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The Cowboy Sales Process
The Cowboy Sales Process

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How to Set Expectations Like a Pro

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You will learn the exact language and clauses required to maintain control, protect your interests, and successfully manage multiple exit strategies. This is for investors of all levels who want to eliminate ambiguity and close more profitable deals.


Glossary of Terms
Name
Notes
Novation Agreement:
Open
Double Close (or Simultaneous Close):
Open
Straw Buyer:
Open
ARV (After Repair Value):
Open
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1. The Scenario: Identifying the Core Problem

In any deal, especially a creative one like a novation, the investor who feels a lack of control is the one who loses. The conversation in this session pinpoints a common pain point among even experienced investors: the feeling of being "out of control" on a novation deal.
Key Investor Pain Points Identified:
Lack of Control: A gut feeling that the deal is running you, instead of you running the deal.
Weak Paperwork: The contracts don't feel ironclad, leaving you exposed. The language ("verbiage") isn't strong enough.
Ambiguous Process: Uncertainty about how to navigate the process, especially when you're financially invested in renovations or other costs.
This guide tackles that problem head-on. The following framework is your system for taking absolute control from the first conversation.

2. The Framework: Nico's 3-Pillar Expectation Setting Strategy

This is the core of the playbook. To dominate the novation process, you must master setting expectations around these three pillars before the contract is signed. Failure to do so will lead to confusion, seller's remorse, and dead deals.
Pillars

Pillar 1: Unrestricted Access ("Access For Who?")

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Pillar 2: The Extended Timeline

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Pillar 3: The Pre-Marketing Clause (Your CYA Protocol)

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3. Advanced Tactics & Deal Structure

Understanding the "why" behind the strategy is as important as the "how." Here's a breakdown of the advanced mechanics discussed.

Cash Buyer vs. Novation: Why Keep Both Options Open?

Even when a property is on the MLS, a cash buyer might present an offer. You might choose to work with them instead of a financed retail buyer for several reasons:
To Protect Your Fee:
If you have a significant profit margin, you may want to keep it private. A traditional novation on a settlement statement can expose your entire fee. By using a cash buyer, you can perform a double close or assignment, keeping your earnings confidential.
Speed and Certainty:
A cash buyer is often faster and has less financing risk than a traditional retail buyer.
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The pre-marketing clause gives you the power to choose the best exit for the situation, maximizing your profit and control.

4. Actionable Checklist for Your Next Seller Meeting

Use this checklist to ensure you cover all critical points before signing a novation agreement.
The "Access For Who?" Conversation: Have you clearly explained that your entire network (contractors, agents, partners) will need access throughout the contract period?
The Timeline Expectation: Have you clearly stated the 60-day closing timeline and the 30-40 business day inspection period?
The Pre-Marketing Clause: Have you explained that you will be marketing the property to find an end buyer and that this is a key part of your strategy to get them a great price?
Documented in Writing: Is every one of these points explicitly covered and agreed upon in your written contract?
Struggling to find consistent deals? Prexium connects you with the opportunities you’ve been missing. Get started now 👉
The Cowboy Marketer
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