BiggerPockets

What I usually do is not take the initial callback and on the voicemail figure out who it is so I can research the property. After I run my numbers I can't exactly put a number on the house but can say "we typically pay around $70k-$80k for homes in your neighborhood." That number is usually 70% of ARV less a generous amount for possible repairs.This way I weed out the ones who want top dollar. If they don't hang-up on me or laugh I have something to work with. If they do, just saved me a bunch of time. At the beginning of the call I talk about the condition of the house and why they are selling to break the ice and get them to chill out a bit.

I agree with the above posts. Get to know your market, but in reference to what questions to ask, a typical evaluation sheet would look like this...

1. Why are you trying to sell this property?

2. Address (also ask for a subdivision name if applicable)

3. Number of bedrooms _____
4. Number of full baths _____
5. Number of half baths ______
6. Year built ______
7. Basement? Is it finished? Is it a walk-out?

8. Number of levels (always ask if they are including the basement in this number)

9. Is there a garage? For how many cars? Is it attached or detached from the house? If there is no garage where do they park their car (carport? Street? Driveway? Assigned in parking lot?)

10. What repairs need to be made to make it ready for a new homeowner?

11. What updates or upgrades have been made to the home within the last 5 years?

12. Whose name is on title?

13. What is the monthly rent you need if we were to lease the property ?

14. How much money do you need for the property?

15. Is the property vacant or occupied?

16. What is your email address?

17. What is a good call back number?

18. What is the mortgage balance?

19. What is your monthly payment?

20. Are you behind on payments?

21. Do you need all cash or could you have someone take over your monthly payments?

Hey thanks everyone for the feedback. I'm thinking that I will do a soft prequalify over the phone by asking them why they are selling and possibly telling them a price range that I'm willing to pay. The low end would be my buy to flip price and the higher price would be buy to hold price w/ terms. If they continue to speak to me and want to set up an appointment after that, I will then make the time to meet with them to build rapport, learn about their situations and do my best to make a deal.

I am not sure I would give them any indication of your offer without first getting to know them. I also would not throw out scenarios until you understand their situation. I always tell that I have no idea what I can offer until I understand their goals first. By issuing a ball park number upfront will turn them off and you can expect hang-ups. Just ask them if they will allow you to come visit them for a free consultation. This method has been the most successful for me.

We spend anywhere from $3K to $5K a month and get about 75 to 100 leads. If you are getting a 10%+ call rate from your marketing that is astonishing! We average a 1 to 2% call rate. But I think you may be right as I have never marketed to multi-unit owners and they maybe more inclined to call.

I understand the inefficiency aspect of having to go on every call. I was that guy too. I solved the problem by hiring a "Buyer". My Buyers sole purpose is to attend appointments and make offers. He does nothing else and is a hired gun to make deals happen. His job also is to get leads from either the seller and/or the neighborhood he is cruising through on his way to and from the appointment. We pay our Buyer 10% of the new profit and give him incentives and bonuses for performance.

But back to qualifying over the phone. I just won't do it. These people are in a bad situation and they need help. They don't want to hear a guy who never seen their home or looked them in the eye tell them he can't buy their home. Who does it benefit to do this over the phone. Only you. Not the person who needs to sell. And as I said earlier, your business will never gain any respect if you make offers over the phone.

Just my two cents...

Some good ideas up there.

Why not

Identify the property with the equity you're looking for

Knowing the area, you shouldknow what price range it should be

Drive by and see what it's like

Send your letter, but now one that is more tailored to the particular property.

Give it three days and followup with a cold call.

Seems to me that sending 600 out is a little over the top that puts you in a position to work your tail off. If that's the system you want to use, why not do a hundred and work those, then move on?

Overloading your .....self might mean you're missing deals. People call you, you put them on the back burner for one reason or another, they get ticked and move on, when you get back, they are no longer interested in what you have to say!

Never invite more customers than you can service. The shotgun is great for a turkey shoot, it's not a good way to direct your marketing to acquire homes, IMO. I can get more quality leads without wasting time in answering ugly house ads! IMHO

Chris those 6000 postcards how much all that cost you?were these to just absentee owners? I know a guy that sent out 8000 of them and made over 78k on one of those

Can't help you with direct mail, I never used it. Your response will depend on how well your present yourself.

I use to do cold calls and I enjoyed it, it was a high point of my day. Generally five calls got an appointment and I averaged a deal of somekind out less than five appointments.

That's what you can get when you don't use a shotgun, but an arrow and indentify the market. I could pull about a 50/50 appointment for pre-foreclosures.

Keep in mind that my approach was much different than what investors use today within a particular strategy to acquire a property, that I could switch hats for various options.

Very hot leads, but a cold call! While times have changed, the basic situation still exists, motivated sellers, owners in trouble. Present yourself as a problem solver first, then go with the flow and do what needs to be done for a win-win. You can't win them all, but you can get very close.

Tony -

I think when you are new it's very important to talk to every seller that calls. Think of that first call as an "information gathering call." It's great practice and it will help build your confidence.

I use a form each time I talk to a seller. I have all the questions on mine that Lafi has on his plus a few more. This guarantees that you won't forget to ask something important.

After getting your information, then tell the seller you will need to do some research and you will call them back. This will buy you some time.

Sellers often throw out a price that they don't really expect to get. Don't be put off by that initial price.

Remember that great deals are usually made - not found.

I have great luck with direct mail myself. It's my primary source of leads.