How do I find Novation deals

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Objective:

This document outlines the strategic framework for sourcing and creating novation deals. We will deconstruct the common misconception of "finding" these deals and reveal the sales process required to manufacture them from standard motivated seller leads.

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Part 1: The Core Misconception

The most common question we get is, "How do I find novation deals?" This question starts from a flawed premise.

You don't find Novation deals; you create them.

There isn't a special marketing list or a unique ad campaign designed to attract sellers who are specifically looking for a novation. Trying to market directly for novations is inefficient and confuses the seller.

The truth is, novation deals are born from the same lead pool as your cash or wholesale deals: motivated sellers. The difference isn't the lead source; it's the sales process you execute after the lead comes in.

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Part 2: The "Inbound Ad" - Your Primary Weapon

The foundation of this entire strategy rests on generating inbound leads.

What is an Inbound Lead?

An inbound lead is a seller who responds to your marketing and actively reaches out to you. They have raised their hand and explicitly stated, "I want to sell my house." This is the opposite of outbound marketing, where you are cold-calling or proactively chasing potential sellers.

Why is this Critical?

An inbound lead fundamentally changes the power dynamic of the conversation.

Outbound: You are chasing them. You are in the position of needing something from them. You are essentially begging them to consider your offer.

Inbound: They are coming to you. They have a problem (selling their house) and believe you might have the solution. This allows you to shift from a "beggar" to a "diagnostician." You can evaluate them and their situation to see if you are a good fit.

This process—and the ability to successfully pitch a novation—is exponentially more effective when the seller has already initiated contact and shown interest. They are psychologically primed to hear solutions.

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Part 3: The Novation Sales Funnel

You don't need a new marketing budget. You need a new sales process. Here is the step-by-step framework for turning a standard motivated seller lead into a profitable novation.

Step 1: Market for General Motivation

Continue your existing marketing campaigns (PPC, SEO, mailers, etc.) that target motivated sellers. The goal is to get your phone to ring with sellers who need a solution

Step 2: Disqualify The Cash Offer (The Pivot)

This is the most important step in the entire process. Your first approach should always be to see if a standard cash offer works for them. However, many sellers have price expectations that are too high for a cash offer to make sense for you.

When you determine that you cannot meet their price with cash, you disqualify that option. You must make it clear:

"Mr./Mrs. Seller, based on the numbers, a direct cash offer isn't going to work for either of us."

Step 3: Present the Novation as the "Perfect Solution"

Once the cash offer is off the table, the seller is now faced with a problem. Their initial hope for a quick, easy cash sale at their desired price is gone. This is where you pivot.

You introduce the novation not as a complicated alternative, but as the perfect solution tailored to their specific situation.

Framing:

"Since a cash offer won't get you to your number, we have another way of working that can. It allows us to aim for a higher price by selling to a retail buyer, while we handle all the work."

There are no rows in this table

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By first eliminating the cash option, you create a vacuum. The novation is the only remaining path to achieve their goal with you. They become far more receptive because you've logically closed all other doors.

Summary: Key Action Items

Stop Hunting for Novations: Focus your energy and budget on generating high-quality, inbound motivated seller leads.

Master the Power Shift: Recognize that an inbound lead gives you the authority to guide the conversation and diagnose their problem.

Weaponize Your Sales Process: The magic isn't in the marketing; it's in the pivot. Learn to effectively disqualify the cash offer to create the opening for a novation.

Frame the Novation as the Solution: After disqualifying cash, the novation becomes the only logical next step for the seller to get what they want.

If you’re looking for novations, Prexium is where you’ll find the right leads to close more deals.Start today 👉

The Cowboy Marketer⁠

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