How to Get a Seller or Buyer to Perform (LA 1414)
How to Get a Seller or Buyer to Perform (LA 1414)
Transcript:
Steven Jack Butala:
Steve and Jill here.
Jill DeWit:
Hello.
Steven Jack Butala:
Welcome to the Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala.
Jill DeWit:
And I’m Jill DeWit, broadcasting from kind of sunny southern California.
Steven Jack Butala:
Not really, not sunny at all. You know what’s good about when it’s not sunny, though?
Jill DeWit:
Tell me.
Steven Jack Butala:
The lighting’s great.
Jill DeWit:
You know, I got this. I will make sure on recording days, this is it, because we need it just like this. This is perfect.
Steven Jack Butala:
If you’ve ever shot any video, if you have a show or ever done a YouTube, even one YouTube video, or if you shot family pictures, it’s a huge challenge to shoot into glass, and then into the outside.
Jill DeWit:
Right.
Steven Jack Butala:
And then on top of that, the ocean is reflecting the sun.
Jill DeWit:
It’s awful.
Steven Jack Butala:
Yeah, so it’s really in the morning right now, and it’s a little bit overcast. And I’m enjoying some pretty good lighting.
Jill DeWit:
Exactly.
Steven Jack Butala:
It has nothing to do with real estate.
Jill DeWit:
Correct.
Steven Jack Butala:
Before we get into it, well, today Jill and I talk about how to get a seller or buyer to perform.
Jill DeWit:
We didn’t already say that?
Steven Jack Butala:
I don’t know, maybe I did.
Jill DeWit:
I don’t know.
Steven Jack Butala:
Before we get into it, let’s take a question posted by one of our members on the landinvestors.com online community. It’s free.
Jill DeWit:
Buck wrote, “The buyer of one of my owner finance deals is asking what happens if he dies.” You know, I was thinking about this. Let me pause for just a second. You know, I was explaining to someone in one of my … I was in, I think I was in an accountability group. I was a guest on somebody else’s accountability group the other day. And I was talking about the number of deals we’ve done.
And I’ve pretty sure, you think you’ve had it all, right? You think that you’ve heard everything with the volume and the thousands of deals that we’ve completed, I feel good. But every now and then, something comes up when I’m like, “Wow, I actually have not had that one yet.”
And I actually have not had anybody say this to me. Maybe you have, but I have not had this conversation.
Steven Jack Butala:
I’ve had people die during a deal.
Jill DeWit:
Yes, I have had that.
Steven Jack Butala:
During an acquisition and a sale, but never owner finance.
Jill DeWit:
Well, and like pre planning it, like, “I’m in bad health,” or something. I don’t know.
Steven Jack Butala:
Yeah.
Jill DeWit:
So, “Does his paid interest in the land become part of his estate? And his estate can continue making payments? He wants to make sure his wife and kids don’t lose anything. Thanks for your help, Buck.”
I just think it’s how he sets it up. I don’t know what I would tell him what to do.
Steven Jack Butala:
Totally, you nailed it.
Jill DeWit:
Yeah, I would say, let’s just to make sure all the documents read, you know, buyer, as joint attendance with right to survivorship of his wife, and everything along the way. What all, I’m trying to think what other …
Steven Jack Butala:
Well, if it’s in a trust, then it’s …
Jill DeWit:
That, too.
Steven Jack Butala:
If the contract is in a trust …
Jill DeWit:
Right.
Steven Jack Butala:
Because you don’t get deeded. There’s two ways to do this.
Jill DeWit:
That’s true.
Steven Jack Butala:
I’m sure Buck’s doing it the right way, which is just a land contract where the payments get made, the payments get made, nothing gets recorded until all the payments are made, and then the entity owns it. And the key word here is entity. So if the guy, the buyer, it’s all in his name, there’s going to be estate issues.
But if Buck sells it at asset to the trust that he sets up, as long as the trust keeps making payments, they’ll own it.
Jill DeWit:
Mm-hmm (affirmative), that’s perfect.
Steven Jack Butala:
That’s a really long complicated way to answer that question. And that’s the real problem. In fact, this is a good parlay into the show. We’re all in sales. We’re all here to sell stuff.
Jill DeWit:
Right.
