Wouldn’t you love to feast on a scrumptious Pretty House Pie?
Let’s have some fun comparing being an investor on a pretty house deal, to being the baker of an apple pie!
A pretty house deal is very tasty, and so is an apple pie! A pretty house deal brings lots of pleasure to many parties, an apple pie brings lots of pleasure to everyone at a party! A pretty house deal is all-american, that’s what apple pie is famous for!
A pretty house deal is delicious because of all the profit sources, including a non-refundable option deposit, monthly cash flow, depreciation, and a big back-end payday. An apple pie is just darn delicious!
If you know the Wolffs at all you know we are the culinary experts in this area, so let’s get cooking as we go through our “6 Ingredients for pretty house pie!”
1. Confidence – Confidence serves like the crust of your pretty house pie! It’s the foundation of everything, it supports the whole pie/deal.
To create a profitable pretty house pie there are several parties who need to have confidence, starting with YOU! The more confidence you show, the more confidence the sellers and the members of your dream team will have in you.
In fact, confidence is the secret ingredient in our negotiation technique, the “Assumptive Close”. You confidently assume the seller will say, “Yes” and that confidence is contagious!
Where does your confidence come from? It starts with a faith in yourself, which some of us have been blessed with more than others. This inner positive belief may have come from your parents, your religious faith, your training, or experiences you’ve had. Confidence arises from past successes of all kinds.
When you have confidence in yourself, next you need to find a money-making system to invest your confidence in. A big part of that is finding trainers and mentors who you trust. Confidence in your trainers, and in their systems, leads to making a serious commitment.
This is a commitment of time, and also a commitment of resources (money). Sometimes you need to invest in the right training, and there’s a good chance you already own our Wolff-LeGrand “What to Say and What to Do” system. That’s a system you can have absolute confidence in, it was created by the best in the business – us and Ron LeGrand himself! It includes all the scripts and checklists we use in our own businesses to close big deals, and you can get it from Global Publishing anytime.
Your confidence in yourself, in your trainers, and in their money-making Systems all combine when you start creating profitable pretty house pies!
2. Flexible Seller – A flexible seller is like the basics of the apple pie, the crucial flour, shortening, and butter. Without a flexible seller you have no pie! This ingredient allows the pretty house pie to blend together and bake properly.
A flexible seller is defined by a willingness to give you some time to pay them off in full — at least 2 years, and as many as 30 years! They don’t require too much down payment, in most cases 5% would be the top end of the range (depending on the other “Terms”). A flexible seller must also be reasonable on the purchase price and the monthly payment.
3. Doable Deal – To create a pretty house pie there are “4 Pretty House Deal Points” that must match up between the seller’s needs and your offer.
Picture each of these 4 deal points as an apple for the pie. Sometimes one apple/deal point is huge and extra juicy, and it makes up for others being a little undersized. Sometimes you’ve got 4 huge tasty apples, and that makes for one delicious pretty house pie!
“4 Pretty House Deal Points”
- Purchase Price – no more than $10K over Zestimate, depending on condition
- Monthly Payment – aiming for at least $300 under Monthly Rental Estimate
- Length of Term – 30 years is great, need 2+ (Subject to = Mortgage Length)
- Down Payment/Option Deposit – target “Nothing Down”, no more than 5%
4. Rapport – Rapport is the sugar and cinnamon that “sweeten the deal”! If you ate an apple pie with no sweet seasoning, it would taste like cardboard and you’d probably spit it out!
We call rapport the magic ingredient. Folks good at developing it often seem to have a magic touch with sellers! If you’ve seen us making LIVE calls on the first night of the Quick Start Real Estate School, you know exactly what we’re referring to here.
Rapport isn’t just magical though, it’s PRACTICAL – it takes a little time and effort to develop, then it pays off BIG. This is an ingredient that may get overlooked, so don’t. To add sugar to your pretty house pie, follow this:
“Recipe for Rapport”
- Smile as a Habit — on Calls and In-Person
- Use Your Real Estate Investor BIO — 3-7 Scripted Lines
- Follow Our Rapport-Building Scripts — given Free at QSRES
- Ask Open-Ended Questions – Get the Prospect Talking
- Show Sincere Interest – Be Naturally Curious
- Give Heartfelt Compliments – Most Powerful Communication Technique
5. Credibility – Your credibility is actually the pie tin! It holds the pretty house pie/deal together throughout the whole baking process, and it needs to be able to stand the heat!
Your credibility starts with how you handle yourself on the phone, how confidently you communicate, and how comfortably you follow the scripts. That just boils down to practicing the right scripts through role playing.
Your Real Estate Investor Biography (REI Bio) contributes greatly to your credibility. This is the few lines you say early in the call that explain who you are, and why they should trust you. It’s important to have a solid script outlining your personal credibility and your real estate credibility. If you’re short on real estate experience, you can always say, “We buy and sell houses all around the area.”
Prospects must trust that you know what you’re doing, you’re capable of doing what you say, and that you WILL DO what you say. They need to be confident the deal will go smoothly, and you will execute the necessary steps effectively. When things heat up, if obstacles arise, your credibility “pie tin” holds it all together.
In our analogy the baking process is like the closing call and the deal meeting.
Hopefully what comes out of the oven is a delicious pretty house pie!
6. System with Scripts – This component may be the most important of all – the Recipe!! Your end goal is a delicious pretty house pie/deal. If you’ve never created one before and you want it to turn out right, you need to follow a recipe!
A recipe consists of 2 parts – the 1st part is the ingredients, which we’ve been listing here. The 2nd part is the “baking instructions”. Once you’ve gathered the ingredients, you need to know how to turn them into a delicious deal!
You need a detailed system with proven checklists. Getting one-on-one help, an experienced chef standing beside you in the kitchen, can be a key factor in your success as well. That’s what we do for you in our freshman mastermind group, the Global Mentoring Program, and our “Taking ACTION” Workshop (FREE 3 times per year, call for dates & times)!
The Wolffs are the master chefs of pretty house pies! Let us help you bake your own, and always stick to the recipes (scripts and checklists) in our Wolff-LeGrand “What to Say and What to Do System!” We hope to see you at the Quick Start School or another event soon, so we can teach you the investing/baking skills to whip up your own delicious Pretty House Pies!