MichaelC 160 Report post Posted February 14, 2011 Another question. How do I explain that I need the house under contract before I start marketing it for her? I don't think it will be too hard, but I'm not sure how to really go about putting that out there.Just be honest and tell her that having the deal in writing is a legal requirement, and that it also protects both of you by having the details in writing. I can't imagine she will argue with that. Share this post Link to post Share on other sites
MattF 0 Report post Posted February 15, 2011 Another question. How do I explain that I need the house under contract before I start marketing it for her? I don't think it will be too hard, but I'm not sure how to really go about putting that out there.Something I have said when you reach that point in your deal where you need to get it in writing is something like "Ok, since we have come to an agreement let's put the meeting of minds to paper so I can get busy taking care of this situation!" Your posture should be, this is the way it's done I am the professional. If they question why, which few should, a simple, "if it's not in writing, for real estate, it means nothing." should take care of it.GO GET EM! Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted February 16, 2011 Another question. How do I explain that I need the house under contract before I start marketing it for her? I don't think it will be too hard, but I'm not sure how to really go about putting that out there.Something I have said when you reach that point in your deal where you need to get it in writing is something like "Ok, since we have come to an agreement let's put the meeting of minds to paper so I can get busy taking care of this situation!" Your posture should be, this is the way it's done I am the professional. If they question why, which few should, a simple, "if it's not in writing, for real estate, it means nothing." should take care of it.GO GET EM! I like the way you put it, not as scary as "Here, sign these contracts" Share this post Link to post Share on other sites
blaklabrat 0 Report post Posted February 16, 2011 Sounds good! very helpful. I have another nother question now. I have a homeowner that I emailed asking if they would consider selling their house on a lease purchase and she responded "not at this time". Well I didn't take that as a no and sent another email saying that I understood and sent a copy of the LPA flyer. She emailed me back this morning saying that she talked with her husband about it and they'd consider a lease purchase if they don't sell by the end of April. I can deal with that. Then she had a laundry list of questions, some of which I am not worried about but I'll list them all here anyway. 1. Are you located in Colorado? (I am, so this one doesn't bother me)2. Are you listed with the BBB? (I haven't even incorporated yet so... no, and I'm hoping that doesn't lose a deal)3. Do you have an affiliate service in Florida? (MC? would you like a referral lol?4. Do the lessee's have to put any money down up front? (Of course, and that's my fee, but I think she might also be thinking about a sandwich lease)5. How well do you screen potential lessee's? (I might need a little help on this one also)6. What if they break the contract, then what? (They don't get their money back and I find a new t/b, right? I know I asked this question before, and I can look for the answer here, but it's still a question that makes me nervous.) That's all. I'm off to the doctor. Be back soon. I'm so excited about all the correspondence I'm getting from homeowners! Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted February 16, 2011 I have another nother question now. I have a homeowner that I emailed asking if they would consider selling their house on a lease purchase and she responded "not at this time". Well I didn't take that as a no and sent another email saying that I understood and sent a copy of the LPA flyer. She emailed me back this morning saying that she talked with her husband about it and they'd consider a lease purchase if they don't sell by the end of April. I can deal with that. Then she had a laundry list of questions, some of which I am not worried about but I'll list them all here anyway.No commitment and she's asking a ton of questions? I'm not a fan of these sorts of leads. She hasn't said "If it hasn't sold by April, we'll do a lease purchase", she said they'll CONSIDER a lease purchase if it hasn't sold by April. I wouldn't consider this a hot lead, but worth following up with anyway! 1. Are you located in Colorado? (I am, so this one doesn't bother me)2. Are you listed with the BBB? (I haven't even incorporated yet so... no, and I'm hoping that doesn't lose a deal)Shouldn't make a difference3. Do you have an affiliate service in Florida? (MC? would you like a referral lol?How come? does she have a property in FL she wants to sell, or is she asking for some other reason?4. Do the lessee's have to put any money down up front? (Of course, and that's my fee, but I think she might also be thinking about a sandwich lease)"Yes, that's actually where my company gets paid. When the lease option agreements are assigned, they pay you the first months rent and they pay my company a non-refundable option fee as a sign of commitment to the deal"5. How well do you screen potential lessee's? (I might need a little help on this one also)6. What if they break the contract, then what? (They don't get their money back and I find a new t/b, right? I know I asked this question before, and I can look for the answer here, but it's still a question that makes me nervous.)That's up to you. You can run a background check and present it to the seller or you can tell the seller that it's up to her to approve of the tenant/buyers that you present. You pre-screen 'em, and if she wants to run a background or credit check, you can leave it up to her.If they break the lease, they can be evicted, pay late fees, loose rent credit and option consideration... The goal is to not have this happen thoughb Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 16, 2011 Ayse, Chris is right on again, particularly with the point about the homeowner's many questions and suspicions while not seriously considering working with you. She has already tipped her hand at being a PITA. Follow up if you want the practice and experience, but don't knock yourself out over this one. It's not going anywhere. Share this post Link to post Share on other sites
