Seven Secrets To Direct-to-Vendor Rent-To-Rent Deals
Do you know how to get direct to vendor deals?
Discover my top secrets to achieving deals directly with the Landlord...
Getting a Direct-to-Vendor deal is widely regarded as the Holy Grail. In today's episode, I will look at seven secrets to achieving Direct-to-Vendor Rent-to-Rent deals.
I love being direct to the Landlord; however, if you want to scale your Rent to Rent property business, you will need to learn how to deal with landlords and agencies. In this episode, we will focus on getting deals by approaching Landlords directly. If you want to find out more about building relationships with agents, listen to my recent podcast episode #30.
It's essential to learn how to approach landlords directly because sometimes the agents will not want to work with you. Speaking directly with the Landlord offers more flexibility so you can work with tighter margins. It also helps from a communication perspective, and you can solve problems more effectively.
Number 1 - Networking.
If you want to achieve more deals with landlords, you're going to have to put yourself out there and meet more people in the property industry. Social media is an excellent way of generating leads, and I recommend joining local property groups. Understanding who is in your local area is vital, and you need to speak with landlords and property professionals in your area.
Sometimes it may feel like a conflict of interest, or a competitor, however you need to remember that you only need one relationship to make all the difference.
Number 2 - Be a good listener.
When you have conversations with Landlords, you need to be a good listener and care. If you go into the discussion only focusing on the deal, you will likely lose rapport and alienate yourself. Approach opportunities with the mindset of listening 90% of the time, fully understanding the Landlord's situation, and only presenting your solution.
Number 3 - Become a problem solver.
Let's run through some quick examples.
I have Landlords in America, Australia, and their biggest problem is that they cannot keep an eye on their properties. They need someone they can trust, who will communicate with them and take on all the responsibility.
On the other hand, I have local Landlords who have young families or demanding jobs and cannot allocate the necessary time.
If you can first find out the Landlord's problem, you can solve the problem and close the deal. If your prospect does not have a problem, a pain point then there is unlikely to be motivation. In that scenario, it doesn't matter how good your pitch is; there is no need for your service.
Listen to this weeks episode to discover four further secrets to getting deals directly with Landlords....
In this episode, you will discover
Why it's important to have deals Direct-to-Vendor.
My seven secrets to achieving deals Direct-to-Vendor
How to use your agreements during negotiations
Why you need to combine Direct-to-Vendor and Agency deals.
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Podcast Transcript↓
[00:00:56] I'm Simon and welcome to another episode of the podcast. And on today's show, we're going to be looking at my seven secrets to direct to vendor rent, to rent deals. And this is widely regarded as the Holy grail. Everybody wants to get direct to the landlord. And I personally love being direct to the landlord, but I will say this.
[00:01:25] If you want to be big in rent to rent, you will need to learn both direct to vendor and agency deals. And if you want to know more about how to get deals through letting agents, I will. Put a link in the description of this podcast, because a few weeks ago I did an episode on my seven secrets to building and getting deals through letting agents.
[00:01:50] So I'll put that in the description of this episode and check that out. But today we're going to be focusing on direct to vendor deals and look, the reason this is so important is because when certain agents don't want to work with you. Or when you, you know, you're working with tighter margins and you need a bit more flexibility being direct to the landlord can be that sort of extra bang for your book.
[00:02:19] It can make things easier. My first deal was direct to vendor and it can just make the communication channels a little bit smoother and you can focus on solving the problem direct. I sometimes find the communication channels can be a little bit alert when you have a middleman and you read, we rely on building rapport and relationships with agents in order to make sure that you can still serve the landlord.
[00:02:49] So tonight I'm going to be talking about seven secrets, which will help you do more deals with landlords direct. Okay. So let's get straight into it. Number one. More FaceTime more output. That means if you want more deals with landlords, then you're going to have to meet more, which means you've got to do more output, more outflow.
[00:03:15] So that's networking. That's finding ways to generate leads. That's, you know, social media is a great way of doing this that's word of mouth. That's being a pillar of your local property market and understanding what's what who's who. So I really, really, I really, really recommend joining local Facebook groups.
[00:03:39] You know, speak to other landlords and property people in your area, even if it would seem like there may be a conflict of interest or they are competitors because you only need one relationship and it can make all the difference. Number two, you've got to listen and actually care. If you go into these conversations with landlords focusing on the deal.
[00:04:07] Focusing on your figures, focusing on things that are not beneficial to the landlord, you're going to lose rapport and alienate them and you will ultimately lose the deal. Okay. When you go in and get in these opportunities with the landlords, listen, 90% of the time. Wait, ask for clarification, repeat it back to them.
