The Pendings Hijacking Trick

hi-jackingToday we’re going to cover a sneaky little deal-getting trick that we learned a while back when we did an epic training call with Joe McCall. If you’re not familiar with Joe – maybe you’re new to SIIC – this call was one of most well-received training calls of 2014. I definitely recommend that you take the time to go through it. You’ll learn a lot and it’ll sharpen your business. Give a listen right here.

Joe has been a terrific contributor to SIIC, and here are a couple of links to his recent posts: Wholesaling Lease Options and Sneaky Deal-Getting Tricks.

Simple, Easy, Off the Radar

One of the deal-finding techniques Joe mentioned in our training call is featured in an audio clip where Joe shares his Pendings Hijacking Trick. This is something very few investors think to do. Even as simple and as easy as it is, it can be very, very effective for getting deals that are not on anyone else’s radar.

If you prefer to read the instructions, you’ll find the transcription below the audio.

Transcription of Training Call Segment

Bypass Confusion

There are some markets around the country right now where you can’t get anything on the MLS, because properties just fly off the shelf. They can bid up and it becomes a feeding frenzy. It’s just like the hardest thing to find a deal right now.

But I discovered a way to bypass all of that confusion. Here’s how I do it…

I look up all of the properties that are pending in my target zip codes and my favorite zip codes. I look at the pictures to see the ones that are look like they need work or they need updating. That’s the first step.

Next, I call the Realtor of those pending listings and I say:

“Hey. My name is Joe. I’m an investor. I just saw that the property at 123 Main Street just went under contract. Congratulations. I want to introduce myself and let you know I’m interested in this house. If this deal should happen to fall through, I’d like to make an offer on it, buy it, and let you represent me.”

hateUsually the agent will be very polite. They’ll say, “Thank you very much for calling, but this property is probably going to close. Everything looks good.”

Then I reply, “Okay, great. But listen, if it does have problems let me know.”

Add to Contact List

Before we get off the phone, I add, “By the way, do you have any other properties on your plate that you’re having a hard time selling?”

The answer could be yes, or no, or maybe. But then I ask if I can email my information. I always get a yes to that. Sometimes I will send a “proof of funds” along with that email so they know I’m a serious player.

The main thing I leave with them is that if they come up against any hard-to-sell deals for them to call me. This Realtor is now in my contact information and can be added to my weekly email list.

Payoff Time

Sooner or later this will pay off. They’ll call you saying that a certain deal fell through and the Realtor is freaking out. All of a sudden this Realtor is going to lose their listing.

They have to go back to the seller and say, “I’m sorry but it all fell through. We’re going to have to put it back on the market.” Then that Realtor remembers your call. “Oh yes. I talked to that guy Joe. He wants this house.”

Now the Realtor calls me to tell me it fell through and do I still want it. I say sure. So we start to work on the deal and the Realtor looks like a hero.

The Realtor can go back to the seller and say “Well, this buyer fell through, but I’ve found another guy and he’s got a real solid offer here.”

The important thing about this is that when a deal goes under contract, any other offers that were on the table are removed. This means that because I have talked to that Realtor, it puts me first in line in front of all those other offers that might have been there before.

Building Relationships

I’ve found this to be yet another great way to start building a relationship with Realtors. They’ll contact you if this deal falls through, but it’s also a way to get their e-mail information so you can send them e-mails in the future.

pendingNow let me add that I don’t even go through these Pendings any more, I have a virtual assistant do it. All it takes is combing through the Pendings in designated zip codes on MLS, or even on Zillow and making a list.

Also it’s not just Pendings in my area that I’m looking for, but they also must meet my other criteria, such as being a fixer-upper, and the right number of bedrooms, and so on.

A property that needs work is usually being sold by someone who is already willing to make concessions and probably already had made some concessions with the original buyer.

You’re the Backup

But contracts fall through all the time. They just do. And what happens in that Realtor’s mind when that contract falls through is panic. Because they already have that commission check spent. He’s ready to move on to the next five deals he’s got listed. He was just waiting for this thing to get off his plate and now here’s this huge problem looking him in the face. Basically, he’s got to start from square one, looking for a new buyer.

This means if you’re the one who had a conversation with him (which at the time he didn’t pay much attention to), suddenly, you’re top of his mind. Now this looks to be the easy and fast solution to getting that commission check in his pocket.

The reason why this is so powerful is that you’ve positioned yourself as a backup. You’re operating in on a level where few other investors are even thinking about, let alone doing. We like to call it a pending hijacking.

Of course you’re not really hijacking anything but you’re placing yourself first in line when things fall apart. You get to make an offer and the Realtor is willing to go to bat for your offer because he’s motivated to get this thing closed.

Take Action Now

Here’s a quick checklist of steps you can take now to move fast on this awesome tip:

  • Look up Pendings in your favorite zip code (or have your VA do this)
  • Call the representing Realtor and pitch to be the backup if the deal falls through
  • Always ask if that Realtor has other properties that are a tough sell
  • Capture this Realtor’s contact info and keep in contact
  • Be ready to reap the rewards of unexpected sales

Talk to Me

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