)? Seller: Umm yes of course they want to sell. You: Perfect, I’ve done over {leverage a sponsorship} transactions using creative finance and have a great reputation. My offer will allow the seller to move out quickly and avoid closing costs they would have paid if listing the property. As far as my team is concerned, they have decades of experience which allows a hands off experience after the contract are executed. It’s a matter of your signature and date, and we’ll take it from there. Sound fair enough? Seller Objection: yes, it sounds like a great idea, but I really need the money. You: “I see they may be hesitant on doing something that they haven’t done before.. “So they are looking for cash in their hands at closing?” Agent: Yes You “Great, not only we can close in the next 15 business days, we can also pay your client a down payment.” Objection 3 Agent: honestly honestly, this sounds awesome, specially how quickly you can close and how hands off everything is for everyone. But they still are weary if you are default on your payment.” You: “ I see why your client would show hesitation” You: “Paul, we structure deals in a way that eliminates most of the risks on the seller side. we structure these deals in a way where if we were to have a default, the seller can have the deed transferred back into their name. That way they’ll be able to keep all the upfront payments and everything received prior to the default. The only person that will be losing in that situation is me. Now if you give us this one shot, believe me the only regret your client may have, is that you didn’t call me three months ago, sound, fair enough? We go through our negotiations steamroll ahead because we have the false notion that it’s quantity over quantity. That may be true, and some instances, but if you know the deal works, you just need to twerk it a little bit to get the seller on board, this framework is necessary. all the rapport, and “getting to know” will be done by your active, listening, agreeability during the sellers issues, and showing empathy for their situation with a simple “ughhh ooooo “ without sounding fake. If you have to put yourself into their shoes, do it. By that time, and by the way, you ask your questions, you want embed in this agent or sellers head that you are sharp as attack, a force to be wrecking with, enthusiastic, and more importantly, an expert in your field, even if you have to leverage somebody else. If the seller likes what they’re hearing, and then starts, asking you to “give them an offer,” tell them that they need to figure out what to do, tell them that if I were to walk into Wells Fargo, if I were to choose my terms, it would be zero down the line. That may even get a laugh out of them. If they need time by their self, give them a night, say something along the lines of “ it looks like we will not be making a decision on this phone call today, what time tomorrow can we connect?“ You: “ great in the meantime I’ll send you my credibility packet for your review.” There it is! You will notice that he transitions into these different steps very quickly and efficiently. Again, only one question could be sufficient by simply asking “what can you tell me about the property” use the sellers motivations, if any, or annoyances, against them, and how working with you will eliminate those annoyancesor issues
Excellent video highlighting valuable key points that happens to be a part of my everyday sales career. Shifting this over to the subto world is exciting! Where there's sales opportunities, there's objections. Gotta peel that onion and funnel down to the true objection! 😉 Thank you Pace and Daniel!
Great value! The number 1 objection I got when doing creative financing or when going off market is, I don't understand what seller financing or subject to is which leads to an automatic no. If you can master story telling, it will help you overcome those objections. How I was able to scale from 0 to 90 units in under 5 years.
Excellent information.lots of great nuggets. I feel better approaching this new venture into buying seller finance property on Monday April 8th, 2024. Meeting with realtor who is long time friend of seller. DOM.426. seller asking too much. Small house 3/2, 1326 sf. I'm in a 3/2 2190 sf. (Haha) NO! Don't want to sell. I'm offering full price with Zero down. Paying realtor compensation on both sides. Will comment after meeting. 👉💥👈 BOOM!!
If the loan servicer is putting the money into their bank account, how can you , the new owner , be assured that THEY are actually making the payment? Doing a video binge of your stuff!
Biggest Objection for me is the seller thinks it’s too risky to have the mortgage in their name, I mention the performance clause and they then say well we don’t want to be stuck with it if for some reason you don’t make payments
Being new pace being new. And credibility we have our first deal manufactured home with land in Florida. It would be a honor to have your team on this please get back with us. Just want it closed to assist and help the homeowners
Hey Max! You can get my wholesale contract for only $1. paceapproves.com/wholesalecontract If you have a deal and need access to my subto contracts, reach out to my students on the free Facebook group and work with them! paceapproves.com/communityytc
@ peace Morby can you please make a video about how to make money as a kid because I am a 10-year-old and it would literally help me get a job for my life while I’m a little kid
Hey Jaxon! I did a video with my son, Asher a while back about how to start a successful rental business. Check it out! ruclips.net/video/FjWubJyjPJ0/видео.html
Love this question! Why don't you drop this in the free Facebook group and I'll get around to answering it. If not, my students can chime in! paceapproves.com/communityytc
How do you overcome the seller objection of someone who doesn't want to do subject to and/or seller financing, because they are up in their age and just want it all "off their hands"?
