The second episode of The Eviction 2022 aired on my YouTube channel recently. Contestants are playing to win £20,000 cash to kickstart their property journey! There will be an episode weekly until the end of the year. This week, the teams were tasked with packaging and selling deals. They were given just 24 hours to both find and sell the deals, but they were allowed to use existing contacts.
Being able to sell is an essential skill in the property game and deal sourcing is a perfect way to hone that skill. If you are not good at sales yet, this is a skill you will need to learn. Everything is sales: negotiating a sales price is selling; tenanting a property is selling; getting a letting agent to prioritise you is selling. In this article, I will give you 3 tips for selling deals to investors. Although these tips are about deal sourcing, they can be extrapolated to any sales situation.
1. A sale isn’t a sale until the money is in your bank account
New deal sourcers sometimes get caught up chasing a single investor. The investor may seem very interested, they may even say they are going to transfer the sourcing fee, but there is no certainty until the money hits your bank account. An investor may be a lot less enthusiastic than they seem on the phone or they might change their mind and not let the deal sourcer know.
Let the potential buyer know that the deal will stay on the market until you receive the deposit (or full fee depending on how your company works). Tell them that once the money reaches your account, you will then send them the details of the deal and give them a certain amount of time to do their due diligence. If they are unhappy with the property, they can request a refund during this period.
2. Train your investor list to act fast
As a deal sourcer, you will have a list of investors that you send deals out to. If an investor requests a call about a deal, you answer their questions, and they still need time to consider whether they want to send you a deposit it may be worth not selling them the deal. Even if they call back a few days later and the deal is still available, it is probably worth saying ‘sorry, the deal is gone’.
You want to train your list to act fast and be ready to act when you send out a deal. You will give the buyer time to assess the deal once the deposit is paid, so there is no reason for them to delay a decision.
3. Listen to your investors
Selling isn’t about convincing someone they want something. Sales is about finding out what the customer wants and giving it to them. If you ask investors what they are looking for, you can deliver it to them. Get a bespoke deal sourcing agreement with the investor. This is where the investor pays a refundable deposit and you look for properties meeting their specifications.