Timing, Follow-up & Getting Deals Done!

A few months ago we heard from Gerald Lemoine on one of Mastermind Expert Session calls about his outreach strategy for sourcing off-market mortgage notes. He showed how he has a ~5% success rate because of follow-ups.

So I wanted to share two little stories to drive home the importance of following up with your sellers.

I get calls, texts & letters all the time from wholesalers that want to get my properties under contract. 99% of the time, I ignore them but there are 2 times over the last decade that I have responded and it was all because of timing (I became a "motivated seller" and literally the first person to contact me got the deal).

Story 1:

A partner and I acquired a duplex in Reading, PA for $30k (he had bought a non-performing mortgage note secured to the property for <$10k and foreclosed, taking back the deed to the property - then the two of us bought it from his other entity).

It was pretty good for a few years, we did a little rehab on one of the units and were bringing in ~$2k per month from the building. But eventually both of our core businesses started to take off and we didn't spend enough time managing the rental. Eventually some maintenance issues were the last straw and we were both ready to call it quits.

At this perfect timing, a wholesaler called me up and offered $80k for the property. It was slightly under market but it was EASY & FAST - we took the deal (and now the property is worth over $150k but I'm glad to be rid of it!)

Story 2:

I own a mixed-use quadplex about an hour a way from where I live. I used to live in the town and it was fun to have a coin-operated laundromat on the first floor that I managed myself.

Eventually I moved out of town, had kids and it became a big hassle. Previously I would occasionally get letters or calls from people who wanted to buy the business (not the building, just the laundromat + equipment) and I would ignore them.

But finally, after another "motivated seller moment" I started to take these inquiries seriously. Now I'm negotiating a sale of the business with two prospects - all because they had the right timing on their follow-up!

So the lesson is clear - FOLLOW UP! They might not be ready to sign a contract today, but if you are consistent with your outreach you'll have a much better chance of getting an offer in front of them when they need it most!

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