Calling Scripts

[Kevin Kaczmarek]

Does anyone know a great source for phone calling scripts for various aspects of real estate? I just brought a few people on board who will be handling qualified leads and am looking for "Subject-To", "Seller Financing" and "Cash Sales" style scripts.

[Steve Babiak]

I recently assembled a bunch of scripts in this next link:
http://www.biggerpockets.com/forums/87/topics/61286-scripts-for-calling-on-sellers

[Michael Quarles]

Cold Call

Hi, my name is __________with I Buy Houses… We are looking for 3 and 4 bedroom homes in your neighborhood…And I was wondering…who do you know that is looking to move out of your area? (No one) Fantastic!

Thank you for taking the time to think about it.. By the way

1. Have you thought about selling? (Never) Terrific!

2. If you were to sell…where would you go next? (Back to LA) That’s Exciting!

3. And when would that be? (3 months) Fantastic!

If they do not want to sell say thank you and hang up
or
If they want to sell

4. Are you planning on selling this house? (Yes) That’s exciting!

5. Do you have your next home picked out already? (You do) Ouch!

6. What do you think it will take to get the houses sold? (The right offer) Really!

7. I buy houses… just like yours… all of the time, and I have found that if the seller is willing… we can come up with a solution that works best for both of us, is that okay with you? (Yes) outstanding

8. Sometimes the only way we can buy the houses we look at is to take over the debt and pay you your equity, That means the loan will stay in your name until its sold, assumed or paid off.

9. Sometimes even buy the house under a lease option… Is that a problem? ⯠Yes ⯠No

10. So if we can pay you your equity, guarantee and make your payments and be responsible for all repairs you will sell the home to us, right? ⯠Yes ⯠No

11. What time today would be better for me to come out and buy your house ___________ or ______________? (___) Terrific

12. Before I come out… there are just a few more questions… I need to ask about your house, is that okay? (It is) outstanding

13. Is the home ⯠Vacant or ⯠Occupied? Occupant Name?

14. _____ Bedrooms ______ Baths

15. How many Square Feet? ________________

16. Size of the Garage? ____________________

17. How did you happen to own the home?

18. What Kind of repairs does it need?

19. ⯠Carpet ⯠Paint ⯠Roof ⯠Cabinets ⯠Electrical ⯠Plumbing ⯠Plaster ⯠Sheet Rock
⯠Cooler ⯠Heater ⯠Air Conditioner â¯Window ⯠Landscaping ⯠Clean-up ⯠______

20. What do you think the repair cost will be?____________

21. What are you asking for the house? __________________

22. Is that ⯠Fixed–Up or ⯠‘As Is’

23. How did you come up with that Price?

24. How soon would you like to be sold? ____Days _________Date

25. Is there a Mortgage on the house? ⯠Yes ⯠No

26. What is/are the balance? 1st ________ 2nd ________3rd________

27. Are you in Foreclosure? ⯠Yes ⯠No ⯠Notice of Default or ⯠Trustee Sale...Sale Date _______ Arrearage Amount __________

28. One last thing…. When I come out… it is important…that all of the decision makers be there…. so I can come to an agreement to buy your house… Will all of the decision makers be there for the appointment? (If all of them are not there don’t go)

29. Well, ____________ I look forward in meeting you at __________…

FSBO Script

Hi, I’m calling about the house for sale… My name is __________with I Buy Houses.

I bet you are bombarded with real estate agents calling you and trying to list your home for sale… And

1. I’m sure you’ve selling your houses yourself to save as much money on real estate commission as possible…Is that right. (It is) Terrific! / Really!

2. When would you like this house Sold? (Now)That’s exciting!

3. Do you have your next home picked out already? (You do) Ouch!

4. What do you think it will take to get the houses sold? (The right offer) Really!

5. Now you had it offered at _________ and it didn’t sell, right? (No) Really!

6. And your planning on lowering the price this time to get the house sold, aren’t you? (You are) terrific!

7. I buy houses… just like yours… all of the time, and I have found that if the seller is willing… we can come up with a solution that works best for both of us, is that okay with you? (Yes) outstanding

8. Sometimes the only way we can buy the houses we look at is to take over the debt and pay you your equity, That means the loan will stay in your name until its sold, assumed or paid off.

9. Sometimes even buy the house under a lease option… Is that a problem? ⯠Yes ⯠No

10. So if we can pay you your equity, guarantee and make your payments and be responsible for all repairs you will sell the home to us, right? ⯠Yes ⯠No

11. What time today would be better for me to come out and buy your house ___________ or ______________? (___) Terrific

12. Before I come out… there are just a few more questions… I need to ask about your house, is that okay? (It is) outstanding

13. Is the home ⯠Vacant or ⯠Occupied? Occupant Name?

14. _____ Bedrooms ______ Baths

15. How many Square Feet? ________________

16. Size of the Garage? ____________________

17. How did you happen to own the home?

18. What Kind of repairs does it need?

⯠Carpet ⯠Paint ⯠Roof ⯠Cabinets ⯠Electrical ⯠Plumbing ⯠Plaster ⯠Sheet Rock
⯠Cooler ⯠Heater ⯠Air Conditioner â¯Window ⯠Landscaping ⯠Clean-up ⯠______

19. What do you think the repair cost will be?____________

20. What are you asking for the house? __________________

21. Is that ⯠Fixed–Up or ⯠‘As Is’

22. How did you come up with that Price?

23. How soon would you like to be sold? ____Days _________Date

24. Is there a Mortgage on the house? ⯠Yes ⯠No

25. What is/are the balance? 1st ________ 2nd ________3rd________

26. Are you in Foreclosure? ⯠Yes ⯠No ⯠Notice of Default or ⯠Trustee Sale...Sale Date _______ Arrearage Amount __________

One last thing…. When I come out… it is important…that all of the decision makers be there…. so I can come to an agreement to buy your house… Will all of the decision makers be there for the appointment? (If all of them are not there don’t go)

Well, ____________ I look forward in meeting you at __________…

For Rent Script

Hi, I’m looking for _____ … Hi ______ … my name is _______ with I Buy Houses.