Steven Jack Butala:
But none of us want to be like used car salesmen.
Jill DeWit:
Correct.
Steven Jack Butala:
So, your buyer wants something, and the answer is, it’s really complicated.
Jill DeWit:
Right?
Steven Jack Butala:
And you got to do these 15 things. And by the way, none of them have to do with me. I can’t actually do them.
Jill DeWit:
That’s true.
Steven Jack Butala:
My initial, my gut is for everybody to make it easier and do it for you, so then you sign your name. And so, he can’t set up a trust for this guy.
Jill DeWit:
No, exactly. I had that the other day. You know, I actually had someone like a deal, like, “Well, did you get with an attorney?” And I’m like, “What the heck, I can’t hire a pro-rate attorney and take care of it for you,” like you just said. Like, okay, there’s some things that has to fall on you.
Steven Jack Butala:
Yeah. That’s your answer. Today’s topic, how to get a seller or a buyer to perform. This is the meat of the show. This is also Jill’s expertise.
Jill DeWit:
So, this does tie into what we’re talking about. Because there are in a perfect world, there’s you the buyer, and the seller, or vice versa. You’re one person. Everybody’s paying cash. There’s no contingencies. There’s nothing, it’s just all sweet, happy, easy deal. And people just have to show up once, sign, hand over money, whatever.
It’s not always that easy. Doesn’t always go that way. So, how do you get them to perform when there are issues or trusts or things to untangle? And escrow documents needed, or you know, all kinds of things that always seem to pop up, right?
So, there’s a few things that I know and I prepare for over the years, and I can help you so you want to get the deal done. The whole point is, you just want people to go dark, because they’re overwhelmed. You don’t want them to get confused and unhappy and angry because they’re overwhelmed.
They’re selling to us. I’m going to start with that situation. That’s usually where it goes … But it goes both ways. You know, I’ve got a seller. He’s selling to me at a great price, and I want to make it as easy as possible for him, and I want him to feel happy and good about the transaction, because that’s kind of what I promised him. “Hey, you’re selling to me at this price because it’s going to be easy and fast, and I am all cash. But there’s some things I need from you.”
So, what I would say, there’s a couple steps. Number one is, explain the process. Let your seller know, and we’ll talk about buyers here in a minute … Let your seller know exactly how it’s going to unfold.
“Okay, you give me the purchase agreement back. Now, I’m going to call and open escrow in the morning. And I’m going to give them all your contact information. They will be reaching out to you to confirm everything. And they’re going to confirm our close date. And they might need some documents, so be prepared. And if you have any questions … ” I always say this too, because I make them feel good.
Because I’ve done a lot of transactions. I know how to work with escrow agents, and I understand their lingo sometimes. I understand how their speed and the process. So I say, “If there’s any questions, don’t be embarrassed. Gosh, sometimes they talk so fast, I have a hard time keeping up. So please, call me if you have any concerns, you don’t understand anything. Let me know, and I will help you.”
And that’s huge, and they do. They do. So, explain the process. “I want you to follow through. I want you to … ” because they’re going to be given tasks, and you need to follow through and make sure they complete their tasks with the deadlines. And explain that, “There might be some documents you need.” Ask them, make sure everybody gets them done in a timely manner, “The faster you turn these in, the faster I can get you your money.”
Follow through with what you’re supposed to do, and keep on top of what they’re supposed to do. So, you have to have a good communication between you and the escrow agent, and the seller, and then check in often. I can’t say this enough.
Steven Jack Butala:
What’s that mean, check in?
Jill DeWit:
Oh my gosh, temperature check all the time. “Hey, hi.” Even if there’s nothing going on, I want you to … Especially going into weekends. This is a little trick that I’ve learned. Because over the weekends, if Thursday and Friday pass, and no one’s talked, and now they’re going to the weekend, there’s like, this fear sets in sometimes with sellers about, “Is the deal getting worked on? Is everything happening? Now I have four days, nothing.” And it’s just a weird little thing that I’ve picked up on with sellers sometimes.
So, I would often just bust out a three minute phone call on Fridays going, “Hi, just wanted to say, check in, let you know everything’s going great. I want to make sure you have a good weekend, and we’ll connect next week with … What did they say the next steps are? Oh, good. Okay, well great, we’re all on the same page. Talk to you later.”