MattF 0 Report post Posted February 16, 2011 Ayse, Chris is right on again, particularly with the point about the homeowner's many questions and suspicions while not seriously considering working with you. She has already tipped her hand at being a PITA. Follow up if you want the practice and experience, but don't knock yourself out over this one. It's not going anywhere.While I agree with the overall assesment of the situation. I think when you are still new and don't have a lot going on, it can be real good practice to deal with situations like this. It gives you part of the experiance necessary to determine what and what's not deals in the future. It also gives you live practice with out the worry of losing a deal that probably isn't there anyways. You get used to answering the tough questions and the more you do this the easier it gets. Then when you start working with clients that are actually deals they seem much easier(hopefully). When I first started, my mentor and I would litterally spend hours each night on the phone role playing both easy and tough situations. So when I actually started talking to clients it was very easy(easy being a relative term) I was still nervous but, I had gone over scenarios so many times it was almost second nature. I think what gets lost in the shuffle (esp. with the gurus)sometimes is that most deals aren't straight forward. There are some obstacles to overcome in almost every deal. The better we get at handling obstacles the more deals we have a chance of doing. All that said-I don't recommend continually working with non-deals because you can start to think this stuff doesn't work and then those dream stealers start getting the upper hand and we don't want that! Matt Share this post Link to post Share on other sites
<Steve> 82 Report post Posted February 16, 2011 I agree. I think getting a Mentor is the best way to get rolling with Lease Options and it is a whole lot easier. Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted February 17, 2011 Yep a mentor is a big help! Another less expensive thing that can help is making calls with another person. If you have Skype it's really easy. Find someone else who's making cold calls like you, and take turns calling leads. It helps because you've got someone else observing what you say, how you say it, what the seller says and what sort of stuff they throw at you as well as how you react to it. Having this other perspective of the conversation can be real valuable. Also, you get to observe the other person making calls, and watch the qualification/sales process from a different perspective. Plus, you can message back and fourth during calls to help the person making the call or maybe be reminded of something from the other person. ("Slow down!" "Let them talk more!" "How much does the property cost them each month?")Plus, there's the accountability of having someone else expecting you to make calls every day MattF - I see what you're saying, and I half agree. You do gain experience and confidence by talking to sellers and learning to handle questions. But with Craigslist and other free online FSBO sites there are plenty of leads out there, why spend time with someone who you KNOW is just going to get on your nerves and waste a lot of your time? I'd much rather get off the phone with someone who's gonna try and intimidate me by asking tricky questions and making me uncomfortable, especially since theres a 99% chance that I will never see a dime from trying to work with a seller like that. That sort of mental/ego abuse would NOT make me feel like making any more cold calls! (Ask me, I've been there.) My thinking is that as soon as you find out that theres very little likelihood of doing business with someone (disqualifying the prospect), GET OFF THE PHONE. I call FSBO's every day, half of my calls take less than 3 minutes, maybe 30% take 3 to 6 minutes, and 20% I'll talk to for longer than that. I'm not going out there to convince people to do something they're not interested in doing or aren't ready to do. If someone wants to ask a bunch of suspicious questions and not give me any commitment at all, I'll get off the phone quickly and move on to someone else who isn't gonna frustrate me! The call with that person is a complete waste of time. Share this post Link to post Share on other sites
MattF 0 Report post Posted February 17, 2011 Chris-First off I really like the idea of using skype. Back in 02 when I started that wasn't available. Next, I agree with you 100%. I guess I should have clarified that I thought that if someone was new and didn't have a whole lot going on it wouldn't be bad practice. But if you are in there and talking to a lot of people each day makes no sense talking to unmotivated sellers. How many calls you making a day on average? It's something I was never really big on, but times have changed and I need to get busy! Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted February 17, 2011 As far as FSBO/FRBO calls I've been making 4-8 new calls a day, plus follow up calls to info leads (people who are interested but aren't ready or qualified yet), I'll send them some info and then follow up after a certain amount of time depending on what the situation is. I'm using RealProspect to keep track of calls I make and calls I have to make, keeps everything organized and easy to work with! Share this post Link to post Share on other sites
<Steve> 82 Report post Posted February 17, 2011 Yep a mentor is a big help! Another less expensive thing that can help is making calls with another person...Maybe. Click the link below and go to number 7) at the bottom of the page. Then go to the top of the page and read through. Click Here Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 17, 2011 Yep a mentor is a big help! Another less expensive thing that can help is making calls with another person...Maybe. Click the link below and go to number 7) at the bottom of the page. Then go to the top of the page and read through. Click Here Thanks, Steve, for the props. Do I send the check to the same location as last time? Share this post Link to post Share on other sites
<Steve> 82 Report post Posted February 17, 2011 You can just send me the routing number to your bank account. That should work just fine. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 17, 2011 You can just send me the routing number to your bank account. That should work just fine. I didn't know you were from Nigeria. Share this post Link to post Share on other sites