I noticed that you have a house for rent and I buy rentals… actually all of the time… and being a landlord myself… I know how frustrating… the rental business can be…

1. Have you thought about… selling your rental… before you spend the time and money to fix it up and re-rent it? (You have) Terrific! / Really!
2. I buy rentals… vacant or occupied… would there be a… good time… to come out and talk about whether… you want to sell… your rental? (There isn’t) Outstanding
If they don’t want to sell
3. If you don’t mind I am going to be sending you my card and checking back with you from time to time, if that is okay with you? (It is) Great
If they do want to discuss selling
4. I buy rentals just like your all of the time, and I have found that if the seller is willing… we can come up with a solution that works best for both of us, is that okay with you? (Yes) outstanding

5. Sometimes the only way we can buy the rental we look at is to take over the debt and pay you your equity, That means the loan will stay in your name until its sold, assumed or paid off. Is that a problem? ⯠Yes ⯠No

6. Sometimes even buy the house under a lease option…Is that a problem? ⯠Yes ⯠No

7. So if we can pay you your equity, guarantee and make your payments and be responsible for all repairs you will sell the home to us, right? ⯠Yes ⯠No

8. What time today would be better for you for me to come out and talk with you ___________ or ______________? (___) Terrific

9. Before I come out… there are just a few more questions… I need to ask about your house, is that okay? (It is) outstanding

10. Is the home still ⯠Vacant or is it now ⯠Occupied? Occupant Name?

11. How much do you collect in rent? __________

12. _____ Bedrooms ______ Baths

13. How many Square Feet? ________________

14. Size of the Garage? ____________________

15. How did you happen to own the home?

16. What Kind of repairs does it need?

17. ⯠Carpet ⯠Paint ⯠Roof ⯠Cabinets ⯠Electrical ⯠Plumbing ⯠Plaster ⯠Sheet Rock ⯠Cooler ⯠Heater ⯠Air Conditioner â¯Window ⯠Landscaping ⯠Clean-up ⯠______

18. What do you think the repair cost will be?____________

19. What do you think the house is worth? __________________

20. Is that ⯠Fixed–Up or ⯠‘As Is’

21. How did you come up with that Price?

22. How soon would you like to be sold? ____Days _________Date

23. Is there a Mortgage on the house? ⯠Yes ⯠No

24. What is/are the balance? 1st ________ 2nd ________3rd________

25. Are you in Foreclosure? ⯠Yes ⯠No ⯠Notice of Default or ⯠Trustee Sale...Sale Date ______ Arrearage Amount __________

26. One last thing…. When I come out… it is important…that all of the decision makers be there…. so I can come to an agreement to buy your house… Will all of the decision makers be there for the appointment? (if all of them are not here don’t go)

27. Well, ____________ I look forward in meeting you at __________…

Foreclosure Script

Hi, I’m looking for _____ … Hi ______ … my name is _______ with I Buy Houses.

I hate making these types of telephone calls… And I’m sure you’ve aware that your house has showed up on the [your county] county website as a house in foreclosure.

1. Is the foreclosure a temporary situation…one where you will be able to…. come up with the… money… or are you going to …sell your house… before the bank takes it? (Sell) That’s exciting!

2. I was wondering… Are you aware of your rights… regarding these issues? (You are) Terrific! / Really!

3. Well I help people… in your situation… all of the time …and I can help you too… What time today would be better…. for me to come out… and discuss your options? ___________ or ______________? (___) Terrific

4. Before I come out… there are just a few more questions… I need to ask about your house, is that okay? (It is) outstanding

5. Is the home ⯠Vacant or ⯠Occupied? Occupant Name?

6. _____ Bedrooms ______ Baths

7. How many Square Feet? ________________

8. Size of the Garage? ____________________

9. How did you happen to own the home?

10. What Kind of repairs does it need?

11. ⯠Carpet ⯠Paint ⯠Roof ⯠Cabinets ⯠Electrical ⯠Plumbing ⯠Plaster ⯠Sheet Rock ⯠Cooler ⯠Heater ⯠Air Conditioner â¯Window ⯠Landscaping ⯠Clean-up ⯠______
12. What do you think the repair cost will be?____________

13. What do think the house is worth? __________________

14. Is that ⯠Fixed–Up or ⯠‘As Is’

15. How did you come up with that Price?

16. What is/are the balance of the mortgages? 1st ________ 2nd ________3rd________

17. What is your Sale Date _______ Arrearage Amount __________

18. One last thing…. When I come out… it is important…that all of the decision makers be there…. so I can come to an agreement to buy your house… Will all of the decision makers be there for the appointment? (if all of them are not here don’t go)

19. Well, ____________ I look forward in meeting you at __________…

Expired Script

Hi, I’m looking for _____ … Hi ______ … my name is _______ with I Buy Houses.

I’m sure you’ve figured out that your house came up on our computer as no longer listed for sale using a real estate agent…

1. I was wondering… did you take it off of the market…. because the real estate agent couldn’t sell it? (You Did) Terrific! / Really!

2. When would you like this house Sold? (Now)That’s exciting!

3. Do you have your next home picked out already? (You do) Ouch!

4. What do you think stopped your house from selling? (The agent) Really!

5. Now you had it offered at _________ and it didn’t sell, right? (No) Really!

6. And your planning on lowering the price this time to get the house sold, aren’t you? (You are) terrific!

7. I buy houses just like your all of the time, and I have found that if the seller is willing… we can come up with a solution that works best for both of us, is that okay with you? (Yes) outstanding

8. Sometimes the only way we can buy the houses we look at is to take over the debt and pay you your equity, That means the loan will stay in your name until its sold, assumed or paid off. Is that a problem? ⯠Yes ⯠No

9. Sometimes even buy the house under a lease option…Is that a problem? ⯠Yes ⯠No

10. So if we can pay you your equity, guarantee and make your payments and be responsible for all repairs you will sell the home to us, right? ⯠Yes ⯠No

11. What time today would be better for you for me to come out and buy your house ___________ or ______________? (___) Terrific

12. Before I come out… there are just a few more questions… I need to ask about your house, is that okay? (It is) outstanding

13. Is the home ⯠Vacant or ⯠Occupied? Occupant Name?

14. _____ Bedrooms ______ Baths

15. How many Square Feet? ________________

16. Size of the Garage? ____________________

17. How did you happen to own the home?

18. What Kind of repairs does it need?

⯠Carpet ⯠Paint ⯠Roof ⯠Cabinets ⯠Electrical ⯠Plumbing ⯠Plaster ⯠Sheet Rock ⯠Cooler ⯠Heater ⯠Air Conditioner â¯Window ⯠Landscaping ⯠Clean-up ⯠______

19. What do you think the repair cost will be?____________

20. What are you asking for the house? __________________

21. Is that ⯠Fixed–Up or ⯠‘As Is’

22. How did you come up with that Price?

23. How soon would you like to be sold? ____Days _________Date

24. Is there a Mortgage on the house? ⯠Yes ⯠No

25. What is/are the balance? 1st ________ 2nd ________3rd________

26. Are you in Foreclosure? ⯠Yes ⯠No ⯠Notice of Default or ⯠Trustee Sale...Sale Date _______ Arrearage Amount __________

One last thing…. When I come out… it is important…that all of the decision makers be there…. so I can come to an agreement to buy your house… Will all of the decision makers be there for the appointment? (if all of them are not here don’t go)