That’s it. And then on Friday, they’re like, “Oh.” Because I’ve had sellers reach out to me on Fridays.
Steven Jack Butala:
Yeah, of course.
Jill DeWit:
I’ve been on vacation on a Friday. I remember this one time, we were in Laguna Beach. And this deal was going just fine. Everything’s great, but this seller, it was a house deal, hadn’t heard from us for a couple days or escrow. And it just meant that everybody’s with their heads down working. And she’s calling me in a little bit of a panic. And like, thinking that I was going dark as the buyer. I’m like, “Oh, gosh, no.” I’m like, “No, everything’s great. I promise. We’re all good. And I’m here.” So you know, watch for their calls, answer the phone, that kind of a thing.
So and then, it’s easier almost on the, as when the role’s reversed. So, that’s just me as the buyer. Now the roles are reversed, I’m the seller, and I got the buyer. Your goal there, and to get them to perform is just keep them excited. Let them know when it’s going to close. Oh my gosh, and one of the things I do too is, I let them … especially with rural, vacant land, it’s very easy to say, “You guys want to camp on there this weekend? I don’t care, knock yourself out. You want to go out there and drive, have a picnic on it today? Go right ahead, I’m good with all that. It’s a piece of dirt.”
And then, because when you do that, let them go out there and drive and walk on it and love it. I’m doing one right now, as a matter of fact. This guy knows more about maps and things than me.
Steven Jack Butala:
That’s what you want.
Jill DeWit:
It was awesome, yeah.
Steven Jack Butala:
I mean I tell you, if you can get somebody who’s more excited about the property than you were when you bought it, that’s fantastic.
Jill DeWit:
Yeah, it’s him and his uncle.
Steven Jack Butala:
You’re going to sell that property.
Jill DeWit:
Oh yeah, his uncle, we’ve talked three times and he’s great. You know what’s funny is, I had one seller, or one buyer that was a little confused about where the property was. And he thinks there’s a gate with a lock on it. So I’m like, “Huh.” So, I pass on that information to this guy, and he went out and confirmed, he’s like, “No, there’s no gate. Don’t worry about it.”
I’m like, “Oh, yay.” He’s really good about it. It’s like that was, “I saw it, it’s down the road, it’s not on your property. Those guys were in the wrong place.” I’m like, yes. So, but he’s really good.
So, now I’m in the driver’s seat. I’m the seller, and I have a buyer here. How to get them to perform, I mean, the process again, that’s the same steps. And just keep them excited. And you know, what questions do you have?
Steven Jack Butala:
For you?
Jill DeWit:
Yeah.
Steven Jack Butala:
What I used to do because I was in, before Jill entirely and completely took over the sales operation in the company and times 10’d it, when I had it, I would ask questions. So that was my always … I would dream up a question and call and ask. Whether on the sell side or the buy side, even if it was fictitious. Just to make sure that they’re still in the deal.
Jill DeWit:
That’s cool.
Steven Jack Butala:
Especially with … I’m more of an acquisitions person than I am sales. And there are all of us who’ve been in the business in any capacity, if you’ve done maybe 10 deals, you know that there’s, sometimes deals come back.
Jill DeWit:
Right.
Steven Jack Butala:
And they’re the greatest deal you’ve ever seen. You’re like, “This has to be wrong.” We’re doing a transaction like that right now where Jill came running into my office yesterday and said, “This person is ready to sign.”
Jill DeWit:
Yeah, yeah, yeah.
Steven Jack Butala:
“And I need the original pdf from the mail merge, because they want to re-sign.” You know, sellers have all kinds of weird stuff going on.
Jill DeWit:
They lost it.
Steven Jack Butala:
Yeah. So, and they agreed to the price. They remembered the price, but they just want a document. So she came running in my office like …
Jill DeWit:
I need that.
Steven Jack Butala:
If you’re doing a mail merge, it can be thousands and thousands of documents in one pdf’s. So offers to owners had that document. I don’t review it, my staff does. So unfortunately, I’m sure we’ll get the deal done anyway.
Jill DeWit:
I already got it.
