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option8

Calling FSBOs and FRBOs

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If you are not using the phone to find properties, I'd like to challenge you to change your thinking.

 

My experience has proven that this is a valuable method of finding properties and it costs nothing but a little time. I've located several motivated sellers using this method. I also have noticed realtors listing houses for rent or even RTO and I'm thinking this is a great opportunity. They obviously already know something about the RTO system or they wouldn't be advertising. Over the last 30 days, had several opportunities to craft deals with other investors by dialing for houses. I'm amazed when the person on the other end has more than one house for sale.

 

Some people think it is a waste of time, but I beg to differ. If you just carve out 1 hour per week calling these ads, I'm certain it will be worth your while. What would just 1 more deal per quarter do to your financial statement?

 

If fear of cold calling is your stumbling block, what exactly are you afraid of?

Rejection? They aren't rejecting you, just your solution to their problem

Ridicule? Don't you face this with family and friends who think your REI plan is nuts?

Physical harm? Over the phone?...NOT LIKELY! ...Press *67 and dial!

Sounding like a fool? Practice makes perfect! Use this method to get in your practice in a short amount of time. Press on thru the uncomfortable process of sounding like a blathering idiot until the words become comfortable in your mouth. Just cringe and keep going. Conduct a personal review after every call and ask yourself "How could I have stated that better?" "How could I have answered that clearer?"

Questions/Objections? None of us has all the answers. If you don't have the answers, someone here does. With practice, you'll get better handling the routine questions and objections (and trust me, they are all routine!)

A Deal? AH HA! So, before you pick up the phone have your next step in mind. "Mr Seller, I'd like to 1) see the home or 2) make you an initial offer. What would be a convenient time to meet."

 

What's the worst thing that can happen? They say "NO WAY!" and you say "NEXT"...and dial the next number!

 

I challenge anyone who is up to it to make the committment to dial 50 numbers in the next 7 days and keep track of the responses. Did they say No, Yes, or Maybe later? Did you get an appointment?...Report back here and tell us how it came out.

 

Post a reply here if you are willing to take the Cold Call Challenge.

 

now go find another motivated seller....

option8

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I couldn't agree more. I am one of those voices in the wildnerness who is fighting the tide. I read all too often that cold calling is a waste of time. I disagree strongly. I have always considered warm calling, (I can't refer to it as cold calling. After all, the homeowner has paid to have their ad in the paper and have folks just like us pick up the phone, dial their number, and ask questions.), a requisite part of every newbie's indoctrination into this business. It is an invaluable learning experience. Much more so than any mentor, video, or book can provide.

You quickly overcome your fear of talking to homeowners. You begin to understand what their concerns and questions are, (and most are the same). You begin to anticipate these questions and now you have the answers ready. Your comfort and confidence is now evident to the seller. Your answers are clear, concise, and sensible. The homeowner likes what they hear and begins to open up. You get a deal! It's a beautiful thing!

I know, I know. Warm calling is not the most efficient way to find deals. I agree. It's much easier when a homeowner picks up the phone and calls you from one of your ads, or signs, or flyers. But, until that happens don't you think you'd be wise to be more aggressive about your success? And what happens if your marketing plan is a good one and calls begin to roll in? If you have no experience speaking to homeowners, if you are nervous and insecure and uncomfortable, what will the homeowner think while listening to you stammer and stutter? You've just blown a good lead!

Rant winding down...........do yourself and your real estate career a favor. Pick up the phone and call FSBO and FRBO ads. Rant over........

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I just quit my job so I could devote 100% to my real estate investing career. My goal is to make at least 20 calls each day and door knock on 20 houses per week. That being above my normal foreclosure and I Buy Houses incoming calls.

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#1.

Last night a gentleman called us back about a home we'd called on.

He lives in MN but his vacation home here in Arky is for sale as he's retired and can't drive the trip down here anymore.

I'm sending the option forms for him to sign tomorrow, but we only got 30 days, and he's not interested in a L/O ...so now comes the 'interesting' part :P

I'm not super confident on this one, and there's little to no equity in the home.

Guess I will need to target the travel/retiree market.

going to post ad now !

 

#2.

* Also another we're making an appointment to go see Tuesday.He wants all ca$h, but I'm going to hold out for an option.

I think this one will be easier, although I have a feeling it might be close to " area 51" , right by 'hoodsville' :lol:

...I'm off to visit mapquest and try n' get some comps.....

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I'm sending the option forms for him to sign tomorrow, but we only got 30 days, and he's not interested in a L/O ...so now comes the 'interesting' part
Kerry, I assume you are talking about a Pure Option Agreement? You'll just need to kick your marketing of the property into high gear with only a thirty day time frame. With no equity in this deal, your best approach is to find an interested third party and simpy assign your option for a small assignement fee. Not a killer deal, perhaps, but nothing at risk, either, other than some time and marketing expense. But, don't be surprised if you're able to get an extension on that 30 day timeframe. I've had many a homeowner with no better alternatives agree to extend me more time as the "deadline" approaches.