Well, ____________ I look forward in meeting you at __________…

Call Script
1. Owner first and last name. (if adding confirm spelling)______________________________________________
2. In case we get disconnected what is a good number to call you back on?_______________________________
3. Do you happen to have a cell number? _________________________
4. What is the best time to call you back? _________________________
5. How did you happen to hear about us? __________________________
6. Are you calling about a note you received regarding selling your house? Yes No Maybe
7. Do you have a house you're hoping to sell? Yes No Maybe
8. Is the house listed with a real estate agent? Yes No
9. What's the address of the house you're hoping to sell? __________________________________________
10. Property City?___________________ Property State? ___________ Property County?_______________
11. Out of curiosity, why are you selling? __________________________________________________________
12. When do you want the house sold? _____________________________
13. On a scale of 1 to 10, 10 being highly motivated, how would you rank your motivation to sell? ___________
14. How did you happen to own the home? ____________________________________________________________
15. Is the Home Vacant or Occupied? Vacant Occupied
16. Occupants Name? ________________________________
17. Do You Know the Year Built? __________________
18. What is the approximate square footage? ___________________
19. How Many Bedrooms? __________________ How Many Bathrooms? ______________ Size of the Garage? ___________
20. Knowing I buy "As Is" tell me a little about the condition of the property, does it need any repairs? Things like paint, carpet, roof repairs and such? ________________________________________________________________________________
21. What do you think the repair costs are going to be? _______________________
22. What do you think your house will appraise for in today's market? ____________________
23. What are you asking for the house? _______________________ Pause
24. Is that price "As Is" or fixed up? ___________________
25. How did you happen to come up with that price?___________________________________________________________
26. Are your payments current or behind? Yes No A little In Foreclosure
27. If in foreclosure; You may owe more on your home than it is worth, would you agree?
28. Do you have an interest in NOT having a foreclosure on your record right?
29. Have you heard of a short sale? Yes No
30. Owner Occupied Foreclosure? Yes No
31. Notes ________________________________________________32. Prospect Status Dead Follow up Made Appointment

[Steve Babiak]

Michael,

Your earlier contributions of those were already hyperlinked in my "compendium" from the BP archives ...

[Michael Quarles]

The Presentation Script

The following is an explicit description of what I do, and say, in a presentation. You can use this as your script for every presentation you make. Study it, memorize it, follow it, and you will close the majority of your deals. Here we go!

REI Statement: “Here is my business card.â€

Hand a business card to everyone in the room. Include everyone in the conversation, assuming that they are over the age of 16. Only interested and concerned allies of the seller will be at the presentation by default, so you want to include everyone in order to win them all over.

When I knocked on the door at the beginning of the house inspection, I introduced myself to the person who opened the door. If there are people at the kitchen table whom you haven’t met yet, introduce yourself to them at this time. Look them in the eye when doing so. This shows sincerity and that you have nothing to hide.

REI Statement: “Thank you for inviting me out to buy your house today.â€

Right from the beginning I am letting them know that I am there to buy their house and that we are going to accomplish that task today. The conversation is already heading in my direction.

Questions: “How did you happen to find our company to call?â€

You want to know where your leads are coming from in order to ascertain where your promotional efforts are working. This also reminds the seller that he found you and why he decided to call you instead of someone else. Often they will tell me they didn’t know who to call, which gives me more positioning power.

Seller Answer: “We got one of your postcards in the mail.â€

REI Statement: “You got a postcard in the mailâ€"terrific. I guess it pays to advertise.â€

If they use broken English, so should you. You will want to mimic your seller every step of the way. I always like interjecting with a little humor, and my statement of “…it pays to advertise,†does just that.

REI Question: “When would you like to have your house sold?â€

Seller Answer: “We are moving into our new house in a couple of weeks.â€

REI Statement: “You’re moving out in a couple weeks. Oh, my!â€

You will repeat everything the seller tells you, back to them. In the event there is an urgency statement like “We are moving,†if you follow that statement with “Oh, my!†you will be planting fear in the minds of the seller that doom is around the corner unless they agree to sell you their house quickly.

REI Question: “So if I can close escrow on this house within a few days will that be okay for you?â€

Seller Answer: “That would be great!â€

This statement is letting them know that you can solve their troubles.

REI Statement: “Closing in a few days would be great. Fantastic!â€

Again, you’re reaffirming what they say.

REI Question: “How long have you been offering the house for sale?â€

By the way, you already know most of the answers to the questions you will be asking in this presentation interview, assuming you’ve read my inbound script.

Seller Answer: “We have had it up for 3 weeks now.â€

REI Statement: “You’ve had it up for sale for three weeks. Really?!â€

Again, you’re reaffirming what they say. And using “Really?!†is putting doubts in their minds that it may never sell or that something is wrong in how they are trying to sell it.

REI Question: “What do you think has stopped it from selling?â€

You’re only going to ask this if they have been trying to sell for more than one week.

Seller Answer: “I’m not really sure.â€

REI Statement: “You’re not sureâ€"hmmm.†[ Pause…] “As an investor, I buy houses frequently and I can say that the number one reason houses sit on the market is because of the price at which they’re offered.â€

I am not going to get into price yet; I just want to instill in their minds that they may need to lower their price to sell their house.

REI Statement: “Let me tell you a little about what I do. I buy houses like yours all the time.â€

I assure them right from the beginning that I do this all of the time. I always make sure that they can only conclude that I am a complete and total professional, and so should you.

REI Statement: “I pay all the costs â€" including the real estate commission, the title insurance, escrow fees, transfer tax, Natural Hazard Disclosure, etc.â€

As I mentioned earlier, I handle the objections in my presentation, and the biggest objection is who is going to pay what. Most sellers are aware that it costs money to sell a house, however, most do not know exactly how much. And most of the time our sellers are too distressed to call a Realtor to find out. Use their lack of knowledge to your advantage.

REI Statement: “And I buy them in an “as is†condition. I am going to kill the bugs as well as assume the responsibility for all of the needed repairs â€" whether I have seen them already or not.â€

By buying “as isâ€, it assures the seller that the “price†is the “price.†Although you know that your contract will have contingencies that allow you to renegotiate the sales price if you find repair issues later through an inspection.

REI Statement: “So when we agree on a price tonight, the only thing you will subtract from that price is the principal left on your mortgage.â€

From the very beginning I want to start talking about the loan and the amount they will receive. I will later turn the conversation from a sales price to a “Money in Their Pocket†price.

REI Statement: “And I can get you your money in as little as a few days.â€

I am letting them know that I can move as fast as they need.

REI Statement: “I will make all the repairs, and you saw that the items we marked down came to about $5,400 as we went through your house, and that doesn’t even include the items I didn’t see.â€

I want them to know that my price might be better than they should get if I were to have noticed what is actually wrong with the house that they aren’t telling me about. And every distressed seller has something in his or her closet that they aren’t talking you about.

REI Statement: “One of the positive factors about selling me your house is that you can stay in it for as long as you need to and have the peace of mind of knowing it’s sold.â€

One of the issues of buying a house for most sellers is that they may not have a house to go to. So I let them know that escrow will close when they are moved out of the house but that they can stay there for as long as they need in order to find their next house. The only exception would be when someone is in foreclosure. Because of the pressing time table, they have to move as soon as possible. And, in this case, you should have the policy that you don’t provide money until the house is vacant and you have the deed.

REI Statement: “And not only sold, but sold to someone who can afford to buy it.â€

This is a classic example of an embedded command. I am telling them that I can afford to buy their house. When you do this, you are removing any doubt in their mind as to your ability to buy the house. Some of you may be younger than the seller, and it is important they have confidence that you can perform and that you are not “wishy-washy,†flying by the seat of your pants, or just a smooth talker.

