First Day of Cold Calls - Fun Stuff!

[BakoInvestor 0]

Okay, so I recently received Michael's manual, read through it twice, and have spent countless hours going through forum posts dating all the way back to 2003. I've watched the

Naked Investor greats grow from my current position into successful REIs. What an amazing board!

 

I didn't have much time with FSBOs today, but this was really just a trial run to get over the newbie call jitters. I decided to begin my investing career strictly with CAs, so

I began my calls with these lines:

 

Me: Hi Mr. Seller, I'm calling about the house for sale?

Seller: Yes?

Me: Well, Mr. Seller, I was wondering if you would be interested in selling your house for above Market price on a Lease Purchase?

Seller: ............say what now?

 

Haha! It was fun! Now, I know this doesn't follow the phone script, but I just wanted to see how that line would go over, and what's interesting is that it was kind of a shock to

the Sellers' system. One of them immediately said NO, then almost as immediately asked what I meant

 

With each Seller that gave me that "foot in the door" I went more along the lines of the LP advantages per Michael's script. I really emphasized the following:

 

1. Above Market Price

2. No Realtor Commissions or Closing Costs

3. Large Buyer Pool

4. Buyer pays my fee, no cost to the Seller

5. Buyer handles all maintenance and repairs

6. Tenant-Buyer vs. Tenant mentality

7. Buyer is thoroughly screened (I'll be screening using basic FHA guidelines, with a bit of flexibility on a case by cases basis)

8. Short Lease Period (12 months)

9. Able to fill the property quickly, and with the most qualified tenant-buyer available

10. Non-Exclusive Option (I am here to help you, the tenant-buyer, and myself, but I will be more than happy for you if you're able to fill your property before I do)

11. Seller retains homeowner benefits until Closing

12. Highest NET profit at Closing

 

I didn't rattle these off all at once. I just peppered them into a relaxed, genial conversation. When the Seller would ask a question, I would answer it, but also slip one of the above

points into the same sentence as sort of a "by the way!" comment.

 

I also played up the Good Samaritan role because I want that to be an integral part of my business.

 

Anyway, down to the numbers. I only called 16 FSBOs, and out of those 16 FSBOs can you guess how many said "no' flat-out? ONLY SEVEN! I'm currently getting all my

ducks in a row to see what can be done with the Yes's/Maybe's. I jumped the gun a smidgen as I don't have a good grasp of the Contracts, although I know what I need and in

what order to do a CA. I just want to go through the Contracts and be comfortable with them.

 

Now, I don't know if my numbers are on par with everyone else's results, but it felt good because I was thoroughly expecting to get shot down every time. If you guys think it's

wise, I'm thinking about starting out my Initial FSBO/FRBO email with that "shock" line.

 

So I just wanted to post this and see what you guys thought about the approach. Should I change anything up/improve on anything?

 

And I just have to say, it's actually kind of fun talking to Sellers! They're just human beings with stories to tell, and I'm there to listen

 

-Adam

[<Steve> 82]

I'm sold! This isn't a hard sell; it is a conversation listening to the seller's story, and they all have a story, and how you can solve their problem with what you offer. I think your approach and attitude is perfect, and no need to reinvent the wheel either. Follow the Naked Investor techniques and they work. Tweak things as you go to see what works best for you. Do the numbers and use the Short Offer to help ease you and the seller into the final agreements.

[MichaelC 160]

Adam, what I think is that based on your post you're a natural for this business. Nice work! Great attitude and realistic expectations. Stay the course, with the key being marketing in various forms. If you're not talking to homeowners you're not getting any deals. Simple as that.

Hit us up with your questions and we'll do our best to get you going.

[BakoInvestor 0]

Thanks Steve and Michael! I really appreciate the encouragement! I also really like the Short Offer idea for getting

all of the numbers in place and having an overview of the deal; plus, it's simple for us math-challenged folk to follow!

