How to Spot High-Value Deals and Close Faster

Leads are the lifeblood of your real estate flipping or wholesaling business. No leads, no deals, no profit.

The problem? Most leads are garbage, while a few are gold — and you need to know how to tell the difference. And fast, so you can invest time in leads that could earn you tens of thousands, and avoid blowing time on dead ends.

That starts with asking the right questions.

The SPIN Technique: Lead Qualification Questions

I’ve earned millions flipping and wholesaling properties, because I can qualify my leads fast.

I do that by asking four types of questions: Situation questions, Problem questions, Implication questions, and Need-Payoff questions (SPIN).

Situation Questions

What’s the owner’s high-level situation? Start digging in by asking questions like:

1. Can you tell me a little bit about your property?
2. How long have you owned the property?
3. Do you live in the property? If not, is it vacant or occupied by a renter?
4. Have you made any updates or renovations to the property recently?
5. Are you aware of any issues or needed repairs at the property?

The more open-ended your questions, the better. That invites the owner to volunteer information — information you might not otherwise get if you just ask Yes or No questions.

The point: you want to get the owner’s story, in as much detail as they’re willing to share.

Problem Questions

Most sellers list their property with a real estate agent, rather than responding to cash buyers like you and me. Why did the prospect reach out to you? What’s their underlying problem or motivation?

Here’s the thing though: you can’t just fire “What’s your problem?” point-blank in the owner’s face. They’ll clam up, get defensive. So you have to circle your way toward the problem, building trust along the way by offering a sympathetic ear. Ask questions like:

• What made you consider selling your property?
• Have you had any difficulty in finding a buyer?
• What challenges have you faced with your property?
• Are you facing any financial challenges that would be helped by selling your property sooner rather than later?
• Does the property have debts against it that are making it harder to hold onto each month?
• Have you received any other offers from buyers that were not satisfactory? Why not?
  

Need-Payoff Questions

Still look like a promising lead? Close the sale by framing the decision and letting them come to the conclusion themselves. Ask questions like:

• What benefits do you see in selling to a cash buyer like me?
• How important is it to you to receive a high price for the property, versus a more immediate settlement?
• What would you do with the extra time and money if you could sell within the next two weeks, rather than having to list the property for sale with a Realtor and potentially having to make repairs?
• What impact would it have on your life as a whole, if you could sell quickly and move on to the next venture?
• How important is a cash sale within the next two or three weeks to you? 
• How important is it to you to avoid having to list your property to the public through a real estate agent? 
• How do you feel about holding open houses and keeping the house in pristine condition for buyers and their agents walking through the property over the next few months?

How to Process an Incoming Lead

The Process: Qualifying New Leads

Now that you get the SPIN technique, what are the exact steps to follow with each new lead that comes in?

Step 1: Qualifying Phone Call 📞

You need to have a human conversation with the lead. Not by email, but by phone. 

Get them on the line and work through the SPIN questions outlined above. Does the lead look promising? Schedule an appointment immediately, while still on the phone with them. 

Make the appointment for the same day if possible, or tomorrow. The longer the delay, the less likely they keep the appointment. 

If the lead isn’t ready to sell now, but could be in the future, put them on a drip campaign using REsimpli’s CRM.

Step 2: Physical Walk-Through 🏃

Walk through the property with the owner, today if possible. 

Tally up all needed repairs, and estimate their cost. Bring your contractor if you’re not yet confident in doing this accurately yourself.

Step 3: Make an Offer 💸

Run the numbers on your maximum allowable offer. Double check them with a real estate wholesaling calculator.

Decide on an initial offer, and contact the owner to make it. Feel free to negotiate, if necessary — but don’t exceed your maximum allowable offer.

Step 4: Sign a Contract & Close 🖋️

The fun part: sign the purchase contract, line up your funds, and close as quickly as possible.

Track Conversions

How many leads are you converting into purchases?

Track your numbers using REsimpli’s CRM:

If you aren’t converting as many leads as you think you could, you might have one of two problems:

1. You aren’t generating good quality leads, or
2. You aren’t processing your leads as well as you could.

Or both, of course. Put both your lead generation and your lead processing under the microscope, and look for ways to improve them.

Speed Matters

In this business, qualifying and closing fast is the difference between scoring or missing a good deal. 

Get prospects on the phone right now. Qualify the lead on the spot with SPIN questions. See the property today. Sign the contract ASAP. Close, and repeat. 

It’s not rocket science. But it does require fast and decisive action.