The other powerful command is you are telling them that their house is “SOLD!â€

REI Statement: “You see, I sell houses too, and many times I have seen buyers make offers on houses, and when we get into escrow and I’ve spent a lot of money on the process, it turns out the buyer has an IRS problem or child support payments he didn’t mention, and he can’t qualify.â€

This is a example of creating a fear in the minds of the sellers that if they don’t sell their house to me, the next buyer may be a flake.

REI Statement: “Believe me, there is nothing more frustrating than seeing a deal break down in escrow. That isn’t going to happen to you.â€

Again, a classic example of an embedded command. I am telling them to “believe me.†When you say “believe me,†point to your chest, tapping your open hand on your chest. This will reinforce this embedded command even further.

When you say, “That isn’t going to happen to you,†shake your head side-to–side, expressing the no/negative bodily mannerism.

REI Statement: “Another positive factor is you won’t have any of the monthly costs that add up while waiting for the right buyer to come along with the right offer, and have that buyer be one who can actually follow through on the purchase.â€

I am communicating three items in this statement that are important:
• One, I am the right buyer.
• Two, I can follow through with the purchase.
• Three, that my offer is the right offer.
Realize that I haven’t yet told them how much I am giving them for their house. I am, however, telling them that it is the “Right Offer.â€

REI Statement: “And maybe the most important factor is that you can get on with your life and not have this burden hanging around your neck.â€

Telling a seller that you are offering a peaceful solution, taking away their pain, maybe fulfilling their needs, is a great statement prior to talking about money.

REI Question: “Isn’t that really what you want?â€

Seller Answer: “Yes it is. That’s why you’re here.â€

REI Statement: “Getting rid of this burden is a good thing â€" fantastic.â€

I always reaffirm the seller’s statement, and I am again embedding in their mind that to get rid of their house and my solution is a good thing.

REI Question: “Let me ask youâ€"I know you have a number in your mind of how much your “walk-away†money was going to be â€" the amount of money you believe is fair â€" so you can get on with your life...â€

I always ask this before I give them my offer just in case they give me a lower number than the one I was going to offer. I have been surprised more than once by this. Just be sure not to look surprised when it happens to you.

Once during a presentation, a seller told me that he wanted $200,000 for his house. On the inbound fill-out script form, what was written looked like $280,000, which happened to be the fair market price of the house. When the seller said $200,000, I asked him when he would like that amount, and he said in 14 days or less.

Long story short, I gave him his $200,000 and resold it within a week for $272,500. It was $20,500 more than the $52,000 I preach about being above.

Let the seller tell you what he is hoping to clear after paying off the mortgage. Usually, the combination of the mortgage and his walk-away money is less than your Worth Value, but more than your Money Value, which is a great starting point.

REI Question Continued: “...so how much do you want to clear above the “subject to†mortgage balance; what I call the ‘walk-away’ money?’â€

Again, I ask them how much money they want in their pocket, not how much they want to sell the house for. I want to be negotiating a few dollars, not a few thousand dollars.

I am not asking them if I can buy the property “subject toâ€; I am assuming it. And this is the second time I talk about buying their house “subject to†the existing loan. The first time was a question asked from the inbound script when they called and made the appointment for me to come see their house.

Seller Answer: “About $50,000.â€

REI Statement: “$50,000. Great, we’re getting closer.â€

You want the seller to know that you are listening. You’re not ready to commit until their sales price is less than your offer. If it is, simply go to the second stage of the script, which talks about terms.

REI Question: “How much of that money do you need to move with, or are you planning to finance any of that amount for the buyer?â€

I am putting out a feeler to see if they need all of their money. What they say will determine what my offer is for seller financing.

Seller Answer: “We need it all.â€

REI Statement: “You need it all. Wonderful!â€

The way you use the word “wonderful†will tell them if their answer was a good answer or bad answer. I like to breathe a little heavy and say it like I am thinking, â€Damn!â€

REI Question: “Do you understand what I mean when I use the term “subject to†the mortgage balance?â€

Seller Answer: No or Yes

Whatever answer they give me, I still explain what “subject to†is. I do not want them to think it is a formal assumption and mess the deal up later.

REI Statement: “That means that the existing loan will stay on the house. I will begin paying the monthly payment and making up any back payments and pay you your equity. It is not a formal assumption. It’s the fastest and most economical way to get you your money and your house sold.â€

At the end of this presentation are the objection handlers for this. Practice them so you can repeat them during the presentation if the seller asks you questions. But if you act confident that this is the method for everyone to take, they will agree to this too.

REI Question: “That’s what you want, isn’t it?â€

They are either going to have a ton of questions or be okay with it, depending on their motivation. Both are okay. At the end of the presentation I will still offer them a cash solution, but rarely will they take it over the “subject toâ€. You will find out later in this e-book that the “cash†price is much less than the “subject to†price, and sellers are just as greedy as everyone else.

Seller Answer: “Yes.â€

REI Question: “Do you have a copy of your most recent payment coupon or statement?â€

Wait for them to get the statement. Even if they blurt out the payoff, still refer to the statement.

This is the first time they have participated in the presentation and it is very advantageous to get them to interact with you.

Seller Answer: “Here it is. It’s from 3 months ago.â€

REI Statement: “It’s from three months ago. That’s okay; the payoff amount won’t be too different.â€

Don’t subtract or add any amount to the payoff for recent payments being made. If the statement is within three months old, it is fine to go ahead and use those figures.

REI Statement: “So it says here that you owe $117,600 plus the $50,000, so you would like to sell for $167,600!â€

I know this sounds like a question, but it is actually a statement. You are just confirming verbally that you heard them and you’re doing the math.

On the yellow note pad that I included in the list earlier as one of the items needed for your presentation, draw a horizontal line down the middle of the paper, making two separate right and left sides. (See image below.)

Then write down on the top left of the note pad the following: “Owes $117,600.00â€, and on the next line below it write “Wants $167,600.00†– do not write “$50,000.00.â€

REI Question: “Are you aware of how expensive it is and all of the costs involved with selling a house like yours?â€

Seller Answer 1: “Not really but that’s why we are selling this way.â€

Seller Answer 2: “We’ve thought about using an agent if we couldn’t sell it ourselves.â€

I am letting them know that it is very expensive to sell a house and I am setting them up for the review of the expenses. I really don’t care what their answer is.
Let me start off by saying that most of the time I will not go into the breakdown of cost to justify my offer price, however knowing how the presentation flows and being able to repeat it, making it your own, is a great back-up when you have someone who needs an explanation.

I have been doing this long enough that I can tell if I need to justify or if I can go from their Walk-Away money right to my offer.

I caution you that if you’re unsure of yourself, it will show on your face and the seller won’t bite on your offer.

It is extremely important to practice this presentation over and over again.

REI Statement: “If you were to use an agent and have to pay the agent, along with all of the escrow and title costs, those items would run around 12% of the sales price.â€

When you say the words, “If you were to use an agent,†shake your head side-to-side as if you’re saying no. Say it like it is not something they want to do.