Marina. Great question. I have lots of videos about this on my channel, here's a seller call you should check out! ruclips.net/video/pgYGE9jmNPA/видео.html Also, see 5 unreleased seller calls here. www.pacejmorby.com/sellercalls
Thanks Pace! I joined the group about a month ago. I haven’t been lucky so far, but I will continue looking for it. Thanks for doing what you do the the community!!
@JagWalia I'm a listing agent in Dallas/Fort Worth and gets many free leads from my brokerage. I'm also an investor who understands this concept. Are you still looking?
Haha. They never really answered the 2nd question. "How do I know the payment is being made?" They said the servicing company is making the payments but if the servicing company stops making payments, how does the seller know the payments have stopped being paid? 🤔
Human beings love to buy but hate to be sold ! Great stuff Daniel and Pace
Thanks Sam!
Absolutely right! These objections are commonly coming from the seller's side. Brilliant tips on how to skirt your way into this and successfully close a deal, gents!
Thanks!!
Biggest Objection: Due on Sale clause. Thanks!!!!!
I didn't include due on sale because I've already discussed this a lot in my channel. Here's a video where I broke down how to overcome it. ruclips.net/video/StqBkQZ-BJI/видео.html
I think it would be amazing to just see a full on fresh cold call of an agent/seller just saying complete no, and seeing how you guys handle it
Hey Nour! I love that for a future video. Thanks!
I get a lot of times “I’m to old to do owner financing”, “I won’t be able to get another loan”.
Do it
The reason why that doesn’t happen to Pace is because he utilizes an intricate framework when talking to people which is amazing. He does it subconsciously because he likes doing it.
I digress, going back to why you will probably never hear an agent straight up saying “no” to Pace, and or his team is because of their methodology.
First when you they call the agent or seller, he formulates a brief introduction of himself.
“Hello, my name is Pace, is Paul there?”
Second, briefly describe who you are:
“Hey Paul, again, my name is Pace, and I’m a local investor, looking to expand my portfolio. I’m calling about your property at 123 Main Street in Anywhere, is it still available?”
The third step is where people mess up the most… {After the seller/agent say it’s still available go to the third frame below}:
The third frame sets you up to ask questions:
“Great! So what can you tell me about it?”
NOTE:
Motivation: Why are they selling anyway?
Timeline: “If we are to agree upon a price today, how quickly would you/they want to sell?
Property Condition: “Would the home pass FHA?”
Price point: “Ok, in a perfect world, what would the seller want to walk away with?”
NOTE: During asking the above questions listen attentively to their 1) Motivation 2) Timeline preferred 3) Condition, and 4h Price. You may get most of these answered by asking simply “what can you tell me about it?”
Still on step three, make sure you give them time to answer your questions on each of the four topics above. Don’t ask two questions that one time. Use active listening such as “ohh boy!” “Ooooo wow”, ughhhhh”, pssst” mmmmhmmm I see I see”. Really empathize on what they are telling you.
If they get off-topic with any of their answers, wait until they finish their entire thought. After talking about a trip, they took with their wife last week, let them finish the last sentence of that subject. Answer back quickly with an acknowledgment such as “omg that sounds amazing “ or “ohhhh wow that must of been rough?” Then transition back to the subject, “Im sorry Paul, I forgot to write down the notes on the condition of the roof?“ You may already have that information right in front of you, but just say this to get them back to the subject at hand.
Four:
Explain how you can help them by inflating their pain (little equity, preforclosure etc ) and deflating their action threshold.)
“Ok Paul, if I were to give you your (requested dollar amount), and cover closing costs, would you sell me your property on terms?”
Fifth
Then for each objection, pile on their pain, spread out the benefits you can bring, leverage a higher authority, and deflate their action threshold”
For example:
Objection # 1
I’m not too sure they would want to do that, they would be paranoid you wouldn’t pay.”
Response Loop # 1
I can definitely see why your client maybe weary about this method of selling their home.
Do they really want to sell or are just shopping the market? (whatever question you ask in this transition, make sure it is a “yes“ question)?
Seller: Umm yes of course they want to sell.
You: Perfect, I’ve done over {leverage a sponsorship} transactions using creative finance and have a great reputation. My offer will allow the seller to move out quickly and avoid closing costs they would have paid if listing the property. As far as my team is concerned, they have decades of experience which allows a hands off experience after the contract are executed. It’s a matter of your signature and date, and we’ll take it from there. Sound fair enough?
Seller Objection: yes, it sounds like a great idea, but I really need the money.
You: “I see they may be hesitant on doing something that they haven’t done before..
“So they are looking for cash in their hands at closing?”
Agent: Yes
You “Great, not only we can close in the next 15 business days, we can also pay your client a down payment.”
