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Dealing with International buyers: Part 1
September 9, 2010 by Esi · 26 Comments
How was your labor day weekend people? I’ve been trying to juggle so many things from making sure my daughter has a great day on her birthday, to prepping for her first day at school, spending quality time with family to wheelin’ and dealin’ and trying to create relationships with international buyers. Today, I’ll focus on some of the lessons I’ve learned dealing with international buyers which has been an eye opener to say the least.
1. Ask to speak with your buyer. After sending out letters to potential buyers and they call and leave a message, it’s very important that you return their call. I’ve noticed that buyers tend to feel more comfortable with whom they are dealing with when they can talk to you mano-a-mano or in this case mano-a-womano. They can sense your personality, get to know what you are about, if you really know your stuff and most importantly if they can trust you.
2. Get to know the team they’ve already created and let them know you are comfortable using their services. More than likely, you won’t be the first person your buyer is dealing with, he might already have his crew in place and they include; title company, property manager, contractor, etc. Do not insist on using your title company if they ask to use theirs. Just ask to speak with their contact title agent, get to know them and ask questions like “do you accept assignment contracts, double closings etc”. They are the link between you and your buyer and therefore it is just as important to create trust and rapport with them. If they don’t have a good vibe with you, they won’t hesitate to tell the buyer and that could end the relationship.
3. Always respond to their emails and/or calls. I don’t know anyone that is not excited to get a quick response to their emails or text and that’s why twitter and the likes are very popular because people can get immediate responses without waiting for hours or days and the same goes for international clients. Respond to the emails as soon as possible and if you don’t know the answer to their question, don’t wait for days to find out before replying. Reply to their emails letting them know you will get back with them soon and as soon as you have an answer be sure to respond. If you don’t plan on taking any calls from anyone within a certain period of time, you might want to make an exception for these groups of buyers. Though the downside is if they are used to receiving a response within a few hours, they will expect it everytime and when they don’t get it, they might start to panic.
4. Be upfront and honest. Trust is very important when dealing with any buyer, but even more apparent when working with international buyers who don’t get a chance to see the house before buying it. Your word is all the can hang on to before doing their due diligence. Do not hide anything and/or make them aware of it later. Be honest about the exact yearly taxes, which utilities tenants are paying if any, condition of property, neighborhood, show pictures of both good and not so flattering areas of the house. Remember you want to build trust for a potential first deal and many more after that. When you hide information whether it’s intentional or not you start to sound shady. It might not end the relationship, but it could be a red flag. Some situations are beyond your control so when you make a genuine mistake which you would, own up to it, don’t make excuses, don’t be too apologetic and make neccessary correction(s).
5. Do your due diligence. You may have to do more due diligence than you would normally do with a local buyer. You might have to get an inspection report, take a lot more pictures, video etc. All these might not be necessary if they already have people in place to inspect properties, but be prepared to do it. You could charge a fee for it, it’s up to you. I still don’t understand why I get listings from other wholesalers to JV on and all they send is a picture of the front of the house and an address. In order to stand out from the rest, you have to be willing to provide more services and do more for your buyers. It does go a long way and they will appreciate it.
6. Be professional but also be laid back and find something in their culture that both of you can relate to. I have a Japanese buyer who is buying 4 properties from me in the next 2 weeks and he calls me everyday, yes everyday to get updates or give me information and we still email several times a day. One day I got this brilliant idea to say hello to him in his language the next time he called, so I asked my husband who took 2 years of Japanese in college to teach me what to say and how to pronounce it. All I had to say was “moshi moshi” and we hardly talked real estate the entire conversation. We started talking about family, vacation, children, food etc and it was the longest conversation we’ve had so far. That really did make him feel more relaxed dealing with me and we felt we could relate on some level.
7. Be aware of the time difference. If your London buyer is fine with receiving phone calls before 10pm her time, be sure to call before 4pm your time (assuming you are EST) and if your buyer is in Japan, based on current daylight savings, he is 13 hours ahead of your time which means you only have a short window of time to speak on the phone. Your 8am is his 8pm and if he only accept calls before 10pm you have just 2 hours to speak with him except if you are fine calling after midnight your time.
8. Don’t pretend you know it all, but always sound confident. Nobody likes a “know it all”, be humble and honest about what you are selling and don’t be afraid to say “I’m not sure, I’ll have to find out more information and get back with you as soon as possible”. At the same time, sound confident and be sure of yourself. The only information they know at first is what you tell them and since the only sense is the sense of hearing, they hang on to every word, so be sure not to come off as arrogant.
9. Make it known that you are not only interested in one deal but in several deals in future, you value their opinion of you and you will be committed to making sure they have a pleasant experience. If they know that you are business oriented and not just interested in closing one deal and moving on, they will be more trusting of what you do throughout the process.