Steven Jack Butala:
Sellers have, or buyers, they have quirky stuff that matters to them. And for whatever reason, they wanted to see it and touch it. And who cares why.
Jill DeWit:
Mm-hmm (affirmative).
Steven Jack Butala:
So you just got, I think that falls into just provide what they want, and make sure you make contact and ask them a lot of questions.
Jill DeWit:
It’s really about staying in contact with them.
Steven Jack Butala:
Mm-hmm (affirmative).
Jill DeWit:
And the more you talk to them, you know, and I don’t want to blow up their phone. Don’t call them every day, you don’t need to do that. But they need to know that you’re there if they have any questions. And it kind of leads into a little bit about what we’re going to talk about tomorrow. Building that relationship with them and having them so comfortable with you, I can’t tell you. I know that there’s deals that for other buyers or sellers, would have gone, would have just gone away if … But because I stay in contact and I’m me, and I’m real. And they can talk to me and say, “What does this mean?” And I can explain it to them really nicely.
I don’t make them feel like an idiot, because they don’t know what this term is kind of thing, they’re like, “Oh, thank you.” I know that’s what gets a deal done.
Steven Jack Butala:
We’ve all gone to school with, or done deals with, or been married to, people who are just boring as hell.
Jill DeWit:
Oh, yeah.
Steven Jack Butala:
They’re just like, I don’t want to be around this person at all, any more. So if you’re that person, you’re not going to sell or buy. If you’re not that person … And I can be that person, believe it or not, get somebody in your business that’s like Jill, where they just can’t wait to talk to her again. That’s part of it, that’s the truth of success of this.
Jill DeWit:
That’s a good one. Oh, how to get a buyer or … This is … Oh, excuse me, erase everything I just said. Here’s what you need to do. Hire someone with a voice of like, a 25 year old hot girl. That’s how you get a seller and a buyer to perform.
Steven Jack Butala:
It’s true. Which is you.
Jill DeWit:
Thank you. There you go. That’s perfect, that’s how you get it to happen. Happy you could join us today. Five days a week, you can find us right here on the Land Academy Show.
Steven Jack Butala:
Tomorrow, the episode on The Land Academy Show is called Building Relationships With Buyers And Sellers. You are not alone in your real estate ambition.
Jill DeWit:
You know what that’s funny about that, but that’s partially true. Having someone answer the phone. We talk about this a lot when the mail goes out and these sellers call you back, and maybe they’re a little upset about your crazy offer price. Having a happy, friendly voice on the other end of the phone takes the wind out of their sales so fast. And then, you just don’t let it rattle your cage. You apologize, so there’s a lot to that.
Steven Jack Butala:
If you’re somebody who other people want to be around, and want to talk to on the phone, no matter what you choose in life, it’s going to work.
Jill DeWit:
That’s good.
Steven Jack Butala:
You know, it might be buying and selling real estate. It might be land. It might be selling cars. It might be neurosurgery.
Jill DeWit:
It’s good.
Steven Jack Butala:
You’re going to get way further than anybody else. But if you are an your type person just walking around, that’s who you truly are, then you need to spend some time in the mirror and change your personality when you’re out in public. And that’s the truth. I honestly, that’s what I do. Jill’s the only person on this entire planet, and maybe our kids, sort of, who actually knows who I am.
I’m not going to … And she still likes me, and that’s her problem, not mine.
Jill DeWit:
It’s not that bad.
Steven Jack Butala:
You really need to …
Jill DeWit:
You’re not [crosstalk 00:15:17].
Steven Jack Butala:
You need to … I don’t mean that. I’m just using myself as an example for fun.
Jill DeWit:
Yeah.
Steven Jack Butala:
But you got to be, everybody wants a performance. Trust me.
Jill DeWit:
It’s true, it’s true. By the way, if you would like the opportunity to ask me some questions live, please join me every Tuesday, like starting tomorrow, at 3:00 Pacific Time on The Land Academy Facebook Page. Or, The Land Academy YouTube Channel.
Steven Jack Butala:
We’re Steve and Jill.
Jill DeWit:
We’re Steve and Jill.
Steven Jack Butala:
Information …
Jill DeWit:
And inspiration …
Steven Jack Butala:
… to buy undervalued property.
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