I was on Bigger Pockets scrolling through like I usually do, looking for email fodder and seeing what’s new in the REI world, when I came across an interesting post with a bloke asking a newbie question.
Not sure if he is a newbie or not (nothing wrong with that; I’m newbie), but what was initially wrong was his debate in his own head.
Here’s my paraphrase of the post: he was debating whether or not to take a $50k net profit deal, because the seller wanted to choose their own escrow company.
Now, just the other day I talked about having rules…. but … sometimes rules can be broken if there’s a big paycheck sitting in front of you and the “rule” at hand isn’t a big deal.
In this case… using the seller’s choice of an escrow company?!?
For $50k profit?!?
Where does this insanity come from?
It’s from industry norms and following those industry norms to a tee without thinking outside the box.
Here’s what I mean: He probably observed or listened to many other investors on forums talk about how they control every aspect of the deal. So giving up what escrow to use might sound like a deal breaker to him.
However, after learning the basics of a strategy, violating industry norms should be common for you.
It’s something that Jay Abraham (the marketing/business consultant to multi-millionaire investors like Daymond John), preaches in order for people to have breakthroughs in their business.
So this leads to the crux of the lesson:
If this concerned investor has an issue because he’s actually looking to assign the deal to another investors and is afraid another escrow company won’t allow it… then he just needs to ask one question to the seller:
“yes Mr. Seller we can use a different escrow of your choice. Let me ask, why the concern with using an escrow company that I choose?”
And then let the conversation roll from there. (You might have to rephrase the question again and again if the seller ignores it)
The problem the seller has is not “the escrow company”. There’s underlying issue behind his/her decision to choose their own escrow. And just simply asking the right question can lead to the whole underlying issue.
But often we are afraid to dig deep.
For instances, it could be a trust factor.
In this case you can easily solve it by creating and showing the credibility and trust of the escrow company. Explaining what escrow is.
But you have to ask the question first to get there.
Anyway, don’t be afraid to ask the question immediately after.
It defies what our parents have taught us about not being rude, but in business you must defy that norm.