ys
How about this system for those who want to accelerate their acquisitions.
Source:
It won't fit into one post
See part two in the next post.
Regards
How about this system for those who want to accelerate their acquisitions.
Hunting the deals!
Finding the Deals
• Place this classic ad in your local paper’s real estate section to appear on Sunday: If you can afford to run 6 days a week, then you won’t miss any sellers who need to act fast, Negotiate with the newspaper for a better rate.
I buy properties.
Will pay a fair price w/small down pmt.
Quick closings call (your name) @555-1212
• Start calling for “sale by owners” out of the classifieds and ask them all the questions you can up to the point that they have had enough or you find that it is not of interest to you or to schedule to meet them at the property to further investigate. Note: If they are difficult to talk to on the phone, they may be difficult in person – brace yourself!
Your script to use when talking to sellers (see breakdown for insights):
1. Do you own the property?
2. Why are you selling?
3. How long have you owned it? How old is it?
4. Are there any problems with it?
5. Can you tell me a little about the property?
6. When can I see it?
7. Whatever else you want to know, ask!
Breakdown
I. Do you own the property? If yes, now I know to go further.
If no, well who is the owner?
The following are possible answers with some possible conditions:
1. Out of town owner – unfamiliar with current market conditions
2. Incompetent to negotiate – power of attorney
3. Passed away/executor of estate – quick sale, legal authority
4. Real estate broker or organized selling entity – it may be overpriced.
5. Bank officer or foreclosure agency personnel dept. – lower your offer
6. Sophisticated lease optioning reseller/investor – big bad wolf! Are you alpha dog material? Are you smarter than the wolf?
7. Yes - go to the next question
II. Why are you selling? These are some of the biggies:
1. Divorced – Often 2 parties must agree, distress sale, “don’t wanters”, bad memories
2. Death – Executor, quick sale, high emotions, be considerate, tactful, caring
3. Relocation – quick sale, quick closing
4. Downsizing, “empty nesters” – maybe will agree to owner finance? Ask.
5. Moving to larger home – they will wait to get their price; price may be high due to new demands but not always.
6. Looming foreclosure – willing to negotiate, takeover payments, make up delinquent payments
7. Have a new home, need to sell this one – quick and in a bind
8. Was a rental, I’m tired and want to cash out! Probably sophisticated but may be a serious “don’t wanter.” Hint: Ask if they have any more rentals for sale!
The more you know, the better you can solve for the problem. Ask subsets of questions to understand more fully.
III. How long have you owned it? How old is it?
1. A long time – possible large equity, maybe owner financing, ask!
2. A short time – no equity, a reseller, rehabber (fixer-upper), divorce, transfer, lost job?
3. After 1978 – no lead-based paint disclosure required
4. Before 1988 – financing may be fully assumable, ask!
5. 30 years or older – inspect electrical, plumbing & heating closely, professional home inspection is a must!
6. How many people have owned it? Why did you buy it?
7. 50 years or older - difficult to finance
Statistically, people move on average every 5 years.
IV. Have there been or are there any existing problems that you know of?
1. “Well, yes, it has _____.” - you must decide if you want to deal with it.
2. “I don’t know”, “I’m not sure”, “I don’t think so”, just little things – get a signed disclosure statement and a home inspection. They may be concealing defects.
3. “It’s not mine” – go back to the first question if you missed it or they lied.
These questions begin to either interlock with previous questions or contradict them. Use these questions to cross check previous questions and answers, to develop your gut feeling, get clarity and root out deception! (Use all your scripts with this in mind.)
V. Can you tell me a little about the property?
This is the catchall. When you ask this question, be quiet and let them fill the voids of silence. Bite your tongue, ask open-ended questions that get them talking. You’re not looking for yes or no answers. You want their rambling life story. With this question, you may get the whole story, the true facts behind the sale. It’s one more chance to get them to volunteer information. Invoke the ASK principle and learn more – probe! What, why, where, when, how, who, anything else I should know? Ask.
VI. When can I see it?
1. Schedule it for daylight hours and don’t go alone. Bring a knowledgeable assistant for evaluation purposes and safety.
2. Try to see it as soon as possible! If it’s a good deal, it will be sold before you ever get there. Don’t get beat - push to see it quickly!
3. Schedule as many as you can and see more than one while you’re out if possible. Don’t forget your street finder, newspaper, notes, offer sheets, phone and flashlight.
4. Call the reverse listing phone operator. If you have a phone number, they will give you the address. Use your street finder to go straight to the property and see it immediately. Beat less educated hunters.
Don’t get sucked into an auction atmosphere.
VII. Ask anything you want. If you have any further questions that need to be answered, now is the time.
P.S. If you are selling, have your answers ready and be prepared to answer
The same questions, as they will be similar to the ones you asked above.
