You can work on RV Park deals as much as you want, but it’s all for naught if you can’t get the contract signed. In this RV Park Mastery podcast we’re going to review the methods that help you close deals faster and with more dependability.
Episode 156: How To Be A Closer Transcript
Imagine a great NFL team. They can run the ball, they can pass the ball, they can move that thing down the field, but every time they get down within scoring distance, they don't score. Over and over, they take possession, they run it down to the two-yard line, the one-yard line, but they can never get it in for the touchdown, nor can they make the field goal. This is Frank Rolfe for the RV Park Mastery Podcast. We're gonna talk about an all-important skill known as closing the deal. Because you can talk to RV park owners as much as you want, but if you can't ever get them to sign an agreement, then it really is all for naught. Now, closing of deals, and this is something they've written books about. You can go to the bookstore and they'll have lots of books on how to close deals. The problem with closing is that it's a little more complicated than a lot of those books reveal. So I want to go over with you the real ways you can get closure on an RV park deal, how you can get someone to sign the agreement. First thing you have to do is you have to engage in bonding. And bonding is where you get to know the seller and they get to know you. And you do that by listening and by asking good questions.
My favorite initial bonding question to an RV park seller is, "How did you come to own the RV park?" That answer will include their life story and what they've learned about the business and all those kinds of items. And already they're liking you because you asked them this great question and now you're just sitting there nodding and listening. And then they may ask similar questions to you. But you can't really get a deal closed without bonding. If I go to a convenience store and I buy a bag of M&Ms from the clerk, I don't really have to bond with that clerk to get that deal closed. I may not know that clerk's name. I'll never see them again. So I don't really care. But that's not how it works with RV parks. They're a little bigger transaction than buying a bag of M&Ms. And so they have to like you and believe in you and identify with you or they're not going to sign it. So bonding is the first thing you've got to do. And the second thing you have to do is an inclusive discussion of how you're going to solve their problem. And their problem is they would like to sell the RV park, otherwise they would not be talking to you. So you have to go over with them how you envision structuring a deal that's a winner for both parties.
Asking them, what are they trying to achieve from the sale, how much money do they want, what's the timetable on it, will they carry the paper, will they not? Those kinds of inclusive discussions where you're just trying to get a handle on what they want. And then you're going to offer a summarized review of their problems and then your solutions. So it's kind of like making a motion under Robert's Rules of Order. If you ever read how you do a motion if you are on a committee of some type, there's a motion, there's a second, all in favor say "aye", and then the motion carries. So in this case, you're trying to create a motion of why they should sell the RV park to you. So after they've told you what they're trying to achieve, then you say, "Okay, so what you're saying is you want to get for the RV park $850,000 and you want to get the deal closed within 90 days and you don't want to carry the paper on it. So that's what you want. Is that correct?" And wait for them to say, "Yeah, that's it." Or if that's not it, then we go back into further discussion before we make a new motion of what they're trying to achieve. And of course, you've got to put your thoughts in there too.
So you can say, "Well, you're wanting $825,000 and you want to close the deal in 90 days, but I don't think that the property is going to appraise for 825. I think it will appraise more along the lines of 750. And also, I don't think I can get this deal done in 90 days when you take into account I've got to find a lender, I have to do the third-party reports, and that's, coming up on the holidays, so there will be a delay factor from that." But you openly discuss what you each are trying to achieve and then you keep putting them in the form of a motion. And if the person doesn't like that, then they'll say, "No, no, no, you know, I don't want to do that. Here's what I want to do." And then you go back and forth until you can come up in a sentence with what both parties agree to. And then once you've hit that level of agreement, now we still have to get them to sign it. So we have to then say, "Okay, well, it looks like we're in complete agreement, so let's get this deal going here. Sign right here." It's shocking how few salespeople actually ever ask for people to sign it. Most people chicken out when it gets down to the phase where you're supposed to sign the deal. Either the seller or the buyer gets cold feet and says, "Let me think about it. I'll get back to you," which can be fatal words if you're a dealmaker. So simply asking them to sign the agreement based on what they've already said they would like to do is the essential tool to get things started.
Now, for you as the buyer, them signing the agreement and you signing the agreement should never give you any concern because as long as your RV park contract includes a due diligence provision and a financing contingency, that would give you two different forms of out if properly written into the agreement. So it's really more a case of the seller having a concern over signing more than the buyer typically. But you have to ask them to go ahead and sign it. Ask them for that step. That's what gets you to go from the one-yard line or the two-yard line into the goal. Now, there are some additional tricks you can do, though, to also help to get this deal closed. One is to give them a timetable to make it seem like they've already signed up and get their mind thinking as though we're already under contract. So even before they've signed the agreement, you can say, "So if you go ahead and sign here, then I'll go ahead and get the ball in motion. I'll go ahead and start contacting banks. We'll get the third-party reports going," and might even rattle off some other due diligence items that you will need. But when you start talking like that, it makes them feel more comfortable because they think, "Okay, now wait a minute. It's not that scary to sign this because it sounds like I think I know what happens after I sign it, and that doesn't sound too spooky." Okay. Makes people feel better. They can get their mind around that.
You can also get them thinking what they're going to do post-closing as far as, "Okay, well, where do you think you're going to move after closing?" Get them expanding on what they're going to do after they own the RV park. They're going to move to a more sunny location? They're going to buy another RV park? The minute you start dangling the carrot of what they will do post-closing, it makes them more excited to sign the agreement because those are all things that they really, really want. They really, really want to get those things done, and they want to move, and they want to have it where it's warmer in the winter, and they want to do all this stuff. And now you've opened that Pandora's box in their mind, it's really hard for them to close that because now they realize if they sign this agreement, then those things start to materialize for them. It's like the other NFL team. When you can't score, they grab the ball from you and then pull your guy into the end zone because they just want to get it over with. They want to go home. They want to go to halftime or go to Thanksgiving, whatever the case may be.
When you get the seller thinking of what they'll do with their life post-closing, it makes them much more enthusiastic to get the deal done. Now, where do most people fail in these steps? I would say where most people fail in these steps are they don't want to spend enough time bonding. All of us as Americans today, we tend to have lost our attention span. We like things fast, like things you see on social media. It doesn't work. You've got to spend time. There's no way you're gonna buy the RV park without spending at least a couple hours on the phone with the seller and then maybe several more hours in person. So you have to bond and you have to spend time to get that going. Another problem I see is people are not inclusive in their discussions because they've read too many books on negotiations which are win-lose. You cannot do that. You have to be a win-win negotiator, and that means you must be inclusive. And then the big one is people just don't ever seemingly summarize what is wanted and then push for them to sign the document. And if you don't push for them to sign the document, you will never, ever be an effective closer. This is Frank Rolfe for the RV Park Mastery Podcast. Hope you enjoyed this. Talk to you again soon.