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I've made about 15 "warm" calls since the paper came out this morning (FRBO). I just talked to a lady that has 24 rentals that she says are not cash flowing because she re-fi'ed last year. Most are 3/1or2 with a couple of 2/1s and a mobile home. She is getting "desparate" and is considering listing them with a realtor!

 

We talked about CA as an option for her and she likes the idea since she really can't afford to sell them (or to keep them?). Her only problem was that she couldn't afford to have them vacant while I looked for a T/B willing to live in her houses.

 

My last words to her were (after she gave me her monthly payments and amount owed on 7 of her "worst ones") give me a couple of days to sort through all of this information and I'll email you or call you. :lol:

 

Gary

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This one has all sorts of questions written all over it, and all sorts on possibilities, too.

For starters, if this woman is being honest, (and remember my motto: Buyers are liars; Sellers are story tellers.), you have a much greater chance of doing something quickly and solving her problem and pain, versus a straight sale using a Realtor. You need to be clear on this to her, Gary.

This owner, in the situation you have described, is a perfect candidate for the lease puchase advantage. And with 24 properties in her portfolio, do one or two quickly and correctly, and she may dump six months worth of work, (and paydays), in your lap.

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Calling FSBO's or FRBO is always a good idea. Another way to do this is to mail them a lease purchase advantage letter and get them to call you! I think it is much more powerful for them to call you then you to call them. It gets them on your turf. I would love to hear your thoughts on this!!!!

 

PEte

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puls1234,

 

You are right, mailing is a valuable way to reach motivated sellers. New investors don't seem to have too much difficulty with the relatively anonymous task of stuffing an envelope. This very valid marketing method doesn't cause us too much discomfort. I want to motivate us to move out of our comfort zones and get the practice of speaking with lots of sellers, make the word "ours", the phrase-ology second nature, get comfortable handling the objections and answering the questions.

 

This is purely a numbers game! Here's an analogy...If you want to win the lottery, you have to play--- this mean going to the corner store and playing. If you really want to win the lottery and your first ticket isn't a winner, don't you have to go back to the store and play over and over again. The odds of hitting the lottery aren't remotely close to the odds of finding a deal by calling FS and FRBOs.

 

It's true that we have to have several productive lead sources if we are going to be successful. The least expensive, most proactive avenue to take is "dialing for houses".

 

Here's another thought for you. It costs in both money and time to mail with no assurance of having a motivated seller on the phone. By picking up the phone and calling that ads that say "must sell" or "relocating" or any ad that indicates motivation, you can ascertain very quickly---within 2 minutes or less, for free, if there is a possible deal worth pursuing.

 

 

Hope this helps...

option8

 

P.S. I'll issue more challenges later.

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DRATS!

 

Looks like I missed someone selling 46 rental properties myself <_<

 

Just ran across an ad that said:

 

46 RENTAL HOUSES

Great investment. Buy some or all. Good cash flow. Most under $50,000.

Call _______ Realty xxx-xxxx

 

 

I think I'm gonna pretend to be the listing agent, disguise my voice, and say that "I'm cancelling our agreement...there's no way I (the realtor) could move all these houses...I'm just not capable, nor am I qualified. Thanks anyway."

Then refer my # to whoever owns all of em.

 

What do you think?

 

If that doesn't work out, then I'll just wait it out.

The above mentioned would most likely happen anyway. :lol:

 

Jason

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Option8,

 

By picking up the phone and calling that ads that say "must sell" or "relocating" or any ad that indicates motivation, you can ascertain very quickly---within 2 minutes or less, for free, if there is a possible deal worth pursuing.

 

Your post are great but I just don't think you understand some of the markets we are in ex. this ad could run and sell in 10 days or less

 

Piece of crap house over

priced and infested w/ rodents

very motivated but want better

than fmv call between 1030am

and 1100am on Monday or

friday only xxx-xxxx

 

I have a couple of deals but like I said before they are under educated sellers.

 

so Her is my new bandit sign

 

Eye Byz

Howzez

866-xxx-xxxx

:lol:

<_<

:lol:

:lol:

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LOL , Tony, love your ad..

 

Michael, you said :

Kerry, I assume you are talking about a Pure Option Agreement?

 

Kerry: yeah, not much equity at all really, maybe 2-4k as I see it.

However, it's in a good growth area, a buyer could do a L/O over 3YRs at 87'ish I think though.

might sell my option and finance the payment over 6 months or so.

Maybe this will draw some more interest.

Kez :)

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