Objection 3
Agent: honestly honestly, this sounds awesome, specially how quickly you can close and how hands off everything is for everyone. But they still are weary if you are default on your payment.”
You: “ I see why your client would show hesitation”
You: “Paul, we structure deals in a way that eliminates most of the risks on the seller side. we structure these deals in a way where if we were to have a default, the seller can have the deed transferred back into their name. That way they’ll be able to keep all the upfront payments and everything received prior to the default. The only person that will be losing in that situation is me. Now if you give us this one shot, believe me the only regret your client may have, is that you didn’t call me three months ago, sound, fair enough?
We go through our negotiations steamroll ahead because we have the false notion that it’s quantity over quantity. That may be true, and some instances, but if you know the deal works, you just need to twerk it a little bit to get the seller on board, this framework is necessary. all the rapport, and “getting to know” will be done by your active, listening, agreeability during the sellers issues, and showing empathy for their situation with a simple “ughhh ooooo “ without sounding fake. If you have to put yourself into their shoes, do it. By that time, and by the way, you ask your questions, you want embed in this agent or sellers head that you are sharp as attack, a force to be wrecking with, enthusiastic, and more importantly, an expert in your field, even if you have to leverage somebody else.
If the seller likes what they’re hearing, and then starts, asking you to “give them an offer,” tell them that they need to figure out what to do, tell them that if I were to walk into Wells Fargo, if I were to choose my terms, it would be zero down the line. That may even get a laugh out of them.
If they need time by their self, give them a night, say something along the lines of “ it looks like we will not be making a decision on this phone call today, what time tomorrow can we connect?“
You: “ great in the meantime I’ll send you my credibility packet for your review.”
There it is! You will notice that he transitions into these different steps very quickly and efficiently. Again, only one question could be sufficient by simply asking “what can you tell me about the property” use the sellers motivations, if any, or annoyances, against them, and how working with you will eliminate those annoyancesor issues
Excellent video highlighting valuable key points that happens to be a part of my everyday sales career. Shifting this over to the subto world is exciting! Where there's sales opportunities, there's objections. Gotta peel that onion and funnel down to the true objection! 😉 Thank you Pace and Daniel!
Thank you for sharing and best luck to you. Your efforts won’t go unrewarded. What markets are you working?
Hey Sophia! That's pretty exciting! Would love to hear your stories about subto!
Enjoyed seeing you in fresno pace. Thanks for the content both of you. I have had agents that don't take 90 to 100% seller financing offers seriously.
It was great seeing y'all! Thank you.
1. Not wanting to seller finance
2. Wants too big of a down payment
3. Not trusting me to make payments or trusting me to run the business or rental
Afraid of triggering the due on sale clause.
Qualifying for loan in the future! Especially VA loans and entitlement questions.
Of course! Great addition to the list, Cody.
Great value! The number 1 objection I got when doing creative financing or when going off market is, I don't understand what seller financing or subject to is which leads to an automatic no. If you can master story telling, it will help you overcome those objections. How I was able to scale from 0 to 90 units in under 5 years.
Love this! Thanks for sharing, Steven!
Excellent information.lots of great nuggets. I feel better approaching this new venture into buying seller finance property on Monday April 8th, 2024. Meeting with realtor who is long time friend of seller. DOM.426. seller asking too much. Small house 3/2, 1326 sf. I'm in a 3/2 2190 sf. (Haha) NO! Don't want to sell. I'm offering full price with Zero down. Paying realtor compensation on both sides. Will comment after meeting. 👉💥👈 BOOM!!
Squad up in our free Facebook group if you need any help getting your deal done bro! Congrats! paceapproves.com/freefb-ytc
Lots of great nuggets! Thank you.
Glad you found value here, Sanja!
Afraid of people. Hate realtors. Gotta get over this. New to investing. Need help!!!
What's the difference between using option contracts to shop the market and aa listing agreement for the same purpose?
I actually just sent an agent a youtube clip yesterday about subject to lol
Send this one too!
I could really with this one so much
Thank you for what you do
You are so welcome!
Need a deep dive on that option contract strategy!!!!!
How is that different from doing a listing agreement? (Except you need an RE license).
Great video. Quijano is a natural.
Jorge. He really is!!
Where's that Options Contract video??? 😢😊
The skate park illustration 🤯🤯🤯
I have a Chorkie.
Pace, lets go skate man!
What are some benefits for the seller on seller financing and subject too?
Subto when they have little or no equity or are even upside down.
These are some good nuggets.
Glad you think so Chris!
whats the video we could show the agents?
Dan the man is awesome
watching to support
Thanks Ben!
Your welcome sir 🤗
If the loan servicer is putting the money into their bank account, how can you , the new owner , be assured that THEY are actually making the payment? Doing a video binge of your stuff!
