It gets easier and easier...

[Golflover 0]

Ok fellow REI's,

 

Heres two calls that i received back so far. Every person i called tonight was not around, but two returned my phone calls. Here we go....

 

Possible deal #1

 

5 house deal on the same street, all next to each other. Asking, $225K and will sell separate but wants the cash to put towards his mobile home park he just purchased. Heres the skinny....5 homes comped at $74k each=$370k

he's evicting a tenant this week and will only have one rented to a handicapped fella and he wont sell unless the buyer agrees to keep him locked in at his rate for 2 more years. One home needs about $8k worth of repairs (perfect for L/P) and i explained to him that whomever i get in there and does sweat equity and they dont buy, he will have a fixed house

 

im thinking CA with this deal...would i do it with just the 4 houses since ones already rented? never came across that before. Or would it be better to sandwich this deal and pray on the back end? I would much rather do the CA instead.

 

 

Possible deal #2

 

While on the phone with deal 1, this guy left a voice mail about a home he built and it didnt sell for what he wanted so he rented it out. Now he has tenants renting it for $975 starting Oct. 1st. I told him not sure how it would work out for me since i own a company specializing in L/P's. Then BAM, he asks, "hey, how does that work?" So, i gave him the sales pitch and he was very and i mean VERY bummed that he signed the rental contract with these people because i told him how much money i could get him. Anyhow, i told him to call me if anything fell through. Is there a way that this could work with an investment property that already has a tenant? HELP!!!

 

HOT OFF THE PRESS.......

 

Possible Deal #3 just called....

 

Another guy interested in L/Ping his home but he also has someone renting it till February. He said his tenant may be interested in purchasing the home after a year, i told him i could help with the sale or be a consultant with all the contracts and such. He wants me to call him in February and if this guy isnt going to buy, he wants me to L/P his home for him. Its only 5 months, just think of the experience i'll have under my belt by then!!!

 

Comments or help is needed....thank you

[Kimberly 0]

Golflover,

 

Possible Deal #1

Asking, $225K and will sell separate but wants the cash to put towards his mobile home park he just purchased.

Is he willing to wait for the cash?

 

If the price is right, you might be able to do a CA with an investor on the house with the handicapped tenant.

 

 

Possible Deal #2

Is there a way that this could work with an investment property that already has a tenant? HELP!!!

Probably not, since you already told him how much you could get him. Besides, he was already wanting more than he could get selling to an investor. That's why he's renting.

 

You COULD keep in touch with him and when the current lease is up, do a CA.

[Golflover 0]

I agree Kim with the 2nd deal. Im going to follow up on all three in time.

 

As far as the first deal goes, the more i think about it, the prettier the back end of a sandwich deal profit makes my mouth water. However, till i get my feet wet and the green of my newbie self turns into a brighter color, im thinking a CA is the way.

[Kimberly 0]

As far as the first deal goes, the more i think about it, the prettier the back end of a sandwich deal profit makes my mouth water. However, till i get my feet wet and the green of my newbie self turns into a brighter color, im thinking a CA is the way.

I'm thinking CAs are better until you have a good sized emergency fund set aside. It doesn't hurt to have the newbie stuff out of the way either!

 

Kim

 

PS -- $5k or so for a few hours work and then walking away from the deal (CA) isn't anything to sneeze at.

[Golflover 0]

Hell, for a quick $5k, not only will i sneeze, but i can afford to get a cold

[puls1234 0]

I feel CA's are the best 99 percent of the time. Where else can you nail down 3-10k dollars and be done with the deal? Now you go on to the next!!! CA's are unbelieveably good...

 

Pete

[Sold ! 0]

Golflover,

 

What kind of message are you leaving to get these people to call you back?

 

Are you simply saying that you are interested in the house and then leaving your phone munber, or are you going into some detail about what you are looking to do?

 

Sounds like you had a good night ! Nice work.....

[Golflover 0]

Rich,

 

I didnt give them any info at all. I just said i saw your ad in the paper and please call me back at this number. I figured since im not busy right now doing deals, i might as well get people calling me back so i can describe what i do. To my surprise, everyone that called me back was very upbeat and sounded interested with a possible deal anywhere from a month to 5 months down the road.