Just as a side note: I am doing a JV with a local wholesaler and he called me yesterday to let me know that the seller initially told him he did not owe any back taxes but he just found out he actually owes about $3000. I sent an email to my buyer to let him know immediately what the situation was, but I let him know I was going to take care of the issue. He called me right way wondering what was going on and what he could do about it because he already closed with his buyer in his country. I called the seller directly and it turns out seller wanted buyer to pay the back taxes, but was not willing to come down on the price. Under normal circumstances, I would have told the seller to go pound sand, but since i had already accepted a price from the buyer and I want to maintain the trust, I gave up my share of the assignment fee. It doesn’t feel good, but it doesn’t feel quite as bad since he is buying 3 properties from me in the next 2 weeks and I’ll be making almost 6X that amount. I’m not interested in just one deal because I know if the trust is established, he will keep coming back for more, which means more money in my pocket.
P.S: Most of thess lessons also apply to local buyers, so even if you have no interest in dealing with international buyers, i’m sure you can learn a few things that would help in your business deals. And yes JP, I’m happy to be your guinea pig 
P.S: Part 2 will include how to handle money transfers, getting earnest money deposits, setting expectations, laying the ground rules, how to close even if buyer can’t buy a ticket to the closing table etc. Stay tuned.
Lots of great information Esi. I’m only dealing with local buyers right now, but I will like to explore dealing with international buyers in the future if the spread is larger. I always enjoy reading your blog and I’m looking forward to part 2.
Wow, love your blog!
So you claim NOT to be a guru or expert, you liar! After reading your entire blog, I’d buy your course, you know exactly what your doing!
I too have done a great deal of online studies, and recently completed a Jon Zorrer, and Vena Jones Cox (local mentors) seminar on Short Sales/Foreclosures.
I just sent out 100 yellow letters, with only one returned phone call. What am I doing wrong, please help as you are thee authority of wholesaling and yellow letters, lol!
I got this yellow letter online and tweak it a bit, what should I do different? It reads:
My name is William, my wife is Aretha.
P.S. Is it possible to obtain a copy of your yellow letter, or am I too late?
Lol, it’s sounds like a compliment, so i’ll take it. Thank you.
I have nothing against honest gurus but i’m not one. I only started wholesaling real estate this year and closed my first deal in February and several others till date. Even though it seem like i know a lot, it’s because I’ve committed ungodly hours to learning my business and trying to be the best at it and hopefully become an expert someday. I also love to share my experiences and I’m glad you love it.
In this business one has to experiment with different marketing styles until they find what works and stick to it. Several months ago, I went out to put up 20 Bandit signs for buyer with my husband and kids after midnight for about 4 hours and I got only 2 calls. When I tried yellow letters, I got over 40 calls or about 35% response and I was blown away. Which marketing style do you think I stuck to? You guessed right, the yellow letter for buyers. My bandit signs are gathering dust in my garage right now.
I’m not sure what you are doing wrong, but i will encourage you to try again, or try other marketing styles, or another area.
I would send you my yellow letter for buyers and it just might work for you.
Let me know how it goes. Good luck!
Yes, please send me a copy of your Yellow Letter for buyers, that would be a huge blessing! What do I owe you in return?
Good afternoon Esi,
I hope you are doing well.
Thank you for sharing your story. I’m currently starting as a
wholesaler but I have not done my first deal yet.
I would like to know if you could help me regarding REal Quest? Which
functionalities or package did you buy and how much do you pay for
it?
This is not very clear for me as they do not have a fixed price or
package. I feel a bit lost and I would really appreciate if you could
help me on this!
Many thanks and all the best in your adventures!
Warm regards,
Peggy
Peggy, you can always use listsource.com and buy one list at a time as you need it instead of doing a package with Realquest if you have a limited budget. You’ll mail a lot to the same people over and over again anyway….
Shae´s last blog ..Mr No Monkey Offers Strikes Back
Hi Peggy,
I agree with Shae. Though i’m parcial to realquest because of the property information and comparables but if you are going to be doing a lot of marketing every month and think you need realquest in future, go to http://pro.realquest.com/home/ there is a number for you to call 866-774-3282. Tell them you are a real estate investor and you are only interested in getting property information and comparables. They will charge you $125/month. If you want information on foreclosure properties, you can add that too for an extra $25/month.
Your first deal is right around the corner, just keep on taking action. I hope this helps.
Esi
Hello Esi,
I’ve been enjoying reading your success stories, knowing that my time
will eventualy come… I first heard about you threw Stephani Davis
website, I’m a newbie part-time wholesaler in the Tampa,fl market & I
haven’t had any luck.. All though I WILL NOT give up WHAT SO EVER!!! I
was wondering,since your intrested in out of state business maybe we
could possibly work together, I am currently working with an investor
who I have made my mentor to show me the ropes so to speak. I have
access to unbelievable properties and more, hopefully we have
something to help boost your portfolio to another level!
Thanks for your time, hope to hear from you!
