Leaving the door open with sellers who aren't so motivated

I've taken a few notes from podcast 39 with Seth Williams on marketing to delinquent tax owners. I've got to say I've been very impressed with the results so far. With just one mailing to this list of just of only 100 I've already had some very interested sellers. A couple were duds right away and only one guy called to tell me off - I'll never understand how I'm wasting their time by answering their phone call.

What I've really gained from the BP community was the importance of leaving doors open with everyone in your circle and trying to help people out even when you can't. With each of these leads I've had come through where the numbers are not in my favor I've been up front and honest about the situation and why I'm offering what I'm offering. The owners have been understanding. I also felt a since of pride I wasn't anticipating because I was trying to help them out of their situation even when I couldn't be the direct solution.

For example, one of the leads needed to catch up on his taxes by today. He called me 3 days prior. What he was really looking for was a quick loan that might help him out for the time being. Although I wasn't interested in that, he wasn't interested in selling if he didn't have to. Normally, our ways would part, but I made sure to inform him of the other options he may have available to him through the state and with finding the money to get himself caught up. If he were to go any of those other routes I make no profit, but I at least help someone out.

I recall an investor I met in Colorado Springs who worked specifically with pre-foreclosures. He had a number of ways to help people out of their situation. What really stuck with me was that of the dozen of so strategies he employed to help these troubled owners he only made a profit on three of those strategies. He still put in the time and effort to point people in the right direction and give them guidance free of charge. There were no consultation fees or legal filing fees but instead it was free advice for them. Of the multiple options the owner was provided they were the one that made the ultimate decision as to how they would proceed. I hope I can emulate that investor.

What the investor in CO does and what I'm employing I think is something investors really need to focus on; keeping those doors open so that lines of communication can be easily re-opened without hesitation or tension. Its a small small world out there and while it takes a lifetime to build your reputation it can be ruined in minutes. (I think that is a Warren Buffett quote.)

As discussed earlier one example of keeping that door open is by offering guidance for the owner. If you can't help them out send them to someone who can or knows how to. I received a call about a closed restaurant in a small town that the seller is willing to take a deep discount on, but I don't know the restaurant business nor do I know the restaurant business in a small town. I made sure to mention that I would certainly connect this owner to anyone I hear that might be interested and this gave him a little sense of ease.

The same seller was very appreciate of my honesty and straight forward explanation of why my offer was where it was. As a fellow businessman/investor he understood that I intend to make a profit and I wouldn't willingly put myself in a negative cash flow situation.

Hopefully, keeping the doors opens will pay off. I did find out this owner is the owner of many other properties in the area so down the line I could be someone he might call. If that increases my chance of getting a deal I will gladly take it. He may just also refer me to someone else as well. I'd rather have a referral, or no referral for that matter, than a negative comment about me.

To wrap things up I wanted to share one of my strategies that stops a seller from hating my guts immediately upon hearing my offer. I think we've all made that verbal offer on a property that is the low-ball offer. There has been the insulted seller, the seller that hangs up, and maybe some expletives thrown your way. So far, I've had sellers understand where I'm coming from and, perhaps more importantly, understand that I'm not a 100% sleaze ball investor.

When I'm on the phone with a seller who isn't super motivated, or I can tell my numbers are not in the same ball park they are in I'll be honest about it. I'll explain that I've run the numbers and I've done a little research on the county assessor website and I've come up with an offer. I'll also mention that it sounds like they are looking for x amount of dollars and that my offer, for it to make sense for me, is simply no where near that amount. Rather than insult them I'll simply move on past this deal. Then the best part happens.

They ask for the low-ball offer!

That's RIGHT! (Its late and I'm tired so I'm getting sales pitchy now) I think this strategy offers two things. For one, its the seller who is asking what the price is that you're offering. They won't get as mad as they would had you just made the offer. Rather than breaking the ice suddenly there was at least a caution sign on the ice. Secondly, even if the deal doesn't work out now and the seller doesn't like what you've got you may have a call back in a few months. At this point they at least know a ball park figure they can expect and with the added motivation they may be up for your offer finally.

Again, this is just another method to keep the doors open with sellers. Maybe its wishful thinking on my end and there may be the naysayers, but right now I'm learning. I'll take the time to help others because in doing so I'm learning different things about how to deal with their situation from a different perspective.