Seller Reply Question: “What costs are involved?â€

REI Statement: “Well, you were originally asking $205,000, and 12% of that is $24,600. That’s just for the agent and escrow and title insurance.

Even if you can do the math in your head you should still use the calculator and write the figures down on the right side of the note pad so they can see it visually. So you write “Wanted $205,000.00,†then under that write, “Costs $24,600.00†on your yellow pad.

Don’t be too slick by blurting out calculated numbers.

REI Statement: “The items that you are going to save by selling me the house are:"
Real Estate Commission
Title Insurance
Escrow Fees
Transfer Tax
Natural Hazard Report
Termite Clearance
Roof Certification
Water Heater Strapping
Smoke Detectors
Repairs to Bring up to Market Standards
4 to 6 months holding costs, waiting for it to sell
Mortgage Payments
Property Taxes
Property Insurance
Monthly Maintenance

You simply write the list on the left side of your note pad, under the “Owes $117,600†and “Wants $167,600.00.†Don’t worry about actual amounts next to the items, just the items in the list.

Using abbreviations while writing is okay as long as while you write you say aloud the complete word you’re abbreviating. Many times the sellers will pull the note pad over to them after your presentation is complete and review the numbers and they will need to understand what the abbreviations mean.

Only commission, title insurance, escrow fees, transfer tax, and the natural hazard report make up the 12%. The other items are there for effect and you will be putting numbers to them later in the script.

REI Statement: “And the cost that no one thinks they pay: loss of time and fear of loss.â€

Understanding the value people place on fear of loss is important. I will cover it in a moment.

REI Statement: “Earlier we determined that there are $5,400 in repairs that have to be done. $5,400 plus $24,600 equals $30,000 in costs so far.

Say what you are writing.

Write the amount under the “Costs†amount on the right side. Write slowly enough for the seller to understand what you’re writing. Don’t be in a hurry. Then add the two.

REI Statement: “In today’s market it could take between 4-6 months to get a home sold, close escrow, and money in your pocket.â€

If your market is slower or longer, adjust the timeframe. The timeframe I’m speaking about is the timeframe from now to the close of escrow; not from now to when they find a buyer. As I have explained, they may need to find several buyers before their escrow closes.

Again, you’re building the value of your offer tonight and of them accepting it.
REI Question: “What is your monthly mortgage payment?â€

Seller Answer: “$1,100 per month.â€

REI Statement: “$1,100 â€" Ouch!â€

Using words like “Ouch!â€, “Really!â€, and “Oh, my!â€, build considerable fear in the minds of the sellers; fear that they have to continue to make those payments or what ever you want them to start thinking about in a serious way.

You already know what their monthly mortgage is from the payment coupon the seller gave you earlier and the inbound script from when they called. But you want the seller to verbalize the amount so everyone present can hear the amount out loud, and you take the opportunity to instill that “Oh, man! That’s not good!†fear factor into the seller and his entourage.

REI Statement: “$1,100 times let’s figure 5 months, equals $5,500.â€

You will be again writing this down as you say it under the right hand column of the note pad. You will write “monthly payments $1,100 x 5 payments = $5,500.00â€.

REI Statement: “$5,500 plus $30,000 equals $35,500.â€
Again, say this and write it at the same time under the right hand column.

REI Statement: “Typically, taxes and insurance run about two times what the monthly payment is, so I always figure another payment should cover that expense.â€

This isn’t a question about the cost of property taxes and house insurance and I am not waiting for a reply; I am assuming. Again, write as you speak.

REI Statement: “$1,100 plus $35,500 equals $36,600 in costs so far.â€

Write this and say it at the same time under the right hand column.

REI Question: “How much it is worth to move on right now rather than waiting for a buyer?â€

They haven’t thought of this question before and you may have to help them with a suggestion.

REI Follow-up Question: “Is it worth $4,000 to be done with all of this right now? $4,000 is a small enough number.â€

Just wait for them to say “Yes.†They will look at each other and one of them will give in. Just wait. Don’t say a thing until they reply.

Seller Answer: “Yes.â€

REI Statement: “$4,000 plus $36,600 equals $40,600.â€

Once again, write this down and say it at the same time under the right hand column.

REI Question: “Now we are at $40,600 in costs that we can see, and I still have to kill the bugs and repair all the items that come back on the buyer’s home inspection report.â€

Pause…

REI Question Continued: “Have you ever seen a buyer’s Home Inspection Report?â€

Seller Answer: “No.â€

You pause so they can take in everything in that sentence. First you want them to understand that the cost to sell so far is $40,600 and that you are planning to get a home inspection. You build fear of the unknown.

REI Statement: “My goodness, they write a 3-inch book about how bad your house is.â€

This is instilling more fear and discomfort with this statement.

If you have never seen a home inspection done, you should call a local home inspector and ask to witness their next inspection so you can obtain an idea of their thoroughness.

This statement is reinforcing the idea that it is better to sell to you than take their chances on the open market.

REI Statement: “I know that on average I spend about $2,500 in repair items besides termite control, roof certification, wiring the smoke detectors, reaching minimum standard requirements and other usual costs, and that’s just an average.â€

This statement is again building the costs of selling and reinforcing the idea that it’s better to sell to you.

REI Statement: “$2,500 plus $40,600 equals $43,100 in seller costs.â€

Again, write this and say it at the same time under the right hand column.

REI Question: “I take on all of this responsibility and risk so that at the end of the day I can resell the house after I fix it up, and I have to make something and I have determined that my minimum is $10,000. I don’t think earning $10,000 over a four or five-month period is too much to ask for, do you?â€

Wait for the reply.

Seller Answer: “Yes, $10,000 is too much.â€

REI Question: “$10,000 is too much to earn? Really? How much would you consider is fair?â€
Just wait for the answer. Most of the time, they will say $5,000.

Seller Answer: “I think $5,000 is enough.â€

REI Statement: “I never allow less than $7,500 for a possible profit.â€

REI Question: “So if I agreed to buy your house and only make $7,500 profit, that would be acceptable to you? I’m not saying I can do it, but if I could, we would have a deal?â€

They almost always say “Yes.â€

Seller Answer: “Yes.â€

REI Statement: “$7,500 plus $43,100 equals $50,600 in seller costs. If I subtract that from your asking price of $205,000, that leaves $154,400.

Again, write it down as you’re saying it and again use the calculator to do your math.

REI Question: “Therefore, if we subtract the $117,600, the amount you owe, from $154,400, I am putting about $36,800 in your pocket â€" this week if you want. Would that be okay?â€

I’m diverting their attention from the topic of what “I’m†going to get in profits is to what “they†can put in their pocket.

Wait for the “YES.†If you need to, encourage them, ask if they need more time to move and a longer escrow? Don’t ever ask them if they need time to think about their decision.

If they do need time, simply stand up, and tell them that you are going to go make a call in your vehicle, check in with your wife, call the office, something that tells them that you’re going to be right back but gives them a chance to talk. But never put this off to another time, another day. Their desire for “more time†is a way of not confronting this issue. Giving in to their request is certain failure.