-Joe
P.S. If not, possibly you can help me out with some international
investors; REALLY interested in that type of business!!!
Hi Joe,
I’m glad you are enjoying my stories and I can’t wait to hear your stories. Looks like you are doing all the right things and i believe your first deal is right around the corner as long as you keep taking action and you keep up with the “can do” attitude. I don’t buy out of state properties, but I like working with out of state buyers. If you have any properties in Detroit, MI be sure to send them my way and if it fits my buyers’ criteria, we can sell pretty fast. I’m looking forward to working with you soon.
Esi.
Really great info here, Esi! You’re rockin’ and rollin’ my friend. Tip #6…brilliant
I’ve done that before and its funny because sometimes when you show you know a little of a their language they think you know a LOT and will really get going…then I have to stop and say “No, no. I only know a little! LOL!” Good…no, GREAT tips.
Shae´s last blog ..Mr No Monkey Offers Strikes Back
Thanks Shae. I wish I didn’t wait till our 6th telephone conversation to try it. On the other hand it may have sounded like i was patronizing him if I said it before signing a contract. Either way, it’s definitely a good way to break the ice. There is just something about trying to learn other people’s language & culture, even if it’s one word, they feel like you are one of them. Ask me how I know. Looking forward to chatting with you tomorrow.
Great post and topic, Esi!
I think it’s great that you really take the time to get to know your buyers (and even their team for that matter). For you to sincerely want to get to know their business as well as personal side is great – that definitely sets you apart from everyone else.
I notice many investors out there to run their business very impersonally. It seems many folks are just in it for the short term and the quick cash. But, you are right – it’s all about repeat business and having your clients trust you and want to work with you again and again.
Being in this business for the long term (versus the short term) is really the name of the game. And, why very few businesses succeed. It’s the ones that stick it out (even through the rough times) that stand the test of time. I can tell, yours is one of them!
I enjoyed the post, thanks for sharing!
Thanks Rahael,
I found that agreeing to work with their already trusted team, rather than suggesting one to them, creates trust. Though I still insist on using my title company but if they want me to use theirs because of power of atorney, I might consider it if they do assignments.
I’m definitely in this for the long run and I’m constantly thinking of long term relationships and I can tell you are the same way.
Happy investing
Hi Esi,
I never, ever thought about international buyers. I have no idea why but it just didn’t cross my mind. Thanks for the info.
I have some important questions I know you’d be alble to answer.
When you have a property under contract and a buyer in place, do you send the Purchase Contract to the Title Insurance Company immediately to do a search? If so, who pays for the service of the Title Company; you or the buyer?
Also, does the title company provide the HUD-Settlement document?
Thanks,
Erika
Hi Erika, thanks for stopping by.
When you have a property under contract and a buyer in place, you send both the purchase and sale agreement contract with seller and the assignment contract or another PSA (in the case of a back to back closing) to the title company to begin a title search. If you are doing an assignment your seller and/or buyer pays the title compnay depending on how you structure the contract. For instance, you can say buyer pays all closing costs or buyer and seller pays their individual closing costs. When doing a back to back closing, you might pay some fees since you are buying the house before reselling on the same day, but you can still avoid the fee based on how the contract is drafted.
The title company does provide the HUD after a clear title.
Hope tghis helps.
Thanks Esi. Thanks for responding to my question.
It’s been a month since I’ve been on your blog but I am so motivated to do my first deal.
I’ll let you know when I find one.
Erika.
Fantastic list Esi. Well thought out……seems like you’re done this a time or two, eh? lol Thanks for sharing!
Carey_PA´s last blog ..ATM Passive Income Course coming soon…
Thanks Carey. Still learning, but i know enough to share.
Hi Esi, this is an awesome post. I have not done business with international buyers yet, and this is definitely great information!!!!
Angela´s last blog ..I had a lot to think about…
Thanks Angela. Be sure to refer to this when you decide to give it a try.
By the way, I didn’t know you had a blog. Pretty interesting post. Please I’m not trying to make you feel bad about your decision, but i’m scatching my head at the price tag. $6000 for a wholesale course? OMG!
LoL! I would be scratching my head too!!! No the wholesaling course I bought cost $600. All the courses I “wanted” totalled $6000. Must make a note on the blog
!!!
Angela Benjamin´s last blog ..I had a lot to think about…
This is an awesome post!! Sorry I am so behind in reading.
Just for the record if you have Canadian buyers you don’t have to say “eh” after every sentence. You also don’t need to pronounce about “aboot” or anything else like that. But it will make a difference if you talk hockey!!
Julie Broad´s last blog ..No Longer in Pursuit of Passive Income
Thanks Julie for the tips, could come handy someday. I used to have a friend who grew up in London and used the word “yeah” after every sentence “you know yeah, on my way to class, yeah….” lol.
Oh, don’t worry about being behind reading my blog, I’m just happy you stopped by