 

I sent the LPA to many of those Sellers last night (with permission) and will be calling them

tomorrow.

 

Something I forgot to add in my initial post that I think was really helpful. One objection I came across quite a few

times was the, "I need to talk to my wife/husband about this." and I remembered from board archives how much

of a deal-killer that is. So the moment they started in with that line, I replied loosely with this response that I had written

down for just the occasion,

 

"Absolutely! Tell you what, I know this is a lot take in so if I could, I'd like to email or fax you some information; it's just

a one-page letter that you can read with your husband/wife that explains how all of this works, and it will help you point

out to him/her all of the advantages we've been talking about.

 

(Pause for affirmative reaction and collect either Email or Fax Number)

 

And if he/she has any questions, I'm more than happy to answer them. I want everyone to feel completely comfortable

with this process. And in the meantime, I'll look over the numbers and see if your property fits our families' needs."

 

I'll know tomorrow if this approach has any effect. I wanted to be helpful, but also remind them that ultimately I need to be

convinced to work with them.

 

If I get the, "My wife/husband just doesn't feel comfortable with this." line, or something similar, I'm going to give one slight

push to see if it's a cop-out or if it's just a matter of them being confused about something. I don't want to lose a sale because

I did a bad job of explaining the system.

 

"I completely understand. I know Lease Purchasing is new to some people, and I may not have done the best job of

explaining just how powerful a tool it is for Homeowners. I think your house is perfect for our families, and so in their best

interest can I just ask if there is anything I could clarify for your wife/husband?"

 

 

So that's it for now! Thanks again for the advice and encouragement. I can't imagine how difficult this was for you Michael, and

the other investor pioneers out there. I would definitely be lost without the manual and this board.

[MichaelC 160]

You hit on a key point. Always talk to all the decision makers simultaneously whenever possible. If not, what will happen is the one you spoke to then goes and talks to the other you didn't speak to. His explanation is half-assed, for sure. So the other half is listening and thinking, "You're doing what?!" It's all downhill from there.

[BakoInvestor 0]

You hit on a key point. Always talk to all the decision makers simultaneously whenever possible. If not, what will happen is the one you spoke to then goes and talks to the other you didn't speak to. His explanation is half-assed, for sure. So the other half is listening and thinking, "You're doing what?!" It's all downhill from there.

 

Great point! From now on before I get too far into the conversation I'm going to ask if any other decision makers are present, and if so, could they pick up a line/put me on speaker.

[BakoInvestor 0]

Hey everyone, I don't want to take too much time, but just wanted to update you all on my progress. I currently have TWO properties under contract and am searching for Tenant/Buyers. Having a Blast! Thanks Michael for your manual. I've been trying this REI stuff since 2004... wish I would have found you sooner

[MichaelC 160]

Hey everyone, I don't want to take too much time, but just wanted to update you all on my progress. I currently have TWO properties under contract and am searching for Tenant/Buyers. Having a Blast! Thanks Michael for your manual. I've been trying this REI stuff since 2004... wish I would have found you sooner

Wow! That was fast! Congratulations, Bako. Glad we could help in some small way. Now get to work and get those properties moved!

Keep us posted and ask if you need any help.

[BakoInvestor 0]

Believe me, you've been a massive help. The manual and this board is what gave me that last push to actually give this stuff a real shot. And CAs are an entirely different approach to what I was doing before. It makes a lot more sense, not only to me, but to homeowners who are trying to get FMV or more for their house. I also never liked the hard sell mentality of buying at deep discounts. I know you can make serious money on that side, but I don't think I'm cut out for it. I like this relaxed approach to investing.

 

The big seller so far seems to be the whole non-exclusive thing, which I picked up from someone here (pilot? rexford? king? I can't remember now). These two deals came from just those first few calls I made. After getting these two properties under contract, I actually stopped making calls to FSBOs; I want to concentrate completely on these two deals right now.

