P-E-N Strategy Closes Real Estate Investing Deals Fast

To close real estate investing deals it is essential to learn the P-E-N Strategy — Presentation, Education, and Negotiation. 

Learning and following the P-E-N process will help you build confidence in your knowledge and abilities. You can then walk into an appointment with a motivated seller and gain their trust, educate them on the sales process, and close the deal. 

P-E-N Strategy Explained

Presentation:

The P in the P-E-N strategy is for presentation. First, you need to prepare yourself for the appointment by doing a few things: 

• Look at the specifics of the home, including square-footage, condition, and if convenient doing a quick drive-by. 
• Compare the home with recently sold similar properties in the area. 
• Have an effective sales presentation for real estate investing with testimonials, information about the property, and anything that will help cement your credibility with the seller. 
• Be prepared with an outline of what you need to cover in the meeting. 
• Have a list of questions or a Net Equity Worksheet to gather information. 
• Practice overcoming objections.

I recommend practicing as much as possible, even again right before going into the house, if possible. In the presentation you will get to know the buyer and build trust with them. It is also where you will give an introduction to the buying process. 

Listening to the seller is essential. Figuring out their pain points and what they need will help you later in the education and negotiation phases. Don’t be negative about their situation and let them know you are there to help them. 

I provide my students with a Net Equity Worksheet to help gather information and do calculations before and during the appointment. If you do not have the Net Equity Worksheet, you can obtain it after watching our real estate webinar.

Education:

In this phase you educate the seller on the realistic costs of selling. Using the numbers you gathered with the Net Equity Worksheet, you can walk them through the cost of a traditional sale: 

• Holding costs while looking for a buyer. 
• Real estate agent commissions. 
• Closing costs. 

This can help show the seller the value of working with an investor over a traditional sale, especially if they are distressed sellers. 

Explaining the benefits of working with you can also take place in this step. For instance, when using a subject-to-deal, they will improve their credit because you are taking on their loan payments while it is still in their name. 

While it is important to give enough detail so the seller understands the process, don’t give more information than they need. Keep it as simple as possible. Because, a confused mind tends to say no. Once you lead them to reality with facts, you can move to the negotiation phase. 

Negotiation:

The negotiation phase is when you get a commitment for the agreed upon sales price and sales strategy. In a subject-to sale this includes any cash they will get immediately and any additional funds they will get after you sell the property. 

If you both agree on the terms, you can get a signature on a Purchase and Sale Agreement and move on with the transaction. It is always nice to get this signed at the first appointment, but don’t be discouraged if it takes some follow-up. 

I invite you to start making money sooner rather than later by learning this closing strategy and the exact methods that have made me a millionaire real estate investor. I introduce the P-E-N Strategy in detail at my live events, and also in my free Unlimited Funding Kit online.