REI Follow-up Question: “When would you like to close escrow?â€
Seller Answer: The reply will likely be either, “30 days.†Or “We’re not sure about the price.â€

If they say “30 days,†continue on. If they say they aren’t sure of the price, simply go over the numbers and justify your position.

REI Statement: “Let me tell you how I buy houses, and the terms under which I can buy your house.â€

Absolutely keep your cool with them, but let them know that you’re not playing games. You’re a professional, and this is what you do for a living.

REI Statement: “I offer sellers four options regarding the terms I can offer, and any one of the four are okay with me.â€

I pull out a contract and use one of the blue pens that I mentioned earlier that you should have for your presentation, and start writing and filling in the agreement. I use the blue ink so everyone in the future knows that there was nothing altered on the contract. And using colored ink is your best proof of a non-altered contract.

It also indicates which document is the original in the event you have to produce the original document.

Okay that was the equity presentation. The next presentation is the non equity presentation and to be used on those transaction where there is less than 15% equity. The presentation is on a 3 bedroom 2 bath house that has only five percent equity and has a worth value of 178,000.00.

The following in blue is the same presentation as the equity presentation until the color changes back to black.

REI Statement: “Here is my business card.â€

Again, hand a business card to everyone in the room.

And once again, if there are people at the kitchen table whom you haven’t met yet, introduce yourself to them at this time.

REI Statement: “Thank you for inviting me out to buy your house today.â€

Right from the beginning I am letting them know that I am there to buy their house and that we are going to accomplish that task today. The conversation is already heading in my direction.

Questions: “How did you happen to find our company to call?â€

Seller Answer: “We got one of your postcards in the mail.â€

REI Statement: “You got a postcard in the mailâ€"terrific. I guess it pays to advertise.â€

If they use broken English, so should you. You will want to mimic your seller every step of the way. I always like interjecting with a little humor and my statement of “…it pays to advertise,†does just that.

REI Question: “When would you like to have your house sold?â€

Seller Answer: “We are moving into our new house in a couple of weeks.â€

REI Statement: “You’re moving out in a couple weeks. Oh, my!â€

You will repeat everything the seller tells you, back to them. In the event there is an urgency statement like “We are moving,†and you follow that statement with “Oh, my!†you will be planting fear in the minds of the seller that doom is around the corner unless they agree to sell you their house quickly.

REI Question: “So if I can close escrow on this house within a few days will that be okay for you?â€

Seller Answer: “That would be great!â€

This statement is letting them know that you can solve their troubles.

REI Statement: “Closing in a few days would be great. Fantastic!â€

Note: Again, you’re reaffirming what they say.

REI Question: What do you think the house is worth?

You already know what they want for the house. This question is making sure that they haven’t reduced the price since the first time you asked the question during the telephone interview.

Seller Answer: “We had a Realtor tell us that it was worth $180,000.â€

REI Statement: “You’ve had a Realtor tell you it was worth $180,000 in today’s market, really?!â€

Again, you’re reaffirming what they say. And using “Really!†is putting doubt in their mind that the Realtor may have overpriced the house.

REI Question: “Did the Realtor indicate how long it takes in today’s market to get a home sold?â€

You’re introducing the idea that it could take forever to sell their house.

Seller Answer: “He said it should sell soon.â€

REI Statement: “He said it should sell soon, Humm.â€

REI Statement: “How many houses are on the market for sale in your neighborhood?â€

I am now planting into their minds the fear of competition.

Seller Answer: “There are a few on the street.â€

REI Statement: “There are a few on the street, ouch.â€

REI Statement: “Let me tell you a little about what I do. I buy houses like yours all the time.â€

I assure them right from the beginning that I do this all the time. I always make sure that their only conclusion of me is, I am a complete and total professional, and so should you.

REI Statement: “I pay all the costs â€" including the real estate commission, the title insurance, escrow fees, transfer tax, Natural Hazard Disclosure, etc.â€

As I mentioned earlier, I handle the objections in my presentation, and the biggest objection is who is going to pay what. Most sellers are aware that it costs money to sell a house, however, most do not know exactly how much.

REI Statement: “Did the realtor tell you how much they charge to sell your house when they do find a buyer who is qualified and follows through with the purchase?â€

I am bringing up some major obstacles that the seller may face in the sale of their house while, at the same time, building the idea that I am the right buyer. I am actually patting myself on the chest while saying the words.

Seller Answer: “He said it would cost six percent.â€

REI Statement: “He said it would cost six percent, fantastic.â€

I am using “fantastic†because I am reinforcing the cost to sale as a positive not a negative.

REI Statement: “I am going to take out my yellow pad and write down the numbers we are talking about.â€

REI Statement: “Did the Realtor tell you how much escrow title and some of the other normal seller costs would be?â€

Again, I am bringing up the cost and building anxiety in the minds of the seller about all of the costs involved. When I ask the question, I am not doing it in an upbeat tonality. I have a very sorry, unfortunate, tone about my voice. I want the seller to know how empathetic I am.

Seller Answer: “He said it would be about 10 percent total, six percent for him and four percent for the other costs.â€

REI Statement: “He said it would cost 10 percent, outstanding.â€

REI Statement: “I am going to write the four percent on the yellow pad.â€

As long as the seller is in reality land, somewhere above two percent for seller costs, I will not object to their answer.

If the net to the seller is below what the Subject To liens are, I will end the presentation there. However, if the Subject To liens are less, I will bring up holding time and factor in for that.

REI Question: “Do you have a copy of your most recent payment coupon or statement?â€

Wait for them to get the statement. Even if they blurt out the payoff, still refer to the statement.

This is the first time they have participated in the presentation and it is very advantageous to get them to interact with you.

Seller Answer: “Here it is. It’s from 3 months ago.â€

REI Statement: “It’s from three months ago. That’s okay; the payoff amount won’t be too different.â€

Don’t subtract, or add, any amount to the payoff for recent payments being made. If the statement is within three months old, it is fine to go ahead and use those figures.

REI Statement: “So it says here that you owe $169,100.â€

Write the amount they owe on your yellow pad along with the amount they will have to feed the transaction to sell the house.


REI Statement: “Are you prepared to spend $7,100 to sell your house?â€

Keep quiet until they answer the question. Don’t offer up any small talk. This is a powerful time in the presentation.

Seller: We don’t have that kind of money which is why we can’t use the Realtor to sell.

REI Statement: “You don’t have that kind of money and can’t use a Realtor, ouch.â€

REI Statement: “If I could come up with a solution that will get you out of the burden of the house without coming up with all of this money, not saying I can, but if I could would that be okay?â€

With this statement they have just let out a sigh of relief.

Seller: “That would be wonderful.â€

REI Statement: “That would be wonderful, outstanding.â€

REI Statement: “Let me tell you a little about what I do. I buy houses like yours all the time.â€

Note: I assure them right from the beginning that I do this all of the time. I always make sure that they can only conclude that I am a complete and total professional, and so should you.