[00:04:32] And then only then did you then present your solution? And that brings me perfectly on to number three. You've got to find a way to be a problem solver in property and invent to rent. So I've got landlords that are in America, Australia, and their biggest problem is that they're not local to keep an eye, to keep a watch out on their property.
[00:04:59] They need somebody, they can trust. They need somebody that can communicate with them. They need somebody who's going to take on all the responsibility and that's a problem, a big problem, massive problem that I've sold for those landlords. You know, on the other hand, I've got some landlords and their main problem is they've just not got the time.
[00:05:23] They could be round the corner, but they've got young families, big businesses or big jobs, and they're unable to allocate the necessary. Level of time, you know, they say sort of wealthy people value time versus money because time is the only thing you call home by. So that can be a massive problem that you can solve, but you got to get out of your own head and find out what that problem is.
[00:05:52] And if you can solve it now, here's an interesting one. If somebody hasn't got a problem, if there's no pain, If there's no motivation, then it doesn't matter how good your pitches. It doesn't matter how good your services they've got no need for it. So recognise when there's no problem and it's not for you.
[00:06:13] And don't take it personally. Number four, focus on building relationships, not the deal itself. So I actively go on some viewings. I know the property is not going to work. But I just want to meet, build, and on occasion, I've done that and turns out they've got seven of the properties that could be more suitable.
[00:06:36] So don't get too wrapped up in the deal and get out there. That's key. Number five, make sure you have your agreement ready to go. I speak to so many people and they're like, I'm just going to deal with the agreement once I've got a deal, there's no point me wasting the time and money. Uh, that is not a good move.
[00:07:00] And I'll tell you why two things. The first thing is you need to understand your agreements so that you can communicate the parameters of your offer into the landlord. Oh, it's quite wordy, but it's key. And the second thing is when you do get that window of opportunity, you're going to need to strike quickly.
[00:07:22] So you just want to be focused on negotiate in the right terms. You don't want to have to get your head around a brand new agreement. You don't want to have to do it. So honestly, the certain things you can wing, I say this all the time, you can't wing the agreements. So if you want to get direct to vendor, I actually personally take a copy of my agreement to every landlord meeting and I leave it with them.
[00:07:46] And say, this is what we'll use. If we decide to work together, they take it home and read it. The combat, they know I'm serious. If they've got any issues they ask. And then I find
[00:08:00] by the way, in terms of agreements, if you do need any help, Drop me a line on Instagram, Simon Smith online is my handle and our try and signpost you and point you in the right direction. Number six, networking. And I touched on this earlier, but I need to stress it more. You've got to network. I say it to my mentees all the time.
[00:08:28] I can teach and show you all the theory and demonstrate all the scripts and exactly how you do it. But you need to become well known and you need to tell everybody what you're doing. And it's when they do that, that they come across the deals. I've got, um, a mentee who we set him up and we've trying to get deals.
[00:08:50] And then he spoke to somebody at work and turns out they had a property that was his first deal, a six bed that earns them over a grand a month. I've got another mentee who we set her up. And she's got kids. She took them to school. And in the playground, you know, she must have had a conversation with another mom, turns out the mom is a bit of a cereal HMO investor and she's passed her two deals and potentially a third.
[00:09:17] So networking talk in telling that everybody, what you do is key and last but not least seven. And this is key in all deals. I mentioned this in terms of the Latin agents. When somebody does give you a shot, you have to follow through. I can't stress. This enough credibility in this game is everything you can't afford to break your promises to break your word.
[00:09:46] So if you say you're going to do something, do it over promise, and then over-deliver. And once people start to know you as somebody that delivers. They trust you and they will recommend you. They will give you five star reviews and it will be the sort of, it will be the essence, the key essence of your business.
[00:10:10] So seven secrets to direct to vendor rent, to rent deals. Number one more face time. You've got to get in front of landlords. Number two, when you do get in front of them, listen, and actually care. And if you don't care, then. Maybe you shouldn't be doing this number three, then solve the problem. Number four, focus on building relationships, not the deal itself, the deal and the numbers should be the last thing on your mind, particularly at the beginning.
[00:10:44] Number five, make sure you have your agreement ready to go. Six network network network. Tell everybody what you do. You'll be surprised who has a property. And who has money. I say this in terms of investment, tell people what you're doing. Great way of attracting network in, um, excuse me. Great way of attracting properties, potential investors, clients, you name it and last but not least number seven do, as you say, make sure you follow through.
[00:11:15] So that's it for me. Thank you very much for tuning in. If you like content like this, please subscribe. Drop us a review. I appreciate every single one of you, all the support. It's amazing. I remember don't wait 25 years. Yeah.
[00:11:43] Thanks for listening. For more information, check out simonsmithonline.com. See you next time.