Calling back unmotivated seller..?

Question

Cassio De almeida · Answer

@Gino Barbaro

Hi Gino,

Thanks for the advice. I called back the lead today and got the address. I didn't ask many questions because I froze up. I am going to  drive by there to take a look at it without them knowing, but it sounds like they might want full price...

I am going to try and run the numbers on one of the calculators, because I still think this would be a great investment property if anyone wants to buy and hold it. I know if I had the money I would, even at retail.

Account Closed · Answer

Always maintain positive relations. Maybe they will sell one day if not its Always good to be nice :)

Trent Kruessel · Answer

@Cassio De almeida

I sent out 15 letters.  Just typed out in professional format.  I only talked to the one person but that's a 6-7% hit rate lol.  I'd qualify that statistic with the fact that I'm living and investing in small towns where the normal process of buying/selling homes are with real estate agents.  I could possibly be the only independent investor in the tri-county area.

Cassio De almeida · Answer

@Trent Kruessel thats good stuff, you will get there with more practice.

I'm curious, how many mailers did you send and how many people did you talk to?

-Cassio

Gino Barbaro · Answer

@Trent Kruessel

Hi Trent

It is your job as a professional to educate the seller why they would make more money with your creative financing and let them judge.  You need to provide solutions to the sellers problem, bottom line.  Most buyers have no idea how to approach seller financing.  A prospect cares zero about you, only about himself and how to solve his problem.  Hopefully your product will solve his problem and will lead to the sale

Gino

Trent Kruessel · Answer

@Cassio De almeida

I had the same thing happen to me last week and I am very new at this so take my advice at newbie-worth.  I got a call from my first round of direct mail.  I called back without a script and got the address, reason why they were selling (moved to different neighborhood), and scheduled a walk-through.

While at the walk-through, they said they have a mortgage on the property but didn't want to disclose any information and were not interested in Subject To or any creative financing techniques (which was a bummer because they could have made more money that way).  They said they just wanted the mortgage to go away.  They want $115,000 and I followed up a few days later with my offer (after analysis and preliminary due diligence).  I offered $53,000.  The house is worth ~$76,000.  I knew before I made the offer that they would not be fond of it, they were not motivated, but it would be good exposure and practice for me to get over the nerves of offering over the phone, doing the whole walk-through, asking questions about the property, their motivation to sell, what they think its worth, pitching/explaining Subject To, and all that.

Rambling aside, I agree with @Gino Barbaro about having a script and being prepared.  Try not to be affected by the sellers emotions and don't be afraid to offer the number that makes sense for you because you never know -- the sellers may have motivation they just aren't showing or talking about.

Trent

Cassio De almeida · Answer

@Gino Barbaro thanks, I will work on that so I can be better prepared for next time.

@Jack Baczek thanks, I'll keep that in mind.

Gino Barbaro · Answer

@Cassio De almeida

Hi cassio

Next time, prepare yourself a script and don't be afraid to read off of it.  Don't sound like you're reading, but make sure to hit all your points.  Once you become proficient, you won't need one.  But when you start, it's always a good idea.

Here is my elevator script for buying apartments:

I am an investor in the Knoxville, TN area and I am looking to purchase apartment buildings in your market. We like to buy B and C type properties that contain between 30 to150 units. We like to buy properties that have at least a10% cash on cash return and a cap rate of at least 8. We specialize in purchasing apartments that are run by mom and pops, which allow us to add value and increase the cash flow.Would you have any properties that fit this criteria?

Gino Barbaro · Answer

@Cassio De almeida

Hi Cassio

What do you have to lose with a follow up call to get the address.  if they refuse to give an address, then move on to the next listing.  You never know, they may call you again when they receive another letter

Gino