on the phone or in person

[verbatim 1]

When offering to buy someones home using subject to, L/O, land trust, land contract, or any other method thats not all cash ...do you think it makes a difference whether you make that offer over the phone or in person?

 

Some "Guru's" say you will only find success with these methods when you are face to face with the seller. Since I know this is where to come for no fluff answers I would like to know what you all think.

 

Can you get the deal over the phone?

 

Any input given from past experiences would be greatly appreciated

[option8 0]

I want to vote, but it is really determined by the motivation of the seller.

As a mother of a little one, it isn't always expedient to get face to face.

So, I spend much time building rapport and if I have to tell them that we could rent their home for a few years and cash them out down the road, I do.

 

If the motivation is there to move the property, they'll do it.

 

option8

[MichaelC 160]

Verbatim, as you may already know, and anyone who has read my manual surely does, I make the majority of my offers sight unseen. I think it is the responsibility of Realtors to view pretty kitchens and new berber carpeting. As an investor it is a waste of your time to take this approach.

My method is to determine if the seller is open to the idea and concept of a lease purchase. If they are, then I will fax or email them an offer. We probably will go back and forth a few times to work out the details. Once that is done, and we have an agreement of terms, then and only then will I go to view the property to see if it fits my needs, not to sell the terms and deal to the homeowner. That's already been accomplished. If there are no surprises regarding the property's condition and value, we sign off on it. If, however, the homeowner "forgot" to mention that the place is a dump I have the option of renegotiating the terms or walking.

That's my way and my preference.

[Guest Aaron]

My method is to determine if the seller is open to the idea and concept of a lease purchase. If they are, then I will fax or email them an offer. We probably will go back and forth a few times to work out the details. Once that is done, and we have an agreement of terms, then and only then will I go to view the property to see if it fits my needs, not to sell the terms and deal to the homeowner. That's already been accomplished. If there are no surprises regarding the property's condition and value, we sign off on it. If, however, the homeowner "forgot" to mention that the place is a dump I have the option of renegotiating the terms or walking. That's my way and my preference.

 

That sounds like a really good system. Do you do that for all of your deals (ca?) or does it just go like that if you're trying to set up a sandwich lease? Do you use the short offer form included with the course to make these offers? Obviously gas is expensive, so I would like to have all of the details signed off before I take the time to see the property. Great idea.

 

Thanks,

 

Aaron

[Kimberly 0]

Aaron,

 

Ideally you will have the details worked out on the phone (CA or sandwich lease), prior to seeing the property. Most likely, that will take some practice before it becomes reality for you.

 

The short offer form is geared more toward a sandwich lease than a CA.

[Guest Guest]

Thank you for clairifying that, Kimberly. If you're agreeing to certain details over the phone (CA), does it ever happen where the seller says they want a certain price or monthly rent and then change their figures/expectations when you get there?

[MichaelC 160]

That sounds like a really good system. Do you do that for all of your deals (ca?) or does it just go like that if you're trying to set up a sandwich lease?

As Kim said, this approach is more geared towards a sandwich lease. I want something in writing before driving to a property, spending time in the process.

With a CA, I take a less formal approach. The reason being the likelihood of a homeowner backing out is less because they see the value in working with me, together, cooperating. Getting them the best terms they could hope for.

When I call them and say, "Mr. Homeowner, after researching a bit, I can get you this, this, and this. And your net profit at closing will be $-----. And that's approximately $32K more than you could expect otherwise. How does that sound?"

The usual reply is, "That sounds great! What's next?"

And then I'm on my way to the property with papers in hand.

If you're agreeing to certain details over the phone (CA), does it ever happen where the seller says they want a certain price or monthly rent and then change their figures/expectations when you get there?

Yes. It happens occasionally. Where there is money and emotions involved, always expect the unexpected. And the times it does happen, you have a decision to make. After all is said and done, will you be able to market the property quickly and successfully and find a t/b? If yes, go ahead with the deal. If no, tell the homeowner just that, hand 'em your business card, and move on. You'll probably be getting a call three weeks later.

[Sold ! 0]

When I call them and say, "Mr. Homeowner, after researching a bit, I can get you this, this, and this. 

 

 

Excuse me for being nosey or stupid, but "what, what and what?"

 

[Kimberly 0]

When I call them and say, "Mr. Homeowner, after researching a bit, I can get you this, this, and this. 

 

 

Excuse me for being nosey or stupid, but "what, what and what?"

 

<{POST_SNAPBACK}>

Okay, but it's a one day deal!

 

Try:

NO Tenants & Toilets, aka Maintenance

NO RE Commissions

NO Closing Costs

 

"Mr Seller, after doing some research, I can get you $x / month, arrange it so the tenant/buyers handle all of the maintenance, and pay all of the closing costs. Your NET at closing will be $y. That's about $15k more than you'd probably be able to get otherwise. Does that work for you?"

[MichaelC 160]

What Kim said, Rich. In other words, all the advantages and the specific terms.

[Sold ! 0]

Nosey AND stupid !

 

I knew all that.

 

(in my best Homer Simpson...) DOH !

 

Late night Christmas parties for this DJ = I ain't thinking right yet today.

 

Thanks for the slap up side the head to waken me from my stupor. :ph34r:

[MichaelC 160]

Thanks for the slap up side the head to waken me from my stupor. :ph34r:

<{POST_SNAPBACK}>

Sometimes I prefer to remain stupefied...