reading a book
Words That Bring You
Riches, by my
good friend Ted
Nicholas. Ted has
sold over 200
worth of information
by direct marketing.
Over the years, he
has put together a
collection of "magic
words" to get people
to do things they
In Magic Words,
Ted discusses how to
do things such as
get the best table
in a restaurant and
first class seats on
airplanes. He talks
about how to slash
the cost of a room
at first class
hotels and attract
all the money you
need for any
Want to approach a
member of the
opposite sex and
interest? How about
renting a Mercedes
for the price of a
Ford or buying
jewelry at below
Ted can tell you how
to attract the best
employees to make
prosper, as well as
how to get capable
people to work for
free. He even
discusses ways to
interests in other
one red cent.
Pretty cool stuff,
huh? And that's just
the first few
chapters. This book
is also a masterful
bible covering every
aspect of the
business by a
professional. I read
Then it hit me! Like
Ted, I've got a
collection of "magic
accumulated over the
years. Most are
designed to help me
get into or out of a
real estate deal.
All of them work.
The words you are
about to read have
made me millions of
dollars and, if used
properly, could do
the same for you.
The truth is,
students have been
trying to get me to
do this for years,
but it was Ted
Nicholas' book that
pulled the trigger.
Magic words you
should use daily
"If I pay you all
cash and close quickly, what's the
least you would accept?" And that's
always followed by: "Is that the
best you can do?"
If you're not using these words to
get to the bottom line quickly,
you're making a mistake and wasting
valuable time. These words cut to
the chase and save you a lot of time
otherwise spent beating around the
bush. Of course, if you're naming
the price you'll pay before you ask
what the seller wants, I'll have to
take you out behind the woodshed.
He who speaks first has a big
mouth and will pay a handsome price.
Those words aren't exactly magic,
but they speak the truth
nonetheless. Never, never name the
price you'll pay, or the down
payment, or monthly payment you'll
pay or accept when selling.
Okay, let's say you've asked, "Is
that the best you can do," and the
seller says "yes." A good follow-up
line that works for me is:
"So you're saying if I don't give
you $_____, you won't sell the
Now if the answer is still "yes,"
you won't be buying today unless
you're willing to change the focus
to a terms deal rather than a price
A good ice breaker to use when you
want to make it clear that you're
not happy with the number is:
"What's your second choice?" I
usually chuckle or use a hint of
humor when I ask this. It's better
than simply saying I won't pay the
Let's say you're trying to get a
seller to name the asking price and
he won't. You know better than to
pressure him, but you just can't get
him to break. Try this.
"How about a dollar?"
This will get through to them and
probably produce an answer. If so,
you're back in the screening process
and you know where you stand. If
not, you can come back with:
"I simply have too many prospects to
waste time on those I can't buy. If
you'll tell me what you're asking,
I'll know quickly if we can do
business. Is that fair?"
Magic words when
there's a mortgage
By this time,
they're usually in or out. You can't
buy houses from uncooperative
sellers. By the way, did you notice
some powerful magic words hidden in
there? Notice how I tend to answer a
question with a question. "Is that
fair?" turned my response into a
question and put the responsibility
to answer back on the seller. It
also softened the blow and made me
seem more warm and fuzzy.
"Is that fair?" is a powerful set of
magic words that should become a
part of your everyday vocabulary
with almost everything you
Let's say you're pre-screening a
seller who has a house with a
mortgage balance. First, you want to
know what's owed on the property or
you can't possibly determine whether
it's a deal or not. These aren't
magic words, but are critical ones:
"What do you owe on the house?"
What if they say it's none of your
business? You say:
"I buy ____ houses per year and use
many different methods. I'm probably
the most serious buyer you've talked
to yet. However, I'll need the facts
to be able to present you with an
intelligent offer. Will this be a
problem for you?"
Again, a question in an answer's
clothing. Did I not sock it to them
on that one? Frankly, anyone who
won't give you the facts is not
ready to sell yet. You got your
answer . . . move on. You can't make
unmotivated sellers motivated.
Now you have your answer. You know
the loan balance. Now it's time to
find out where you're headed with
this deal, so ask:
"Will you sell the house for what
you owe on it?"
Those magic words can make you
$500, 000 per year if you ask them
on all your deals.
With just those words, you'll
instantly know whether you'll be
getting a free house by taking over
the debt or an almost-free house
with debt plus a little cash thrown
in. Of course, you may also learn
that the seller wants full price and
is not flexible. Again, you found
out what you needed to know with
those words. Now you know whether to
proceed with the deal or move on.
Magic words for
Now let's say you
can't get a deed because of the due
on sale clause or the seller won't
trust you with their credit. But you
see opportunity there and a lease
option makes sense. Here's the
opening line to present the offer:
"I will lease your house with the
right to buy it for the loan balance
when I purchase. I'll guarantee your
payment and maintenance until the
loan is paid off and the house is
out of your life. How does that
Notice how all the benefits come
before the question. The seller has
enough information to encourage a
positive response. Isn't that better
than "Will you lease option your
home to me?"
Another good question that will ease
the seller's mind and make you seem
"If it doesn't work for both of us,
then we don't want to do it, do we?"