REI Statement: “I pay all the costs â€" including the real estate commission, the title insurance, escrow fees, transfer tax, Natural Hazard Disclosure, etc.â€

REI statement: “Does that sound like something that works for you so far?â€

I want them to start saying yes before I get to the important “Yes†questions.

Seller: “Yes that is wonderful.â€

REI Statement: “That is wonderful, Terrific.â€

REI Statement: “Before I arrived today to buy your house I interviewed some of the neighbors and researched some of the house values in the area. I have come to the conclusion that your house is worth about $178,000 if you use a Realtor and pay the normal cost. So the Realtor wasn’t off too much.â€

I am doing three things in this statement. One, I am again telling the seller that I am buying their house today. Two, I am letting them know the price was in reason. And three, that the price is based on hiring an agent to sell the house and having those costs built into the cost.

You must understand, appraised value always assumes normal seller selling costs and you need to be able to communicate that fact to the seller. Also, wait for the seller to acknowledge before saying anything else.

Seller: “We can’t afford a Realtor and those costs.â€

REI Statement: “You can’t afford a Realtor and those costs. Humm.â€

REI Statement: “Do you have your next house picked out, or
do you know where you will be moving?

I am creating urgency again.

Seller: “Yes we have a house picked out already.â€

REI Statement: “You have a house picked out, that’s great.â€

REI Statement: “This is a tough question, what is going to happen if you can’t sell this house?â€

Seller: “We don’t even want to think about that, we need to sell.â€

REI Statement: “You need to sell, really.â€

REI Statement:†Let me explain to you how we can create a win-win situation for both of us. You can move and sell this house without any cost to you, would that be okay with you?â€

Seller: “That would be great.â€

REI Statement: “That would be great, outstanding!â€

REI Question: “I buy houses and I can buy your house today Subject To the existing liens on the house.â€

Again I am letting them know that I can buy their house.

REI Question: “Do you understand what I mean when I use the term “Subject To†the mortgage balance?â€

Seller Answer: No or Yes

Whatever answer they give me, I still explain what “Subject To†is. I do not want them to think it is a formal assumption and mess the deal up later.

REI Statement: “That means that the existing loan will stay on the house. I will begin paying the monthly payment and making up any back payments and pay you your equity. It is not a formal assumption. It’s the fastest and most economical way to get your house sold.â€

REI Statement: “Earlier we spoke about how the cost of a Realtor and closing costs are and we figured into the normal price people pay and earlier we wrote down that the costs could be 18,000.00 dollars rightâ€

Seller: “Yes.â€

REI Statement: “Yes, outstanding!â€

I am collecting my Yeses and when I say $18,000 dollars I am stretching the word and saying it like oh my goodness that’s a lot of money.

REI Statement: “Here is what I am willing to do. I will buy your house today for the amount that you owe the bank. That way you don’t have to come up with money to sell and more importantly you won’t have to wait for a qualified buyer to make you an offer. I can only do this by buying the house Subject To, that is what you want isn’t it?â€

Wait for their answer. Remember, you’re doing them a huge favor by buying their, over encumbered, house. Just wait for the YES… It will come.

Seller: “That’s fine.â€

REI Statement: “That’s fine you’ve got a deal.â€

REI Statement: “When do you plan on being out of the house? I can close as soon as I get a payoff from the lender and you’re out. That could take just a few days, or sometimes three weeks. It all depends on the lender you chose originally.â€

I never let them stay in the house. Never!

Seller: “Three weeks will be fine.â€

REI Statement: “Three weeks is okay, terrific.â€

REI Statement: “We will put 30 days on the agreement just in case. But if we need to close sooner that will be fine.â€

You want as long of an escrow period as possible to locate you a buyer.

REI Statement: “Between now and the close of escrow, make sure to continue making the monthly payments and keep the house in good shape, okay?â€

I will bring this up after they have agreed to sell me the house not before.

[Michael Quarles]

Objections Handlers

I’ve compiled a list of the most common objections and questions that surface in a presentation. Familiarize yourself with these to the point of knowing them cold, so you can rattle them off without backing-off, hesitation or insecurity.

Does the loan stay on my credit?

Yes, it does. Let me tell you how this will actually help you. You told me earlier that you were two payments late on your mortgage; being late on a mortgage payment, as you know, lowers your credit worthiness. By us making the payments on time, we will actually raise your credit rating by re-establishing an on-time payment history.

With the loan staying in my name, does it hurt my credit?

With us making the payments on time, it will actually increase your credit rating. Did you know that when you pay off debt it actually lowers your credit rating? You don’t want that to happen do you? There’s no better way to raise your credit score than to keep on-time, regular payments with your mortgage. The loan remaining in your name will do just that.
Can I buy a new house with this mortgage on my credit?

Yes, you can. There are many lenders that will look at this transaction no differently than if you had a rental property. We will show the new house lender, that we have been making the payments with copies of our payments; much like someone who bought a house with a former spouse.

How will I know that the payment is being made?

We pay all of our mortgage payments at the beginning of the month and you will receive a notice of payment made. One of the steps we take to make sure the payments are always made is to have a reserve fund of four months worth of payments, and we set up these payments to automatically come out of that account. It’s extremely important to us that we honor our commitments.

I don’t want to deal with it. I just want to sell normally.

I understand your concern. If we were to buy your house, by putting our own loan on your property, it would not allow us to pay you as much for your property. I am offering you a solution to selling your home and you making the most amount of money, without it costing you anything to sell your home.

I can just sell it normally?

Yes. You may be able to sell it without someone buying it Subject To the existing loan. However, my offer gives you many more advantages. It…

• pays you the most amount of money.
• re-establishes a positive payment history, or keeps your credit rating from dropping.
• doesn’t require you to bring money in to close the transaction.

With my offer, we don’t have to worry about whether the house will appraise for the sales price.

By buying “Subject To,†there won’t be a lender involved telling us that certain repairs will have to be done before they will fund the financing. This alone could save you thousands of dollars.

You get peace of mind knowing that the borrower doesn’t have to qualify for the loan. I have seen a number of deals that fall out of escrow because either the borrower didn’t qualify or the property didn’t qualify.

With my offer, we can close as fast as 2-3 days from now rather than waiting and having to make another house payment.

What if you don’t pay the mortgage?

It would be extremely foolish for us to not make the payment. We would lose everything we have put into the deal. You will get a notice from us every time we make a payment to the lender so you will know that they are being paid. Our reputation is the only thing we have and I value it more than anything else.

Is it legal to do this?

Yes, it is legal. The lender’s only recourse is to accelerate the Due-on-Sale clause. But it is my experience that they will not accelerate the DOSC. Lender’s have reserve requirements they are obligated to have for loans on properties in which they initiate foreclosure procedures on.

OR YOU COULD SAY THIS:

In fact, it could be argued, once they create a pattern of accepting my payments, they can’t even accelerate the Due-on-Sale clause.

OR YOU COULD SAY THIS:

Yes, it is. In fact, it is the number one method we investors use to help house sellers like yourself sell their houses.

Occasionally, I have sellers who want to confirm that buying “Subject To†is okay and that everything is on the up and up. This is why I use a title company to handle all of the paperwork.