 

I've had a lot of questions, believe me! But the archives are an absolute gold mine. Plus, I'm trying to save any favors for those last minute questions I may need to ask during a deal; that way I don't annoy you guys too much

[<Steve> 82]

Congrats Adam! Nice going.

I've had a lot of questions, believe me! But the archives are an absolute gold mine. Plus, I'm trying to save any favors for those last minute questions I may need to ask during a deal; that way I don't annoy you guys too much

Don't worry Adam, I think I am the most annoying one here , ask away I think a bunch of us just like talking shop anyway.

[candyman_tx79 0]

Hey everyone, I don't want to take too much time, but just wanted to update you all on my progress. I currently have TWO properties under contract and am searching for Tenant/Buyers. Having a Blast! Thanks Michael for your manual. I've been trying this REI stuff since 2004... wish I would have found you sooner

 

Wow, that WAS fast...congrats. A few questions: What city are you in Bako? Did you get your leads from Craigslist? I'm guessing you followed the manual step by step when it came time to paperwork?

[Jason (AL) 1]

After getting these two properties under contract, I actually stopped making calls to FSBOs; I want to concentrate completely on these two deals right now.

 

This is where most lose their momentum and get frustrated.

Don't quit the marketing process just because you've now got a couple of deals.

What happens if these 2 deals fall through?

Are you going to quit after 2 deals, even after they're completed and you've got the checks in your hand?

 

Remember:

 

Today's marketing = tomorrow's paydays

[BakoInvestor 0]

Don't worry Adam, I think I am the most annoying one here , ask away I think a bunch of us just like talking shop anyway.

Thanks Steve! In that case, I'll be sure to throw some questions out there from now on

 

What city are you in Bako? Did you get your leads from Craigslist? I'm guessing you followed the manual step by step when it came time to paperwork?

I'm in Bakersfield, one of the hardest-hit markets. My leads came mostly from our paper, but I did get a few off of Craigslist. As for the paperwork, yes it was all from the manual, but with my own tweaks so that it flowed better for me. These are CAs, so I'm just following the CA contracts.

 

This is where most lose their momentum and get frustrated.

Thanks Jason, but you'll find that I am not easily frustrated! I know it's a numbers game and I know by not calling/emailing that I'm drying out my pipeline, but I did this specifically so that I can concentrate on the Tenant/Buyer side of things, just get used to the whole process. If these two deals fall through I just jump on the phone, no biggie. That said, FSBO & FRBO marketing will be in full swing, starting Sunday, I assure you!

 

Are you going to quit after 2 deals, even after they're completed and you've got the checks in your hand?

Why on Earth would I do that?? This is my business now

[The Real Deal 0]

Congrats Bako on getting those deal under contract so fast! Kind of makes me feel a bit like a slacker.

Care to share the numbers on those deals and the potential profit that you expect to make?

[BakoInvestor 0]

Congrats Bako on getting those deal under contract so fast! Kind of makes me feel a bit like a slacker.

Care to share the numbers on those deals and the potential profit that you expect to make?

I'm looking to make $3,000 to $6,000 on each deal, and I'm following Michael's advice about letting the T/B talk numbers

first. I've already explained to the sellers about the Option Consideration and they're both fine with me keeping it all.

 

On one property I'm offering 25% RC because he's high on the FMV side and I couldn't talk him down. However, it's

really not hard to sell the 25% RC to T/Bs anyway. I make it seem like I'm really breaking my bank by offering that. I'm

also selling the "Lease Purchase Opportunity", as well as the possibility of building equity over the coming year (our market

looks shaky for that, but we'll see).

 

50% RC on the other property, although I'll probably drop my RCs to 25% to 30% in the future unless I see a competitor

offering any more. So far I'm the only one that I've seen who's even advertising RCs, and it's definitely been a huge selling

point.

 

I'm setting up open houses for both properties and giving all the T/Bs appointments at 10 minute intervals. And I don't know

if it helps, but I've got a rather attractive lady friend who's agreed to show the houses for me