That makes it pretty clear that
you're not desperate to make the
deal. Another version is:
"If this will cause you to lose
sleep at night, I'd rather not do
it. Is it going to be a problem?"
Here's a good one to break a
stalemate and get you back in
negotiation as well as collect more
facts that might lead to different
"If you and I can't do business
today, what will you do with the
This also gets the seller thinking,
particularly about all the ugly
answers to that question. Their
answer may be, "I'll put it on the
market or list with a Realtor® until
Your response: "And what if it
doesn't sell?" At least you'll get a
feel for whether this seller is
worthy of your follow-up list. I
hope you know by now that "all
sellers' minds will change with time
Magic words for
Here's one you'll
love if you're a beginner and
worried about the seller finding out
you don't exactly know what you're
doing. First, don't sweat it. You
don't have to appear to be an
You can try to fake it but, if
you're confronting an intelligent
seller, many times they'll see
through you and try to ask you
embarrassing questions. So if you're
asked if you've ever done this
before, use these words:
"Well actually, no. This is my first
deal after graduating from some
rather intense training. I was
hoping you'd help me do it right,
Asking for help brings you down to
the seller's skill level and you've
built trust by answering truthfully.
Don't worry about the seller
expecting you to be an expert. If
you seem sincere and excited, you'll
usually get the deal.
In fact, being too smart or seeming
too confidant will often turn off
more people than if you appear to be
a novice. They'll think you're too
green to cheat them.
Magic words for
seller carry backs
Now let's say you're
talking to a seller about carrying a
mortgage and the subject of interest
comes up. Your goal is zero
interest, so you shouldn't be the
one to initiate conversation on this
topic. If the seller doesn't mention
interest, you shouldn't, either.
When presenting an installment
offer, the magic words are:
"I'll pay $____ per month until
you're paid in full."
Of course, this means you've divided
the loan amount by the monthly
principal payment you want to pay,
excluding interest. If the seller
comes back with, "What interest rate
is that?" your response is:
"Why do you need interest?"
Then if you get more argument and it
becomes a sticking issue, you could
respond by saying . . .
"What's more important, your
interest or getting the house sold
If that doesn't get the job done,
say, "If I give you interest, how
much can we lower the price?"
Or . . . "Will you sell to me with
no down payment?"
Or . . . "Would you wait six months
(or a year) for your first payment?"
Or . . . "Would you take 25% off the
balance I owe you if I agree to pay
you off within _____ years?"
Of course, these same tactics can be
used if the seller is asking you to
raise your offer. You'll notice it
all comes down to some very powerful
magic words that can be adapted to
many uses (If I _____ , would you
Magic words for
How about when
you're raising private money and
approaching potential lenders?
Here's my ice breaker that hasn't
changed once within 16 years:
"Do you have an IRA or any other
investment capital that's not
getting you a 15% return safely?"
These magic words will get you all
the money you need assuming you ask
at least some people who have money
Magic words for
finding good buyers
Now let's look at
the selling side and discuss a few
choice words I use to find good
buyers. When wholesaling, I want to
know my buyer will come to closing
with the money and isn't simply
trying to jerk my chain. In this
case, the magic words are:
"When do you want to close?"
If they need more than ten days,
they're a time waster and I'm at
risk. If they say "ASAP," I know
There are so many magic words to use
when pre-screening buyers, it's
easier to simply use the whole
script because these words are all
magic. I can't tell you how many
hundreds, maybe thousands of buyers
I talked to before I developed the
words and the order in which I use
them. Here we go...
"Do you want to buy or rent?"
If the answer is rent and you want
to sell, the rest is worthless
conversation. But before giving up,
use one more line:
"If I can show you how to buy and
get you financed, would you rather
own than rent?" If yes, continue. If
no, save your breath.
"Have you ever tried to buy before?"
"What stopped you?"
This lets you know immediately what
you're dealing with.
"Is your credit good, fair, or
Don't ask, "How's your credit?" Some
people are ashamed to tell you it's
ugly and will simply lie. Give them
a multiple choice so they know you
won't be shocked if they have poor
credit. If it is bad:
"What's on it a bank wouldn't like?"
This breaks the ice and gets the
customer to open up. Now the big
"How much money can you raise for a
Whatever the answer . . .
"Can you get any more?"
"Can you borrow from relatives?"
"Do you have credit cards?"
"Do you have something you could
sell or trade to me?"
"Can you repair houses, or do you
have other skills to earn more?"
"Are you willing to rob a bank to
Oops! Got a little carried away on
that last question. It might not be
Now let's assume you see someone you
can work with and you want them to
get excited and realize that you are
their solution to home ownership.
Here are the words that will glue
them to you:
"If you can convince me you want the
house and make a commitment to buy,
I'll get you financed one way or
another. Even if I have to be the
bank. If I can't get you in a home
of your own, no one in this city
These words have sold a lot of real
estate for me. They really make an
impact on your buyer's level of
hope. Follow them up with assurance
that you are easy to work with and
flexible, and the prospect will be
putty in your hands.
"We can do whatever you and I agree.
I own the house, and I'll do what it
takes if you will. Is that fair?"
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