 

Doing it this way its serving a purpose of working on my vocal skills, being able to talk one on one over the phone, not talking "too professional", i even talked to one of the guys on how he could make more money without my services and he told me that if the guy doesnt buy the house in February, for me to call him then and he will let me have the deal since i sound seasoned. Not sure if it will amount to anything, but it sure does make me feel better to have that then a f@#$ off, dont call me anymore im not interested.

 

Another important note, these homes were in the investment properties section of the paper. I figure if they are investors themselves, so if they dont have this property, whos to say he doesnt have several more where that came from? Like the guy that owns the 5 houses on the same street, he's willing to sell seperate or in a group. At the end of Oct, im calling him back at HIS REQUEST to see if he's sold them, if not, it could be one hell of a sweet first deal for me!!!

[MichaelC 160]

Golflover, way to stop puttering around, (ugh...forgive me ), and getting serious.

Some feedback:

Deal 2: it's a no go for the time being. The homeowner has a signed lease agreement in effect. Nothing to do but wait it out. In the meantime, be certain to get your business card in his hands, along with some version of the LPA flyer. Then, follow up every few months. Today's efforts often produce results many months later.

Deal 3: same as above. Get him your information and don't be shy about frequent follow ups.

Deal 1: it sounds to me as if your comfort level is with CA's for now. That's fine. Then, let's clear our head and focus on just that. Do you want to make this easy on yourself, while at the same time showing the homeowner just what you can do? Work one deal with one property right now. Your choice, his choice, but agree on one. Whatever works. But, get one under contract and forget about all the other possibilities and other properties. Then, with some help from your friends and lovers here, you'll find that t/b. When all is said and done, you pocket the option money, (amount unknown at this time), repeat with numbers two through five. That's my suggestion.

I'll repeat the question Kim asked: is he willing to wait for his cashout? It sounds like it if he is renting these properties now, and entertaining the idea of a lease purchase. Just want to make sure before you spin your wheels.

The bottom line is that calling does work, doesn't it? Do it enough, not only do you get deals and dollars, you get experience and confidence, too. Now, don't rest on your laurels. Get to work with Deal 1. The more time that passes from the initial contact until the agreement is signed, the more likely the deal is to fall by the wayside. Make it happen, or know that there is nothing there and get back on the phone and back to marketing.

[Golflover 0]

I was just sitting at home looking through the sunday paper and it hit me....why not look at the investment section. Yes, there are sellers and landlords wanting out badly but what about investors or should i say someone who thought they could go to a bank and buy a house thinking they would make millions of dollars in the first month like you see on the infomercials? Or, i got talking to a builder that thought he would get top dollar for his efforts to find out that he started renting and would like to sell, and doing so at a discount. Last night i learned to be a conversationalist and not a seller, buyer or investor. We talked, we listened and we learned from each other...very enjoyable, cant wait to continue tonight. So, even though i still dont like the warm calls, last night made it more enjoyable. So everyone that doesnt want to make them, trust me, ask about the place they are selling, ask questions, listen then once everything has been answered and they ask when you wanna see the place, let them know..."well, i own a company that specializes in L/P's, i have more T/B's then homes and wondered if your interested in selling your home on a L/P?" then let them answer...if yes or they want to know more, explain the benefits to the SELLER and let them know your fee is paid by the buyer. I've had a few ask me how much that is...and i just say it really depends on the numbers ( i got that from watching Bush/Kerry last night)

 

If they say they arent interested, i say something like..."boy, isnt that a shame" then i go with..."even if i could get you more then your asking for in the ad?" and..."get you more money a month to cover your mortgage and property taxes?" you'll be surprised how many stop and ask you what you had in mind. Then give them a teaser of what you do, let them know about your database you have for buyers and that the people you get are looking to BUY not rent so they will take better care of it and they have ownership to benefit with the taxes...bottom line, just let it flow and once you've talked, then listen. If they still dont seem interested, ask them if it would be ok if you called them in 4-6 weeks to check up or have them call you if they change their mind. It may seem like alot of time, but i did it with all the guys that called me back last night and it worked. Enough of my babling...just want to give a push for someone looking to take a leap...into the great world of REI that is.

[Mr.B 0]

You bring up a good point GL. I really think presentation means everything.

 

Saying: "I saw your Ad and was wondering if you would sell your house on a Lease Purchase?", is not nearly as effective as saying something like: "Mr. Seller I'm looking to pay top dollar for a home in your Neighborhood, if I could possibly pay you MORE than your asking price would you consider selling on a Lease Purchase?

