Summary of How to Lowball Motivated Sellers | Wholesaling Real Estate

Video Summary

The video "How to Lowball Motivated Sellers | Wholesaling Real Estate" discusses strategies for effectively lowballing sellers in the real estate market, particularly focusing on wholesaling. The presenters emphasize that lowballing isn't inherently unethical but rather a necessary tactic in negotiations. Here are the main strategies and methodologies discussed:

Main Financial Strategies and Market Analyses

Understanding Seller Motivation:
- Sellers often have fluctuating emotions regarding their property, which can create opportunities for lowball offers.
- The concept of "time kills all deals" is highlighted; as time passes, sellers may become more desperate to sell, making them more receptive to lower offers.
Negotiation Tactics:
- Instead of immediately offering a low price, agree with the seller's asking price and then ask questions that lead them to realize the deal may not be favorable for them.
- Use a method of "playing dumb" to guide sellers through the financial implications of their asking price, leading them to reconsider without direct confrontation.
Dual Agency Strategy:
- When dealing with realtors, offer to have them represent you while simultaneously presenting a lowball offer to the seller. This creates a potential conflict of interest for the realtor, as they may stand to gain more from the lower offer due to the commission structure.
Market Conditions:
- The presenters discuss current Market Conditions, noting that low inventory levels can limit opportunities. However, they suggest that an increase in listings could provide more opportunities for lowball offers.

Methodology or Step-by-Step Guide

Lowballing Process:
- Start by asking the seller what they want for the property.
- Agree with their asking price and then guide them through the costs associated with that price, including potential losses.
- Ask if that type of buyer (who would lose money) is the kind of buyer they are looking for.
- Suggest partnering on the deal to emphasize the unprofitability of their asking price.
- Avoid being the first to state a number; let the seller or realtor propose a counteroffer.

Presenters/Sources

The discussion features two main presenters, referred to as "I" and "Zach," who share their experiences and strategies in Wholesaling Real Estate. The video also references a reaction from "The Young Turks," indicating prior public discussions about lowballing tactics.

Notable Quotes

— 00:18 — « You don't lowball people because you're a mean evil person but the reason you lowball is because a seller will do something what I call highballing you. »

— 01:06 — « I think it's the most ethical thing you can do. »

— 05:14 — « It's all about how you lowball a seller. »

— 09:46 — « I argue you shouldn't lowball Realtors, you should always highball a realtor and lowball the seller. »

— 16:40 — « Realtors, you can put whatever nice veil you want to put on them, they only care about their commission. »