Got a response to Direct Mail..Now what?

Question

I sent out 100 yellow letters and apparently they hit today because I got two calls from free and clear homeowners.  Both seem like they are retirees

One said that her home is 'ugly', she owes $20K on an insurance loan, and would like downpayment for another house.  The tax value shows $130K and I am working on comps.

The other said that her house is in great shape, and that she and her husband just want to sell it.  I'm not sure how motivated they are.  The tax value is about $190K.

I have appointments to see them both this weekend and this is the first time I have done something like this.

I was wondering about suggestions on how to approach these people?  For the first I am thinking about a low offer/wholesale/flip kind of offer, and maybe the second would be interested in some kind of owner financing.  Anyone got ideas?  Thanks for the help.  I'm going to be nervous.

Chris Clothier · Answer

Hal -

I love the post.  That is awesome.  FYI - I took a mentor the first time I met with a homeowner I was so nervous.  That was 10 years ago in Colorado.  I can tell you this much without knowing anything about the situation.  What has always made me successful is that I have never lied or pretended to be someone I was not.  Meet with the owners and have your facts together on the value of the properties and the activity in the area.

They know you are an investor from you letter, but let them know very early on that you do not pay retail and you are in the business of purchasing property at substantial discount.  Let them know that you in no way want to offend them, but you would like to make a fair offer for them and a fair offer for you.

From that point, it is all about the condition of the property and the research you put into the properties on the front end.  I always made offers when I visited the owners, but I had to eventually give that up.  I spent way too much time talking to owners about their personal stories and learning about their cats.  It made them like me, but i spent a lot of time!

So do your homework, be honest and be prepared.

I am sure you will do great.

Chris

William R. · Answer

Hal Cranmer, I know this is an old post, but how did your meetings turn out?  Are you still using direct mail?

Bernd Knochenhauer · Answer

Hal; glad to hear about the responses.
Just starting out and your questions and the feedback are help me. Have to get over my nervousness and ask similar questions on BP. Thanks

Matt Kearney · Answer

Hi Hal,

Good work on taking action and getting your marketing out there.

The first lead sounds like it could be a good deal. Meet the seller, build some rapport and ask questions to get a better handle of her situation; Just how much does she need for a downpayment on her new house? Why is she looking to move? Is she motivated? etc... These are the types of questions you want to know the answers to.

Once you know what she is really looking for and what is motivating her to sell you can better formulate your offer.

Best of Luck

Hal Cranmer · Answer

Chris and William,

Thanks for the replies and the confidence boosts.  I am running comps on the properties and am working on my bottom line numbers to offer.  I would like to (ideally) flip the first one and lease option the second one, so I will have a plan going in.  It sounds like the best thing is to listen to their situation and try to find a solution.  I told them both on the phone that if we can't come to a solution that works for both of us, we could just part as friends.

For the fix and flip, all I should need for paperwork is a purchase agreement right?  Anything else you suggest?  I will also have a lease option agreement for the other one.

William McGarry · Answer

Hal,
I agree with Chris 150% on his post. Very well said Chris.
You have heard the statement "if you fail to plan, then you plan to fail" I am sure....so, with that in mind, I would define your goals. What are your goals and what are you hoping to accomplish by going out to these two homes? From there, you can build your plan, do your research, and make sure that you have some sort of value for these homeowners. Understand that they don't care about you, they care about themselves and your job is to in someway, shape, or form, provide a solution to the problem or potential problem these people have. Great reponse on your mailing though!

Got a response to Direct Mail..Now what?

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