That’s also why I say, “Let’s go ahead and open up escrow and they will take care of everything from there.â€

Why don’t banks want you to buy “Subject To�

When banks loan money at 6% and five years later the interest is much higher, they are losing money. Banks want us to pay off those lower interest rate loans so they can make higher interest loans on the same property, and that just doesn’t make sense.

It isn’t something that lenders want the public to know a lot about. They want us to spend all that money it costs to get a new loan, points, appraisals, title insurance and escrow, to loan the same amount of money on the same piece of property, just at a higher interest rate.

What if the lender does accelerate the Due-on-Sale clause?

It is my experience that they will not accelerate the Due-on-Sale clause. Most of the time when we buy “Subject Toâ€, we are actually better at paying the mortgage than the original borrower, so lenders like us.

If they do accelerate the Due-on-Sale clause, you are at the same place as you would have been if I didn’t step in and buy the house. For me to buy the house this way can only help your credit, not hurt it.

You said your interest rate was higher than today’s interest rates. Ask yourself, why would the lender want their higher interest loan paid off just to lend the same money at a lower rate? It doesn’t make sense, does it?

Why would a lender call in a loan that is in a positive payment status? The answer is they wouldn’t. Lenders are not in the business of calling in loans; they are in the business of making loans.

When will the loan be paid off?

The loan will be paid off either when the property is refinanced or the last payment is made.

Will the loan be paid off when you sell the property?

Occasionally when we sell the property we will pay off the loan, but not all of the time. Sometimes we will manage the loan payments from the new buyer, making sure that the lender gets paid.

I want my attorney/real estate agent to look it over.

That’s a great idea! Let me have their name and I will have my attorney call your attorney. They probably know each other very well.

OR YOU COULD SAY THIS:

That’s a great idea! Please keep in mind, I am here to help you sell your house, I am not trying to trick you or take advantage of you. Do you think I would do that?

Does the insurance have to stay in my name?

Actually, I will have my insurance agent contact your insurance company and work out their requirements. Therefore, I am not sure what they will want. Your policy staying in place is going to be fine.

Can I set a time limit as to when you will have my loan paid off and out of my name?

IF YOU WANT TO SAY “YES,†THEN SAY THIS:
Yes you can, but that may mean that I will not be able to pay as much for your house.

IF YOU WANT TO SAY “NO,†THEN SAY THIS:
No. I don’t buy houses that have loan payoff time limits on them because I just can’t predict the future. I know it sounds harsh, but I don’t want to commit to something that may be out of my control. I know that the terms I have laid out are terms I can honor.
What about the pre-payment penalty, do I have to pay that?

No. Actually, we will ask the lender for a payoff amount including all past late fees, payoff fees, and any pre-payment fees. We’ll assume all of those costs and pay you the difference between that amount and the purchase price.

OR YOU CAN SAY THIS:

No. That is what makes buying Subject To the existing loan so advantageous for you. We are going to assume those costs as part of the sales price. But if you were to sell your house and pay off your loan, you would have to pay those costs.

What about my credit line? I still have some credit available.

We will call the lender and have them freeze the credit line and take the property Subject To the existing amount. Just make sure you void any blank checks you have – just in case.
Note: You can ask them to pay to you the balance of the credit line as a method of taking money out of the transaction. Then freeze the credit line.

[Kevin Kaczmarek]

Wow Michael,

All of this is incredible stuff. I just did my latest round of direct mail and am going to test out the scripts. I printed a bunch of it off today to go through it several times during and after my flight so it sounds natural!

[Dale Osborn]

Mike

Your scripts sound like those given to newly licensed realtors. Did you recently get licensed?

[Michael Quarles]

A loooonnnnnggggg time ago.

[Dale Osborn]

Thought they sounded familiar - was licensed for 10 years then moved on to commercial arena. I even read some of the books with form letters to send out to different sellers. Hope the pointers can by used by Kevin to improve his business!

[Michael Quarles]

There is a difference between the verbal mind frame of an agent and that of an investor so its important to keep the confidence up with the seller that we are the solution over hiring a solution to find us.

[Alisa O.]

Wow Michael Q., this is awesome! I just came across these scripts and find them so helpful. You really took the time to cover different scenarios. I applaud your willingness to help people and be so thorough. Really, Thank you!

These scripts give me hope that I won't forget to ask something important on the phone. I'm not afraid to pick up the phone and call, just find it waste of time to be calling one seller several times to ask questions that I could cover during the first call. It's like a check list. 

What do you do with this information after you ended the call? Do you store it somewhere on your computer so you can follow up if they are not ready to sell? If yes, what kind of system did you come up with to organize it best? 

Thank you for all your input!

[Keith K.]

Originally posted by @Steve Babiak:

I recently assembled a bunch of scripts in this next link:
http://www.biggerpockets.com/forums/87/topics/61286-scripts-for-calling-on-sellers

 Steve, I know this an old post of yours, but I really appreciate that you put this bunch together.  Thanks for your help.

[Karl Krentzel]

Originally posted by @Kevin Kaczmarek:

Does anyone know a great source for phone calling scripts for various aspects of real estate? I just brought a few people on board who will be handling qualified leads and am looking for "Subject-To", "Seller Financing" and "Cash Sales" style scripts.

Great question! Here is a complimentary Script book complete with the scripts I use for wholesaling FSBO, FRBO, Expired, and more. Objection Handling, the Pawnshop Presentation, and more. You can find it by clicking HERE and going to the link in the Marketplace on BiggerPockets!  

Good luck, and check out our podcast and blog for even more info! 

[Phil Strickland]

Nice!  Thanks Karl.  I'm a newbie myself and at this point, haven't decided which strategies I'll be implementing.  

So thanks for the download, looks like you've covered just about all of it!

[David Dodge]

@Michael Quarles

What are the 4 terms you offer the seller?  Am I missing something or did this part get skipped?

REI Statement: Let me tell you how I buy houses, and the terms under which I can buy your house.

Absolutely keep your cool with them, but let them know that you're not playing games. You're a professional, and this is what you do for a living.

REI Statement: I offer sellers four options regarding the terms I can offer, and any one of the four are okay with me.

[David Dodge]

The very next line states:

I pull out a contract and use one of the blue pens that I mentioned earlier that you should have for your presentation, and start writing and filling in the agreement. I use the blue ink so everyone in the future knows that there was nothing altered on the contract. And using colored ink is your best proof of a non-altered contract.

It also indicates which document is the original in the event you have to produce the original document.

Then it goes on to the equity presentation.....  But it does not pick back up with the terms.

Sorry, I don't see where it picks back up after the equity presentation.  

[Nikki Utley]

@Karl Krentzel You are awesome! I'm just getting started, actually went "walking" for dollars today. I came across about six properties that I'm going to research. But I got to thinking, "what am I going to say?" Haha. Thanks again! 

[Ray Sample]

I really appreciate these scripts.  Thanks to all for providing them.  They are a great resource that I intend to use and internalize as I reach out to motivated sellers.