 

See the difference?

 

~Mr.B

[Golflover 0]

Mr B,

 

i have to admit its fun to ask them if they would do a L/P and they get ready to hang up on ya, until you mention you could get them several thousands of dollars more for their home and more monthly over their mortgage. You can hear a pin drop, then their questions start flying...so much fun

[Sold ! 0]

It may seem like alot of time, but i did it with all the guys that called me back last night and it worked.

It does seem like it would take more time, but the pay-off in relationship building might be worth it. I'm not sure I'd spend 1/2-hour on the phone "chatting", but 15 minutes or so per call might be a good way to land some more interested parties than quickly blowing them out with the first question on LP-ing their house cold.

 

Mr. B:

Mr. Seller I'm looking to pay top dollar for a home in your Neighborhood, if I could possibly pay you MORE than your asking price would you consider selling on a Lease Purchase?

Is this the first thing out of your mouth during the phone call, or have you built some rapport first?

 

If that's the initial play of the game, it didn't sit right with me from the first time I read it, so I sat and thought about it for a while. It still doesn't. It sounds like I need to buckle my seat-belt right away because I'm gonna get huckstered. Too used car salesman-ish for me. There must be a better way right out of the box to soften this a bit and be more "real world." Who in their right mind is going to pay me MORE than I am asking for my house?

 

I'm hoping that this question comes after a little "getting to know you" chat has taken place. And, even then, I don't know if "I'm looking to pay your MORE than your asking price" is the right wording.

[Mr.B 0]

Mr. Seller I'm looking to pay top dollar for a home in your Neighborhood, if I could possibly pay you MORE than your asking price would you consider selling on a Lease Purchase?

Is this the first thing out of your mouth during the phone call, or have you built some rapport first?

 

Doesn't really matter, the point of making this statement isn't nessecarly to get the home owner to jump right on board. It more to get them thinking. Nothing in that statement is decieveing or untrue. Its already been discussed here how to show the homeowner that they WILL net many more thousands of dollars doing a L/O than they could if they sold it themselves or through a Realtor.

 

 

so I sat and thought about it for a while.  It still doesn't.  It sounds like I need to buckle my seat-belt right away because I'm gonna get huckstered.  Too used car salesman-ish for me.

 

Well maybe thats what it sounds like to you and maybe if someone called you with this line you wouldn't respond to it, so don't use it.

 

I personally think its a great line to use. But, if it doesn't "sit right" with you then don't use it.

 

I was just offering a suggestion, if it doesn't work or apply to you and your style so be it.

 

Good Day

 

~Mr.B

[MichaelC 160]

Last night i learned to be a conversationalist and not a seller, buyer or investor.

Golflover, that's a great attitude! It's easy for me to forget sometimes that because I have been doing this for so long, others who are new don't yet understand what I now take for granted. Indeed, on the phone we are just having a conversation. It isn't an inquisition. And, done with this in mind, speaking with homeowners is, for the most part, enjoyable. Sure, there's the occasional jackass, but that's the exception rather than the rule. I'm glad to read that you have crossed that normally huge obstacle of warm calling. You may not think so at this time, but you have taken a big step forward in your charge to succeeding in this business!

Reminds me of a recent experience with a student of mine. He was making some phone calls and making some progress. Looking to speed up his progress, I told him to listen in on a phone conversation of mine with a seller. So, he gave me a number of a homeowner in his area, and I called while he was listening in on his phone.

I spoke with this particular woman for about ten minutes. Ths usual stuff. No high pressure on my part. No animosity on her's. Nothing adversarial at all, in other words. When I hung up the phone and asked my student for his reaction, he said, "Man, you just had a conversation!"

I wasn't sure what he meant, and asked him to explain. He went on to tell me that I made it sound like I was conversing with a friend. That the ten minutes on the phone were as if I was talking to an old buddy. I never thought of it this way, but he's right, of course.

Just have a conversation. There is no one right way to approach speaking with homeowners. Everyone must find there own style. What I suggest and do is my way, and doesn't necessarily mean it's going to be your way, too. Experience is always your best teacher. Get on the phone, get kicked around a bit, and make some mistakes. But, as long as you're learning from 'em, you're making progress.

By the way, Golflover, what is happening with your Deal 1? Did you follow up?