Contractor · Niagara Falls/Buffalo, NY · Member since 2009 · 133 posts · 10 votes
When you receive calls from people wanted to sell their house, what questions would you ask them to get the information you need to anaylze this potential investment.?
The only question that matters initially is "How can I help you?"
You're role as an investor is to filter for motivated sellers, and the phone call is your opportunity to determine if a deal is possible by determining if you have a seller who's hot to go.
What you're listening for are signals they're willing to walk away for little more than what they owe, or are willing to give up tons of equity just to get the thing out of their hair.
And when they suggest terms or a number, you test by asking "Would it help?" questions. "Would it help if I just took over payments?" Would it help if instead of buying, I just leased it from you and maybe bought it for cash in a year or two?"
Again, you're testing for motivation and filtering the motivated from the not-so-motivated.
Do you see why the numbers, at this stage of the game at least, are virtually meaningless? Save the numbers discussions for when you're sitting down and working out the numbers (they can't sign agreements over the phone).
wow. thanks i never really though of it like that. although im not serious right now about getting homes, i just drove around my target area wrote down a few vacant homes. what should i do now>
And when they suggest terms or a number, you test by asking "Would it help?" questions. "Would it help if I just took over payments?" Would it help if instead of buying, I just leased it from you and maybe bought it for cash in a year or two?"
Those are great question, especially for sub's or L/O's.
The 1st thing I've always said after getting their name and number ( in case the call drops :mrgreen: ) is, "Tell me 'briefly' about your property and why are you needing to sell quickly"
I want to pre-qualify them as quickly as possible, I'm not one to waste a lot of time on the phone if I don't think its worth moving forward in the 1st 60 seconds.... Some may disagree with that but I've got better things to do with my time then to chase non-motivated sellers.
now of course I'm talking along the lines of Sub2's, once I've decided that it's worth 5 more minutes of my time I'll ask about their mortgage:
lender, type of loan, % rate, length of time in loan, PITI, ballon date, adjust date.
I believe in Sub2 investing the mortgage is as important as any other aspect of the strategy simply b/c it revolves around the mortgage numbers
I'm not sure if that was of any help, but I decided to cut it short of rambling on.
Matthew...............quit being 'not serious' and join the darkside!!
we've got cool-aid :mrgreen:
By not serious, i mean not ready. My passion is Real Estate. i think about every second of the day. i cant drive down a street without looking for properties and such. I'm in a briefing phase i guess you could say. Im trying to learn as much as possible so when its time to play with the big guys, im ready. Trust me, you'll see my name alittle more often once i get started in this business. gotta walk before you can run!!!
no stress..................by your avatar and the way you used 'briefing' in your post I'm going to guess you are either active or have served your country..........
"Would it help if I just took over payments?" Would it help if instead of buying, I just leased it from you and maybe bought it for cash in a year or two?"
I'm confused (I'm very new to all of this) are you saying you want them to say YES to those questions, or NO?
If you want them to say yes, what do those options entail exactly? How do you "take over someone's payments" and how does that benefit you? What is leasing a house?
Listen to Joe!!! He is giving you the key to the vault.
I can find distressed properties all day long, but until I find distressed owners with a problem that I can solve II don't start thinking about payday.
Most new investors qualify based on property questions, My property questions are designed to get info on the sellers. As Henry Kaiser said, find a need and fill it..
One more thing, about crawling, walking, and then running. Most newbies only think of crawling instead of actually doing it. Or they don't want to start until they can run, which is never if you haven't crawled and walked..
My first crawling question to leads when I started. was "what do you think I can do for you, tell me, and maybe we can work something out together". No big commitments and, no big promises. but it got me started,.and the line "let me work on that for a while.and see what possibilities I can come with.for you".
thanks thats great information joe and brian. I want to start but i know i dont have enough knowledge and credit under my belt to do it yet. so as i build both im just trying to further my knowledge.