Potential objection: how do I qualify for a new loan to buy a new house if I already have my original mortgage in place? Thanks
Thanks for adding to this!
If you're selling subto, consider a wrap around mortgage.
This was right on time
Awesome!
Thank you
You're welcome brotha!
Great vid!
Thanks Joshua!
Biggest Objection for me is the seller thinks it’s too risky to have the mortgage in their name, I mention the performance clause and they then say well we don’t want to be stuck with it if for some reason you don’t make payments
Mark. Yes, those are the usual objections.
Or servicing company to receive the monthly payments.
So what are the other options? Why not just list it and find a retail buyer? Usually it's because of some other complication or motivation.
Just curious if Pace ever got back to that girl following up with him 😁. Maybe another 4 touches?
👆Now she’s got me following up for her!
Being new pace being new. And credibility we have our first deal manufactured home with land in Florida. It would be a honor to have your team on this please get back with us. Just want it closed to assist and help the homeowners
Don't have to tell you , you the truth the work says so. Salute and thanks all love from Texas
Hi there! On this video you'll see how to do deals with me and my team. Check it out! ruclips.net/video/VCBtX0Z3gls/видео.html
Busy watching your videos for Thanksgiving God bless you and the family
@@PaceMorby salute and thanks
So the servicing company will take mortgage from your account, deposit it into sellers account or pay the mortgage with it?
Pay the bank holding the mortgage
@Pace Morby where do you recommend someone new to the game to find contracts regarding these types of real estate deals?
Hey Max! You can get my wholesale contract for only $1. paceapproves.com/wholesalecontract If you have a deal and need access to my subto contracts, reach out to my students on the free Facebook group and work with them! paceapproves.com/communityytc
Objection: "I want the mortgage off of my credit report so in 12 months, I can apply for a mortgage in the new state that I'm moving to".
👍️
Suggest you do a wrap around mortgage.
@ peace Morby can you please make a video about how to make money as a kid because I am a 10-year-old and it would literally help me get a job for my life while I’m a little kid
Hey Jaxon! I did a video with my son, Asher a while back about how to start a successful rental business. Check it out! ruclips.net/video/FjWubJyjPJ0/видео.html
SELLER, OBJECTIONS
I NEED A POF. WHATS YOUR RESUME, BACKGROUND,
👍️
Who receives and reports the 1098 Mortgage Interest Statement in a Subto deal?
Love this question! Why don't you drop this in the free Facebook group and I'll get around to answering it. If not, my students can chime in! paceapproves.com/communityytc
Thanks for the alpha
How do you overcome the seller objection of someone who doesn't want to do subject to and/or seller financing, because they are up in their age and just want it all "off their hands"?
Marina. Great question. I have lots of videos about this on my channel, here's a seller call you should check out! ruclips.net/video/pgYGE9jmNPA/видео.html Also, see 5 unreleased seller calls here. www.pacejmorby.com/sellercalls
Subject to gets them out of the picture. Seller finance makes them the bank.
Stating to look for Subto deals (buy and hold in Dallas), but not sure where to look for the opportunities!! Any suggestions please.
Hey Jag! You can find subto deals in Dallas on the free Facebook group! Join now and make a post. paceapproves.com/communityytc
Thanks Pace! I joined the group about a month ago. I haven’t been lucky so far, but I will continue looking for it. Thanks for doing what you do the the community!!
@JagWalia I'm a listing agent in Dallas/Fort Worth and gets many free leads from my brokerage. I'm also an investor who understands this concept. Are you still looking?
Not trusting me enough to make payments or handle the business if they seller finance to me
can u plz let me know the bgm name? thank you so much have a nice day!
I'll have to ask my editors. They have pretty good taste in choosing what music to use!
@@PaceMorby Thank you so much Pace. I didnt expect you are going to reply on my comment. its my honor God bless you and have a wonderful day!
@성진찬송 God bless you too bro! And have a great weekend!
Haha. They never really answered the 2nd question. "How do I know the payment is being made?" They said the servicing company is making the payments but if the servicing company stops making payments, how does the seller know the payments have stopped being paid? 🤔
Lavell. Why would the servicing company stop making payments?
@Pace Morby No more money in the new owners bank account. They set up servicing and cant find tenants so they stop putting money into the account.
Too much down payment, too high interest rate
👍️
The owner wants to file BK in 2 months so he doesn't lose the house? Wtf?
👍
Seller doesn't want their equity over terms, they want at least 50% of their equity down immediately
🙌
How much equity? Why do they need the money now?
Who’s working sub-2 in Orange county California?
Juan, why don't you ask in the free Facebook group? paceapproves.com/communityytc
@@PaceMorby Thank Pace I’ll do that