Finding the Deals
• Place this classic ad in your local paper’s real estate section to appear on Sunday: If you can afford to run 6 days a week, then you won’t miss any sellers who need to act fast, Negotiate with the newspaper for a better rate.
I buy properties.
Will pay a fair price w/small down pmt.
Quick closings call (your name) @555-1212
• Start calling for “sale by owners” out of the classifieds and ask them all the questions you can up to the point that they have had enough or you find that it is not of interest to you or to schedule to meet them at the property to further investigate. Note: If they are difficult to talk to on the phone, they may be difficult in person – brace yourself!
Your script to use when talking to sellers (see breakdown for insights):
1. Do you own the property?
2. Why are you selling?
3. How long have you owned it? How old is it?
4. Are there any problems with it?
5. Can you tell me a little about the property?
6. When can I see it?
7. Whatever else you want to know, ask!
Breakdown
I. Do you own the property? If yes, now I know to go further.
If no, well who is the owner?
The following are possible answers with some possible conditions:
1. Out of town owner – unfamiliar with current market conditions
2. Incompetent to negotiate – power of attorney
3. Passed away/executor of estate – quick sale, legal authority
4. Real estate broker or organized selling entity – it may be overpriced.
5. Bank officer or foreclosure agency personnel dept. – lower your offer
6. Sophisticated lease optioning reseller/investor – big bad wolf! Are you alpha dog material? Are you smarter than the wolf?
7. Yes - go to the next question
II. Why are you selling? These are some of the biggies:
1. Divorced – Often 2 parties must agree, distress sale, “don’t wanters”, bad memories
2. Death – Executor, quick sale, high emotions, be considerate, tactful, caring
3. Relocation – quick sale, quick closing
4. Downsizing, “empty nesters” – maybe will agree to owner finance? Ask.
5. Moving to larger home – they will wait to get their price; price may be high due to new demands but not always.
6. Looming foreclosure – willing to negotiate, takeover payments, make up delinquent payments
7. Have a new home, need to sell this one – quick and in a bind
8. Was a rental, I’m tired and want to cash out! Probably sophisticated but may be a serious “don’t wanter.” Hint: Ask if they have any more rentals for sale!
The more you know, the better you can solve for the problem. Ask subsets of questions to understand more fully.
III. How long have you owned it? How old is it?
1. A long time – possible large equity, maybe owner financing, ask!
2. A short time – no equity, a reseller, rehabber (fixer-upper), divorce, transfer, lost job?
3. After 1978 – no lead-based paint disclosure required
4. Before 1988 – financing may be fully assumable, ask!
5. 30 years or older – inspect electrical, plumbing & heating closely, professional home inspection is a must!
6. How many people have owned it? Why did you buy it?
7. 50 years or older - difficult to finance
Statistically, people move on average every 5 years.
IV. Have there been or are there any existing problems that you know of?
1. “Well, yes, it has _____.” - you must decide if you want to deal with it.
2. “I don’t know”, “I’m not sure”, “I don’t think so”, just little things – get a signed disclosure statement and a home inspection. They may be concealing defects.
3. “It’s not mine” – go back to the first question if you missed it or they lied.
These questions begin to either interlock with previous questions or contradict them. Use these questions to cross check previous questions and answers, to develop your gut feeling, get clarity and root out deception! (Use all your scripts with this in mind.)
V. Can you tell me a little about the property?
This is the catchall. When you ask this question, be quiet and let them fill the voids of silence. Bite your tongue, ask open-ended questions that get them talking. You’re not looking for yes or no answers. You want their rambling life story. With this question, you may get the whole story, the true facts behind the sale. It’s one more chance to get them to volunteer information. Invoke the ASK principle and learn more – probe! What, why, where, when, how, who, anything else I should know? Ask.
VI. When can I see it?
1. Schedule it for daylight hours and don’t go alone. Bring a knowledgeable assistant for evaluation purposes and safety.
2. Try to see it as soon as possible! If it’s a good deal, it will be sold before you ever get there. Don’t get beat - push to see it quickly!
3. Schedule as many as you can and see more than one while you’re out if possible. Don’t forget your street finder, newspaper, notes, offer sheets, phone and flashlight.
4. Call the reverse listing phone operator. If you have a phone number, they will give you the address. Use your street finder to go straight to the property and see it immediately. Beat less educated hunters.
Don’t get sucked into an auction atmosphere.
VII. Ask anything you want. If you have any further questions that need to be answered, now is the time.
P.S. If you are selling, have your answers ready and be prepared to answer
The same questions, as they will be similar to the ones you asked above.
It won't fit into one post
See part two in the next post.
Regards
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